askari commercial bank ltd intenrship report

8/8/2019 Askari Commercial Bank Ltd Intenrship Report

http://slidepdf.com/reader/full/askari-commercial-bank-ltd-intenrship-report 1/98

LIST OF CONTENTS

Chapter No. S. No Title Page #

Acknowledgements i

List of Contents ii

List of Tables v

List of Graphs & Charts vi

List of Acronyms vii

Executive Summary viii

Chapter-1 Introduction of the Report 1

1.1 Background of study 1

1.2 Purpose of study 1

1.3 Scope of work 2

1.4 Methodology of Research 2

1.5 Limitations of study 2

1.6 Scheme of Report 3

Chapter-2 Origin and Growth of Banking 4

2.1 Evolution of Banking 4

2.2 Banking in Pakistan 5

Chapter-3 Askari Commercial Bank Limited 93.1 Introduction 9

3.2 Corporate Information 10

3.3 Share Capital of ACBL 11

3.4 Mission and Objectives 12

3.5 Awards and Achievements 14

Chapter-4 Products and Services of ACBL 17

4.1 ASDA 17

4.2 Askari Bank’s Value Plus 174.3 Askari Travelers Cheques 18

4.4 Ask Card 18

4.5 Ask Power 19

4.6 Askari Master Card 20

4.7 Askari Bank’s Personal Finance 21

4.8 ASKAR 22

4.9 Askari Bank’s Mortgage Finance 22

4.10 Askari Bank’s Business Finance 22



4.11 Smart Cash 23

4.12 Touch n Pay 23

4.13 Askari Cash Management Services 24

Chapter-5 Regional Distribution 25

5.1 ACBL-North Region 26

Chapter-6 ACBL Peshawar Cantt 28

6.1 Departmentalization at ACBL Peshawar

Cantt 29

Chapter-7 Financial Analysis 46

7.1 Common-size Analysis 46

7.2 Ratio Analysis 52

7.3 Trend Analysis 617.4 Trend Analysis of North Region 69

Chapter-8 SWOT Analysis 71

Chapter-9 Findings and Recommendations 74

Chapter-10 Implementation Plans 80

10.1 Implementation Plan: Extension and

Renovation 80

10.2 Implementation Plan: Internees

Management

82

Annexure-I 87

Annexure-II 88

Annexure-III 89

References 91

Bibliography 92



LIST OF TABLES

S. No Title Page #

3.1 Head Office Groups/Divisions 16

5.1 Regional Distribution of ACBL 25

7.1 Horizontal Common-size Analysis–Balance Sheet 47

7.2 Vertical Common-size Analysis–Balance Sheet 48

7.3 Horizontal Common-size Analysis–Income Statement 50

7.4 Vertical Common-size Analysis– Income Statement 50

7.5 A Decade of Performance 62

7.6 Trend Analysis of North Region 69



LIST OF GRAPHS AND CHARTS

S. NO Title Page #

3.1 Organizational Structure 15

5.1 Branch Network in the North Region 27

6.1 Hierarchical Structure of ACBL Peshawar Cantt 28

7.1 Current Ratio of ACBL 52

7.2 Debt to Equity Ratio of ACBL 53

7.3 Debt to Total Assets Ratio of ACBL 54

7.4 Interest Margin Ratio of ACBL 55

7.5 Return on Equity of ACBL 56

7.6 Return on Assets of ACBL 57

7.7 Loans to Deposits Ratio of ACBL 58

7.8 Investments to Deposits Ratio of ACBL 59

7.9 Profit Margin of ACBL 60

Trend Analysis:

7.10 Profit 63

7.11 Customer Deposits 63

7.12 Advances 64

7.13 Investments 64

7.14 Total Assets 65

7.15 Imports 66

7.16 Exports 66

7.17 Guarantees 67

7.18 Earning per Share 67

7.19 Net Assets per Share 68

7.20 Number of Employees 68

7.21 Number of Branches 69

7.22 Trend Analysis of North Region 70



LIST OF ACRONYMS

ACBL Askari Commercial Bank Limited

ASDA Askari Special Deposit Account

ATM Automated Teller Machine

AWT Army Welfare Trust

DD Demand Draft

GHQ General Head Quarters

OBU Operating Business Unit

PLS Profit and Loss Sharing

PTCL Pakistan Telecommunication Corporation Limited

SBP State Bank of Pakistan

SWOT Strengths Weaknesses Opportunities Threats



PREFACEPREFACE

Internship is a compulsory requirement for getting the degree of BBA (Hon’s) from

Preston University. In this students are made to work in an organization for a

specific period preferably two months to learn about its practical workings and apply

theoretical knowledge to practice. For this purpose, I got an opportunity to carry out

my internship at the ASKARI Commercial Bank Limited (ACBL), Kohat.

Askari Commercial Bank is a rapidly growing organization with better future

prospects and working there brought me closer to real life working situations. I

observed how the employees managed to work under stress and pressure and consult

each other on different problems. The overall working environment was very

conducive and gave a professional look.

During the internship program, I was not involved in the technical work of processing

instruments and carrying out transactions on the computer system. However, I was a

helping hand in the preparation of vouchers, schedules, DD vouching and making

entries in the registers, and general ledgers. I basically observed the procedural

working structure of the organization and the benefit behind the theme of team work.

Through this process of learning I was persistently guided and instructed on different

banking activities. Today I have a well understanding of various banking activities.



EXECUTIVE SUMMARY EXECUTIVE SUMMARY

Internship is an academic requirement whereby students are required to work in an

organization for a specific period of time to apply management knowledge to practice

and learn to work in real life situations. This internship report is based on the

internship carried out at ASKARI Commercial Bank Limited, Kohat.

The purpose of this report is to review existing practices and to recommend the

necessary measures to be taken by the bank for better and efficient working in future.



INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Bank plays extremely important role in modern economic activities in the form of trade and commerce by providing short-term loans, exports and imports. Thus a well-

developed banking sector is a pre requisite for the development of an under developed

country like Pakistan.

Though the economy of Pakistan is passing through a difficult phase presently it

requires a growing banking sector in order to curb the macro economic imbalances of

budget deficits, acceleration of economic growth and reduction in unemployment.

The banking sector in Pakistan has shown great progress during last years and hasincreased much in size. As a result of increase in size the banks are now adopting new

approaches to their existing banking operations, keeping in view changing in demand

of time and emphasizing more on personalized service, electronic fund transfer, auto

teller machine and evening banking.

PURPOSE OF STUDY:

The main purpose of this study is to:

•

Present an overview of ACBL.• Describe and analyze its functional performance, focusing financial aspects.

• Identify its weak areas and

• Recommend measures for improvement.

The study was carried out and the report being presented for the fulfillment of degree

requirement of Bachelors in Business Administration at Preston University, Kohat.

SCOPE OF WORK:

Due to the limitation of time, the main focus of work was on departments; including

Deposits, Bills and Remittances, Foreign Exchange, Advances and Accounts in

particular and the observation of the working environment in whole organization in

general. The study includes general working procedures in these departments and

their findings with some recommendations and suggested action plan.



LIMITATIONS

Study includes those aspects, which are closely relevant for the purpose of the study.

Facts and figures which otherwise might be equally important but not having proper

conclusions are ignored.The most important limitation from which the study suffers is the non-availability of

information in a manner required for analysis and secrecy of the bank.

Another most important limitation is the time constraint eight weeks is not enough to

study all the operations of bank thoroughly.

Despite of being very cooperative, the bank officers had also to do their normal-

banking work, and due to huge number of customers, I sometimes felt that I couldn’t

get enough time to discuss and learn things in detail from them.

1.3.2. Delimitations

The information given in this report would be useful for the person who is interested

in knowing about the operations carried out in the Askari Commercial Bank Kohat.

This report will be useful for the officers of the bank for their improvement in their

work regarding their specific departments.

METHODOLOGY OF THE STUDY

The study makes us use of two kinds of data, primary data and secondary data.

1.4.1. Primary Data

Certain types of information such as the perceptions and attitudes of employees are

best obtained by talking to them by observing events, people, and objects, or by

administering questionnaires to individuals. Such data gathered for research from the

actual site of occurrence of events are called Primary Data.2

The advantage of this data is that we get correct and up to date data about our study

but the disadvantage is that it is time consuming and costly.

For this report primary data was collected in two ways, unstructured interviews with

the employees of the bank and observations. The method of observation was

participant observation.



1.4.2. Secondary Data

Certain types of information such as the background details of the organization can be

obtained from available published records, the web site of the organization its

achieves, and other sources. Other types of written information such as company

policies, procedures and rules can be obtained from the organization’s records and

documents. Data gathered through such existing sources are called secondary data that

is, they are data that already exist and do not have to be collected by the researcher.

The data is already gone through mathematical and statistical techniques after its

collection.

The advantage of this data is that we don’t have search for the needed information and

the disadvantage of this data is that the information may not be up to date as changes

occur in the organization with time.

For this report the secondary data is collected from annual reports of the bank, manual

of different departments, books available on banks, broachers, newspaper and

Internet.

HISTORY OF ASKARI COMMERCIAL BANK

Askari bank was incorporated in Pakistan on October 9, 1991.Askari Bank

commenced its operations in April 1992, as a Public Limited Company, and has since

expanded into a nation-wide presence of 75 branches, supported by a network of

online ATMs. The Bank is listed on the Karachi, Lahore & Islamabad Stock

Exchanges and the initial public offering was over-subscribed 16 times.

In the early years, the focus of the business was primarily on non-corporate sector of

retail market. Then it shifted its focus to wholesale trade, manufacturing and project

financing while retaining its niche with the medium-sized customers who continue to

provide the best return on the earning assets of the bank. While capturing the largest

market share amongst the new banks, Askari has provided good value to its

shareholders. Their share price has remained approximately 12% higher than the

average share price of quoted banks during the last four years.



Askari Bank is principally engaged in the business of Islamic banking as

defined in the Banking Companies Ordinance, 1962. As at December 31, 2004,

the Bank had total assets of Pak Rupees 101.313 billion, with over 475,000

banking customers.

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 them to evolve an outward-looking strategy in terms

of their market emphasis. As a result, they 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. The salient features of the

bank are:

i) First Pakistani Bank to offer on-line real-time banking on a countrywide basis

ii) First Bank with a nation-wide ATM network

iii) First Bank to offer Internet Banking services

iv) First Bank to offer e-Commerce solutions

ORGANIZATIONAL REVIEW

2.1. INTRODUCTION

An organization is a group of people working together in a structured and coordinated

fashion to achieve a set of goals.

In early 90’s there was growing trend among Government circle to involve private

sector in the progress of the socio economic conditions of the country. Banking sector

holds vast promises in Pakistan and realizing the fact Army Welfare Trust (AWT)

established Askari Commercial bank on 9th October 1991. It started its operations in

1992.

Since its inception in 1991, Askari Commercial Bank is progressively moving

towards the achievement of their goals. Knowing the customer requirements and

understanding of employee needs, they are continuously and consistently striving to



address new challenges with a single motivation. They have structured and syndicated

financial arrangements, financing of international trade, small business reviews, credit

cards and unparallel investments products for the individual savers.

Askari Bank is proud of the pioneering role in providing most technological services

to the customer. They are ready to take changes in the financial markets. With a

network of 75 branches and over 475,000 loyal customers, committed hardworking

human resource, Askari Bank has the strength to be the market leader.

ACBL superior services are well acknowledged at both national and international

level.

They have A1+ highest possible credit rating, for the short-term obligation and long

term rating standards at AA. Askari 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 to the Government of Pakistan for the

Financial Sector Deepening and Intermediation Project. Askari Bank has a higher

volume of Export and Import business of Rs. 26 billion registering the growth of 34%

over the previous years.

These achievements are the results of continuous hard work and there commitment to

work.



MISSION STATEMENT OF THE BANK

“LEADING PRIVATE SECTOR BANK IN PAKISTAN WITH AN INTERNATIONAL PRESENCE, DELIVERING QUALITY SERVICES THROUGH INNOVATIVE

TECHNOLOGY AND EFFECTIVE HUMAN RESOURCE MANAGEMENT IN A

MODERN AND PROGRESSIVE ORGANIZATION CULTURE OF MERITOCRACY,

MAINTAINING HIGH ETHICAL AND PROFESSIONAL STANDARDS, WHILE

PROVIDING ENHANC ED VALUE TO ALL OUR STAKE-HOLDERS, AND

CONTRIBUTING TO SOCIETY.”



Objectives:

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

• To build and sustain a high performance culture, with a continuous

improvement focus.• To develop a customer-service oriented culture with special emphasis on

customer care and convenience.

• To build an enabling environment, where employees are motivated to

contribute to their full potential.

• To effectively manage and mitigate all kinds of risks inherent in the banking

business.

•To maximize use of technology to ensure cost-effective operations, efficientmanagement information system, enhanced delivery capability and high

service standards.

• To manage the Bank’s portfolio of businesses to achieve strong and

sustainable shareholder returns and to continuously build shareholder value.

• To deliver timely solutions that best meet the customer’s financial needs.

• To explore new avenues for growth and profitability.

CORE VALUES:

The intrinsic values, which are the corner stones of Askari Bank’s corporate behavior,

are:

• Commitment

•

Integrity

• Fairness

• Team-work and

• Service



STRATEGIC PLANNING:

• To comprehensively plan for the future to ensure sustained growth and

profitability.

• To facilitate alignment of the Vision, Mission, Corporate Objectives and

Corporate Philosophy, with the business goals and objectives.

• To provide strategic initiatives and solutions for projects, products, policies

and procedures.

• To provide strategic solutions to mitigate weak areas and to counter threats to

profits.

• To identify strategic initiatives and opportunities for profit.

• To create and leverage strategic assets and capabilities for competitive

advantage.

CORPORATE PHILOSOPHY:

Inspiring Relationships

From knowing their customers requirements to understanding employee needs, from

utilizing modern technology to making responsible social contributions, from

enhancing stake holder’s value to practicing corporate ethics, ACBL is continuously

and consistently striving to address newer challenges with a single motivation:

“The power to inspire and be inspired.”

AWARDS AND ACHIEVEMENTS:

Over the years, ACBL has received several awards for the quality of their banking

service to individuals and corporate.

• ACBL was declared “The Best Bank in Pakistan” by the Global Finance

magazine for the years 2001 & 2002.

• It has been given “The Best Consumer Internet Bank” award for Pakistan

by the same magazine for the years 2002 and 2003.

•

As early as 1994, 1996 and 1997, ACBL received the Euro money and Aslamoney awards for “The Best Domestic Bank in Pakistan”.



• Askari Bank won the first prize in the Best Corporate Report awards for the

years 2000, 2001 and 2002 from the Institute of Chartered Accountants of

Pakistan and the Institute of Cost and Management Accountants of Pakistan,

for the services sector.• For the past five years, ACBL has received ranking prizes from the South

Asian Federation of Accountants for “The Best Presented Annual

Accounts” for the financial sector, in the SAARC region.

• It has also won the 1st prize for “The Best Designed Annual Accounts”,

from the National Council of Culture & Arts for each of the years 1997 to

2002.

•

Askari Bank has A1 + rating for short-term obligations—the highest possiblefor the category, while the long-term rating stand at AA.

• Askari Commercial Bank won the MAP (Management Association of

Pakistan) Award for Corporate Excellence 2004.

• “Asian Banker”, Singapore, declared ACBL as the “Best Retail Bank” in

Pakistan for year 2004.

CORE VALUES

The core values of the bank are:

Commitment

Integrity

Fairness

Teamwork

ORGANIZATIONAL STRUCTURE:

The framework in which the organization defines how tasks are divided, resources are

deployed and departments are coordinated.

Organization structure has two facets first the form of structure in which organization

principles are applied. In the second activities are determined and establish functions

and authorities within these activities and relate these activities.

Bank organizational structure is a hierarchical description of the function and

responsibilities of major units or departments in the bank.



Usually a Bank Organizational structure is composed of Chief Executive Officer

under the Board of Directors, Departments Head with specific responsibilities and

authorities, further bifurcations of divisions, sections and units.

ACBL allows a flat organizational structure with a few levels and relatively large

span of management at each level, which is evident in its organizational chart.

2.3. ORGANIZATIONAL CHART:

Organizational Chart is the visual representation of Organizational Structure.

Organizational Chart is prepared to show formal organization relationships, which are

intended to prevail. It shows who supervises whom and how the various units are

related to each other. It also shows main line of communication, downward flow of

authority and upward flow of responsibility.

Organizational chart of ACBL gives us the view that how greater delegation of

authority can be made possible at different levels.

A board of directors comprising of 11 head directors of Bank. Board of Directors in a

limited company with large number of shareholders, Board of Directors are elected by

the shareholders using their voting rights who are responsible for the affairs of the

company including operation management and control of company business, taking

important decisions and formulating broad polices and objectives of company.



ORGANIZATIONAL CHART OF ACBL

Chief Executive

Manager Operations

InchargeDeposits

InchargeCredits

InchargeComputer

InchargeForex

Audit

InchargeCash

InchargeRemittances

InchargAccount

FCAccounts

Imports ExportsLoans &Advances

CreditCards

Bills Remittances

AccountOpening

ChequePosting

TermDeposits



Source: The ACBL Circular

PRODUCTS & SERVICES OF ACBL

The main products offered by Askari Commercial Bank Ltd. to its valued customers

include the following:

4.1 ASDA (ASKARI SPECIAL DEPOSIT ACCOUNT):

Besides the basic current and saving accounts, which are offered in both local and

foreign currencies, ACBL offers two more accounts in local currency to its customers,

i.e. ASDA and Askari Value Plus.

ASDA or Askari Special Deposit Account gives a monthly profit to the account

holder, but the amount in the account is checked on daily basis and no profit is given

if the balance in the account is less than Rs.50,000. The amount in this account is also

Zakat deductible.

4.2 ASKARI BANK’S VALUE PLUS:

Another rupee deposit account, with minimum limit of Rs.10,000/- and monthly

returns, but if amount in the account is less than this limit, then Rs.150/month is

deducted. Advantages:

• Partial Liquidity Offer: This account gives opportunity to invest Rs.25,000 as

minimum for a choice tenure i.e. 3 months, 6 months or 1 year.

The investment will be held in blocks of Rs.25,000/each. In case customer wishes

to partially withdraw some amount from his total investment, he has the flexibility

of encashing the blocks that he wants, without touching the remaining investment.

The unencashed blocks will continue at the same maturity and return, and yet he

does not lose the share of profit on the encashed blocks.

• Insurance Cover: A unique partnership between Askari Bank and New

Hampshire Insurance Company (American International Group, Pakistan)

brings global accidental protection for the entire family of the customer.

With this account, the account holder can enjoy an insurance cover of up to 4

times the average balance in his account. This is a choice enrolment plan with

a monthly deduction of Rs.20.



• Free ATM Card: The account holder of this account gets a free ATM card,

which in case of other accounts has to pay Rs.200/month for this service. This

card provides with instant cash access at more than 40 ATMs around Pakistan,and this card brings special discount offers on purchases from the authorized

merchants of ACBL, from restaurants to boutiques, book stores to 5-star hotels

for the ATM Card holder.

4.3 ASKARI TRAVELLERS CHEQUES: The safe ways to carry cash—another valuable financial service by ACBL. Askari

Bank’s Travelers Cheques are available in the denomination of Rs.10,000/-, it's light,

safe and ideal for all travel purposes.

Free issuance: The customers don't have to pay any service charges for purchasing

Askari Travelers Cheques. They can buy these either against cash or debit to their

personal account.

Added safety & security: With Askari Bank’s state-of-.the-art in-built security

features, the customer can be rest assured that this is the best way to make and accept

payments. High security lithography, ultra violet printing, special thread, anti scanner pyramid design and unique micro lines, all done and printed in UK gives the comfort

of dealing in the safest substitute for cash, easily refundable in case of loss and theft.

4.4 ASK CARD (DEBIT CARD):

It is an innovative step in the evolution of today's plastic money. It gives customer

the freedom to access his Savings, Current or ASDA Account at merchant locations

and ATMs. Whenever he makes payments, the amount will be instantly debited tohis account.

How to get the Ask Card? To get an Ask Card, the customer must have an account

with Askari Bank. If the customer already has an account with Askari Bank, he

simply has to submit an application form. If he is not maintaining an account, he will

have to open an account first and request for Ask Card to be issued to him.

In case of Ask Card, the account balance is the spending limit of the customer.

Since a customer is spending his own money, there is no interest charged.



Ask Card facts:

• Free from carrying cash or Cheque books.

• Easier to obtain than Credit Cards.

•Customer does not have to carry cash or travelers cheque while travelingwithin the country. More readily acceptable than Cheques.

• No monthly installments.

• No interest / markup payments.

• No spending limit.

Every purchase and ATM withdrawal will appear on the monthly checking account

statement of the customer, including the date, place and amount.

Ask Card security: Askari Bank's Debit Card facility offers unmatched security. It

functions on a PIN-based mechanism other than the usual signature-based cards in

the market. Since only Ask Card holder knows the secret PIN number, it protects

him against any fraud.

This card is acceptable at various locations, including grocery stores, retail stores,

petrol stations, restaurants, ACBL’s existing and forthcoming ATM Network and

Point of Sales terminals.

4.5 ASK POWER (PREPAID CARD):

Ask Power is Askari Bank’s Pre-paid Card. Although, it is a “stored value” card, but

unlike ATM Card, Ask Power is not connected to any account. It is an instant cash

card that can be used at any ATM and Point of Sale terminals.

A customer simply has to submit an application form at any ACBL Branch and get his

Ask Power Card.

Key Features:

• Issued to ACBL / Non-ACBL customers. (NIC Card holders)

• Minimum Issuance Limit: Rs.500/-

• Card can be reloaded anytime.

• Payment of Utility Bills through ATMs and Internet.

• Instant access to money; 24 hours a day, 7 days a week.

• Easy cash withdrawal through ATMs.

• Fast, private, safe and secure option for cash transfers.



• Replacement of card in case of loss, theft, damaged or defective card.

Key Advantages:

• Ultimate way of carrying cash.

• Easy access to cash and commodities.

• No waiting in long queues for paying utility bills.

• No issuance fee.

• No credit approval required.

• Account relationship with ACBL not mandatory.

• Can be issued to anyone having National Identity Card.

• Convenient and inexpensive money transfers.

• Countrywide acceptance and availability.

At customer’s service: Ask Power is acceptable at numerous locations including

grocery stores, retail stores, restaurants, gasoline stations and also at ATMs and Point

of Sales terminals.

Safe & secure: Ask Power offers unmatched security to the cardholders. It functions

on a PIN-based mechanism as opposed to the ordinary signature-based cards available

in the market. Since only the customer knows his confidential number, he is protected

against all sorts of frauds.

4.6 ASKARI MASTER CARD (CREDIT CARD FACILITY):

No joining fee: When a customer successfully applies for an Askari MasterCard,

ACBL will not charge him any Joining Fee.

Worldwide acceptability: Askari Master Card provides service at thousands of

locations in Pakistan and over 14 million establishments worldwide. As an added

convenience, the Cardholder will have the benefit of receiving his monthly billing in

Pak Rupees, regardless of the currency of purchase.

Askari supplementary cards: Askari Master Card saves the customer the

inconvenience of applying for separate Askari Master Cards for his immediate family

members (over 18 years) by requesting supplementary cards when applying for his



own card. He will receive a consolidated monthly account statement, which covers all

the cards.

No surcharge on cash payment: When a customer pays his Askari MasterCard bills

in cash, ACBL will not charge him a processing fee. So if he prefers paying his bills

in cash at any specified Askari Bank Branch, ACBL will not make this convenience

more expensive for him.

Traveling safety net: On purchase of travel tickets on Askari MasterCard, the

customer is automatically covered under Travel Insurance Plan (in case of personal

accident resulting in death or permanent disablement) for up to Rs.8,000,000/- on a

Gold Card and Rs.4,000,000/- on a Silver Card.

Travel privilege services: On purchase of Airline Tickets for international Travel on

Askari Master Card gives:

• Up to Rs.10,000 Insurance cover for flight\ delays exceeding 6 hours.

• Up to Rs.10,000 Insurance cover for baggage delays exceeding 6 hours.

• Up to Rs.20,000 as baggage loss claim.

Discounts at Avari with Askari Master Card: With Askari Master Card, one can

take advantage of the following discounts at Avari Hotels:

• 50% on Room Rates

• 15% at all Restaurants

• 10% on Health Club Membership

4.7 ASKARI BANK’S PERSONAL FINANCE:

Askari Bank’s Personal Finance has unmatched financing features in terms of loan

amount, payback period and most afford able monthly installments.Features:

• Loan amount from Rs.30,000 to 300,000

• Repayment period from 1 to 3 years

• Fixed monthly repayment

• Shortest processing time

• Funds may be obtained at any ACBL branch

Eligibility Criteria:



• 1-year (or more) business or professional experience in the present business

(in case of small business finance).

• 5 years (or more) business or professional experience in the present business

(in case of medium business finance).• Willingness of the borrower to provide his own or co borrower’s residential

property as security.

4.11 SMART CASH (RUNNING FINANCE FACILITY FOR

CONSUMERS):

This personal line of credit is set up with a specified credit limit agreed upon by

customer and ACBL.

Features:

• The customer can withdraw cash from his credit line as and when he requires.

• The markup is charged only on the utilized amount and for the number of days

the credit is used.

• The markup is lower than a credit card.

• Finance amount is up to Rs.1 Million.

4.12 TOUCH N PAY (UTILITY BILLS PAYMENT):

Touch n Pay is Askari Bank’s Electronic Bill Payment Service through which its

customers’ can pay utility bills through ATM card of ACBL.

At present, ACBL has joined hands with PTCL and this arrangement facilitates Utility

Bills subscribers to pay their monthly Utility bills from Askari Bank's ATMs, Point of

Sale Terminals (POS), the Internet and also at the Bank's branches through direct

debit to their personal accounts.

ASKARI CASH MANAGEMENT SERVICES:

It is aimed at effectively managing the accounts receivable portfolio of medium and

large corporate entities, e.g. Askari Leasing.

The service primarily aims at providing clearing, collection and cash/transfer facility

to corporate.

http://www.askaribank.com.pk/askari_branch_list.htm

http://www.askaribank.com.pk/askari_branch_list.htm



DEPARTMENTATION

Departmentation means grouping of jobs into some logical arrangement.

Departmentation results in the effective management of each unit as well as

concentration on the particular activities and consequently better the performance.

The basis for departmentation in ACBL is geographical as well as functional.

3.1. DEPARTMENTATION AT HEAD OFFICE

At the Head Office various departments have been established in corporate function

of similar nature. President of Askari Commercial Bank Limited handles all divisions.

HEAD OFFICE GROUPS / DIVISIONS:

Operations & Credit Group

Corporate Banking &

Financial Institutions Group Retail Banking Group

Credit DivisionCorporate & Investment

Banking Divisions Assets Products Division

Electronic Technology Division

International Division

Investment Products Division

Systems & Operations Division

Treasury Division

Credit Cards Division

Compliance & Data DivisionPlanning & Corporate Affairs

Division

Legal Affairs DepartmentHuman Resource Division

Finance Division

Internal Audit Division



3.1.1. Corporate and Merchant Division

This division is engaged in the provision of the financing facilities to large corporate

clients including multinationals. Principle activities include syndicated loans,

guarantees, and working capital finance, underwriting and advisory services.

International Division

They are responsible for managing correspondent relationships and planning overseas

operations. Plays vital role in the Foreign Trade Transactions. They have been

transacting business of Rs.70 billion in year 2001.

3.1.3. Treasury Division

They are responsible for managing Banks Liquidity and Foreign Exchange

transactions. Through repot transactions, purchase of Government papers and foreign

exchange trading the division adds substantially to the banks retained earnings.

3.1.4. Credit Card Division

This Division manages Askari Master Card brand and is headquartered at Karachi.

The product now has a portfolio of nearly 20000 cards less than one year. The brand

is accepted worldwide and at over 3,000 locations in Pakistan.

3.1.5. Systems and Operation Divisions

The division has been instrumental in development of procedures and manuals for

various operating requirements of the Bank. The division recommends automation

and re engineering requirements to improve transaction efficiencies. This division

also manages the protection of fixed assets of the bank.

3.1.6. Credit DivisionThis division provides extensive support to branches for credit administration, control

and monitoring, and has played a pivotal role in helping theBank to achieve a

remarkable loans growth of 31%, with well-defined exposure risks. Most of the loans

are for short term trade financing. This Division has a Special Assets Management

team, which is responsible for low ratio of bad debts, effective monitoring of

delinquent advance and close follow up of recoveries.



3.1.7. Finance Division

This division is responsible for book keeping and accounts. It prepares all financial

returns through its Management Reporting Wing. It is actively involve in preparing

market comparative analysis, consolidation of Banks budgets, its monitoring andconstant review of various financial indicators. Preparing the Banks Annual Accounts

and coordinating external audits is also a direct function of Finance.

3.1.8. Audit Division

The Audit Division acts independent of the Management and is responsible for

checking and reporting on the Management compliance with the Board’s policies and

directives and other directives of SBP. This Division is responsible for every aspect of

Bank’s operations with the goal of improving the effectiveness of risk management

and internal control.

3.1.9. Legal Affairs Department

The Legal Affairs Department is mainly engaged in advising the Bank on applicable

laws and the negotiations of contracts, and providing legal assistance by reviewing,

examining and scrutinizing various documents and matters connected therewith the

department carries out analysis, prepare research studies, drafts, address legal queries

and advise on pre contractual investigations. This department has also the

responsibility to follow up on the legal actions initiated for or against the bank

especially the ongoing litigation in the loan recovery cases. The department makes

sure that all the legal actions are in compliance with the relevant laws, rules and

regulations.

3.1.10. Assets Products Division

The Assets Products Division is responsible for the development and management of retail credit schemes, and is presently offering several innovative consumer credit

products. APD presently has five retail asset units all over the country. The first

product of the division is “Askari Banks Personal Finance” is used for the purchase of

various types of consumer goods. The launch of “Askari Bank’s Business Finance”

product in 2002 was a step towards implementing SBP’s advice to provide loans to

SME’s. APD has also introduced value added products like “Balance Transfer

Facility” (BTF) and “Askari Bank’s Mortgage Finance” and “Askar”. All these



products have enjoyed good acceptance by the market. Computer Loans were

launched in July 2002 to promote IT Technology in the country.

3.1.11. Investment Product Division

The Investment Product Division is responsible for developing and managing the

brands that serve the investment needs of the customer market it focuses on deposit

mobilization and provision of value added services based on modern technology

cards. The division continuously makes an effort to provide value added services and

products to the clients. The is evident from the launch of “ Askari Bank’s Value Plus

Account” and Rupee Travelers Cheques, both of which got a good response from the

market.

REGIONAL DISTRIBUTION OF ASKARI

COMMERCIAL BANK LTD

RegionNo. of

branches

Main distribution of

branches1

No. of new

branches

planned for 2004

Growth in

operating

profit

Rawalpindi /

Islamabad 10

7 in Rawalpindi, 3 in

Islamabad

No such planning

for 200462%

North 76 in NWFP, 1 in

Azad Kashmir

No such planning

for 2004-15%

Lahore 8 8 in Lahore 4 18%

East 1212 branches spread all

across Punjab4 21%

South I 1210 Karachi, 1 in

Gawadar, 1 in Sukkur

4 72%

South II 76 in Karachi, 1 in

Hyderabad

No such planning

for 200422%

West 3 3 in Balochistan No such planning

for 2004-15%

1



5.1 ACBL—NORTH REGION:

North Region covers seven branches, six in NWFP and one in Azad Kashmir.Significant portion of business activities carried out in NWFP was in the hands of

Afghan immigrants, who are leaving for their homeland. This has adversely affected

business of imports, exports and real estate.

The repatriation of Afghan refugees, who were a major source of economic activity in

the Region, the relocation of various western NGO operations from NWFP to

Afghanistan, which were a major source of deposits and allied business, are the main

factors that have resulted in a loss of business in the Region.

Keeping in view these factors and the fact that an unusually high profit (130% growth

even with limited potential for credit and foreign trade but the Region’s team efforts

to contribute to the bank deposits and foreign trade business) was achieved in the

previous year, the Region could not sustain its profitability, which declined by 15%

during 2003.

In other areas of business, particularly advances, the Region achieved significant

growth attributable to the untiring efforts of the Region’s team.

While it is hoped that economic activity will revive in the Region, and relationships

will improve with Afghanistan, ACBL also plans to expand the operations that will

enable the generation of low cost deposits and trading business in the Region.

Lahore

This region now covers 8 branches located in Lahore city with the last one opened

during the year 2002. The region serves both households and business community in

and around Lahore and carries the advantage of matching its deposit generation with

deployment.

3.2.4. East

This region has the largest number of branches (12) in comparison with any other

region of the bank, stretching from Rahim Yar khan in the south to Gujarat in the

north. During the year one more branch was added to this region in the city of

Gujarat.



South-I

This region comprises of 12 branches out of which 3 were opened during the year

2003.

The region’s strength lies in the fact that it manages 2 of the main branches of Karachi, which have contributed significantly towards the bank bottom line as well as

trade related volumes to the bank.

South-II

In appreciation of the depth and dimension of Karachi market, south region was split

in two regions south1- and south-11. This region started off with 4 branches. This

region has excellent potential for deposits, advances as well as foreign trade. Of all

the graphical regions of the bank, south-11 posted the strongest all-round growth in

2004.

3.2.7. West

Operating with 3 branches in the comparatively less developed province of

Baluchistan, this region relies heavily on retail customers with some potential for

deposit mobilization. Our marketing philosophy reflects our core value of serving the

customer. Though small in its quantum, the region attained excellent growth of 35%

in its profits and advances.



DEPARTMENTATION AT BRANCH

ACBL PESHAWAR CANTT

Askari Commercial Bank Ltd. Peshawar Cantt branch started its operations in 1992.

Since, there are two branches of ACBL is Peshawar, this branch serves as the main

branch. The main departments at ACBL are:

• Cash

• Deposits

• Bills and Remittances

• Foreign Exchange

• Advances

• Accounts

• Computer

A REVIEW OF THESE DEPARTMENTS IS PRESENTED

A brief description of functions performed in some main departments of ACBL is as

follows:

6.1.1 Cash Department:

The main functions of this department are cash payments and cash receipts, that are

briefly described below:

1. Cash receipts: Receipt of cash from the customers by the bank in case of

deposits, issuance of demand draft and telegraphic transfer or payment of fees

etc. is the function of this department. A record is also maintained for these

receipts.

2. Cash payments: Along with the receipt of cash for different transactions, this

department also performs the function of payment of cash, for example, when

a customer withdraws cash from his account, etc.

6.1.2 Deposits Department:



Deposits mobilization is the primary function of a bank, and for this purpose Askari

Commercial Bank Limited; like other banks, offers different types of accounts to its

customers. The basic purposes of keeping cash in banks are safe custody and earning

interest on the cash deposits. Though the State Bank of Pakistan has lowered interest

rates considerably over the past few years; even then the deposits show an increase

because most people have no other better option.

The cash deposits and opening of accounts by customers also brings with it other

facilities for its account holders; for example, issuance of cheque-book, ATM card,

bank locker facility etc.

Types of Accounts:

The various types of account that ACBL offers to its customers are:

Current deposit account:

A current deposit account can be opened in Askari Commercial Bank Limited, with

an initial deposit of Rs.500 by army personnel and Rs.5000 by civilians. Account

holders can withdraw cash from their accounts anytime by drawing a cheque. There is

no Zakat or tax deduction from current deposit account.

PLS Saving Account:

Askari Commercial Bank Limited opens saving account with an initial deposit of

Rs.200 by army personnel and Rs.2500 by civilians. A six monthly profit is paid on

this account, which is credited to the account of account holder, and zakat is deducted

on the 1st of Ramadan.

ASDA (Askari Special Deposit Account):

This account gives a monthly profit to the account holder, but the amount in the

account is checked on daily basis and no profit is given if the balance in the account is

less than Rs.50,000. The amount in this account is also zakat deductible.

Askari Bank’s Value Plus:

Another rupee deposit account, with minimum limit of Rs.10,000/- and monthly

returns, but if amount in the account is less than this limit, then Rs.150/month is

deducted. The account holder of this account gets a free ATM card, who in case of

other accounts has to pay Rs.200/month for this service.

A unique partnership between Askari Bank and New Hampshire Insurance Company

(American International Group, Pakistan) brings global accidental protection for the

entire family of this account holder.



With this account, the account holder can enjoy an insurance cover of up to 4 times

the average balance in his account. This is a choice enrolment plan with a monthly

deduction of Rs.20.

Term Deposits:

These deposits pay profit on maturity and are for a maximum six months period.

Rs.10,000 is the minimum limit for opening this account. And, a copy of identity card

is required to open the account. No introduction of already existing account holder of

the bank is required which is the case for other deposit accounts.

Account opening steps:

• Individual(s) (single or joint), who is not a minor, sole-proprietor, partnership,

or private or limited company can open an account.

• For opening an account, the bank requires the customer to fill an account

opening form (AOF) and a specimen signature card.

• The customer also has to provide the photocopy of National Identity Card as

well as to show the original NIC to the banker opening account for him.

• The customer also has to be introduced by any employee of the bank or any

other account holder of the bank.

• If a person’s signatures do not match with each other, he is required to fill the

vernacular form in the presence of a witness.

• If the depositor signs in Urdu or “thumb signs”, he is required to give his

photographs with the AOF.

• The account opening officer checks all the aspects of account opening and

stamps the account opening form as ‘authorized’ and ‘verified’, and then

account number is allotted to the depositor.

• Chequebook is issued to the depositor.

• Phone call is made at the given number to the account holder and introducer to

say thanks and to verify the numbers provided.

• Letter of thanks issued to the introducer and its copy is attached to the account

opening form.

• If the account holder wants to avail any other facility e.g. ATM Card or

locker, he can now apply for that by filling the relevant forms.



Clearing of cheques:

The cheques that are presented by the customer in a particular bank because that

person is the customer of that bank and not because that cheque belong to that bank,

are presented in Clearing House in State Bank, where the representatives of all banks

are present.

There are two Clearing Houses in a day:

In House 1, cheques are presented.

In House 2, cheques are returned.

After necessary operation on those cheques, the amounts are credited to the account of

the person in whose name the cheque has been drawn.

There are two types of clearing that will be explained with ACBL’s reference:

• Outward clearing: Cheques brought to ACBL by its customers that are

drawn on other branches.

• Inward clearing: Cheques drawn on ACBL.

6.1.3 Bills and remittances Department:

To make safe the transfer of money from one place to another, this department of the

bank acts an agent on behalf of its customers. This department sends on receives

money on behalf of its customers through following means:

1. Outward Bills for Collection

2. Inward Bills for Collection

3. Demand Draft

4. Pay Orders

Outward bills for collection: ACBL receives outstations bills (bills drawn on other

banks) from its customers, sends them with a schedule to that bank, and after the

process credits the amount to the customer’s account and debits that bank.

Inward bills for collection: The cheques drawn on ACBL are received from other

banks and after the required process, that bank is credited.

Demand draft: It is way of safe transfer of money to someone outstation. Its

procedure is explained here:

• Application for DD (Demand Draft) received from the customer.



• Draft is made on behalf of customer.

• The DD prepared is given to the customer.

• The customer sends it to the beneficiary (the person to whom he wants to send

the money).

• The bank (ACBL in this case) will send IBCA to the branch from where the

beneficiary will receive money after presenting the DD.

Pay order: Pay order is used to send money from one bank to another in the same

city. They are used to avoid the risks involved in accepting a cheque with no amount

in the account. Pay orders are similar to DD except for the fact that DD are meant for

outstation transfer of money and pay orders are used for local transfer of money.

6.1.4 Foreign Exchange or “Forex” Department:

This department deals in foreign currency and offers the following main services.

1. Foreign currency deposits

2. Foreign remittances.

3. Issuance of travelers cheques

4. Imports

5. Exports

Foreign currency deposits:

• Individual or joint accounts are opened in foreign currency. Foreign currency

accounts are not opened for limited or unlimited companies, as is the case for

local currency deposits.

• Account may be opened as saving or current accounts

• Account may be opened in US Dollars, Pound Sterling or Euro (3 currencies).

• The minimum limit of amount for opening accounts in these foreign

currencies is:

o For US Dollars ––– $ 500

o For Pound Sterling ––– £ 350

o For Euro ––– є 500

Foreign currency accounts operational procedure:

The foreign currency account can be funded /withdrawn either by:



• Receipt of cash in foreign currency.

• Receipt of cash in foreign currency funds through Nostro accounts.

• Transfer of funds from one account to other account denominated in the same

currency at same branch.

• Transfer of funds from one account to other account denominated in the same

currency at different branches.

• Transfer of funds form one account to other account denominated in different

currencies.

• Remittance of funds through foreign currency account denominated in the

same currency.

• Remittance of funds through foreign currency account other than the currency

of account.

• Foreign currency cash paid against available balance in foreign currency

account.

This department also provides the following services to its customers:

• A customer’s cheque, which is drawn in his name but the amount has to be

credited to his account from some foreign bank, then ACBL will perform thisfunction for his customer through its correspondent bank in that country. The

customer must be account holder of ACBL.

• If a customer wants to exchange one currency for another, this department will

perform this function.

• If a customer takes cash for the cheque drawn on the foreign currency account,

he can get the encashment certificate from this department if he needs it.

Types of foreign currency accounts:

New Accounts: These are the accounts that have been opened after 1998, both for

current and saving foreign currency.



Old Accounts: These are the accounts that were opened before 1998 and were frozen

by the government. Customer can withdraw amount from these accounts in Pak

rupees and not in any foreign currency. SBP pays a 0.5% forward cover to the bank

on these accounts.

Incremental Accounts: For those customers who wanted to continue operations in

their Old Accounts that were frozen, the facility has been provided to them that those

accounts have been changed to Incremental Accounts to save the customers from

inconvenience of opening new accounts for that amount and going through long

procedures.

Foreign remittances:

“Remittance” means transfer of funds from one place to another. And foreign

remittance is the transfer of funds from one country to another, which is done through

correspondent banks.2 Foreign remittances can either be inward or outward:

• Inward Remittance:

In this case foreign exchange flows in. Authorized dealers (e.g. banks) purchases

foreign exchange when it is received in the form of MTs, TTs, drafts, Bills, TCs and

foreign currency notes.

•

Outward Remittance:In this case foreign exchange flows out and authorized dealers sells foreign exchange

by issuing MTs, TTs, Drafts, Bills, TCs and foreign currency notes.

Issuance of traveler’s cheques:

Askari commercial Bank Limited has an agreement with American express for sale

of American Express Traveler’s cheques. Through Private Travel Exchange Quota

(PTEQ), the maximum amount that any person can avail is $ 2100 in one year. Thecustomer can take the whole amount as TCs (Traveler’s Cheques), but if he wants

cash, he can take cash only up to $100 and the rest of $2000, he will have to accept as

TCs.

From the total quota of $2100, the percentage of amounts of TCs that each age group

member can avail is:

o For up to 2 years old ------- 10%

2



o For 2 to 12 years old ------- 50%

o For 12 years old and above ------- 100%

Following documents are required to be submitted in original to the authorized dealer

(e.g. bank) for the issuance of traveler’s cheques:i. Passport.

ii. National identity card.

iii. T.1 form, duly completed.

iv. OK return ticket.

v. Visa

Imports:

In international market, commodities are traded through importer and exporter. Both

these parties may not know each other. When an importer is not particularly well

known to an exporter, but the transaction is being conducted directly between the

importer and the exporter, then they use the services of a bank, through a letter of

credit, which is also known as “documentary credit”.

A documentary letter of credit (LC) is an undertaking by a bank at the request of its

customer, an importer, to pay the exporter in respect of goods consigned to the

importer when satisfactory documents including evidence of consignment and all

other documents required under the terms of the credit are produced at the named

place within a specified period.

Parties involved in LC: Normally, the parties involved are:

a) The buyer, applicant for LC or importer—who requests the bank to

issue the credit.

b) The issuing bank—who issues the credit. (ACBL in this case).

c) The correspondent bank—who is intermediary between issuing bank

and seller and who pays or negotiates drafts upon receipt of

documents.

d) The beneficiary or exporter—who is entitled to receive payment on

presenting the documents.

Types of Letter of Credit: There are different types of LCs, few are described here:



• Revocable LC: This type of LC can be cancelled or amended by the importer

at any time without the prior notice to the exporter.

• Irrevocable LC: In this type of LC, the issuing bank gives a binding or

definite undertaking to the exporter that the Importer will pay againstdocuments. Such an LC can only be amended or cancelled with the consents

of all parties involved in letter of credit.

• Sight LC: In this type of LC, the payment is to be made on presentation of bill

of exchange.

• Acceptance LC: In this LC, facility in payment is allowed to the importer.

This includes payment on 30,60,90 or120 days, D.A. basis. This facility could

be allowed by LC opening bank as well as exporter.



Requirements and main steps involved in imports:

• The importer has to be registered with EPB (Export Promotion Bureau).

•

Importer should have account with the issuing bank, (ACBL in this case).• He should be a taxpayer.

• The issuing bank checks all the other relevant documents, along with the

application for LC.

• Issues credit for the importer, which is sent to the exporter through

correspondent bank, and opens PAD (Payment against document) account for

its customer.

•When importer pays the amount, the documents held by bank are issued tohim.

Exports:

Requirement for export registration:

For a person exporting good for his firm, the following requirements must be fulfilled.

• There must a current account of his firm in Pak rupees.

• He should have NTN (National Tax Number) certificate, to ensure that he is a

taxpayer.

• Earlier registration of the exporter with EPB (Export Promotion Bureau) was

also must, but this condition is lifted now to encourage exports.

Procedure of export:

• Exporter bank (in this case ACBL) issues E-form quadruplicate to the

exporter. Exporter fills it, declaring the particulars of his intended exports and

brings it back to the bank.

•The “E” form is certified by checking details like export registration number,verification of exporter’s signatures, name and complete address of exporter,

value of invoice mentioning the currency, terms of payment, designation,

mode of transportation, name and address of foreign buyer (importer).

• After certification of ‘E’ form it is submitted by the exporter along with

shipping bill to the customs authorities for clearance of consignment.

• Three copies of ‘E’ form are returned by the customs authorities, retaining the

original after endorsement of shipment on the relative portion of ‘E’ form.



• The quadruplicate copy is retained by the exporter while the duplicate and

triplicate copies are submitted to the bank (ACBL), along with other

documents for negotiations within 14 days from the date of shipment.

•

The exporter’s bank (ACBL) sends the documents to the correspondent bank in the country of importer for presenting the bill to the importer, and obtaining

payment.

6.1.5 Advances department:

Banks are, generally commercial institutions and so their basic purpose is profit

making. Banks accept deposits and pay interest on them. Moreover, use these deposits

for advancement of loans and investments. The rate of mark-up charges on loansadvanced is higher than the interest rate on deposits paid to account holders. And this

difference is the profit for the bank.

The main functions of the Askari Bank’s advances department are:

1. Advancement of loans

2. Issuance of Letter of Credit

3. Issuance of Letter of Guarantee

4. Issuance of Credit Cards

5. Issuance of Debit Cards

6. Cash Management

Advancement of loans:

ACBL advance loans to:

• Individuals

• Corporations

• Army personnel

• Staff

at different conditions and securities depending on the facility provided.

ACBL provides many types of facilities for the borrowers, some of which are

described here:

Running Finance:



It is a credit facility, granted to businesses to meet running expenses. The limit is

given against the current account of the client. If the current account is in debit, the

client has to pay the markup, otherwise there’s no markup.

Cash Finance:

These are advances granted on short-term basis against security. The difference

between running finance and cash finance is that of security. In ruing finance

hypothecation of stock is done and in cash finance pledge of stock is done.

Personal Finance:

It is credit facility for individuals bearing a mark-up of 12%.

Staff Finance:

It is the credit facility available for the staff of Askari commercial bank for buyinghome, car or other personal requirements.

Payment Against Documents (PAD):

The bank being the issuing bank on the customer’s behalf of a letter of credit, pays the

exporter’s bank and debits the PAD account, till its payment by customer. Until the

realization of the amount, documents representing title of goods shipped by foreign

exporter, is held by bank as security.

Term Finance (GHQ):

It is the credit facility for the army personnels. Army has placed a sufficient amount in

the bank, and the army personnel who brings a letter form army is given the loan.

Types of securities:

Different types of securities are required for different kinds of advances facilities.

Great care is required on the part of banker while accepting a security for securing its

loans, keeping in mind:

• Adequacy of margin

• Marketability of securities

• Completion of documentation

• Store ability

• Durability

• Stability in price

The common securities are:



• Pledge: In pledge the ownership of pledged goods remains with borrower but

the bank has exclusive right of ownership till the repayment of advanced

amount.

• Hypothecation: In hypothecation, both the ownership and possession

remains with the borrower. However bank has a charge on it.

• Assignment of Salaries: The salary of an Army personnel who has

availed the loan fancily must come in ACBL counter till the abort is

fully repaid to bank.

Loan Pricing:

The markup rate of the credit extended is negotiable, depending on the risk involved

(and security). If the prospective client has a low risk and is strong enough, the mark

up rate may be low, and for a very risky or small client, it may be high.

Loan Advancement procedure:

On receipt of application for loan from client, the advances department interviews a

person to judge his credibility to some extent. Then a CSA (credit sanction advice) is

prepared for him that tells about the borrower, his business, purpose of facility,

security or margin against it, the repayment mode etc.

The advances department has to ensure that the documents are complete and valid. It

must be confirmed that the asset that is mortgaged or pledged is at good location and

for its marketability, its present and forced sales value, and whether it has any other

charge by another bank or not etc.

Lending committee in ACBL:

The lending committee consists of four levels, which are:

i. Branch credit committeeii. Credit committee at head office

iii. Executive committee

iv. Board of Directors

Each successive level has higher discretionary power of approving the loan sanction

than the previous level, with Branch credit committee having lowest discretionary

powers and board of directors having highest discretionary powers as to the amount of

loan sanctioned.



Issuance of letter of Credit:

Letter of credit is a non-fund based facility provided by the bank, which is used for

trade by the clients. Broad classification of LC is:

• Sight letter of Credit: It calls for the draft to be drawn at sight. Documents

received against sight are held as security till their retirement.

• Usance letter of Credit: Drafts drawn under usance LCs are for tenure

specified in the LC and are payable by the customer on due data.

Issuance Of Letter Of Guarantee:

ACBL also provides guarantee on belief of its customer, which is another non-fund

based facility for its customers. Letter of Guarantee (LG) can broadly be classified as

follows:

• Tender Guarantee or Bid Bonds: Tender Guarantee is to ensure that the

contractor is a serious bidder. If the contractor is awarded and the contractor

fails to take it up, the bond is forfeited. These are issued by a bank to avoid the

deposit of earnest money by its customers when they tender for contracts.

• Performance Guarantee or Performance Bonds: A bank on behalf of its

customer who has entered into a contract to supply goods to perform other

services issues these and they guarantee compensation in terms of money in

the event of non-performance of such contracts.

• Shipping Guarantee: Shipping Guarantees are issued to enable customers to

obtain delivery of goods without surrendering the relative bill of lading. Banks

issue guarantees to shipping companies for release of goods in the absence of

shipping documents.

• Financial Guarantee: These are guarantees given by the bank to financial

institutions and companies under taking to pay the debt of its customer in the

event of default by the customer.

Issuance of Credit Cards: Askari Master Card (Credit Card) is another credit facility

of ACBL for its customers. There are two types of Askari Master Cards:



• Silver Card: with maximum limit of Rs.155,000 and annual charges of

Rs.2000.

• Gold Card: with maximum limit of Rs.300,000 and annual charges of

Rs.3500.Supplementary Cards: The customer applying for Askari Master Card can also

apply for Supplementary Cards for his immediate family members over the age of 18

at an annual fee of,

o Rs.750 for Silver Card

o Rs.1500 for Gold Card

These cards can be used for different kinds of purchases and special discounts are also

offered to the cardholder at selected places. The billing is done through amortizationlist on which billing month and amount and amount are mentioned. The customer can

pay the whole bill for the month together, but if he does not want to do so, he will

have to pay at least 5% of the bill amount in the month in which it incurred.

Issuance of Debit Cards:

Ask Card (Debit Card) is the facility available to the ACBL account holder. It gives

customer the freedom to access his Savings, Current or ASDA Account at merchant

locations and ATMs. Whenever he makes payments, the amount is instantly debited

to his account.

In case of Ask Card, the account balance is the spending limit of the customer.

Since a customer is spending his own money, there is no interest charged. Every

purchase and ATM withdrawal will appears on the monthly checking account

statement of the customer, including the date, place and amount. There is a monthly

fee of Rs.200 for this facility.

Cash Management: ACBL provides cash management facility to its sister concern

Askari Leasing for products as Askar. ACBL receives cheques from customers who

have availed the Askar facility, and performs the functions of clearing and internal

transfer of amount for Askari Leasing.

6.1.6 Accounts department:



The basic function of this department is checking that there is proper accounting of

assets and liabilities of the bank. All banking activities pass through this channel. This

department co-ordinates all the banking activities of various departments.

The important function of ACBL’s Accounts Department includes:

Pre-Audit Checking:

The main function of this department is pre-audit checking of all the bank

transactions. This department keeps check on all transactions, which are recorded in

other departments.

Daily position report:

For the purpose of reporting to the head office, it prepares daily position report of the

current position of the banks assets and liabilities. Assets are the property of the

business, which includes cash, investment, loans and discounts etc. while the

liabilities which indicate the rights of the creditors into the assets of the business

includes capital, reserves, deposits, acceptances etc.

Preparation and disbursement of salaries:

Another responsibility of the Accounts Department is preparation and disbursement of

salaries. It is also concerned with the maintenance of employees accounts of provident

fund.

Expenditure provisioning:

This is also an important function of the Accounts Department. It depreciates the

assets of bank at a fixed rate each month. The cost of assets is depreciated on the

written down value method except for the vehicles carpets and renovations which are

depreciated on straight line basis:

Fixed Assets 20% on Cost

Vehicles 20% on Cost

Carpets 20% on Cost

Furniture 10%

Machine and Equipment 20%

Computer 20%

The record of all these depreciation is maintain by this department.

Maintenance of branch premises:



Maintenance and repair of the bank vehicles is also the responsibility of the Accounts

Department.

Supply and handling of stationery:

Another responsibility of the Accounts Department is to meet all the stationery

requirements of the bank.

Vouchers:

Custody of daily vouchers is the sole responsibility of the Accounts department. It is

an important function because voucher is a written evidence of any banking

transaction. Old record preservation and destruction is also important function of this

department.

Medical Allowance:

ACBL provides the medical allowance facility to its employees. The employees can

avail 10% of their basic salary on medical expenses for the whole year.

Statutory requirements:

It is the responsibility of the Accounts Department to keep the 5% of its total deposits

as balance with SBP, on daily basis. Whenever the balance falls below the 5% mark,

it is the responsibility of the Accounts department to make arrangements and handle

the situation. For this purpose, TT discounting facility can be availed by Accounts

department. Through this facility, the department can demand up to Rs.6 million at

the rate of 16% from SBP to maintain its statutory balance. In case the bank’s

statutory balance goes above the 5% mark, the department sends the excess amount to

ACBL Karachi and the branch gets 12.5% commission on it.

Clearing:

Accounts Department keeps clearing register regarding clearing house which consists

two types of entries:

i. Inward clearing

ii. Outward clearing

Inward clearing: Inward clearing means record of all those checques which are being

received by the bank in first clearing. All details of checques are recorded in clearing

register.

Outward clearing: Outward clearing means the detail of checques that bank has

delivered to other banks in first clearing. Details of checques are recorded in the

clearing register.



Computer Department.

Daily operations are based on their system UNIBANK. It was purchased from United

Bank. The computer database in branch helps to keep record of all transactions taking

place. Also handles automated teller machines.

FINANCIAL ANALYSIS

8.1. INTRODUCTION

The importance of financial statement’s analysis lies in their utility to satisfy the

question in the mind of stakeholders. Different classes of people are interested in the

financial statements with a view to assessing the economic and financial position of

any business or industrial concern in term of profitability, liquidity or solvency etc.

for example, the commercial banks are mainly interested in short term liquidity and

profitability while prospective investors may be interested in long terms liquidity and

solvency.

Financial statements among other things include balance sheet and income statement.

Balance sheet presents assets and liabilities of the business at a given date. Besides

showing the ability of the business to service the loans on the strength of its financial

structure and on the history of its profitability, helps in judging the impact of financial

and fiscal support and in evolving a secured business, income statement discloses,

how the business has been conducted and determines factors behind a decline in the

net worth.

8.2. PURPOSE OF THE FINANCIAL ANALYSIS

The analysis of Financial Statements (FS) is to examine the past and current financial

data so the company’s performance and financial position can be evaluated and futurerisk and potentials can be estimated. The analysis can yield valuable information

about trends and relationship, the quality of a company’s earnings, and it’s financial

strengths and weaknesses.

The analysis would answer questions like:

• Is the business expanding or contracting?

• Is it more profitable than last year or less profitable?

•

How efficient is the capital employed in the business being utilized?



• Does the business have any financial problem?

To evaluate financial statements, an analyst must:

• Be acquainted with business practices

•Understand the business and accounting terminologies

• Be aware of accounting conventions and limitations of accounting

• Be acquainted with the tools of analysis of financial statements.

IMPORTANCE OF FINANCIAL ANALYSIS

The figures in financial statements, do not tell the whole truth. To obtain meaningful

information, relationship between relevant figures must be examined. For instance;

Relationships, which help, find the liquidity of the business.

Relationship, which reflect the effectiveness of the financial policies adopted and

the potential fund raising ability.

Relationships, which help, evaluate the effectiveness of the operational policies.

To achieve the aim, we undertake Ratio Analysis, Common Size analysis and Trend

Analysis.

COMMON SIZE ANALYSIS:

Common-size analysis involves expressing comparisons in percentages. There are

two types of common size analysis; vertical and horizontal. In vertical analysis, a

figure from the year’s statement is compared with a base selected from the same

statement. In horizontal analysis, a dollar figure for an account is expressed in terms

of that same amount figure for a selected base year. The Common Size analysis of

ACBL is as follows with 2002 selected as the base year.

Horizontal Common Size Analysis

Balance Sheet as at December 31

(Rupees in thousand)

2004 2003 2002



ASSETS

Cash and balances with other banks 100.0% 71.3% 100.0 %Lending to financial institution 140.3 83.0 100.0Investments 188.8 228.4 100.0

Advances 192.2 129.0 100.0Other assets 78.2 99.6 100.0Operating fixed assets 273.7 230.0 100.0

Total Assets167.5% 137.9% 100.0%

LIABILITIES

Bills payable 304.1% 190.0% 100.0%Borrowing from financial institution 282.5 203.6 100.0Deposits and other accounts 150.0 125.6 100.0Other liabilities 144.3 186.8 100.0

Total liabilities

166.0% 136.6% 100.0%

SHAREHOLDER’S EQUITY

Share capital 120.3% 105.0% 100.0%Reserves 125.7 127.5% 100.0%Surplus on revaluation of assets 5279.3 5281.9 100.0

Total shareholder’s Equity 187.5% 137.9% 100.0%



Vertical Common Size Analysis

Balance Sheet as at December 31


2004 2003 2002

ASSETS

Cash and balances with other banks 10.9% 9.4% 18.3%Lending to financial institution 6.8 4.9 8.1Investments 25.9 38.0 22.9Advances 52.4 42.7 45.7Other assets 1.7 2.6 3.6

Operating fixed assets 2.3 2.4 1.4Total Assets 100.0% 100.0% 100.0%

LIABILITIES

Bills payable 1.2% 1.0% 0.7%Borrowing from financial institutions 19.8 17.3 11.6Deposits and other accounts 76.7 78.2 85.1Other liabilities 2.3 3.5 2.6Total liabilities 100.0% 100.0% 100.0%

SHAREHOLDER’S EQUITY

Share capital 22.6% 26.0% 40.2%Reserves 54.7% 46.5% 59.0%Surplus on revaluation of assets 22.7% 27.5% 0.8Total shareholder’s Equity 100.0% 100.0% 100.0%



Common Size Analysis Of Balance Sheet:

For horizontal analysis 2002 has been taken as base year. Cash and balances with

other banks has declined in 2003 but increased again in 2004 and reached to the same

level as in 2002. Lending to financial institutions also declined in 2003 but increased

in 2004. Investments increased in 2003 but decreased in 2004 due to lesser investment

opportunities in the year. However, advances have shown an increasing trend through

out the period, which is a very positive sign as banking business mainly earns profit

from the difference in the mark-up earned on advances and interest paid on deposits.

And, increase in advances shows that deposits have been efficiently utilized. Whereas,

total assets have shown a continuous growth for the period under analysis.

Total liabilities also shows increase from 2002 to 2004, in which deposits and other

accounts show a growth of 50% from 2002 to 2004. Share capital is increased by 5%

in 2003, and another 5.3% in 2004.

From vertical analysis, it can be seen that advances and investments make the major

portion of total assets followed by cash and balances with other banks. The percentage

of advances in total assets has increased by 6.7% (from 45.7% in 2002 to 52.4% in

2004). Whereas, the percentage of cash and balances in total assets has declined by

7.4% for the same period.

As deposit mobilization is considered as one of the major functions of banks, which is

also evident from the vertical analysis that above 75% portion of total liabilities

consists of deposits and other accounts.

Horizontal Common Size Analysis

Profit and Loss Account for the Year Ended December 31


2004 2003 2002

FUND BASED REVENUE96% 114% 100%

Non-fund based revenue 120 106 100

Total revenue100% 113% 100%

Mark up/return/interest expensed 48% 104% 100%

Provision against non-performing loans and advances 109 124 100 Non-markup/interest expenses 168 128 100



Total expense 77% 110% 100%Profit before taxation 189 123 100Taxes 174 122 100

Profit after taxation 201 125 100

Vertical Common Size Analysis of

Profit and Loss Account for the Year Ended December 31


2004 2003 2002

Fund based revenue 81% 85% 84% Non-fund based revenue 19 15 16%Total revenue 100% 100% 100%

Mark up/return/interest expensed 27% 53% 57%Provision against non-performing loans and

advances

6% 6% 6%

Non-markup/interest expenses 29% 19% 17%Total expense 62% 78% 80%Profit before taxation 38% 22% 20%Taxes 16 10 9%

Profit after taxation 22% 12% 11%

Common Size Analysis Of Income Statement:

By taking 2002 as base year, from horizontal analysis it can be seen that total revenue

has increased in 2003, but declined in 2003 and came to almost the same level as base

year, even a bit more progressive. However an increasing trend can be seen in non-

fund based revenue, but fund-based revenue is decreased in 2004 responsible for

decrease in total revenue, as above 80% portion of total revenue is fund-based (from

vertical analysis).

From horizontal analysis it can also be observed that mark-up/interest expenses have

declined considerably in 2004 as compared to base year, while non-markup/interest

expenses have increased. However, the net impact on total expenses is a decline of

22% in 2004 as compared to 2002. Finally, profits have doubled in 2004 as compared

to 2002, which can be described as a result of decrease in total expenses.



From vertical analysis, it can also be seen that for 2002 and 2003, the major portion of

total expense was due to mark-up/interest expense, but in 2004, its contribution has

been halved, and is almost same as non-markup/interest expense. The profit after

taxation in 2004 is also highest in the three years under analysis.

RATIO ANALYSIS:

Ratios provide the means of showing the relationship, which exists between, figures

on the Balance Sheets and Income Statements. The analysis is undertaken to assess

important characteristics of business like liquidity, solvency and profitability. A study

on these aspects enables drawing conclusions as to financial requirements and

capabilities of business units

Ratios may be classified in a number of ways to suit any particular purpose. Differentkinds of ratios are selected for different types of situations. Some of the ratios

calculated for ACBL are given below:

Current Ratio: Current asset and current liabilities comparison given gives an

indication of the short term debt paying ability of an entity. Current ratio of ACBL for

three years is:

Current Ratio = Current Assets

Current Liabilities

For 2002: 60,473,346 = 0.88

68,943,966

For 2003: 85,386,902 = 1.04

80,340,060

For 2004: 107,167,541 = 1.06

101,151,448

Current Ratio of ACBL

0.7

0.8

0.9

1.0

2.09

Year

C u r r e n t R a t i o2002

2003

2004

1.04

0.88

1.06



The principal objective of the funding policy of ACBL is to ensure liquidity (or short-

term debt paying ability) at all time across market cycle and through periods of

financial stress. Though the current ratio of ACBL is only 1.06, but it is a very good

sign that the bank has placed less in current assets and utilizing the resources it has.

On the other hand the bank has ensured its liquidity by maintaining a minimum of 5%

of its demand and time liabilities with the SBP, in current account. This is to meet its

immediate liquidity requirements and contingencies. This is in addition to balance

with other banks and cash in till to meet its immediate liquidity requirements and

contingencies.

In addition, the bank maintains a large portfolio of gilt-edge securities, which mainly

comprise of treasury Bills and Pakistan investment bonds, as liquidity reserve. These

securities can be readily sold to raise liquidity if the need arises. As at December 31,

2004, the t. assets of 40.64% were in risk free form and readily encashable.



Annexure-II ACBL Branch Network

Debt Ratio: Debt ratios determine the firm’s ability to pay long-term debts; and is a

comparison of an entity’s total assets to total liabilities. It indicates the percentage of

assets that were financed by creditors, and help to determine how well creditors are

protected in case of insolvency of the entity.

Debt to equity ratio = Total Debt

Shareholder’s Equity

For 2002: 48,401,674 =18.93

2,557,019

For 2003: 66,140,409 =21.85

3,026,550

For 2004: 80,340,060 = 20.59

3,901,279

GRAPH 7.2:

The debt to equity ratio has increased from 2002 to 2003, but it has declined from

21.85 in 2003 to 20.59 in 2004, which means that the contribution of debt in financing

assets has declined and the contribution of Share holder’s equity in financing assets

Debt to Equity Ratio of ACBL

18.93

21.8520.59

16

18

20

22

24

Year

DebttoEquity

Ratio

2002

2003

2004




has increased, which shows the increased confidence of Share holder’s in the bank.

There was a 27% increase in Shareholder’s equity in 2004.

Debt to Total Assets Ratio: It shows the percentage of firm’s assets that are

supported by debt financing, and is calculated as follows.

Debt to Total Assets ratio= Total Debt

Total Assets

For 2002: = 48,401,674 x 100 =95%

50,980,392

For 2003: = 66,140,409 x 100 =94%

70,313,073

For 2004: = 80,340,060 x 100 =94%

85,386,902

GRAPH 7.3:

Debt to Total Assets Ratio of ACBL

95%

94% 94%

93%

94%

95%

96%

Year

2002

2003

2004A

ssetsRa

tio

D e b t t o T o t a l




This ratio is quite high and almost stable over years for ACBL. It shows that 94% of

the bank’s assets are being financed by debt financing. However, the debt to total

assets ratio for other banks also shows a similar trend.




Interest Margin Ratio: Interest margin ratio is computed as:

Interest Margin Ratio= Interest Income – Interest Expense x 100

Interest Income

For 2002: 4,250,916, – 2,902,506 x 100 = 32%

4,250,916

For 2003: 4,858,251 – 3,016,859 x 100 = 38%

4,858,251

For 2004: 4,073,715 – 1,379,609 x 100 = 66%

4,073,715

GRAPH 7.4:

Interest margin of ACBL has improved, which indicates management’s efficiency to

attract less costly deposits and high yield investments.

Interest Margin Ratio of ACBL

32% 38%

66%

0%

20%

40%

60%

80%

Year

I n t e r e s t M a r g i n R a t i o 2002

2003

2004




Return on Equity (ROE): ROE measures net profit after taxes to the equity

that shareholder’s have invested in the organization. ROE for ACBL for

different years is:

Return on Equity = Profit after Tax x 100

Shareholder’s Equity

For 2002: 550,051 x 100 = 22%

2,557,019

For 2003: 686,994 x 100 = 23%

3,026,550

For 2004: 1,103,065 x 100 = 28%

3,901,279

GRAPH 7.5:

ROE measures the overall efficiency of a company in managing its total investments

in assets and return to its shareholders. It is the primary measure of how well

management is running the entity. ACBL is maintaining high return on equity; rather

it has increased in 2004 from 23% to 28% while maintaining a strong financial

Return on Equity of ACBL

22% 23%28%

0%

10%

20%

30%

Year

R e t u r n o n E q u i t y 2002

2003

2004




position. Achieving this objective relies on efficient deployment of capital and other

resources; effective risk management, and sound liquidity, funding and equity

management.




Return on Assets (RoA): RoA shows the after tax earnings on assets. RoA for ACBL

is as follows.

Return on Assets = Profit after Tax x 100

T. Assets

For 2002: 550,051 x 100 = 1.08%

50,980,392

For 2003: 686,994 x 100 = 0.98%

70,313,073

For 2004: 1,103,065 x 100 = 1.29%

85,386,902

GRAPH 7.6:

ACBL has almost maintained its RoA over the years. RoA is an indicator of the

profitability of the bank. The slight increase that can be seen in this ratio indicates the

success of management to utilize the assets of the bank efficiently.

Return on Assets of ACBL

1.08%

0.98%

1.29%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

Year

R e t u r n o n A s s e t s 2002

2003

2004




Loan to Deposits Ratio: This ratio shows the percentage of deposits mobilized that

have been advanced as loans. This ratio for ACBL is:

Loans to Deposits Ratio = Loan x 100

Deposits

For 2002: 23,291,367 x 100 = 56.53%

41,200,166

For 2003: 30,035,484 x 100 = 58.06%

51,731,506

For 2004: 44,777,538 x 100 = 72.62%

61,656,607

GRAPH 7.7:

There is an increase in the ratio, specifically from 2002 to 2003, which is a very good

indication of attracting more customers to get loan and thus resulting in higher profit

from this source for the bank, as the difference in markup earned on loans advanced

and interest paid on deposits is the profit for the bank.

Loans to Deposits Ratio of ACBL

56.53% 58.06%72.62%

0.00%

20.00%

40.00%

60.00%

80.00%

Year

L o a n t o D e p o s i t s R a t i o 2002

2003

2004




Investment to Deposits Ratio: Investments to deposits ratio shows the percentage of

deposits of the bank that have been further invested to earn profit. For ACBL this

ratio is:

Investment to deposits ration = Investment x 100

Deposits

For 2002: 11,705,885 x 100 = 28.41%

41,200,166

For 2003: 26,737,329 x 100 = 51.68%

51,731,506

For 2004: 22,104,425 x 100 = 35.85%

61,656,607

GRAPH 7.8:

This ratio has increased from 2002 to 2003, but than decreased in 2004, but still

higher than 2002. However, it shows that that investment of the bank has decreased in

securities, which was due to less inv Profit margin: Net profit after taxes divided by

Investment to Deposits Ratio of ACBL

28.41%

51.68%

35.85%

0.00%

20.00%

40.00%

60.00%

Year

I n v e s t m e n t t o D e p o s i t s R a t i o 2002

2003

2004




total income for a given 12 –month period expressed as percentage gives profit

margin.

Profit Margin = Net Income

Total Income

For 2002: 550,051 x 100 = 10.9%

5,047,198

For 2003: 686,994 x 100 = 12.04%

5,704,198

For 2004: 1,103,065 x 100 = 21.94%

5,027,468




GRAPH 7.9:

The profit margin of ACBL has increased over the three years period, which is a

positive trend for the bank as it shows that not only revenue collection has increased

but also indicate an increased control over expenditures, which is attributable to the

efficiency of the management.

TREND ANALYSIS:

Using the past history of an organization for comparison is called trend analysis.

Trend analysis helps in finding whether the elements selected for analysis show a

constant growth, decline or goes up and down over a period of time. As ACBL is a

fast growing bank, its profits, deposit mobilization, assets, volume of business

transacted, number of employees and branches show a constant increase.

A Decade of Performance

December 31 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Profit Margin of ACBL

10.90%12.04%

21.94%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Year

P r o f i t M a r g i n 2002

2003

2004




Rs. in million

Profit145 173 238 311 359 282 316 551 687 1,103

Customer

Deposits

7,051 9,85114,12

6

19,48

2

23,41

7

24,35

8

30,36

0

41,20

0

51,73

2

61,657

Advances4,141 6,991 7,115 9,137 9,708

13,05

6

17,89

3

23,29

2

30,03

544,778

Investments2,542 2,473 6,173

11,77

4

13,88

88,679 8,651

11,70

6

26,73

722,104

Total Assets9,350

12,78

6

17,70

9

24,07

1

28,73

1

31,02

7

38,45

4

50,98

0

70,31

385,387

Rs. in billion

Imports4.9 7.7 6.2 8.7 11.5 17.5 26.2 32.0 40.2 48.7

Exports6.8 10.2 13.1 17.3 20.0 22.8 30.6 38.8 47.3 56.8

Guarantees2.0 2.8 4.8 4.0 3.2 5.3 4.8 6.2 14.2 14.4

Rupees

Earning per

share (EPS)3.2 3.3 2.9 3.3 3.6 2.9 3.0 5.3 6.32 9.66

Net assets

per share16.0 17.27 19.35 18.90 19.64 20.75 21.85 24.90 38.38 44.21

Number of

employees465 664 796 946 996 1,001 1,147 1,281 1,456 1,723

Number of

branches13 18 23 26 27 28 29 36 46 58

GRAPH 7.10 PROFIT

Profit (Rs. in million)

145 173238

311359

282316

551

687

1,103

0

200

400

600

800

1000

1200

P r o f i t

Profit




GRAPH 7.11:

Customer Deposits (Rs. in million)

7,0519,851

14,126

19,482 23,417 24,358

30,360

41,200

51,732

61,657

010,000

20,000

30,000

40,000

50,000

60,000

70,000

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

Year

C u s t o m e r D e p o s i t s

Customer Deposits




GRAPH 7.12:

Advances (Rs. in million)

4,1416,991 7,115

9,137 9,708

13,056

17,893

23,292

30,035

44,778

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

A d v a n c e sAdvances




GRAPH 7.13:

Investments (Rs. in million)

2,5422,473

6,173

11,774

13,888

8,6798,65111,706

26,737

22,104

0

5,000

10,000

15,000

20,000

25,000

30,000

1994199519961997199819992000200120022003

Year

Investmen

ts

Investments

Investments (Rs. in million)

2,542 2,473

6,173

11,774

13,888

8,679 8,651

11,706

26,737

22,104

0

5,000

10,000

15,000

20,000

25,000

30,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

I n v e s t m e n t s Investments




GRAPH 7.14:

Total Assets (Rs. in million)

9,35012,786

17,709

24,07128,731 31,027

38,454

50,980

70,313

85,387

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1995 1996 1997 1998 1999 2000 2000 2001 2003 2004

Year

T o t a l A s s e t s

Total Assets




GRAPH 7.15:

Imports (Rs. in billion)

4.97.7

6.28.7

11.5

17.5

26.232

40.2

48.7

0

10

20

30

40

50

60

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

I m p o r t sImports




GRAPH 7.16:

Exports (Rs. in billion)

6.810.2

13.117.3

2022.8

30.6

38.8

47.3

56.8

010

20

30

40

50

60

1995 1996 1997 1998 19992000

2001 2002 2003 2004Year

E x p o r t s Exports




GRAPH 7.17:

Guarantees (Rs. in billion)

2 2.8

4.84

3.2

5.34.8

6.2

14.2 14.4

0

2

4

6

8

10

12

14

16

1995 1996 1997 1998 19992000

20001 2002 2003 2004

Year

G u a r a n t e e s Guarantees




GRAPH 7.18:

Earning per share (EPS) of ACBL (Rupees)

3.2 3.32.9

3.3 3.6

2.93

5.3

6.32

9.66

0

2

4

6

8

10

12

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9 2 0

0 0

2 0 0 1

2 0 0 2

2 0 0 3 2 0

0 4

Year

E P S

Earning per share (EPS)




GRAPH 7.20:

Number of Employees of ACBL

465

664796 946

996 1,0011,147

1,2811,456

1,723

0200

400

600

800

1000

1200

1400

1600

1800

2000

1 9 9 5

1 9 9 6

1 9 9

7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

Year

N o . o f E m p l o y e e s Number of employees

2 0 0 4




GRAPH 7.21:

Number of Branches of ACBL

1318

23 26 27 28 29

36

46

58

010

20

30

40

50

60

70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

N o . o f B r a n c h e sNumber of branches




7.4 TREND ANALYSIS OF NORTH REGION:

Growth in operating profit, deposits, advances and foreign trade for the north region,

which also comprises of Askari Commercial Bank, Peshawar Cantt is given below for

three years (2002-2004).

TABLE 7.6:

Rs. in million

2002 2003 2004 GROWTH

2002-2003

Growth

2003-2004

Operating

Profit

23 53 45130%

-15%

Deposits 2,489 2,943 3,134 18% 6%

Advances 502 501 832 0% 66%

Foreign Trade 1,893 2,428 2,133 28% -12%




GRAPH 7.22:

As described earlier in the report as well, the negative growth in 2004 is due the

adverse effects of developments in Afghanistan. The repatriation of Afghan refugees,

who were a major source of economic activity, the relocation of various western NGO

operations from NWFP to Afghanistan, which were a major source of deposits and

allied businesses, are the main factors that have resulted in a loss of business in the

region.

In other areas of business, particularly advances, the Region achieved significant

growth attributable to the untiring efforts of the Region’s team.

SWOT ANALYSIS

SWOT analysis stands for the analysis of strengths, weaknesses, opportunities and

threats to an organization. Strengths and weaknesses are internal factors and an

organization has much more control over it as compared to opportunities and threats.

On the other hand, opportunities and threats exist outside the organization and an

organization can avail opportunities or can make itself safe from threats through a

0500

1000

1500

2000

2500

3000

3500

Operating

Profit

Deposits Advances Foreign

Trade

R s . i n m i l l i o n2002

2003

2004




vision of future, making planned use of its resources or adoption of other policies that

in the end results beneficial for the organization. Following is the SWOT analysis of

Askari Commercial Bank Ltd.

STRENGTHS:

• ACBL’s delivery channels for customer service are supported by a shared

network of over 250 on-line ATMs covering all major cities in Pakistan.

• This bank offers phone banking service, internet banking services, and it is the

first bank to offer on-line banking on a country-wide basis, and e-commerce

solutions to its customers.

• ACBL has developed a relationship of trust in a friendly environment with its

over 350,000 customers by providing business loans and cash management

services and has developed innovative investment and loan product for the

individual savers and households.

• ACBL believes that the interests of the bank and the employees are

inseparable and through creating a “we” culture, every employee is made to

feel that he is responsible for the performance and reputation of the bank and

thus by motivating them, employees have become a strength of the bank. This

is evident by the lowest employee turnover and the fact that most of the top

management have reached their present position by growing within the

organization.

• Askari Bank gives its shareholders one of the best earning per share in the

banking industry of the country to gain and retain their trust and confidence.

• The bank has access to all parts of the world through its foreign corresponding

banks, thus also providing services to Pakistanis outside the country.

• The first offshore banking unit (OBU) of ACBL has started operations in

Bahrain, which provides a platform for ACBL to benefit from the business

opportunities available in the international market.

• ACBL’s customers can now pay their telephone bills via the bank ATM

network, or over the internet, so its another innovative feature of the bank.




• Askari Bank has created goodwill through sponsoring mega events, for

example different sports events and seminars and conferences such as Young

Leaders Conference etc.

WEAKNESSES:

• Due to having fewer branches, for example in Peshawar, there are only two

branches so people (e.g. in Town and Hayatabad) may prefer other banks

because of being in close vicinity as compared to Askari Bank.

• Though ACBL has started marketing on a large scale, still it does not market

its different products specifically, so many people do not avail these facilities

due to lack of awareness.

• The bank has no branches abroad. This forces the bank to enter into agency

arrangements with the foreign banks. With an ever-increasing competition in

the banking sector, this weakness can be a major setback for the bank.

• Unequal distribution of work leads to work place differences. Foreign

remittances officer is overloaded with work, carrying out the dual

responsibility of the officer in charge and assistant manager. The officer in

charge for account opening and clearing also leaves for the SBP to attend the

clearing. On the other hand, the IT officer has not much to do. He attends to

any technical problem that might occur and does the typing and printing of

letters and documents.

OPPURTUNITIES:

• It should open more branches quickly as it is in competition with very stronger

banks, and though it is providing almost all services being provided by other

major banks still this fewer number of branches is a big hurdle in reaching

more customers.

• As the trend towards Islamic Banking has been initiated, Askari Bank should

also become part of this trend to capture another segment of society as well.

• Competitors like MCB, UBL and HBL provide Hajj and Umrah forms to the

general public. PICIC commercial bank should also get engaged in such




activities. As more and more people come to the bank they will become

familiar with it and feel at ease, which would not keep them long from

opening accounts at the bank.

•

Afghanistan is going through a transition phase of economic development.With investment made in different developmental projects and different

organizations like UNO and UNHCR working in the country new jobs are

available for the people. Opening new branches in Afghanistan would help

increase the deposit base and become a source of earnings.

THREATS:

• ACBL has very tough competitors, for example, Muslim Commercial Bank,

National Bank and some others, so to keep itself ahead of them; Askari Bank

has not only to provide all the service being offered by these major banks but

also to produce innovative products of its own.

• The repatriation of Afghan refugees, who were a major source of economic

activity in N.W.F.P. specifically, and the relocation of various western NGO

operations from Pakistan to Afghanistan, which were a major source of

deposits etc. in this region has resulted in loss in this region and the

repatriation is still going on.

• The decrease in interest rates by all banks including ACBL has made people to

start thinking of other investment opportunities that can prove to be a threat

for banks.

• The bank profitability is based on how efficiently it lends the deposits it has

mobilized, however there are not much business activities in the country and

the deteriorating political and economic situation can further activate this

problem.




FINDINGS & RECOMMENDATIONS

Every organization even if it is having a very good position financially and through

other aspects; has always room for improvement. Askari Commercial Bank is a fast

growing organization but still it has many things to improve to capture more market,

to further motivate its employees and other factors that indicate growth and success of

the origination, most importantly, increase in profits for the bank. During the two

month’s period that I spent as an internee at ACBL, Peshawar Cantt. branch, the

matters I found and analyzed and collected information through other sources is

presented in the following pages with some recommendations in the end.

FINDINGS:

1. Fast Growth

The customer deposits of ACBL is increasing at a fast pace, reaching to

Rs.250,000 million at end 2004 from Rs.212,000 million at the end of 2004. The

mobilization of deposits is useful only if utilized further effectively, which is the

case for ACBL, the growth of its deposits was 19% while advances grew by 48%

thus rectifying the previous imbalance between advances and deposits.

2. Increased Profits

Despite, the difficult operating environment, ACBL was able to substantially

improve their earnings during 2003 and 2004 by posting operating profits of

Rs.2.2 billion, 39% over FY 2002, the post-tax profits increased by 61% to Rs.1.1

billion.

3. Friendly Environment

There is a very friendly and cooperative relationship between bank employees

and the customers. Both understand each other’s problems and give time to oneanother to facilitate each other’s work. As far as the bank employees are

concerned, it is their duty to provide services and facilities to their customers,

which in fact is to their own benefit as it will not only retain these customers but

will also attract more. On the other hand, the regular customers are also very

cooperative, an example of which is that customers allowed delay in their work on

the request of bank employees when the audit week was approaching.




4. Over Burden Of Work

There was lot of burden of work on most of the employees before audit week,

as they had to complete their records to be checked by auditors. It was the load of

work that was left and not done as the transactions relevant to these records took

place.

5. Less Qualified Employees

The educational qualifications of some employees is not according to their job,

although they are doing correctly what they are assigned to do, but they don’t feel

much motivated due to this unmatched situation.

6. Lack Of Responsibility

According to the rules, telephone call should be made to the new account

holder to confirm the phone number that he provides while filling the account

opening form but in practice this is not done. That generally does not create

problems but it leaves room for risk in case the number provided is not correct and

some problems arise with the account.

7. Secrecy problem

A bank has the obligation to keep its customer’s affairs secret, but it is

generally seen that no special care is taken in this respect. Information about the

balances on telephone is given without collecting much information to ensure that

the actual person is on-line.

8. Problems Regarding ATM

The ATM facility, that ACBL considers one of its strengths, does not bring so

much convenience to the customers as it claims. The reason behind it is that the

ATM machine is often out-of-order or either the card doesn’t work properly and

the customers are seen complaining about it quite oftenly.

9. Double Entry System

Every transaction is first entered on paper vouchers and then on computers.

Resulting in repetition of work and thus overburden of work on the employees.

10. Unequal Work Distribution

There is unequal distribution of work, i.e. some employees in the same

department are so much over loaded that they have to work over time while other

employees in the same department are often seen idle even in the working hours.

Sometimes employees who have high load of work, work not only for more than




eight hours normal working hours but also have to come for work on holidays

without getting any overtime.

11. Lack Of Technical Information

There is no proper training provided to the employees about computer

technicalities and thus every banker can operate computer to the extent where they

can perform normal operations on it, but if there is some problem in computer and

if it stops working or gets stuck, then they have to call and wait for another person

to come and troubleshoot the problem. And in this way, he has to leave his own

work to perform this function, which is not among his normal duties and results in

loss of time.

12. Insufficient Machinery

There are lesser printers than required, and the department without a printer

has to rely on another department’s printer, and in this way, have to wait for that

printer if it is not free. If a printer goes out of work, it remains so for many days,

thus further increasing the burden of work on already few printers. Similarly for

other things like sudden arising need for stationary is sometimes not met quickly

that slows down the work.

13. Insufficient Accommodation

The furniture is not enough to accommodate all the customers and customers

are often seen standing while waiting for their work to be done, especially during

the days when there are two many internees, there is more problem in finding a

place to sit.

14. Absence Of Job Rotation

There is absence of job rotation in the bank, and a person placed in one

department often remains there for long which decreases his interest in the work.

Moreover it also reduces career opportunities to the workers as he does not know

the work of other departments. If some better opportunity arises in other banks, in

a department different than the one the person is currently employed in, then he is

not able to apply for that very confidently for not having experience in that

particular department.

15. No Proper Marketing

There was not enough marketing at the time of my internship, recently they

have started marketing specially through electronic media, but even now they

don’t advertise their special products including ASDA (Askari special Deposit




Account) and Askari value plus (another deposit account), that has many

attracting features, but due to lack of proper marketing of these and other such

products, fewer customers are seen coming for these products.

16. The bank is a fast growing bank, which is evident not only by an increase in

deposits, advances, profits etc. but also by the increase in number of

employees and branches. The branch network has increased from 58 in 2003

to 75 in 2004 which is a big break through.

RECOMMENDATIONS

1. For the attainment of profitable account, markup charges and the beneficial

accounts are set to be at proper level. This will facilitate the customers to have

more interest in maintaining the accounts.

2. For promotion and marketing purpose if media services are used through

commercials and through print media this can help the promotion of Askari

commercial bank in many ways.

3. A service desk should be maintained to provide information about various

departments, products and services offered by bank at every branch.

4. Authority when disturbed should be maintained in such a way that responsibility

is equally distributed.

5. In order to facilitate the customers it is important that suitable seating

arrangements and attractive outlooks are provided to them.

6. As the branch is over crowded and the space is less, they should increase the area,

so the crowd is properly accommodated.




7. There should be proper job rotation in the branch so that every officer is familiar

with the work of all departments.

8. In decision-making everyone should be involved and open discussions should be

encouraged, which will also improve relationship between the manager and

employees.

9. The audit should be sudden and unannounced and the auditor should check each

and every record of the department especially the income and expenditure of the

bank should be thoroughly checked.

10. While auditing advances, the auditor should see that advances are sanctioned

according to SBP rules and regulations.

11. Regular staff appraisals will screen the shortcomings. With this reinforcement

factor, desirable performance can be obtained and every employee will get fair

treatment.

12. To gain big promotion of customers in market, product with good attributes

should be offered at reasonable price.

13. Managers should try to reinforce work on employees in positive ways. Rewards

should be given for their better performances. Benefits should be given. They

should be properly motivated to increase efficiency.

14. Management by objectives needs to be introduced immediately. It will help

improve in the functioning of bank and will lead to greater participation. In MBO

system there is proper coordination of employees at al levels.

15. As ACBL is a fast growing bank, it is increasing its branches every year, but still

the number of branches is too small and so they should speed-up this pace. It

should not only open branches in the cities where there is no ACBL branch, but

also open more branches in cities where already its branches exist, e.g. in

Peshawar-where it has two branches, it should open a branch in University Town,

as there will be many customers who will not be coming to this bank because

other banks are more easily reachable having branches in University Town and

even in Hayatabad.

16. The auditor in the bank was responsible to check and keep the work of the bank

proper and in-time, but as he did not perform his job properly; the bankers were

in problem when there was the audit from Head Office. So, incentives should be

offered to the auditor that in case the audit committee declares good performance

of the bank, the auditor will be given pay rise or bonus etc. accordingly.




17. The system of merit-based promotion and pay rise etc. should be enforced, so that

only those who work harder and better get promotion, and that will motivate the

hard working employees.

18. There is a need of scanning machine for sign verification. The signs are verified

through matching with the specimen signature available on S.S. Card with the

bank. The use of scanning machine for this purpose will make the job faster,

easier and more valid.

19. The ATM machine is mostly out-of-order. It should be properly repaired or

replaced, so that the claim that this facility is available 24 hours a day could be

justified.

20. Though already trainings are arranged for employees, the knowledge of some

employees still is not found up-to-date about their relevant department. So there

is a need for more regular training seminars and workshops to keep their

knowledge up-to-date.

21. There should be a note counting machine to ensure correct counting and thus

facilitating the work of cashier.

22. There should be a printer in every department specially the main ones so that the

staff of one department has not to wait for others for his work of printing. Also

sufficient surplus stationary should be kept ready to avoid inconvenience.

23. As Islamic Banking has started in the country and some banks have opened

separate branches for this purpose, ACBL should also come up with Islamic

Banking branches to attract that segment of society as well, who are interested in

Islamic Banking.

Action Plan

In modern free economy and competitive world, organizations like banks have to

show their competence and endeavor in order to increase its inputs and outputs. They

should draw the maximum capital, increase investments and go for diversification.

The environment is dynamic; changes can occur any time, an organization like banks

should be in position to face these changes. The system should be according to the

requirements so that they are ahead of competition.

ACBL is a well-reputed bank of Pakistan. I worked there for 8 weeks. We cannot say

about an organization from outside unless we are into it.




While working in ACBL I found it very competitive the entire time ready for any

challenge. But when an organization has some strengths they also have some

deficiencies as well. I have discussed it in the recommendation’s section. For this

purpose I have prepared an action plan which will help them if not completely then a

little to cope with their deficiencies.

In ACBL the main problem is of space, the area is very small and is over crowded.

There are a lot of customers of ACBL, that’s why cantt. Branch is a very busy one. If

they increase the space the problems faced by both customers and employees will be

solved. Nowadays when customer comes he has to stand because there are no proper

seating arrangements for them and that makes them uncomfortable and uneasy. Also

the staff is more oftenly found tense about the storage problem of various files and

record keeping registers.

There is a lot of staff in the bank more than they need. When there are a lot of persons

for one thin that thing can never be done in the proper way and may be even task is

not completed because every person will give its own suggestion and will not agree to

each other. Vigilant, hardworking and responsible staff who can be relied upon to

shoulder their responsibilities, should be engaged. Efforts must be made to introduce

aspirit de core among the employees. If there is less number of employees they can

properly trained motivated by paying attention to their welfare including appropriate

pays, allowances and bonuses and their performances can be properly evaluated

through feedback, and if there are any deficiencies in their work they should be taught

ways how to overcome them. If there are less no of employees then proper attention

can be given to them and they can produce better results, which will be of benefit to

the bank.

In ACBL there is a lot of burden of work on the AVP because every employee comes

to him whenever he faces any problem. It’s all because they are not given proper

authority of taking decision of their own. Under any circumstances they have to

consult the operations manager. For this purpose efforts should be made to delegate

authorities for various transactions to the competent persons in various departments of

bank and the senior executives/managers should be left with enough time to plan

ahead and keep the tempo by being alert and always think of innovation to excel other

banks.

There are a lot of expenditures, incurring in the banks especially in the settlement of

credit cases the borrower sometimes does not give the principle amount, markup is




not given and when the mark up and principle is overdue and the borrower defaults

the banks file suit against the borrower and till the decision is given a lot of

expenditure is done paying the lawyers, attending the courts of and on, then in the

mean time the often the lawyer goes on a holiday or there are official holidays,

extended dates are given for hearing etc. even if the decision is in the bank’s favor, by

then the value of property goes down due to which a lot of losses are incurred by the

bank.

Before given credit the bank goes through all the documents required and collects

information about the borrower. But there is a lot government influence in the bank’s

affairs. Most of the defaulters to whom the banks do not want to give credit get it

through influential people. Such people do get loans and never pay it back to the

bank. The banker on other hand cannot do anything and incur millions of losses. The

export and import sections are facing the same problem, previously they provided

customers the facilities without having complete documentation from them and later

on they keep on calling on one and the other person to get the documents but in vain.

In this way a lot of money and time was wasted but now the bank should follow the

strategy of withholding maximum legal documents in hand, in return of any kind of

loan or facility provided to the customers.

Such policies, which are for the safeguard of the bank future and prevent it from

bankruptcy should be implemented and strictly followed in all the circumstances.

Computerized voucher system should be introduced in the bank which saves a lot of

manual work and thus is time consuming.

Promotions should be made on the basis of performance evaluation and for this

purpose managers should keenly observe and keep a record of each and every

employee’s attendance, work performance and participation in general discussion

meetings held for the attainment of suggestions for the better performance of the

branch, which will help them in evaluating their annual performance correctly and

the deserving person will get the promotion at the end of every session. This will also

motivate the employees to work hard and give their best throughout the year.

One of the most critical thing I observed in the branch was that their was an absolute

lack of job rotation which made the employees dull. For this purpose their must be a

proper schedule prepared by the AVP according to which the employees should be

transferred to the different departments within the branch at the end of every session.

In this way the employees will enjoy working on something new and different from




the routine as well as they will be aware of and trained on all kind of operations held

in the bank. Furthermore, in case of any employee’s sudden absence their would be

another person from any other department available to take over immediately without

needing any guidance.

ANNEXURE – 1

Army Welfare Trust - Projects & Subsidiaries

Army Projects Division

• Army Welfare Shoe Project

• Army Welfare Woolen Mill

• Alghazi Travels

• Services Travels

Corporate Division

• Askari Commercial Bank Ltd

• Askari Leasing Ltd

• Askari General Insurance

• Askari Guards

• Askari Associates

• Askari Aviation

•

Askari Mobil

Technical Division

• Askari Information System

• Computer Section

• Askari Commercial Enterprises

Industries Division

• Askari Cement (Wah)

• Askari Cement (Nizampur)

• Army Pharmaceutical

Farms Division

• Army Welfare Sugar Mill

• Farms

Real Estate Division

• Plazas

• Housing Schemes

• Restaurant

ANNEXURE - II

http://www.awt.com.pk/awsp.htm

http://www.awt.com.pk/awm.htm

http://www.awt.com.pk/alghazi.htm

http://www.awt.com.pk/svctravels.htm

http://www.awt.com.pk/acbl.htm

http://www.awt.com.pk/all.htm

http://www.awt.com.pk/agico.htm

http://www.awt.com.pk/agl.htm

http://www.awt.com.pk/aal.htm

http://www.awt.com.pk/aavnl.htm

http://www.awt.com.pk/mal.htm

http://www.awt.com.pk/ais.htm

http://www.awt.com.pk/comp.htm

http://www.awt.com.pk/ace.htm

http://www.awt.com.pk/acl.htm

http://www.awt.com.pk/awncp.htm

http://www.awt.com.pk/awp.htm

http://www.awt.com.pk/awsm.htm

http://www.awt.com.pk/farmsdet.htm

http://www.awt.com.pk/plaza.htm

http://www.awt.com.pk/housing.htm

http://www.awt.com.pk/restaurant.htm

http://www.awt.com.pk/awsp.htm

http://www.awt.com.pk/awm.htm

http://www.awt.com.pk/alghazi.htm

http://www.awt.com.pk/svctravels.htm

http://www.awt.com.pk/acbl.htm

http://www.awt.com.pk/all.htm

http://www.awt.com.pk/agico.htm

http://www.awt.com.pk/agl.htm

http://www.awt.com.pk/aal.htm

http://www.awt.com.pk/aavnl.htm

http://www.awt.com.pk/mal.htm

http://www.awt.com.pk/ais.htm

http://www.awt.com.pk/comp.htm

http://www.awt.com.pk/ace.htm

http://www.awt.com.pk/acl.htm

http://www.awt.com.pk/awncp.htm

http://www.awt.com.pk/awp.htm

http://www.awt.com.pk/awsm.htm

http://www.awt.com.pk/farmsdet.htm

http://www.awt.com.pk/plaza.htm

http://www.awt.com.pk/housing.htm

http://www.awt.com.pk/restaurant.htm




ACBL BRANCH NETWORK

Rawalpindi/ Islamabad Area: South II Area:

4 in Islamabad 1 in Hyderabad

7 in Rawalpindi 8 in Karachi

1 in Mirpurkhas

North Area: West Area:

1 in Abbottabad

1 in D.I. Khan

1 in Jhelum 1 in Chaman

1 in Mardan 3 in Quetta

1 in Mirpur (AK) Overseas Operations:

2 in Peshawar

1 in Nowshera

1 in mingora 1 OBU in Bahrain

Lahore Area:

12 in Lahore

East Area:

1 in Bahawalpur

2 in Faisalabad

1 in Gujranwala

1 in Gujrat

1 in Jalalpur Bhattian

1 in Multan

1 in Okara

1 in Phool Nagar

1 in Rahim Yar Khan

1 in Sahiwal

1 in Sargodha

1 in Sialkot

1 in Sadiqabad

South 1 Area:

1 in Daharki

1 in Gawadar




1 in Ghotki

11 in Karachi

1 in Sukkur



Annexure-III Correspondent Network of ACBL

Annexure-III

Correspondent network of ACBL

The correspondent network of ACBL is spread through different banks in the following

countries:

1. Australia 2. Austria 3. Argentina4. Algeria 5. Armenia 6. Aruba7. Azerbaijan 8. Bangladesh 9. Barbados10. Belgium 11. Bahamas 12. Bahrain13. Bosnia-Herzegovina 14. Brazil 15. Brunei Darus Salam16. Bulgaria 17. Canada 18. Cayman Island19. Channel Islands 20. Chile 21. China22. Cook Island 23. Croatia 24. Cyprus

25. Czech Republic 26. Denmark 27. Egypt28. Ecuador 29. Finland 30. Fiji31. France 32. Germany 33. Greece34. Honduras 35. Hongkong 36. Hungary37. India 38. Indonesia 39. Iran40. Ireland 41. Italy 42. Jamaica43. Japan 44. Jordan 45. Kazakhstan46. Kenya 47. Korea (South) 48. Kuwait49. Luxemburg 50. Macao 51. Malaysia52. Mauritius 53. Mexico 54. Monaco55. Morocco 56. Nepal 57. Netherlands

58. New Zealand 59. Norway 60. Oman (Sultanate of)61. Pakistan 62. Panama 63. Papua New Guinea64. Philippines 65. Poland 66. Portugal67. Qatar 68. Romania 69. Russia70. Saudi Arabia 71. Senegal 72. Singapore73. Slovakia 74. Slovenia 75. Solomon Island76. Spain 77. South Africa 78. Sri Lanka79. Sudan 80. Sweden 81. Switzerland82. Taiwan 83. Tanzania 84. Thailand85. Tonga 86. Tunisia 87. Turkey88. United Arab

Emirates

89. United Kingdom 90. Uruguay

91. USA 92. Uzbekistan 93. Vanuatu94. Venezuela 95. Vietnam 96. Yemen Arab

Republic97. Yugoslavia 98. Zaire 99. Zambia

Internship Report on Askari Commercial Bank Ltd.



Annexure-III Correspondent Network of ACBL

BIBLIOGRAPHY

• Annual Report of Askari Commercial Bank Limited for the year ended

December 31, 2004.

• Annual Report of Askari Commercial Bank Limited for the year ended

December 31, 2003.

• Horne James C. Van, Wachowicz John M., Jr. (1998). Fundamentals of

Financial Management. New Jersey: Prentice-Hall, Inc.

• Financial Statement Analysis; Fundamental Concepts.

• www.askaribank.com.pk.

•

Banking practices’ manuals.• Discussions with bank officers and observation.

• Askari Commercial Bank Limited, (2004). Annual Report . Rawalpindi.

• Faruqi, Shakil, (1999). Glossary: Banking And Finance. Pakistan: State

Bank of Pakistan. The Institute Of Bankers.