ASKARI COMMERCIAL BANK internship report

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“Banking means the accepting, for the purpose of lending, or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise.”

“Banking companies mean companies which transact the business of banking in Pakistan.”


“The commercial bank receives surplus money from the public and lend to others who needs funds. Bank collects cheque, bills of exchange etc from customers. It transfers money from one place to another. It provides agency and general utility services. Purpose of commercial bank is to earn profit.”



The banking sector has witnessed a dramatic change during the last ten years with the development of Askari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players.

The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations in April 1992, as a public limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times.

While capturing the target market share amongst the view banks, Askari has provided good value to its shareholders. Its share price has remained approximately 12% higher than the average share price of quoted banks during the last four years.

Askari Bank has expanded into a nation wide presence of 83 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 800 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2004, the Bank had equity of Rs. 6.016 billion and total assets of Rs. 107.168 billion, with over 475,000 banking customers, serviced by a total staff of 2,118.

Askari Bank is the only bank with its operational head office in the twin cities of Rawalpindi-Islamabad, which have relatively


created its own challenges and opportunities, and forced as to evolve an outward-looking strategy in terms of Askari market emphasis. As a result, Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore, where most other banks have their operational Head offices.


While successfully penetrating the key domestic markets through strategic expansion and business diversification they remain alive to the challenge emanating from the development in the global financial markets; the opportunities and threats engendered by greater deregulation and increased customer expectations. These provide them the impetus (moment) to make the best use of available resources, including modern technologies, to meet the challenges ahead.

Historically, Askari’s core marketing focus for its asset base has been the middle and upper middle business houses (including wholesalers and manufacturers) operating in the large urban centers of Pakistan, which are primarily oriented towards foreign trade. This segment constitutes significant revenues to the bank. The liability side remains focused on the middle and upper middle class retired and serving government and armed forces personal and mid-size business houses.

Their corporate banking division was established in April 1999 with the primary focus on servicing large corporate and multi-national companies (MNCs). Benefiting from the bank’s growing


balance sheet size, this division B now gaining momentum and their long-term aim D to develop it into an independent.

Strategic business unit (SBU)… This would the bank to acquire, develop and specialized abilities, and enhance their focus on serving the emerging needs of the corporate clients.

With this branch network of 75 and further expected increase in future, the ATM’s facility and internet Banking, Askari Bank’s reach is ever increasing. In recognition of this reach, they have set up a retail-banking group in July 2000, the mobile ATM’s facility is first time started by Askari commercial bank in 2005 dedicated to serving the urban consumer market; Askari is committed to aggressively market this segment. The strategy is to provide their customers with a basket of innovative products to meet their varying needs.

Askari Commercial Bank is the only Private Sector bank that has been approved by the World Bank as a Participating Financial Institution for the US$ 200 million Line of Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector Deepening and Intermediation Project.

Askari's emphasis on further broadening its core foreign trade business translated into handling a higher volume of Export and Import business of Rs. 36 billion registering a growth of 42% over the pervious year. This enhanced foreign trade business was secured due to excellent customer services and efficient international settlement arrangements with our correspondent banks.


Askari Bank is operating throughout Pakistan. Most of the branches are connected through our State of the Art, On-line Communications Network, which gives the bank a competitive edge in providing instant services to its clientele. We also offer direct access to the latest Foreign Exchange Rates through our Online Communications.



THE BANK BASICALLY WORKS UNDER THREE GROUPS NAMED AS 1) Corporate banking and financial institutions group

2) Retail banking group

3) Operations and credit group.




This Group is responsible for serving the needs of large corporate clients in public and private sector, managing correspondent banking relationships and undertaking money market transactions. The Group is organized in three divisions namely

 Corporate and Merchant Banking Division,  International Division

 And Treasury.


This Division is engaged in provision of financing facilities to large corporate clients including multinationals. Principal activities include syndicated loans, guarantees, and working capital finance, underwriting and advisory services. The Division has played an important role in providing development finance for the modernization and expansion of the country's core industries. Credit risk is well diversified with exposures in sectors like fuel & energy, chemicals, textiles and fertilizers. Three units have been set-up at Karachi, Lahore and Rawalpindi for sales and operations,



Mainly responsible for managing correspondent banking relationships and planning overseas operations, the Division plays a vital role in extending foreign trade transactions support to the branches. The Bank became a member of SWIFT in the Year 2000 and is also a contributor to the equity of Pakistan Export Finance Guarantee Agency Ltd With a network of 167 correspondents spread over 95 countries worldwide, the Bank continued to reinforce its leadership position in trade finance, transacting business of over Rs. 70 billion, during this year. Through the concerted efforts of this Division, we are a participating Bank under the "Pakistan Trade Enhancement.

Facility" of the International Finance Corporation, and our customers are entitled to avail of the "Political Risk Guarantees Scheme" extended by the Asian Development Bank.


Responsible for managing Bank’s liquidity and foreign exchange transactions, our Treasury in one of the most active in the market. Through reported transactions, purchase of Government paper and foreign exchange trading, the Division adds substantially to the Bank's sustained earnings.



Retail banking group was formed in 2000, this group is responsible for serving the needs of the retail market. Focusing on individual consumers and small and medium size enterprises, for purpose of


product differentiation, the group is managed in three business arms.

 Investments products unit,  Asset products unit,

 And the credit cards division.


Responsible for developing and managing brands which serve the investment needs of the consumer market, this unit focuses on deposit mobilization, provision of value added services based on modern technology and undertaking the centralized marketing and advertising for the Bank. This unit is also actively involved in the acquisition business and has signed-up over 300 merchants nation-wide which offers shopping discounts to the Bank's Privilege Card members.

Askari Bank's Value Plus is a unique deposits account, which offers handsome monthly profits, accidental insurance cover, partial liquidity on all time deposits and free Privilege Card membership. The Unit is also administering the sales and distribution, including arrangement for strategic partnership alliances for Askari- i-Net Banking, the first internet banking in Pakistan, which allows routine banking transactions from any where in the World, round the clock, over the internet.


This Unit is engaged in the development and management of retail credit schemes. The consumer market in Pakistan has not only


this segment have become extremely diverse. In order to sustain competition, it is but imperative to continue offering innovative consumer credit schemes. With the launch of Askari Bank's Personal Finance an Askar (auto-loans), this unit is emerging as a significant contributor to the Bank's loan growth. The unit also administers the first e-commerce banking solution in Pakistan, under the brand name ASK-IBL online. This is a b2b automated credit transaction module, offering merchandise credit to retailers on goods purchased form one of the largest distributors n the country. Strong collection and prudent risk management policies have restricted delinquencies to very low levels.


This Division manages Askari Master Card brand and is headquartered at Karachi. With a new fully automated transaction processing system, the brand was re-launched in 2001, supported by an aggressive advertising campaign and strong sales team network. The product now has portfolio of nearly 20,000 cards, in less than one year. The brand is accepted worldwide and over 3,000 locations in Pakistan.



A support function group mainly responsible for development of systems and procedures, process re-engineering, automation and credit management. The group is organized in three divisions,


 System and operations division  Electronic technology divisions  And the credit division


This group has been instrumental in development of procedures and manuals for various operating requirements of the bank. After careful mapping of the existing process flows, the division recommends automation and re-engineering requirements. To improve transaction efficiencies. The division is active in providing equipment procurement support and development of new branches. The protection of fixed assets of the bank is also managed by the by this division, as directs function. During year 2001, the division has proposed several cost cutting initiatives based upon improvement of our existing procedures and documentation reduction. Seven new branches have been opened during this year. The division successfully implements the model branch concept during 2001, which has been proved to be a milestone towards improving our customer service standards and achieving process uniformity with optimum resource utilization.


This division operates as the backbone for all operational functions in the bank. Responsible primarily for the development of banking software and provision of computer hardware to all business units, the division also engaged in the development of technology based


bank in playing the pioneering role in offering Internet banking service e-commerce solution and on-line banking. The division provides online real time branch connectivity and has full-automated transaction processing support programmers in the place. The division is focusing on use of data-warehousing technology to enhance the relationship management program of the bank.


Providing extensive support to branches for credit administration, control and monitoring, the division has played a pivotal role in helping the bank achieve a remarkable loan

Growth of 31%, with well diversified risk exposures. Most of the loans are of shot -term trade financing on a secure and self-liquidating basis. The division has a special assert management team, which is responsible for ensuring low ratio of bad debts, effective monitoring of delinquent advances and close follow-up of recoveries. Bank's head office credit committee, reviews the credit quality and pricing on regular basis not only to ensure healthy credit growth but also the management of bank's risk assets in almost prudent and profitable manner

Taking into account the expanding branch network and the increasing customer base, credit administration was strengthened by decentralizing the delegation of lending authorities at the regional and area management level.

The decentralization has benefited the bank and its customer tremendously as the new arrangements now provide for faster


credit delivery, focused credit development, and more effective monitoring and controls. Further steps are being taken to streamline credit appraisal procedures and training to credit officers at all levels.


Strategically, perhaps the most important division at the head office is responsible for human resource management, including recruitment staff training and evaluation. The division also handles matters relating to administration. This division operates on future oriented strategy focusing on employee’s personal and professional growth.

Staff development activities are geared to enhance their capabilities for applying the knowledge and facts towards development of practical situations. Under our human resource management policy, we develop and groom our management personal for positions of greater responsibilities analytical, interpersonal, conceptualized and specialized skills to enable them understand cause-and-effect relationships and to think logically.

Staff is given on the-the -job as off-site training in diverse areas of banking and management. Our hiring philosophy is based upon meritocracy and selecting the right person for the right job. We lay greater emphasis on employee’s honesty and integrity besides technical competence. Candidates are selected through well defined and systematic selection procedure.


Responsible for bookkeeping and accounts, this division at head office, prepare all financial return and the MIS through its management-reporting wing. The division is actively involved in preparing market comparative analysis, consolidation of bank's budgets, its monitoring and constant review of various financial indicators.

Finance division works as the backbone for the bank's operations. The division, which reports directly to the president and chief executive of the bank, has been instrumental in preparation of banks business plans and future strategies. The budgetary performance are constantly reviewed and through a sophisticated " monthly performance report” which is a computer based program, the division provides feed back to the senior on strategic issue like reasons for budgetary variance and methods to arrest negative performance factors.

Preparing the bank's annual accounts and coordinating external audit is also a direct function of the finance division. Through the dedicated efforts of staff at this division, the bank has been winning various awards foe the best presentation of the annual accounts and also the management has also been able to monitor and review the bank's performance in proactive manner.


The audit division reports directly to the board through the executive committee, which is also the audit committee. The audit division is completely independent of the management and is responsible for checking and reporting on the management


compliance with the boards policies and directives, as also the prudential regulations and other directives of the SBP. However their role is not intended to just that of fault finding; but also guiding and assisting branches in improving their operations.

The division is responsible for evaluating every aspect of the bank's operations with the goal of improving the effectiveness of risk management and internal control. There is also a regional audit function attached to each area office; the nature of this business is of more quality assurance rather than strictly audit. The regional audit report to the area manager, and assist them in ensuring that there is proper compliance with all the relative directives, and also that customer service standards are maintained and improved, at the branches in the area.

The system of regional and area offices has been introduced since 1999 for effective supervision and control of branches. The scope of the system also spans the development and management of bank's business and activities, on a regional basis.

The bank's branch network has been divided into 6 regions:

1) North region

2) Comparison of Islamabad and Rawalpindi area and the north area.

3) Central region


6) West region

A process of effective decentralization has been implemented, with delegation of authority and greater responsibility and accountability. Under this system the regional heads have the primary responsibility for business development, profitability productivity, operational efficiency and credit quality.

The system helps the customers through quick decision-making and fast product delivery. It has now enabled the bank to further






To be the leading private sector bank in Pakistan With an international presence,

Delivering quality services Through innovative technology An effective resource management In a modern and progressive organization

Culture of meritocracy, maintain High ethical and professional standards,

With providing enhance value to all our stakeholders, And contributing to society


To be the leading bank in the region...


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

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



As Askari Bank looks ahead to the future by moving through the decade of the 1990's its efforts are guided by a broad framework of corporate objectives, which are as follows:

 Askari is committed to its identity of " security & trust " and will endure to uphold this image at al the times.

 It will endure to provide its customers with as many creative financial services and products, as is required. As today customer demands a package of services suited to his particular business, Askari plans to develop different and new products to cater to the customer's demand. Askari bank has they strength to be a market leader.

 Bank will keep standing and by and develop, its human capital base. It is planning to provide all the required training to its staff towards achieving a higher level of professionalism. Askari will continue striving to build a strong, motivated and dedicated work force where total commitment will be towards customer's satisfaction and wealthy growth of organization.

 Askari bank will endure to provide a competitive return to its shareholders and will strive to maximize its share value. The enhancement in its capital and returns will be a continuous process. Askari bank is interested in being one of the most financially viable institutions. So it lays great emphasis on gradual building up to a healthy deposit mix. In the years ahead, the bank will enhance its focus on growth through operational efficiency, creating strategic alliances developing


enhancing marketing and sales efforts improving customer service, achieving greater employee motivation and providing the best value to its stakeholders - will make it a leader in the corporate world.


These objectives and guiding mission will be achieved through • Focused objective

• Winning as a team • Excellence in delivery • Relentless quality • Upward rising sales



Askari code of business principles is to:

• Deliver solutions that meet customers financial need; • Build and sustain a high performance culture;

• Build trusted relationships with all shareholders;

• Build and manage the bank’s portfolio of businesses to achieve strong and sustainable shareholder returns; and • Create and leverage strategic assets and capabilities for

competitive advantage.


“The Challenge... to bring a dream to life”

From knowing Askari customers' requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders' value to practicing corporate ethics, Askari is continuously and consistently striving to address newer challenges with a single motivation - the power to inspire and be inspired. Organizational goal and strategy define the purpose and competitive techniques that set it apart from others organizations. Goals are often written down as an enduring statement of company intent.

A strategy is the plan of action that describes the resource allocation and activities for dealing with the environment and for reaching the organizational goal. Goals and strategies define the


scope of operations and the relationship with employees, clients and competitors.

With over 14 years of experience in trade finance and an extensive international branch network, Askari Commercial Bank is committed to help the customer succeed in every competitive environment. To keep pace with changing needs, ACBL constantly review its comprehensive cash, trade and treasury products and services, ensuring that a full range of flexible and innovative services is always available for the customer wherever they trade.


"Before we discover, we must explore"

Knowing Askari customers and their needs is the key to Askari business success. Askari products and services are structured to touch and improve the quality of lives of all segments of society. Service quality standards are designed and monitored to ensure a consistent and convenient customer experience. Askari client relationship managers are well equipped and well trained to provide most efficient and personalized service to each and every customer. Askari products and services are as diverse as Askari market segments. Askari have structured and syndicated financing arrangements, working capital finance, BalancingModernization -Replacement (BMR) facilities, financing of international trade, consumer credit, small business loans, credit cards and unparalleled investment products for the individual saver. Askari Bank is proud of the pioneering role in providing the most modern technological services to its customer base, which today exceeds 150,000



"Unusual effort on part of the employees who are apparently ordinary workers is one of the key indications of a superior


Askari staff is Askari most valuable asset. The human resource philosophy at Askari Bank focuses on multi-talent hiring, professional grooming, requisite training and meritocracy based reward system. Askari lays great emphasis on the development and nurturing of "Askari Culture", a cohesive teamwork, where each relies on the strength of the other and together they achieve common objectives.

Staff welfare has always been a priority. New initiatives like hospitalization plan, car buy-back facility and home loan insurance have added new dimensions to the staff-care policy and motivated them to out-perform Askari competitors.

Employee productivity enhancement is organized through extensive in-house and external training programs. Askari continue to offer opportunities for people to develop their knowledge, skills and personalities, thus ensuring greater self-fulfillment and progression in the organization.



"Modern science is not an option, it is an obligation” Technology is rapidly changing the way Askari think, act and does business. It has played a pivotal role in enhancing customer expectations, particularly with respect to speed and quality of service.

Askari enjoy a strategic competitive advantage over all domestic players by virtue of Askari leadership in technological innovations. Askari have fully automated transaction-processing systems for back-office support. Askari branch network is connected on-line real-time and Askari customers have access to off-site as well as on-site ATMs, all over Pakistan.

Askari Phone Banking service and Internet Banking facility allows customers to enjoy routine banking services from anywhere in the world, 365 days a year, 24 hours a day. Askari have also pioneered commerce venture in Pakistan through a major retail distributor.

Askari qualified and experienced technology team is now focusing on data warehousing to enhance the Customer Relationship Management (CRM) program



"Professionalism without integrity is like a book without pages"

Because the right may not always be obvious, Askari must be guided in every action by a set of well-defined values, governing Askari decisions. Askari understand that its commitment to satisfy customers’ needs must be fulfilled within a professional and ethical framework. Askari subscribe to a culture of high ethical standards, based upon development of right attitudes. The following primary core values provide the guiding principles for Askari corporate behavior:

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

As part of Askari internal communications program, these core values are inculcated in Askari employees through internal memos, posters and most importantly leading by example.


"The greatest of life's pleasures are shared"

• Askari role as a responsible corporate citizen is as important to ACBL as the products and services they offer.


• Askari have made useful contributions in the areas of sports, culture, poverty alleviation, health & medical sciences, education and scientific research.

• Askari was one of the co-sponsors of the 9th South Asian Federation Games, held at Islamabad in the Year 2003. Askari have also sponsored various sports tournaments at both amateur and professional level.

• Askari contributions to the NGOs dedicated to the treatment and welfare of the blind is a ray of hope in the darkness. Askari have made donations to the drug-addiction control programs and Askari efforts to help support Aids Awareness programs and contributions to the mental and social welfare of women and children have won much acclaim.

• Askari participated in IUCN Water conservation initiative and have helped in creating better understanding about the country on the international platform by cosponsoring the first interactive encyclopedia on Pakistan.


"There is no sin punished more implacably by nature than the sin of resistance to change"

Askari live in a moment of history where everything is changing so fast that Askari begin to see the present only when it is already disappearing.

Askari customer needs are changing and their expectations are growing. Technology is fast proliferating the distribution channels and now banking services can be accessed from multiple


contact points. Askari believe that balanced growth is the key to survival in today's global banking environment.

From a humble beginning with just 7 branches in 1992, today Askari enjoy a network of 73 outlets in Pakistan, spread across the country. A network of self-service ATMs supports these outlets.

Askari total assets now exceed Rs.50.9 billion and Askari have over 17 products and services to match Askari customers' individual needs. Bank's equity base stands at Rs. 2.58 billion with 20% growth over the last 5 years. The human resource capital of the bank today exceeds 1,200 employees. As part of Askari growth strategy Askari is now extending Askari banking services to the remote and rural areas.


"Winning isn't everything, it's the only thing.”

Amidst tough competition, Askari efforts to go an extra mile in providing superior services to Askari customers have been acknowledged at the national as well as international levels. These acknowledgements serve as a great source of encouragement and appreciation at one hand and inspire ACBL to perform even better, on the other.

The Global Finance Magazine has honored Askari with the “The Best Bank in Pakistan” award. Askari won the Euro money and Asia money awards as early as 1994, 1995 and 1996. Askari


the prestigious "Best Presented Annual Accounts" award from the Institute of Chartered Accountants in Pakistan, and The Institute of Cost and Management Accountants, Pakistan, for the services sector, for 2000. Askari have also received prizes during the last four years from the South Asian Federation of Accountants (SAFA) for the "Best Presented Annual Accounts" for the financial sector, in the SAARC region.

Askari was the first bank in Pakistan to offer Internet Banking services and b2b e-commerce solutions for merchants looking to purchase on credit.








Executive Committee

President and Chief Executive

Internal Audit

Corp. Banking & Fin. Inst. Group

Operating and

credit group Regions

Retail Banking Group

Credit Cards

International Credit Rawalpind i/Islamaba


Asset Products Planning and Corporate affairs Treasury Electronic Technology North Investment products Human Resource Corporate and Merchant Banking Systems and

Operations Lahore Finance

Data Reporting East

Legal Affairs South I



Board of Directors

Lt. Gen. Waseem Ahmed Ashraf Chairman

Lt. Gen. (R) Masood Perwaiz Chairman Executive committee Mr. Kalim-ur-Rehman President & Chief Executive Brig (R) Mohammad Shiraz Baig Director

Brig (R) Muhammad Bashir Baz Director Brig (R) Asmat Ullah Khan Niazi Director Brig (R) Mohammad Safdar Ali Director Mr. Javed Ahmad Noel Director

Mr. Zafar Alam Khan Sumbal Director/Secretary Mr. Shahid Hafeez Azmi Director

Mr. Mohammad Afzal Munif, FCA Director

Mr. Tariq Iqbal Khan, FCA Director (NIT Nominee)

Audit Committee

Mr. Muhammad Afzal Munif, FCA Chairman Brig (R) Muhammad Shiraz Baig Member Brig (R) Asmat Ullah Khan Niazi Member Mr. Zafar Alam Khan Sumbal Secretary


A.F.Ferguson & Co Chartered Accountants


Registrar & Share Transfer Office

M/s THK Associates (Private) Limited Ground Floor, Modern Motors House, Beau mount Road, Karachi, 75530

Tel : (021) 5689021, 5686658, 5685681 Fax: (021) 5655595


Registered Office /Head Office

AWT Plaza, The Mall,

P.O.Box 1084, Rawalpindi.

Tel: (051) 9063000 Fax: (051) 9272455



A. Financial policies B. Procurement policies C. Marketing policies D. Promotional policies E. Lending policies F. Personal policies


The financial policies of any bank are the most important policies through which the whole banking activity is conducted. These policies are primarily conducted on:

• Source of funds • Use of funds


The bank finance policy is acquiring funds from the following sources:

• Deposits of account holders.

• Interest on advances and loans granted to the borrowers. • Income and commission from the services provided by the


• Bank open various types of accounts for its customers Services are provided for earning.

• Interest income and commission bank providing the services to its customer.


After the acquisition of the funds their acquisition become necessary. The bank seeks the best way for making investment to got more profit with the maximum security. The bank has an investment portfolio in which it allocate its funds for crediting to borrowers, investment in the stock market, investment in the real estate property etc. for allocation of funds a bank has to follow some banking policies and the prudential regulations of SBP these are:

A bank has to maintain a liquidity with central bank ,i.e. 25 %of its total deposits.

A bank cannot invest all of its funds otherwise it will be difficult to meet urgent needs.

A substantial part of funds is received from interest on loans and advances. Before granting a loan the bank analyze and observe the borrower and conduct a complete ratio analysis. Bank prepare credit line for this purpose the major thing is granting an advance is the security offered by the borrower and its actual market value.


Procurement policies are more concerned with manufacturing organizations. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. It involves attracting and holding the funds of the depositors. After the acquisition of funds, the bank invest the acquire funds. One alternative is to lend its money and earned interest markup or invest in govt. securities etc. as already mentioned in the above paragraph the major sources of funds for a bank are the deposit of the general and the other sources of income includes


interest or markup charges received for various services offered by the bank to its clients.

A bank tries to attract maximum no. Of accounts so that it can increase it’s deposits and these lending ability. In order to get maximum no. of accounts the staff of the bank must be efficient as compared to the other banks and the manager of the branch must take personal interest in attracting deposits. Good quality of the service is the key to success.


Marketing policies are also one of the most important policies because they are related to the growth of the organization. Marketing for a bank would mean:

1. Creation of new product and services.

2. The bank marketing must be consumer oriented.

Following are the marketing policies of the ACBL.

a. Keeping the track of latest development in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers.

b. Development of products for the customers.

c. Giving good services and maintaining good relations with the customers.


These policies can be implemented by providing the right product and service to the customer at the right place, at the right time, at the right price.

It is necessary for the managers to keep in touch with consumers, observe their needs and develop products, which meet their needs.


Public relation and advertising has assumed a great importance in the modern banking business. As for as promotional activities are concerned, the main objective of the bank is to inform the existing clients and other people about its new products or change in the existing services. ACBL establishes its purpose through:

1. Direct contact with customers.

2. Relation with business organizations. 3. Community relations.


Every bank has its own lending policies except for those, which are common for all the banks, i.e. the policies, which are imposed on all the commercial banks by the SBP, are known as prudential regulations. The lending policies of ACBL are as follows:

1. The bank only invests in those sound and viable projects, which have good rate of return.


4. No political loan is sanctioned by bank.

5. Any account holder can apply for running finance or demand finance. The manger apprises the past record of account holder and his credit worthiness. If he finds any thing wrong he can refuse to sanction the amount.

6. The bank while taking security prefers govt. Securities to shares.

7. It also advances working capital loans.


Personal policies have an important role in the success of an any organization. ACBL have its proper personal policies. Good personal policies motivate the employees towards hardworking.

Following are the main personal policies of ACBL: 1. Selection of employees on merit

2. Selection of capable employees.

3. Attractive salary package for motivation of employees. 4. To train and develop the future management of the bank. 5. Every employee must have certain set of clearly defined







Banking procedures are divided between various departments. Different departments do their jobs in occurrence with the bank policies. In ACBL each branch is divided into various departments. Head of department manages each department & officials of the branch follow procedures.

The departments working within a branch are as:

GENERAL BANKING DEPARTMENT  Account opening department  Remittances department  Cash department

 Clearing department

PRIVILEGE BANKING DEPARTMENT  Online banking  Lockers CREDIT DEPARTMENT FOREX DEPARTMENT  Import department  Export department

 Foreign currency department




Functions of Account Opening Department

• Providing account opening form according to the customer's requirements,

• Guide the customer about the requirements of the account opening and form filling,

• Check the forms whether they are correctly completed or not, • Preparing checklist,

• Stamping on the form,

• Maintaining account opening register,

• Pasting of forms in register after release from general banking in charge,

• Issuance of cheque books,

• Issuance of accounts maintenance certificate, • Closure of account

• Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned

Account Opening In-charge






Introductory references As soon as a person opens an account with the bank, the banker customer relationship is established. In such situation this is advisable the banker should not open new accounts of unknown persons unless references regarding the integrity and responsibility of the purposed persons are obtained from respectable parties.

Failure to exercise this care may result in serious consequences not only for the banker concerned but also for the other bankers and general public. It is not sufficient to obtain the reference but its genuineness must also be verified. Omission of this may have serious consequences.

In practice we see that there is tough competition among bankers for procurement of deposits, so to press a prospective new customer to find the desired reference may offend him, yet he is to be welcomed by the banker as a source of fresh deposits. But these practical difficulties have to be handled tactfully because the risk involved to carry out this requirement partially or wholly may lead to undesirable results.


If preliminary necessary inquiries mentioned above are not made and account is opened, it is possible that an undesirable person is provided with a chequebook to defraud innocent people or the person being an undercharged bankrupt may put the banker in difficult situation.


Sometimes due to misreading of the balance an account may be inadvertently overdrawn or the credit entry of customer is placed into the account of another person by mistake who happens to have withdrawn that amount. in all such cases the amount can only be realized if the person is man of integrity.


Have all necessary information with him regarding his Generally a banker is asked by another banker to give his opinion about his customer’s financial position. Therefore, it is beneficial for the both that the banker should customers.


Under section 131 of negotiable instrument act, 1881 a collecting banker is protected provided he collects the cheques of his customers in good faith and without negligence. But if the banker fails to make preliminary inquiries he may be deprived of statutory protection, being guilty of negligence.



The objective of knowing a customer is to have a fair idea about the identity, financial resources, and general information about the customer at the time when the relationship is established. A banker must have following information about the customer:

 Customer name:

Enter complete name as mentioned in original ID card /other business documents.


Nature of business /profession: if customer is of salaried class enter his employer name. If the customer is a businessman, trader, sole proprietor, enter the business name, for example “Jamil Traders”etc.also enter the customer’s title/position and address of the business/employer. Address with P.O.BOX is not acceptable. Similarly remarks like

“Private service”, “business” are not acceptable, rather specify what type of company/business the customer is associated with for example Manager Philips Electrical Company.


Enter the complete business/residential address. With in the brackets you may also provide prominent address identification marks for ease of physically locating the address.

 Contact Numbers:

Enter home, official, mobile, fax number and e-mail address (if available). Banker can verify the number by giving the customer a courtesy call or by sending him a e-mail.

 Other/ secondary/ mailing address:

Some customer may volunteer their parents or siblings’ addressor second home address or a mailing address other than a permanent address.

 Special instructions:

Clear-cut special instructions must be obtained from customers. If the customer has not given any special instruction specified column


must be cancelled by drawing a line, as this column must not be left blank in any circumstance.

 Existing/other bankers:

Almost most all the bankers usually have a banking relationship with another bank. In case of customer who does not have an existing banking relationship, or does not want to disclose the existing relationship, then it is strongly recommended that at least for some time this particular account must be kept under observation.



• Minor account

• Illiterate person account • Joint account


• Proprietorship account • Partnership account

• Limited company’s account

• Accounts of club societies and associations • Agent’s accounts

• Trust account

• Liquidator’s account executer’s and administrator’s account



Functions of remittances department

The functions of remittance departments is to handle with the following instruments: • Pay Order • Demand Draft • Pay slip • Telegraphic Transfer • Payment of Remittances

• Cancellation of pay order & demand draft

The remittance department deals with the transfer of money from one place to another.

This department deals with the local currency transfer only. ACBL provides these services to both customers & non-customers

Remittance can be made through:

1) Instrument transfer 2) Electronic transfer 3) Mail transfer


Instruments of the Remittances Departments


Pay order issued from one branch only be payable from the same branch. It is normally issued for payment in the same city. It is normally referred as banker's cheque

 Get the application form.

 Issue pay order after recovering cheques.  Do necessary vouchering.

 Make entry in PO issue register.

 All pay order shall be crossed" payees account only".

Charges on issue of Pay Order

Amount (Rs) Charges (Rs)

Less then 100,000 50

Above 100,000 Nil

Duplicate Pay Order:

 Check the record to insure that payment has not been effected.

 Get application for issuing of duplicate PO.  Recover charges.



It is an instrument on demand for which value has been received, issued by the branch of the bank drawn i.e. payable at some other place(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 ACBL payable by MCB.

Charges on issue of Demand Draft

Amount (Rs) Charges (Rs) 1 - 10,000 25 10,000 – 100,000 50 or .1% 100,000 - 1000,000 200 or .07% Over 1000,00 1000 or .05%


The bank for settlement of it own payment issue pay slip. • No excise duty



All physical movement of cash in the bank is made through the cash department. Normally cash department performs following


 Receipt  Payments

 Act according to any standing instructions  Transfer of funds from one account to another  Handling of ATM

 Verification of signatures  Posting

 Handling of prize bond

Cash receipt section

In this section the cashier in following manner receives cash:

Fill- up deposit slip

Cashier counts the amounts and fulfills other


Deposited on Receipt Customer

Cashier counts the amount and fulfills other requirements


Cash payment section

In this section honoring the cheque through following process makes payment.

Cheque is presented at token counter

Cheque is recorded & token # is allotted

Cashier counts the amount & payment is made

Cancellation officer cancels cheque

Posting is made Two signatures on

back of the cheque by customer




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”.

1. Since clearing does not involve any cash etc. and all the transaction take place through book entries , the number of transaction can be unlimited.

2. No cash is needed as such the risk of robbery, embezzlements and pilferage are totally eliminated.

3. As major payments are made through clearing, the banks came manage cash payments at the counters with a minimum amount of cash in vaults.

4. A lot of time, cost and labor are saved.

5. Since it provides an extra service to the customer of banks without any service charges or costs, more and more people are inclined and attracted towards banking.


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 State Bank of Pakistan And where there is no branch of State Bank of Pakistan the designated branch of National


Bank of Pakistan act as controlling member instead of State Bank of Pakistan


 It ceases to be a scheduled Bank.  It is not able to meet its liabilities.

 State Bank of Pakistan or Central Govt. prohibits it to receive fresh deposits.


i. 1st Clearing at 10:00 a.m. ii. 2nd Clearing at 2.30 p.m.

 Each bank will send competent representative to exchange the cheques.

 Each bank is required to insure that all cheques and other negotiable instruments are properly stamped and suitably discharged

 An objection memo must accompany each and every cheque when return unpaid duly initialed.

 Each bank is required to maintain sufficient funds in the principal account with SBP to meet the payment obligations.  The State Bank of Pakistan debit the account of each member

of the clearinghouse with the proportionate working expenses incurred on the operation of clearing house. These expenses are very nominal.




The following points are to be taken into consideration while an instrument is accepted at the counter to be presented in outward clearing:

 The name of the branch appears on its face where it is drawn o.

 It should be stale or post dated or without date.  Amount in words and figures does not differ.

 Signature of the drawer appears on the face of the instrument.

 Instrument is not mutilated.

 There should be no material alteration ,if so, it should be properly authenticated.

 If order instrument suitably indorsed and the last endorsee’s account being credited.

 Endorsement is in accordance with the crossing if any.  The amount of the instrument is same as mentioned on

the paying-in-slip and counterfoil.

 The title of the account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque).

If an instrument is in order than our bank special crossing stamp is affixed across the face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on counterfoil and paying-in-slip). The instrument is suitably discharged, where a


bearer cheque does not require any discharge and also an instrument in favor a bank not need be discharged.

The instrument along with pay-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken:

1. The particulars of the instrument and the pay-in-slip or credit voucher are entered in the outward clearing register.

2. Serial no. Is given to each voucher.

3. The register is balanced; the credit vouchers are balanced from the instruments and are released to the respective departments against acknowledgement in the register.

4. The instruments are arranged bank wise.

5. The schedules are prepared in triplicate, two copies which are attached with the relevant instrument and the third is kept as office copy.

6. The house page is prepared from schedules in triplicate.

7. The schedules and house pages are signed by the house incharge with branch stamp.

8. The grand total of the house page is taken and agreed with that of the outward clearing register.

9. The instrument along with duplicate schedule and house page are sent to the main office.

However the amount is kept in float till final status of various instruments is known from respective paying banks in second dealing.


clearing then a covering memo is prepared. The covering memo along with returned instrument and objection memo is sent to the customer who sent the same to his account.


1. The particulars of the instruments are compared with the list. 2. The instruments are detached and sort out department wise. 3. The entry is made in the inward clearing register (serial no.

Instrument no. Account no. Is written).

4. The instruments are sent top the respective departments 5. The instruments are scrutinized in each respect before

honoring the same.


These are the cheque returned unpaid by us in inward clearing. due to some objections.


These are the cheques retained unpaid to us which were lodged by us in Outward Clearing.


Suppose all cheques received in the inward clearing are passed and later on it is found that a cheque should have been returned, in such cases, we contact the collecting branch and request them not to make payment against the proceeds of the cheque which was not returned unpaid by us in due time. the cheque with objection memo along with a covering letter is sent to the collecting branch, making


request to issue a payment order in favour to balance the Cash-cum-day book we may debit suspense account sundry debtors with the approval of the manager. When the payment order is received, it is lodged in clearing and suspense account, sundry debtors is adjusted accordingly.


In addition to the normal clearing function at Clearing house it is mutually agreed to hold an extra clearing at the clearing house on the particular day and time which is known as “special clearing” it is arranged due to the rush of work arising out of say, more Holidays declared by the Central Govt. at a time, but normally special clearing is he4ld on last working day of our half yearly and yearly closing i.e. 30th June and 31st Dec. every year.



Online banking means that the customer of ACBL can deposit / withdraw funds in / from other branches of ACBL. Askari bank provides online facility to all its branches.


Amount of Deposits Charges ( Rs)

25,000 or below 50 25,000 - 200,000 100 200,001 - 500,000 250 500,001 - 2000,000 500 Above 2000,000 750


Askari bank offers facility of lockers to its customers.

There are three sizes of lockers available:


Size of lockers Rent of locker (Rs) p.a.

Large 2500

Medium 1500



Although the study of money is important for the understanding of the way in which our economic system operates, we must recall this point that most exchange transactions in this system are carried on today without the use of actual money, i.e. Those are carried on by means of credit and credit instruments rather than money. While money still forms the basis of credit and deferred payments, it is necessary to examine the nature of credit operations, and the instruments and institutions trough, which these operations are carried on, in considerable detail.


On the surface, credit operation appears to be of many kinds, but they all have a fundamental similarity. In credit transactions, one party to the transaction, the creditor, turns over to the debtor a certain amount of money, commodities or services at the present time and relies on the debtor to repay an equivalent amount, usually the money in the future plus interest at some future time.


There has been much discussion, concerning the essential basis of credit or borrowing operation. Some writers on the subject have stoutly insisted that confidence is the basis of all grants of credit, that if one did not have confidence that the borrower would repay a loan one would never thinks of making the loan, save on grounds of friendship of philanthropy. Others have held property, rather than confidence is the basis of all genuine credit transactions. Some


have indulged in a propensity of alliteration by sating that the bases of credit are character, capital and capacity; or the man and the means; or reliability and resources.


The verities of credit may be classified in numerous ways- according to the status of eh debtor, according to the status of the creditor, according to the time for which the credit is granted, and so on; but the most fruitful classification usually indicates the use to which the credit is put.


Public and Private Credit:

In the first place, a distinction is usually made between public and private credit. Public credit comprises the promises to pay off governmental bodies, that is, their acquisition of goods in the present in return for promises to pay in future; and private credit refers to the promises to pay all non-government debtors. Among the sub-classes of private credit, the most significant are band credit, commercial credit and consumption credit.

2. Band Credit:

In Comprehends all kinds of promises to pay off banking institutions, including demand deposits, time deposits, notes, bankers, acceptances, cash, letters of credit, debentures, and bonded obligations. Frequently, the term bank credit is restricted in use to refer only to the demand deposit liabilities of the commercial banks, and one must constantly be on guard to recognize the employment of the term in this restricted sense. As a sub-class of


modern monetary system it includes the central bank's circulating notes and its deposit liabilities, the better consisting chiefly of the reserve balances of the commercial banks.

3. Investment Credit.

The credit structure, business if found upon examination to consist very largely of two forms of credit. Investment credit is extended through loans, the proceeds of which are put into the fixed assets of a business enterprise. If the owners of business cannot themselves furnish all of the capital necessary for investments in land, buildings and equipment. Obviously what they need is loans of capital running over a considerable period of years.

4. Commercial credit

In addition to seeking credit in long term investment in fixed assets, most business periodically ask for credit in the form of short term loans. Commercial credit is business supplier for current business operations, such as manufacturing and marketing of goods. It often take more business capital than business can themselves supply to pay for raw materials, to make the outlays for wages and to carry inventories of finished goods until they can be converted into cash. To help finance such operations short-term loans usually running from thirty days to six months are negotiated. Commercial loans like investment loan must ultimately be paid out of accumulated earnings of a business. But if the business earnings are of immediate future, such loans can be safely made and promptly paid. Commercial loans are base done quick assets, such as raw material and finished goods, which are in constant process


5. Consumers credit and producers’ credit

Consumers credit involves advance of purchasing power for economic goods to consumers for consumption purposes. Its distinguish characteristic lies in the factor that the things acquired by the debtors as result of the loans are not supposed to furnish them with the means of repaying the loans the loan must be repaid out of the income of the borrowers.


There are various types of credit instruments. The more important credit instruments are as follows:

Bills of exchange:

A bill of exchange is define by negotiable instruments act as "an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person, to pay certain sum of money, only to or to the order of a certain person, or to the bearer the instrument".


A Cheque is defined “a bill of exchange drawn on specific banker and not expresses to be payable otherwise than on demand."

Cheques may be of various types, which are as follows: Bearer cheque

Order cheque Open cheque Crossed cheque Marked cheque



These are bills of exchange issued by a banker on his branch office. Banks draft like bills of exchange, are of great importance in the financing of trade, especially foreign trade

Promissory note:

It is an instrument in writing containing an unconditional undertaking, signed by the maker, to pay the certain sum of money only to or to the order of a certain person to the bearer of the instrument. a promissory note in order to be the so, must fulfill all conditions.

Letter of credit:

A letter of credit as name signifies does one person or bank to another requesting the letter to pay any amount of money up to a certain limit to the person write a letter named in the letter or in whose favor the letter is written. In this letter generally a date is fixed upto only the addressee should make which advances. Thus a letter of credit remains in force upto a certain date only. Generally banks grant this letter of credit.



The term "foreign exchange" is used to denote either a foreign currency or the rate at which one currency is converted into another or the means & methods by which one currency is exchanged for another.

Functions of Foreign Currency Account Department

Foreign exchange department performs following functions:

• Foreign Bills for collection (FBC) • Foreign telegraphic transfer (FTT) • Foreign Demand Draft (FDD) • TDR

• Issuance of Proceed realization certificate • Inward remittances

• Daily Reporting

Requirement of Funds Transfer

For transfer of fund in foreign currency, a person must have his account in foreign exchange in the bank.

Requirement of account opening is $500 or any other currency equivalent to $500.

Types of currency Interest p.a.

Dollar .25%

Pound sterling 2%




CBD & IBD are strongly positioned across priority markets with a distinct strategy for developing corporate business. Our strategic framework generates sustainable returns based on strong market presence and financial solutions ranging from debt and equity market transactions to syndicate finance, and from transaction banking to corporate finance advisory services.

2004 was challenging year due to historic lows in interest rates, particularly for corporate business. The Corporate Banking Division (CBD) undertook a number of dept re-pricing swap transactions, aimed at reducing the financial burden of its key client portfolios and also managed advisory and loan arrangement activities. The major new relationships cover telecommunications, oil and gas, and chemicals sectors. CBD has dedicated marketing and support units functioning at Karachi and Lahore. In order to enhance focus on relationship management, and service quality, more dedicated staff is being assigned.

The investment banking activity mainly covers, debt / capital markets, advisory services and trading (both equities and derivatives).After the initial start-up phase, the capital market desk, based at Karachi, increased the volume of capital market related transactions.


The corporate and investment banking will continue to play a major role in loan syndications, structured financing and debt / capital raising transactions with the objective of providing entire range of corporate and investment banking solutions to its valued clients under one umbrella.


In 1994, 1996 and 1997 the bank received Euro money and Asia money awards. Askari has A1+ rating for short-term obligations the highest possible for the category, while the long-term rating stands at AA. Askari Bank Won the prestigious “Best presented Annual Accounts” awards for 2000 and 2001 from the institute of cost and Management Accountants of Pakistan, for the services sector.

Mr. Kalim-ur-Rahman, President Askari Bank, with group having

award of

'The Best Retail Bank of Pakistan 2004'

For the past four years, the Bank has received prizes from the South Asian Federalism of Accountants for “The Best presented Annual Accounts” for the financial sector, in the SAARC region.

Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistan banking.



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