Askari Bank Internship Report

Internship report
Submitted To
Sir Faisal iqbal

Department
Faculty of Management and Administrative
sciences
MBA (3.5 year)

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Chapter no.1

Introduction

Internship is the academic requirement for completing MBA (3.5) degree.
Students are required to undergo six weeks of internship with a well recognized
organization. Main purpose of internship is to serve as the way of enabling the
students to get practical knowledge about banking administration.
1.1.

Purpose of the Study

Main purpose is to get relevant information to complete internship report on
Askari commercial bank.

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1.2.

Objectives of the Study

Main objective of this report is to thoroughly discuss the working of Bank.
1.3.

Limitation of the Study

Something is better than nothing. No matter how professionally a study is
conducted, it cannot be perfect in all aspects. The report may not include broad
explanations of facts and figures due to its nature.

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Chapter no. 2

OVERVIEW OF THE ORGANIZATION

ACCORDING TO BANKING COMPANIES ORDINANCE 1962
“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 perform the business of banking in
Pakistan.”

COMMERCIAL BANK
“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.”
Askari Bank has stretched into a network of 200 branches /sub branches,
including 20 devoted Islamic banking branches. The Bank is listed on Karachi,
Lahore and Islamabad Stock Exchanges.

A shared network of 2,991 online

ATMs layers all major cities in Pakistan chains the delivery channels for customer
service. As at December 31, 2008, the Bank had equity of Rs. 12.97 billion and
total assets of Rs. 206.19 billion, with 816,629 banking customers, serviced by
our 6,808 employees.
Askari Investment Management Limited and Askari Securities Limited are
subsidiaries of Askari Bank occupied in managing shared funds and shares
brokerage, respectively.
Askari Bank is the only bank with its equipped head office in Rawalpindi, which
have comparatively limited opportunities as compared to Karachi and Lahore.
This created its own challenges and opportunities, and forced as to evolve an

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outward-looking strategy in terms of Askari market emphasis. As a result, Askari
residential a geographically diversify assets base instead of a concentration and
heavy dependence on business in the major commercial centers of Karachi and
Lahore, where most other banks have their operational Head offices.
The branch of Askari Bank was opened in Gujrat in June, 2002. Gujrat is a
famous from fan and furniture industries, so to get the export market of these
industries ACBL opened its branch in Gujrat. In short span of time this branch
increased their business remarkably.

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Core Values:
Honesty is the most valued standard in whatever we do. 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. The intrinsic values, which are
corner stone’s of our corporate behavior, are
i.

Commitment

ii.

Integrity

iii.

Fairness

iv.

Team-work

v.

Service

Corporate philosophy:
From knowing our customer requirements to understanding employee needs,
from utilizing modern technology to making responsible social contributions, from
enhancing stake-holders value to practicing corporate ethics… We are
continuously and consistently striving to address newer challenges with a single
motivation:
“The power to inspire and be inspired”
Code of Business Principles:
Askari Bank Code of Business Principles is to:
i.

Deliver solutions that meet customers’ financial needs;

ii.

Build and sustain a high performance culture;

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iii.

Build trusted relationships with all stakeholders.

2.1.

BRIEF HISTORY OF THE BANK

The banking sector has witness a remarkable 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 integration 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

oversubscribed 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 just about
12% higher than the average share price of quoted banks during the last four
years.
Askari Bank has expanded into a nationwide 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 limited opportunities as compared to
Karachi and Lahore. This 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

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commercial centers of Karachi and Lahore, where most other banks have their
operational Head offices.
2.1.1. MOTIVATION OF ASKARI COMMERCIAL BANK
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

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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 previous 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.
2.2.

Nature of Askari commercial Bank

ACBL is private sector Bank and is categorized in commercial bank. Commercial
bank is a separation of a bank primarily dealing with deposits and loans from
corporations and large businesses. Commercial bank may also be seen as
separate from retail banking, which involves the provision of financial services
direct to consumers. ACBL offers both retail and commercial banking services
offered include; personal loans, mortgages, saving and checking accounts, credit
cards, debit cards. It provides both services and products to the business user
and consumer.
Army Welfare Trust directly and indirectly holds an important portion of the
Bank's share capital at the period end. The Bank has 150 branches (December

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31, 2007: 150 branches); 149 in Pakistan and Azad Jammu and Kashmir
including 14 Islamic Banking Branches and an Offshore Banking Unit in the
Kingdom of Bahrain.
Corporate Information:

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Board of Directors
Lt.Gen. Javed Zia

Chairman

Lt.Gen.(R) Imtiaz Zia

Chairman

Maj Gen Saeed Ahmad

Director

Mr.Zafar Alam Khan

Director

Dr.Bashir Ahmad Khan

Director

Mr.Shahid Mahmud

Director

Mr.Riyaz ul Haq

Director

Morale Noor mahomed

Director

Mr. Tariq Iqbal Khan

Director

Mr.Rafiqueuddin
Mr. M.A Gazali

President
Company Secretary

Audit Committee
Dr.Bashir Ahmad Khan

Chairman

Mr. Ali Noor mahomed

Member

Mr. Zafar Alam Khan

Member

Legal Advisors Rizvi, Isa, Afridi & Angell

2.3.

Business volume, Reward honors

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Business Volume:
Askari Bank achieved planned growing in concern and military operation during
2009.The total possessions of the bank amounted to RS. 254 billion as on
December 31, 2009, registering an increase of 23 percent over December 31,
2008.
Achievements and Reward Honors:

ACBL is the first and so far the only Pakistani Bank in private sector to have been
rated as A1+ for short term category and A+ for long term category by
PACRA(Pakistan Credit Rating Agency). The rating of A1+ is the highest
category and stands for “obligations supported by the highest capacity for timely
repayment”
In 1994 ACBL earned International recognition as Asia currency Award and the
statute title of Best commercial message Bank of Pakistan for the year 1994
while monetary unit money stated the depository financial institution as topper
domestic depository financial institution of Pakistan for the year 1995.
ACBL has recognition of achieving the following firsts in Pakistani banking;
First Pakistani Bank to offer on-line real-time banking on a countrywide basis.
First Bank with a nation-wide ATM network.
First Bank to offer Internet banking services.

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First Bank to offer e-Commerce solutions.
Different institutions and magazines have also awarded them at different
occasions,

some

are;

“The Best Bank in Pakistan” by the Global Finance magazine for the years
2001 & 2002.
“Best Consumer Internet Bank” award for Pakistan by Global Finance for the
year 2004.

“Best Presented Annual Accounts” awards for 2000and 2001 from the
Institute of Chartered Accountants of Pakistan and the Institute of Cost and
Management Accounts of Pakistan, Prizes from the South Asian Federation of
Accountants for The best Presented Annual Accounts” for the financial sector, in
the SAARC region.
During the year 2009, the annual report of the Bank for the year 2008 won:


The first prize of

“The Best Annual Report” for the financial sector,

instituted jointly by The Institute of Chartered Accountants of Pakistan and
The Institute of Cost and Management Accountants of Pakistan.

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2.4. PRODUCT/Service line
2.4.1. PRODUCT LINE
Askari Commercial Bank Ltd, has taken progressive tense steps and has
introduced innovative products and employment for their customer by saying
provide you a assortment
Askari Bank Offers
Askari bank serves in the following areas:
 Investment Banking
 Consumer Banking
 Treasury & International Banking
 Agriculture Banking
 Islamic Banking
Investment Banking
The main activity involved in investment banking debt/capital markets, advisory
services and trading (both equities and bonds) in this portion following are the
products are involved:
 Commercial Paper.
 Debt Capital Markets

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 Capital Raising
 Trading activity (equities and derivatives)
Consumer Banking
During 2007, the consumer banking services obtainable by the Bank were
updated by combining consumer financing business and credit card business
under one umbrella and were renamed as consumer banking service group. In
this portion following are the products are involved:
 AskCard (Debit/ATM Card).
 AskPower (Prepaid card)
 Askari Bank’s mortgage finance (Home Loans)
 Askari Bank’s personal finance.
 Cash management services
 Rupee traveler cheques.
 Askari investment certificates etc.
PERSONAL FINANCE
 Personal Finance is a parametric quantity driven merchandise for
business to the needs of the full general public happiness to unlike
segments. One can help unlimited opportunities through Askari Bank s
Personal business. With unmatched business features in terms of loan
sum payback time period and most affordable serial installments Askari
Bank s Personal business makes certain that one gets the most out of his
her loanword. Once a good credit history is established, the door to
opportunity opens much wider

.

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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. The maximum financing amount is
Rs. 10 million with repayment tenure up to 20 years.

BUSINESS FINANCE
 In pursuance of the National objectives to review the economy of the
country, ACBL is providing loans to small and medium size business
enterprises under Askari Bank's Business Finance system .ACBL’s
goal is to offer a loan, which enable business group of people to
receive the financing required by them based on their cash flows.
ACBL’s valued customers can enjoy the convenience of getting

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financing

on

attractive

terms with

the minimum processing

turnaround time.

ASKCAR (Car Finance)

 Yet another of our products, Askari 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 rates and widest
range of available car makes and models, Askcar offers the best
value to our esteemed customers.
ASKCARD
 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.

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Treasury and International Operations
During 2007, the bank increased its overall foreign trade business. The import
business increased to Rs. 119.3 billion. I.e. growth of 11% over last year, while
the exports increased by 6% over last year, to Rs. 97.3 billion.
Products:
 Foreign Currency Accounts.
 Foreign Trade Services (Import & Export)
 Import & Export Financing etc.

Agriculture Credit Financing
In agriculture credits financing the banks facilitate the following schemes to the
public:
 Askari Kissan Ever Green Finance.
 Askari Kissan Tractor Finance
 Askari Kissan Farm Mechanization Finance,
 Askari Kissan Aabpashi Finance etc.
Islamic Banking
During the last year Islamic banking was launched under the brand ‘Askari
Islamic Banking’ by opening 6 devoted Islamic Banking Branches in main cities of
the country. In order to meet customer’s demand for Shariah Compliant banking,
in the following areas:
 Islamic Corporate Banking
 Islamic Investment Banking
 Islamic Trade Finance
 Islamic General Banking

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 Islamic Consumer Banking.
2.4.2. ACCOUNTS
Askari Bank operating following types of accounts:
 Current Account.
 Saving Account.
 Askari Special Deposit Account.
 Term Deposit.

ADVANCES

Advances are major sources of earning of income for commercial banks. Banks
attracts excess balances from the customers at low interest revenue
enhancement makes advances at higher involvement rates to the individuals or
concern firms.
ACBL offer these facilities;
 Funded facilities
 Non- Funded facilities
Funded facilities
In funded facilities the bank actually advances money against further repayment.
These facilities are known as cash credits.
Non- Funded facilities

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Non Funded facilities are those in which depository financial institution
substitutes its own recognition for its customers.
ACBL offers to its customers are large number of non-funded facilities.
These facilities include;
1. Guarantee
2. Letter of credit

2.5.



Irrevocable letter of credit



Revocable letter of credit



Sight letter of credit



Usance letter of credit

Pestle analysis

Political
Pakistan despite all international and public perceptions, today is a functioning
democracy and gradually there is a change in complexion and composition of
legislatures with more educated people and women (27% of National Assembly
and 17% of Senate) entering into politics Similarly it helps in designing best
strategies to implement that could support the revival of bank industry. Like in the
time of nationalization banks had to suffer as other industries that’s why that
impact is still found in the presentation of this industry.
Economical
Although banking aspect development is important at the other stage of
economic maturation general relaxation presuming a homogeneous banking
concern role may not necessarily promote maturation. The estimated monetary
value construction indicates that province closely-held commercialized Banks are
ample sufficient piece evolution business institutions and secret Banks can
expect to obtain monetary value good advantages by expanding their trading
operations. Since scope economies are important portfolio variegation generally

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increases bank net income. In addition privatized banks are the most efficient
followed by strange and buck private banks. Public banks are the least efficient.
Social
Banks always helped people in improvement of living status of poor people in
various forms like contribution loans to poor for starting concern or directly
providing them the instruments that could enhance their living conditions.
Similarly Askari depository financial institution always tested to provide the poor
people loans on delicate terms and also helped to eradicate unemployment by
providing job opportunities. Recent high growth trends coupled with enhanced
spending on social and Poverty programs that rose from 3.8% of GDP in
2001/2002 to 5.05% by 2005/2006 has together begun to pay some dividends as
evident from the Reversal in poverty incidence trends and social indicators.
Technology
The Banking sector in Pakistan has experienced a rapid change. Almost a
decade back this sector was limited to the Sarkari (read nationalized) and cooperative banks. Then came the multi-national banks, but these were limited to
serving a selected few. One could regard the past as the 'medieval ages' in the
banking industry, wherein every branch of the same bank acted as an
independent information storage tower and multi-channel banking (ATMs, Net
banking, Tele-banking, etc) was almost unreal. Today banks have to look much
away from just providing a multi-channel service platform for its customers. There
are other pressing issues that banks need to address in order to chalk-out a
roadmap for the future. Here are the top three concerns in the mind of every
bank's CEO. The customer is interested in how he/she can benefit from the bank
and its products. That's why it becomes necessary for a bank to differentiate its
products from the others. Some of the ways in which differentiation can be

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introduced are through specialization, new products, and increasing the added
value.
2.6 Contribution of Askari bank limited toward economic development
ACBL has been at the top of economic development in the country. It has period
of play the old age funded projects which topper serve the economic objectives
and sociable needs of the state. The bank has made enormous contribution to
the evolution of body part and culture medium sized entrepreneurs and to self
employ schemes. ACBL realizing its responsibility towards improving natural
environment accepted the challenge of planting saplings in an area of
3,000 hectares where severe deforestation has occurred over the years in the
districts of Umerkot, Tharparkar and Mirpurkhas.
The bank was celebrated for its contribution in setting “Business World
Record” for planting maximum number of trees in a single day. The record was
set on 15th July 2009 in an area of Kati Bundara under the president’s Mass
Forestation Program for plantation of 400,000 mangrove tree seedlings.

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Chapter no. 3

3.1.

Organizational structure

Organizational Structure in Askari Commercial Bank

Organizational structure is more than boxes on the chart. It is a pattern of
interaction and coordination that links. Technology and human components work
together to ensure that organization accomplishes its purpose.
Some characteristics of ideal organizational structure called Bureaucracy by Max
Weber is found in the organizational structure of the ACBL as follows
Position arranged in a hierarchy
Each lower office is under the control and supervision of a higher one. This
bureaucratic principle helps the management of ACBL to control over every
member in the structure.
A system of abstract rules
A continuous organization of functionary functions should be boundary by rules.
This bureaucratic principle helps the management of ACBL to ensure uniformity
and coordination of effort.
In this age of complex, highly conflicting relationships, advanced technology and
empowered employees; Max Weber bureaucratic model is only the historical
starting point, not the end, of the organizational analysis.
VERTICAL STRUCTURE ANALYSIS
Vertical analysis concentrates on centralization versus decentralization and on
flat versus span of control structuring. Centralization versus Decentralization
1) Geographical

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Geographical centralization means that the organization has all its operations
under one roof. Geographical decentralization means the dispersion of
Organization operations through the country. SIL has its operating office in
Lahore and Karachi, which show that it is geographically decentralized.
2) Functional
An organization has separate department that performs such as selection or
training for others is called centralized organization and if the various functional
departments (for example; marketing, production and finance) handle their own
human resources functions then it is considered decentralized organization. In
SIL, functional level is centralized.
3) Delegation
Centralization and decentralization commonly refers to delegation of decision
making command. Within the company, there is centralization to a greater extent.
Flat versus Span of control
In ACBL, the structure of the organization is tall with a few members at each
level. As a result there is narrow span of control and supervisors have close
control over their subordinates.
HORIZONTAL STRUCTURE ANALYSIS
Horizontal structural analysis is concerned with organizing one level of the
hierarchy.
The concept of Departmentalized and of line and staff represent this approach.
Departmentalization
ACBL has a functional departmentalized structure. The greatest single advantage
of functional departmentalization is that it incorporates the positive aspects of
specialization. It also leads to greatest efficiency and the most economical
utilization of employees.

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3.1.

Organizational Hierarchy chart

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3.2.

Number Of Employees

Branch
G.T road Gujrat
Overall

3.3.

Total employees
32
6,808

Year
2013
2014

Main Offices of Askari Commercial Bank

Registrar & Share Transfer Office
THK Associates (Pvt) Limited
Ground Floor, State Life Building No. 3,
Dr.Ziauddin Ahmad Road, Karachi – 75530
P.O. Box: 8533, Karachi.
Tel: (92 21) 5689021, 5686658, 5685681
Fax: (92 21) 111 000 322
E-Mail: [email protected]
Registered Office /Head Office
AWT Plaza, the Mall,
P.O. Box No.1084
Rawalpindi – 46000,
Pakistan.
Tel: (92 51) 9063000
Fax: (92 51) 9272455
E-mail: [email protected]
Website: www.askaribank.com.pk
3.4 Introduction to all Departments

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Banking procedures are divided up between diverse departments. Different
departments do their jobs in synchronization with the bank policies. In Askari
bank each branch is divided into various departments.
The departments working within ACBL are as:
3.4.1. GENERAL BANKING DEPARTMENT
1. Account opening department
2. Remittances department
3. Cash department
4. Clearing department
3.4.2. PRIVILEGE BANKING DEPARTMENT
1. Online banking
2. Lockers
3.4.3. CREDIT DEPARTMENT
1. Nature of credit
2. Types of credit instruments
3.4.4. FOREIGN EXCHANGE DEPARTMENT
1. Functions of foreign currency account department
2. Requirements of fund transfer
ACCOUNTS DEPARTMENT
FUNCTIONS OF ACCOUNT OPENING DEPARTMENT
1. Provide account opening form according to the customer's requirements.
2. Guide the customer about the requirements of the account opening and form
filling.
3. Check the forms whether they are correctly completed or not
4. Preparing Checklist.

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5. Stamping on the form.
6. Maintain account opening register.
7. Pasting of forms in register after release from general banking in charge.
8. Issuance of cheque books.
9. Issuance of accounts maintenance certificate.
10. Closure of account.
3.4.5 REMITTANCE DEPARTMENT
The remittance section deals with the transportation of currency from one place
to another. This department deals with the local acceptance transfer only. Askari
banking concern provides this work to both customers non customers.
FUNCTIONS OF REMITTANCE DEPARTMENT
The function of remittance department is to handle the following instruments:
1. Pay Order
2. Demand Draft
3. Pay slip
4. Telegraphic Transfer
5. Payment of Remittances
6. Cancellation of pay order & demand draft
Remittance can be made through:
 Instrument transfer
 Electronic transfer
 Mail transfer

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CASH DEPARTMENT
All physical movement of cash in the bank is made through the cash department.
Normally cash department performs following functions:
1. Receipt
2. Payments
3. Act according to any standing instructions
4. Transfer of funds from one account to another
5. Handling of ATM
6. Verification of signatures
7. Posting
8. Handling of prize bond
3.4.6 CLEARING DEPARTMENT
The word clarification has been derived from the intelligence area and is formed
as a system by which Sir Joseph Banks exchange cheques and former
negotiable instruments drawn on each former within a specific region and thereby
secure defrayment for their clients through with the clarification House at
specified clock time in a competent way.
1. Since clearing does not involve any cash etc. And entire written account take
property through record book entries the number of transaction can be straightout
2. No cash is needed as such the risk of robbery, misuses and pilferages are
totally eliminated.
3. As major payments are ready-made through glade the Banks came manage
cash payments at the counters with a lower limit amount of cash in vaults.

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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
3.4.7 CREDIT DEPARTMENT
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.
3.4.8 FOREIGN EXCHANGE DEPARTMENT
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.
Foreign exchange department performs following functions:
1. Foreign Bills for collection (FBC)
2. Foreign telegraphic transfer (FTT)
3. Foreign Demand Draft (FDD)
4. Issuance of Proceed realization certificate
5. Inward remittances
6. Daily Reporting

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3.5 Comments on the organizational structure
Organization structure;
The official pattern of how people and jobs are grouped in a concern.
Departmentalization;
The basis which jobs are together.
Chain of command;
Is the constant line of power that expands from upper organization level to
the lowest level and clarifies who report to whom?
Centralization and Decentralization;
Decision making is made by top level or lower level.
Span of control;
The number of subordinate a manager can direct professionally and
successfully.
In my point of view, the structure of ACBL is simple active and unify decision
making the whole department is report to operational manager and then he
report to branch manager. The jobs duties and responsibilities are apart into
entire section but due to little figure of worker in ACBL jobs responsibilities are
portion between employees. Centralize decision making make the distance
between the top level and lower level manager. The main benefit of centralize
decision devising is supervisory program can justice and evaluate the public
presentation of all employee.

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Chapter no. 4
Part - ‖

Brief Introductions to Branch

Internee work

4.1 Introduction of branch
Askari commercial Bank started its operations in 1992, and head office of Askari
commercial bank in Rawalpindi. ACBL has 75 branches in Pakistan. One of the
branches is located in Hassan Plaza G.T road Gujrat where I have done my
internship of six weeks period. There are 32 employees and the environment of
bank is very self-motivated and attractive. The branch Manager Mr. sheikh Javed
is very hardworking.
The business volume of the branch is twenty million and it has the following
departments;
Remittances Department
Cash Department
Agricultural Department
Accounts Department
Foreign Trade Department
Credit Department
IT Department
Clearing Department
Starting And Ending Date of Internship;
Starting Date of Internship 15-07-2013 Ending Date of Internship 30-08-2013

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4.2 Details of supervisors
Branch Manager
Operational Manager

Javaid sheikh
abid khan

4.2.1 Cash department;
Incharge: Mr. M.shabir OG-2
Assistant: Mr. Zeeshan adil
C.D Incharge: Mr. Abid Khan
4.2.2 Clearing Department;
Incharge: Mr. Qazi Irtza
Incharge IBC Mr. Habib Shah
4.2.3 Foreign Trade Department;
Incharge: Syed Awais Mehdi
Assistants: Mr.Irfan Rasheed & Mr. Atique Rehman
4.2.4 Deposit Department;
Inchrge Account Opening: Mr. Haseeb Mali
Accounts Incharge: Mr, Mohsin Raza
4.2.5 Credit Department;
Incharge: Mr. Abdul Majid
Assistant: Mr.Shams-us-Din

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4.3 Weekly Timetables
4.3.1 Week 1st (18, July, 2013– 24 July, 2013)
DATE
18-7-

DAY
Thursday

2013

19-7-

Friday

2013

DEPARTMENT
ACCOUNT

TASK
SIGNATURE
Introduction own self &

OPENINING

exchange

DEPARTMENT

Letters
Introduce the General
banking & procedure of
account opening

22-7-

Monday

2013

23-7-

Learn the basis rules for
opening an account

Tuesday

2013

Customer Dealing to
attract them through
providing

the

information
related to the bank and
accounts
24-7-

Wednesda

Filling

the

forms

for

2013

y

opening the accounts
(Individual Account)

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4.3.2 WEEK 2(25 July, 2013, 31st July ,2013)
DATE
25-7-2013

26-7-2013

DAY
Thursday

DEPARTMENT
ACCOUNT

TASK
Fill the forms of Individual

OPENING

Account filled ss card and punch stamps

DEPARTMENT

on form and ss card
Types of account opening

Friday

SIGNATURE

(joint account or
29-7-2013

individual) and operate
Filling the forms for

Monday

opening

the

accounts

(Joint
Account)+filled ss card
and punch stamps on
form and ss card
30-7-2013

Tuesday

Same job do this
Day and fill pay in slip

31-7-2013

Wednesday

Record the account open
into their specific register

4.3.3 Week # 3 (1 August, 2013– 7 august, 2013)
Date
01-8-2013

Day
Thursday

Department
Activities
Foreign Trade Introduction
Department

of

new

department

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masters in Business

02-8-2013

Friday

Basic procedure of its
working

related

to

imports and exports

05-8-2013

Monday

Learnt
basic

about

the

documentation

involved in imports

06-8-2013

Tuesday

learnt about the basic
documentation

07-8-2013

involved in exports
Learnt
about
the

Wednesday

remittances

4.3.4 WEEK 4TH (08 august 2013, - 14, august, 2013)
DATE
08-8-2013
09-8-2013

DAY
Thursday
Friday

DEPARTMENT
Clearing

ACTIVITIES
I deal with

inward

SIGNATURE

Department

clearing
Deal cheques

which

are drawn on ACBL G.t
road Gujrat branch sent
12-8-2013

Monday

by other banks.
I did same activity as
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13-8-2013

yesterday
I deal with

Tuesday

outward

clearing

14-8-2013

Wednesday

I received the cheques
of the customers check
the

date,

signatures,

amount in figures and
words

and

cheque

number of deposit slip.

4.3.5 Week 5th (15, august, 2013-21, august, 2013)
Date
15-8-2013

Day
Thursday

Department
Remittance

Activities
Signature
Introduce about new task

department

of
Remittances Department

16-8-2013

Friday

Learn basic requirement
and how it will
be issued

19-8-2013

Monday

supervisor told about the
method of filling the form
of

demand drafts &

observe
20-8-2013

Tuesday

the work
Dealing customers & told

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them course of action
about
21-8-2013

issuing

the

demand draft
Payment of

Wednesday

Demand

Draft

after

checking that it will be
paid or not and take
signature
of the customers

4.3.6 Week 6th (26, august 2013-30,august, 2013)
Date
26-8-2013

Day
Monday

Department
Remittance

Activities
Introduce new task of

department

Remittances Department,

Signature

that issuance,
procedure of the Pay Order

27-8-2013

Tuesday

supervisor told about the
procedure of entering the
Pay Order & observe the
Work

28-8-2013

Wednesday

Fill the form for issuing the
Pay Order

29-8-2013

Thursday

Payment of Pay

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Order after checking that it
is related to will be paid or
not and take signature of
the customers
30-8-2013

Friday

work on register entering
the payment of Pay order

4.4 Detailed description of departments you worked in your internship
DEPOSITS DEPARTMENT
Deposit is the functional component of a Askari Commercial Bank. No bank can
run its operations without deposits. Main function of a commercial bank is to
channelize saving from the savers to the ultimate users of funds. The process of
collecting saving is called Deposit Mobilization. Two board categories of deposits
with reference to time period are:
Demand Deposit:
These are payable on demand. They include current account, varied deposit
(e.g. margin account) and call deposit receipt. No profit is given on demand
deposits.
Time Deposit:
Payable on demand with certain maturity. Attracts profit with respect to time.
OPENING OF ACCOUNTS:

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At the time of opening accounts, officers

considerately obtain as much

information as possible about the honesty and character of the person, his
correct name, address and occupation. It is, therefore, essential that appropriate
care and proper procedure be followed for opening different types of account for
different types of customers.
Askari Commercial Bank Ltd. has the following classification of accounts
a. INDIVIDUAL ACCOUNTS
b. PARTNERSHIP FIRM ACCOUNTS
c. JOINT STOCK COMPANY ACCOUNTS
d. AGENCY ACCOUNTS
e. CLUBS, SOCITIES AND ASSOCIATIONS ACCOUNTS
f. EXECUTORS AND ADMINISTRATORS ACCOUNTS
g. TRUSTS
h. LOCAL BODIES ETC.
I. PROPERITORSHIP
j. JOIN ACCOUNT
k. OTHER MISC. ACCOUNTS.
Individual Account:
Such accounts may be classified as

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I. Account of literate ladies and gentlemen.
ii. Account of illiterate ladies and gentlemen.
iii. Account o Parda observing ladies.
iv. Joint Account.
iv.

Minor Account.

Account of Partnership Firms:
Mean opening accounts of the partnership firms the business concern deed from
registered firms is needful to be obtained in addition to account opening night
form and specimen signature card. The partnership letter is incorporate in the
account opening form which must also be gestural by all the partners of the firm
weather condition registered or un certified
Accounts Joint Stock Companies:
Joint stock companies include
(1) Private Limited Companies and (2) Public Limited Companies.
Askari Commercial Bank needs following documents whereas opening accounts
of joint stock companies:
Copy of Resolution:
a. Memorandum of Association
b. Article of Associate
c. Certificate of Incorporation

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d. Certificate of commencement of Business (only required for public Limited
company)
e. National identity cards of Directors
f. List of Directors with their shareholding
Accounts of Agents:
An agent is the person who is allowed certain acts in behalf of another person.
The person for whom he has to carry out the business is called the principal.
Accounts of Clubs, Societies and Associations:
Clubs, societies and associations concerns are non trading and non-profit in
nature. They have their own rules and their affairs are monitored by committees,
which may be called governing bodies or managing committee or executive
committees.
Documentation Check List:
a. Account opening form
b. Specimen signature card
c. Resolution to be passed by their governing body wherein they will resolve
that:
I. Banking account open in their name with the Askari Commercial
Bank Limited.
II. Name(s) of person to be specific for operation on the account
III. The manner in which the account shall be operated.

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d. Certified copy of Rules and Regulations or Bye-n-laws
e. Letter of registration.
f. Letter of undertaking to the effect that as and when change takes place
they will inform the bank of such changes.
PLS Saving Bank Account:
Saving deposits were launched to repeat and give confidence the of saving
among people of small income in order to achieves of Islamisation of the banking
system in the country, the government authorized the Askari commercial bank to
accept Saving Deposit on profit and loss sharing basis. Deposits received under
this scheme are invested in non-interest bearing advances and other avenue so
as to remove the element of interest.
Current Account:
A current account is a running account, which is continuously in operation, by the
customer on all working days of the bank. The customer deposits without the
current deposits without previous notice to the bank.
PLS Term Deposit:
Fixed or term deposits are the major source of funds of a commercial bank. Term
deposits, as the name implies, are deposits kept with a bank for a certain period
of time. They are not payable on demand like the current deposit. The depositor
can only withdraw them after the specified period of time. The persons or firms
self-assurance churchlike bodies which wealthy person surplusage monetary
resource livelihood the medium of exchange in rigid deposits with banking
concern.

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Cheque Book Issuance:
Check book is issued for only electric current account PLS account and ASDA
FISDA and FAIDA accounts. It is not issued for PLS Term Deposit and value plus
Saving Accounts, because in these accounts, amount cannot be withdrawn within
a fixed time period.

REMITTANCE DEPARTMENT
The need of remittance is generally felt is commercial life mostly and in everyday
life generally. The major function of the remittance department is to transmit
money from one place to another. By providing this service to the customer, bank
earns a lot of income. Also customer is able to meet its day to day financial
requirements.
Demand Draft:
It is a tool payable on demand for which value has been estimated, issued by the
branch of the bank drawn i.e. to be paid at some other place (branch) of the
same bank. If two banks are involved then the DD is sent to other bank but in
other case it is handed over to the candidate.
Issuance Procedure for Demand Draft:
 A demand bill of exchange application is given to the client he fills in
applicable information and signs it.
 The officer checks the information form.
 The bank charges such as commission, excise duty is charged as per
effective schedule of charges. If he fills the tax freedom form, tax is not
charged.

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 In case of cash sedimentation the teller counts the amount and signs
the DD practical application and enters it in the registry.
 Then the In charge of remittance department signs it and operation
manager counter signs it.
 The entry is made in the DD issuing registry DD is given to the client.
 Vouchers are prepared and posted.
 DD advises are printed and mailed to the several branch.
Payment Procedure for Demand draft:
 DD is received by the bank.
 The DD credit advice is received through mail. The numbers are
checked and signatures are verified.
 An entry is made on the DD payable registry and the vouchers are
made.
 DD credit is attached with the vouchers and presumption for poster to
the computer
 When DD is received the test numbers are checked and the payment
is made.
 Vouchers are presumption for poster and the entry that was readymade in the register is closed i.e. DD payable is nil.
Telegraphic Transfer (TT):
It is the quickest means of transfer of funds from one place (Branch) to other
place (Branch) of the same bank. Generally a mail service conveys proposal
reaches the drawer subdivision the following day done courier employment. But
sometimes, a client demands that his funds should be transferred through the
quickest way. In such cases, transfer of funds message is passed through
telephone or telegram.
This mode of transfer was used before online. Online system is very effective for
this purpose now-a-days. In Askari Commercial Bank online scheme is used.

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Issuance Procedure for TT:
 The request of issuing TT is taken on the regular in print form.
 The customer fills the form correctly and signs it.
 The Head of Remittance Department checks it, the charge such as
expenses, tax and telex as per efficient schedule and signs it.
 If he fills the tax freedom form then no tax is deducted.
 Then a TT is made on colorless slip. There are 3 copies, the original
one is faxed to the Branch, one to the Head Office and one is kept for
record.
 The entry is made in the TT issuing registry.
 When payment bill is received, it is attached to the TT office copy in the
file.
Payment Procedure for TT:
 When a TT arrives, the test numbers are checked and the signature is
verified.
 The entry is made in the TT payable registry.
 If there is no account then the TT received needs income stamp and
then payment is made. TT receipt is strictly fixed.
Pay Order:
It is an instrument issued for payment in same city. Pay order issue from on e
branch can only be allocated from the same branch. It is normally referred to as
banker’s cheque. It is also called confirmed cheque, because bank issues this on
it own guarantee.
Issuance Procedure:
 The standard form is given to the client. He fills in the facts and signs
it.
 The concerned officer checks the form.

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 Bank charges (or commission) as per the schedule of charges and the
withholding tax of 0.3% are applied.
 The cash amount of the pay order is received.
 A cash memo is signed, stamped and handed over to the candidate as






a receipt.
Then the pay order receipt is filled consequently.
Counter foil is also packed.
An entry is made in the pay order issue register.
Then the authorized officer signs it after checking the pay order.
The order is then handed over to the candidate after obtaining his

signature on the PO Form.
 A voucher is also made and post at the computer.
Payment Procedure:
On presentation of the pay order receipt, two authorized officers of the branch
sign the receipt.
 PO entry is made in the PO issue register.
 Then the amount is credited to the account of the customer or pain in
cash.
 PO is posted at the computer.

Pay Slip:
It is a tool issued by the bank for the completion of its own payment. It is used for
payment by the bank to anyone (may be employees) in this case only one bank
is involved. He is the issuer as well as the payer.
 No eliminate Duty
 No Commission
Issuance:

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 A recognition voucher is sent from the account department to the
remittance department.
 Pay Slip book is taken out and filled according to the recognition





voucher.
It is entered in the pay slip register.
It is signed by authorized Officer.
A voucher is prepared and posted.
Pay Slip is then handed over to the customer.

Payment Procedure:
 Pay Slip is just like a cheque and bank is liable to pay against pay slip.
 After that when the pay slip is received by the bank for payment, it is
again transferred in the register.
 Then payment is made and it is posted in the computer.

Outward Bills for Collection:
The bills, which are received by the bank and sent to other cities (branches) for
the local clearing in that city, are called Outward Bills for Collection.
Procedure:
 The cheques that are of other cities are separated.
 They are entering in the OBC Register and OBC numbers are set to





them.
The OBC forwarding schedules are organized for different branches.
The respective cheques are attached with the schedule.
The office copy is filled and new schedule is mailed.
On clearing, the particular banks send back the OBCs along with the

IBCA (Inter Branch Credit Advice).
 The OBC numbers are checked from the OBC register, after those
entries are made.

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 Commission charges are deducted from the account.
Inward Bills for Collection:
The bills, which are received by the bank from other branches out of the city for
local clearing, are called Inward Bills for Collection.
Procedure:
 The OBC of other branches will be the IBC of this branch. So an OBC
forwarding schedule is received by mail.
 The cheques are entered in the IBC registry. The IBC numbers are
chosen to them.
 The cheques are lodged for clearing.
 After recognition, an IBCA is arranged and mailed to the branch from
where the cheque was received.
 At the end of the day, two vouchers are ready and posted.
CLEARING Department
 Outward Clearing
 Inward Clearing
Outward Clearing at the Branch:
The following points are to be taken into concern while a tool is accepted at the
counter to be presented in outward clearing:
1. The name of the branch appears on its face where it is drawn on
2. It should not be stale or post dated or without date
3. Amount in words and figures does not differ

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4. Signature of the drawer appears on the face of instrument
5. Instruments is not mutilated
6. There should be no objects modification if so, it should be properly
authenticated
7. If order tool, duly authorized and last endorsee’s account being credited
8. Approval is in accordance with the crossings if any
9. The amount of the tool is same as mention on the paying-in-slip and stump
10. The label of account on the paying-in-slip is that of payee or endorsee
(with the exception of bearer cheque).
If a tool is in order then out bank’s special crossing stamp is affixed across the
face of the tool. Clearing stamps is affixed on the face of the tools, paying-inslip and counterfoil (The stamp is affixed in such a manner that half appears
on paying-in-slip and half on counterfoil). The tool is suitably discharged,
where a bearer cheque does not required any discharge and also a tool in
favor of a bank need not be discharged. The tool along with paying-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 tools and the and the pay-in-slip or credit
vouchers are entered in the Outward Clearing Register.
2. Serial number is given to each voucher
3. The register is balanced, the credit voucher are separated form the tool
and are released to respective departments against tool and are

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released to respective departments against acknowledgement in the
register
4. The schedules are arranged bank-wise
5. The schedules are prepared in triplicate, two copies of which are
attached with the relevant tool 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 officer 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 tools along with duplicate and house page are sent to the Main
Office
Inward Clearing of the Branch:
1. The particulars of the tools are compared with the list
2. The tools are detached and sort out department wise
3. The entry is made in the Inward Clearing Register (serial number, tool
number, account number, amount of the tool is written).
4. The tools are sent to the respective departments against acknowledgement
in the Inward Clearing Register.
5. The tools are scrutinized in each respect before honoring the same
FOREIGN EXCHANGE DEPARTMENT

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Foreign Exchange Department works in ACBL like the general bank departments.
This department deals with the following:


1.

Import
Export
Foreign Remittance
IMPORT:

The international trade transaction, in which one country buys goods from other
country, is called import.
The import trade in Pakistan is governed by import and export Act of 1950.
Previously, the regulating body of imports was controller of Import and Export.
But this function has been shifted to Export Promotion Bureau.
Import License and Registration:
The individuals and firms who desire to import goods from the foreign countries
are required to obtain import license.
Contract of sale: After getting the license, the importer then negotiates with the
exporter. When they reach to an agreement on all terms of sale, they sign a
contract. Thus contract includes all information of terms and condition of sale.
Letter of credit:
Foreign trade payment problems are mainly solved by a letter of credit. A letter of
credit is issued by the importer’s bank. If guarantees payment to the exporter up
to specified amount of money provided the terms and conditions laid down the
L/C are fulfilled.
A letter of credit is a commitment on the part of buyer’s bank to pay or accept
draft drawn upon it, provided drafts do not exceed a specified amount.

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A letter of credit thus is a (I) written undertaking by an importer’s bank to
exporter’s bank. (II) That it will pay or accept draft drawn upon it up to a stated
amount with a specified time. (III) The compensation will only be made to the
exporter if he compliers with the conditions of credit.
2. EXPORT:
This department deals with the transactions, which relates to sale of goods in
foreign countries and receipt of foreign exchange from abroad.
The calculating body of export in Pakistan is Export Promotion Bureau, it gives
special incentive to the businessmen for attractive the exports and reducing the
Balance of payment shortfall. It restricts the export of some goods and reinforces
export of other.
Documentation:







E-Form
Bill of exchange
Export invoice
Packing list
Bill of lading
Certificate of origin

3. Foreign remittance:
Askari Bank also operates in Foreign Currency accounts. In agreement with
instructions of SBP, foreign currency accounts are opened in these currencies:
US Dollar, Pond, Japanese Yen, and Euro. Funds are transferred abroad by
Foreign Telegraphic Transfer Swift MT-100 is used for this transfer. Askari
Commercial Bank has its bureau planning in those countries, where its own
branches are not reputable. Its agency arrangements with City Bank, American
Express, ABN Amor, Standard Chartered Bank.

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4.5 Detail description of operations
I worked in different departments of ACBL and performed different activities,
which are as follows
4.5.1 Account opening department;
I performed many operations in account opening department, as
 Customer dealing to attract them through providing the information related
to the bank and accounts.
 Filling the forms for opening the accounts (Individual Account)
 Fill the forms of Individual Account filled ss card and punch stamps on
form and ss card
 Filling the forms for opening the accounts (Joint Account)+filled ss card
and punch stamps on form and ss card
 Record the account open into their specific register
4.5.2 Foreign Trade Department;
 Customer dealing
 Filled the different documentation relating imports and exports
4.6 Tasks assigned to me:
I did my internship in Askari Bank Limited (Hassan Plaza G.T road Gujrat). My
timings were 9am to 4pm. During that time period I was assigned different tasks.
First of all the bank Manager, Mr.Javeid Sheikh, told me about the rules and
regulations of the Askari Bank and the basics of some operations of the
departments in the bank. In six weeks I have performed different activities like
account opening procedure, remittances, chequebooks issuance, bills collection,
vouching, clearing and credit granting procedures.
4.7 Summary of learning:

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Working with Askari commercial Bank Limited, for internship project added a
great value to my knowledge, skills, and abilities and hence gave me a chance to
relate my studies in the practical working environments. Internship taught me,





Professionalism
Confidence and presentation abilities
Communication skills
Handling the stressful situations

Workings in an organization does not bound your cognitive content to
equitable one section that you are allotted with but actually the organization is
running with a orderly collaboration of the departments and hence requires
communication theory and fundamental interaction.
Wellspring that‘s it that the point that you should not ignore and always keep
your mind and heart clear for the experience. If you are in a situation and
have interactions your studies are beginners implemented in practical
environs there. You’re not by passing your boss because you know that
organizational hierarchy is defined and proper abstraction channels are
available which should be used. OR. You won’t display resistance to change
reason you deliberate that change is the alone constant

and hence

necessary for organizational evolution and employees survival
4.7.1 What skills and qualifications you think that you have gained from the
internship?
 The most important thing that I got to learn from this internship program is
that I gained some experience of working in a real world scenario. After
gaining academic knowledge and classroom experience for so many
years this was the first time that we got to work in the real world. This work
experience though of a short span has thought us so many things like
dedication, commitment, interpersonal and communication skills etc which
will certainly help us in any future endeavors we take. Whatever I have

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learned at this actual first time experience is going to stay with me for a
lifetime.
 One other major skill I learnt from the experience is the importance of
building personal relation skills and also the importance of maintaining it.
PR relations are one of the major components of a successful person as it
helps in all major steps of the professional career.
 Another major skill I learnt from the banking experience is the importance
of understanding the basics of the career one is pursuing. The more a
person is acquainted to the basics that his job acquires, the more are the
chances that he would succeed in the career.
 Patience and time management skill is also one of the major skills I learnt
in the internship. Having patience during the pressure of work and also
when working with non- cooperative clients is a major skill every
professional should have. Time management in also a major component
of any management personnel as without the proper management of time
which is a major resource, success and efficiency is hard to achieve which
shows the lack of competency in a person.

4.7.2 What kind of responsibilities you have undertaken during the
internship period?
During my internship in Askari Commercial Bank Limited, I have undertaken the
following responsibilities,
 I have to follow the rules and regulations which are followed by other





employees during working hours.
I have to perform punctuality in work.
I have to follow the time schedule of the bank.
I have to assist the employees of each department in which I worked.
I issued cheque book to customers

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Cheque-Book Issuing
Bank check books are issued alone for chequing account so much as
electric current account economy account and ASDA history. They are not issued
for other fixed and term deposits because of their long term accounts “nature”.
When an account is opened, cheque-book is usually issued the next day,
however they too are issued on the same day of opening the account keeping in
view the energy requirements the account holder and after that cheque-books
are issued whenever customer need cheque-books.
Cheque-books leaves vary with the nature of the account. For example, 25
leaves and 50 leaves chequebook are issued for current and ASDA accounts.
Whereas 10 leaves and 25 leaves chequebook are for saving accounts. Usually
25 leaves cheque-books are given only army fund accounts, and 10 leaves
cheque-books are handed over to “easily individual’s account, holder”.

4.7.3. How do you think the internship will influence your future career
plans?
 The skills learned in the internship program will be very useful for
me both in my academics and my career ahead. Initially I was
thinking that I would go for my masters directly but now I have
understood that working in real organizations will give me
experience that will help me in my academics later.
 Further, my aim of becoming a successful banker has been
motivated as I found the banking industry challenging and
interesting. This industry is very interactive, creative and a good
platform to use the knowledge learned throughout the years.
 For my academics, I could identify which courses would be useful
for me to go through to gain a competitive advantage in the industry.

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Also the skills of analyzing balance sheets, analyzing business
proposals and project financing proposals will be a major boost for
me in the academic courses I pursue further.
4.7.4. How do you think the internship activities that you carried out are
correlated with your classroom knowledge?
Internships provide an opportunity for students to link hypothesis with
pattern and farther serve as a temp labor pond for those agencies that
have attached to participate in the internship programs. The department
fulfills its mission of preparing students for significant skilled and
managerial positions in the community sector.
Internship is the capstone experience that provides students with practical,
real world experience in a work setting. Ideally, internship will enable
interns to:
(a) Integrate and use their knowledge and skills from the classroom,
(b) Discover where further skill is needed,
(c) Take steps to gain that capability under educational supervision, and
(d) Become better familiar with the types of work settings in which such
competences can be applied.

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Chapter no. 5

5.1.

Conclusion of the report

A summary of key conclusions derived from the internship
experience.

First and leading, when I joined the internship program I thought that I had a lot
of knowledge about the working of the bank. But when I actually started working
in the bank I realized that the real practice is very different from the academic
learning. What is learned in books and what is practiced are two different things.
I got to learn about Askari Bank Limited, its product details, the strategy with
which the bank works and the various business sectors the bank has made
investments in. I also got to learn about the various departments in the bank and
how they functioned. I was completely unaware about all this and in this short
span of time I got to know a lot about the bank.
Looking at the status of the bank I was very excited about joining the internship
program. But as the time of starting the job came closer, my excitement shifted to
nervousness considering the grandeur of the bank and the thought as to how my
supervisors would be. But after my first day at work all my nervousness
disappeared as the people at the bank were very friendly and helpful. The
working environment at the bank is very healthy.
I always believed that banks in Pakistan are very professional. But after spending
few weeks in the bank I realized that it is not as professional as it looks from
outside. It is more a casual environment to work in.
I also thought that my HR/PR skills are very good and there is nothing more to
be learned in that aspect but within a few days of working in the bank I realize
that I am not perfect. The way the top level management of the bank would

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communicate was a big surprise and I am certainly very impressed. I got to learn
a lot from them though. I actually realized that there are lots to learn in this
regards and I am just a beginner. Other things that I learned from my supervisors
were communication and interpersonal skills again of what I was quite proud of. I
realized that communicating in general day to day life or in college is very
different that communication at work. One has to really think before we speak.
Words have to be manipulated so that a negative impact is not laid down.
5.2. General observations about the sector in which your internship
company/institution operates.

During my internship in ACBL I have observed different problems which are as
under:
Customer Satisfaction
In ACBL customer dealing is well, but during rush hour the customer has to wait
for a long time for their turn. It’s quite hard for a new customer or potential
customer to get the required information.
Poor record management and filing system
During my internship I pragmatic that filing system of area office is not good.
When certain record is needed the employees has to great effort to find it out and
a lot of time is exhausted.
Unequal distribution of work
Work is not equally spread. On one hand some employee have to work all the
day without relax while some others have nothing to do in any way. This not only
creates uncertainty among employees but also throbbing and disturbing for

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overall setup of the bank. And above all it results in disappointment among
customers as well.
Formal Organization
Formal organization includes the dealings of two or more person, which are
carefully strong-minded groups and synchronized towards a given objective. In
ACBL, I find a formal organization. The formal organization comes into being
when people are able to exchange a few words with one another or ready to act
and share a purpose. In this formal organization of ACBL the activities are carried
out in a more formal way. In theoretical terms it provides basis for communication
with one another but in practice it is not exercised.
Difference between theory and practice
A vast difference exists between theory and practice and ACBL has written
procedure but practical work done by employees is a bit different from written
procedures.
Bank duty to maintain secrecy
They don’t care about maintaining secrecy, especially during the rush hours.
They speak loudly about the account position. In this consider another deficit is in
giving the information about the balance on telephone.
Excessive paper work
It is notify that due to the lengthy method of paper work the bank employee are
over loaded. They are unable to give proper attention to the consumers due to
lengthy procedure and extreme paper work in the bank.
More accounts fewer deposits
ACBL is more interested in increasing its number of account irrespective to its
deposit. The main reason behind it is that bank does not provide personalize
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service to the entire account holder and does not get better its excellence and
services.
Delegation of authority
Manager has very partial authority; he has to take the approval from his
management authority i-e. In case of advance he has to take the approval of
general and regional manager. The other problem is created, when the manager
is not present in his office, the customer have to wait for hours.
Job analysis is not effective
Only on the basis of job analysis it can be determined how a right person can be
hired, trained, rewarded or promote. Most of the employees are simple graduate
and do not have proper background about their job. This creates problems both
for organization and for the employees. In ACBL salaries are given according to
the seniority and grades. People with simple or compound responsibility are
getting the same salary and services.
Lack of specialized training
ACBL does not provide adequate facility of specialized training to their staff.
Training is generalized rather than specialized. As the worker finishes his
training, he is inducting into a specific field without having great contract of
knowledge about the field.
Low Profit Rates
Most of the clients shifted their history to the National economy Center because
of the low revenue enhancement of economy deposit discourage the customers.
Bank should increase their profit rates to be a focus for customers.
Good job rotation

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The job rotation is present in the ACBL’s Gujrat branch. Employees are placed
from one department to another. It increases career opportunities for all the
employees. Job rotary is precise crucial for worker especially for those who are
newly chosen. The newly chosen should be rotate in all department of the
banking in order to get familiar with working of different departments so that
when they get a responsible position they have know how of the whole system.
Lack of appreciation
Another very important thing which is ignored in the ACBL is appreciation if the
employee on their good performance. If hard work and performance of
employees is not predictable and respected they become discourage which
results in decline in performance.
PERSONAL MANAGEMENT ANALYSIS
Need for better training program
Need of training is greatly emphasized all around the world. Training of the
personnel is part of human resource management. It has been noticed that the
training program of ACBL is not sufficient.
The training programmed of the bank should include knowledge domain
technique to get better the determination making and interpersonal as will
individual needs of the worker both specific to bracing as wellspring as on job to
maintain the high standards of religious service.
Developing Managerial Leadership
Leadership is a practical term of noticeable, clear on objective and
communicating superior control on financial and managerial matter. Manager is
not only to blame for their own units in business, but also in people terms i.e.
training, recruiting, criticism handling and taking immediate initiative in crisis

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situation to take major decision affection the future of the bank and banking
community.
Promotions
Promotion in ACBL is purely on the basis of superiority, so the new young person
having high qualification remains behind for quite a lot of time. Thus a better and
neutral policy of promotion needs to be followed.
Lack of business communication
There is no proper way to give information to their customer. To avoid this minor
disappointment and tension in the mind of client, and lack of the service, it is
recommended that the bank should provide brochures etc containing information
in details.
Some general information should be located in information notice board on the
entrance where client can see it easily or it should be self-attractive.
6.3 SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses,
opportunities and threat is termed as SWOT Analysis. Such an analysis is very
important for the management in retaining the strength, overcoming the
weaknesses, capitalizing over the emerging market opportunities, and carving
ways to successfully tackle with the threats and ultimately converting them in the
strengths for the organization.
During six weeks of my stay at Askari Commercial Bank, G.T road Gujrat, I have
come across the following SWOT analysis of the bank.

5.2.

STRENGTHS

LEADING PRIVATE SECTOR BANK

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Askari commercial bank is the most important private sector bank in the banking
network in Pakistan with many of them online branches in major cities of the
country.
AUTOMATIC OPERATIONS
The operations performed by the bank are highly automated that result in
assurance for the customers that their transactions are completed reliably,
efficiently and securely.

FULL DAY BANKING
One can avail the benefit of the services provided at the bank till 5:00 P.m. which
is highly useful for those customers who find it difficult to leave their officers in the
morning...
ATM NETWORK
The bank has the largest ATM Network crossways the country. The customers of
ACBL withdraw access their funds any time at all the ATM Sites with ASKCASH
Logo.
CUSTOMIZED SOLUTIONS
The management of the bank believes in customer focused banking rather than
the product leaning banking. The products and services designed by the bank
are specially tailored to the individual needs of its customers.
CUSTOMER ORIENTED BANKING

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The priority banking centers of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the
chance of experiencing new standards in banking. Designed especially for those
who appreciate only the supreme things in life, Priority Banking offers the very
highest levels of modified banking to match customer’s single rank.
ELECTRONIC BANKING
The revolution in the banking in the form of electronic banking operations have
opened avenues of excellent, efficient and quick services saving the time and
costs of the customers and fortunately ACBL is among those few banks who are
already reaping the benefits of electronic transactions.
ELECTRONIC FUNDS TRANSFER
ACBL management is quite prepared to adopt the latest advancements in
technology resulting in revolution in the banking operations such as check
clearing process, computer based teller equipment, automatic teller machines,
and electronic funds transfers among the others.
PHONE BANKING
Phone banking service is very attractive for those classes of customers who don’t
have time to personally come to the bank i.e. banking on the phone line thus
saving the precious time of the customers.
ETHICAL CONCERNS AND PUBLIC IMAGE
The organizations showing concern for the people, ethics, and environment enjoy
good public reputation and are able to reap the benefits in the long run. ACBL
management is quite sensitive to this issue.

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WEAKNESSES:
In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
NOT HIGHLY AUTOMATED
The bank has still some of the traditional ways of operations in this advanced
technological environment.
MANUAL BOOK-KEEPING
Although the bank has computerized accounting system but, still the bankers use
to make their entries in the accounting register.
LOW JOB SATISFACTION
Understanding and the effective management of the human resources is the
most difficult challenge faced not only by the bank but by all the organizations.
Even though the people have been sacrificed in the new organizational
developments, it is becoming clear that the true permanent competitive
advantage comes through workforce and how they are managed. ACBL seems to
not focusing on this highly critical issue as the job satisfaction level of the
employees working at ACBL, was quite low.
LACK OF SPECIALISATION
This famous and useful concept given by Adam Smith in 1776 seems to be
missing in the bank. The employees are constantly rotated from one job to
another job of totally different characteristic in the view of giving them the knowhow of the working in all the departments. But I think this is not a very good
tactics used by the management. Otherwise the situation might be like this ‘Jack
of all and master of none.’
CENTRALIZATION

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There is a high degree of centralization in the bank. Almost all the decisionmaking is in the hands of the upper management. But centralization is effective
up to a certain level otherwise it becomes inefficient and at times costly too. I
personally observed that delay occurred in the operations of the employees only
due to the fact that they had not got any instructions from the head office.
LACK OF TRAINING FACILITIES
Presently there is no specific training program arranged for the new recruiters.
They have to learn based on their observations and also their mistakes. It takes a
bit time for the fresh one to learn the banking the result is huge amount of
blunders, mistakes etc. resulting in monetary and non-monetary losses for the
bank. There is pressure not only on the new learner but also on the person
placed upon with this responsibility.

OPPORTUNITIES
The bank is facing the following threats and opportunities currently:
These are positive external environmental factors effecting the organization.
 It deals in bulk business.
 A large amount of foreign savings is fascinated.







Strong potential for growth
Steady increase in Customer Deposits
Overseas Operations
Branches In Remote Areas
Islamic Banking
Sharp increase in imports and exports

THREATS
High Employees Turnover

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As discussed above, the job satisfaction level of the employee is very low
resulting in high turnover, which is bad for any organization as there are huge
monetary and non-monetary costs involved in the fresh recruitments.
High charges
The schedules of charges indicate that the fees charged by the bank on the
various services it provides are extremely high. It may result in decrease in the
number of its existing customers. Furthermore, this could be very alarming
situation for the bank in case some of the competitors grasped the opportunity
and lowered its rates. The result would be either the loss of market share or
decrease in the charges resulting in lowering the bank’s income.
Less attractive rate of return
Commercial banks face considerable competition in attracting deposits from
individuals or small investors. In contrast, the Govt. of Pakistan national saving
scheme offers attractive rates of return (approx. 16 to 18 percent annually) on
10-15 year fixed accounts, which banks find difficult to match.
Stiff Competition
SCB is currently facing strict competition from the foreign banks especially the
American who banks enjoy a good market position. Collectively U.S. banks hold
approximately 13 percent of all commercial banks' assets. At present, three
American banks are operating in Pakistan: American Express Bank; Bank of
America and Citibank.
Less Experienced Staff
Owing to huge turnover of the employees, the no. of experienced and well
trained staff is very low. Majority of the staff working in the bank branches is quite
young and inexperienced. If the bank failed to bring down its high employees

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turnover, then it would be lacking the most important resources of any
organization i.e. the experienced staff.

5.3.

Recommendations

After spending six weeks at different departments of the bank, interacting with
the employees, getting their views, observing the organizational structure and
design, I have come up with the following suggestions that in my view, will
definitely improve a few weaknesses observed in the bank by me.
Job Training Programs:
The bank should place emphasis on effective training and development
programs for its new as well as existing employees so that these are gradually
updated regarding the recent developments in the field of banking.
Team Work:
In any organization we have to work like a group as a whole. The attitude of the
one employee can cause tension in the whole environment so it is suggested that
they should work as a team and co-operate with each other.
Decentralization:
The higher authorities should form team-based management rather than
centralized management. It would result in improvement in uplifting the morale of
the employees. They will be more motivated and involved in all their operations
resulting in overall effectiveness of the organization.
Job security:
The employees in the organization should be insured job security so that there is
no pressure on the employees while performing their tasks.
Permanent Hiring:
The fresh hiring should be made permanent so that they are secured for their
future.

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Increase number of Branches:
It is necessary for Askari commercial bank to increase the number of branches
and increase number of employees in their branches.
Adoption of Flexible Policies:
The bank should adopt flexible policies especially in the area of recruitment and
promotions.
Revival Charges:
The rate of the various charges provided by the bank should be brought down a
bit, as it would result in increase in the number of customers of the bank.

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Chapter no. 6 References and Appendix

6.1.

References:

1) www.askaribank.com.pk
2) Annual report of Askari bank 2009
3) http://www.onlinewbc.gov/docs/finance/fs.ratio
4) Wikipedia the encyclopedia
5) http://en.wikipedia.org/wiki/Commercial_bank

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6.2. Appendix

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