Bouquet of Acknowledgement

Beginning with many praises to ALLAH SUBHAAN-HO-WATALAH who enabled us

to commence the proceedings of the divine duty of man kind as his PROPHET

(S.A.A.W) says “seek knowledge from cradle to grave.” Secondly we are highly thankful

to our beloved parents and teachers especially Mr. Asif Rasool for his unforgetable,

remarkable, pure, professional and spiritual guidance. We hereby also acknowledge the

cooperation, wide heartedness, tolerance and hospitability of The Spanish Department of

National University Of Modern Languages, Islamabad.

Executive Summary

We started our TAM project journey with a little bit embarrassment of the non co-

operative attitude of Warrick pharmaceutical staff but we were energetic motivated and

curious about the organizational management system. Hence we stood up side by side

hands and together and became a surmountable wall and crossed all the barriers of our

way.

We were not new to visit the Islamic banking branches as the adventurous voyage

towards the beacon of success started since the month of January that is we join our mind

and hearts together to search out the growth of Islamic banking system in Islamic

republic of Pakistan.

About this projectThis project is related to the subject TQM (total quality management). Our teacher Mr.

Qamar assigned us a class assignment that turned into an excellent team workout.

Actually in this project we had to visit any of the two organizations dealing in the same

business that is offering similar services or manufacturing similar products. We were

supposed to take an in video interview from any of the managers of both organizations to

analyze how do they manage the overall quality and standard of their organization. Hence

we visited Askari bank Islamic branch and MCB Islamic branch located at Jinnah

Avenue Islamabad.

Total quality management is an enhancement to the traditional way of doing business it is

a proven technique to guarantee survival in the world class competition. The entire

culture and actions of the organizations can be transformed just by changing the action of

management.

Therefore, it is the art of managing the whole to achieve excellence TQM is defined as

both a philosophy and set of guiding principles that represents the foundation of

continuously improving organization. It is the application quantitative manners and

human resources to improve all the processes with in the organization and exceed

customer needs now and in the future.

The Askari Bank

Mission

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

delivering quality service through innovative technology and effective human resource

management in a modern and progressive organizational culture of meritocracy,

maintaining high ethical and professional standards, while providing enhanced value to

all our stake-holders, and contributing to society.”

Corporate Information

Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz  HussainChairman Executive Committee

Mr. Kashif Mateen Ansari Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Tariq lqbal Khan Director (NIT Nominee)

Mr. Muhammad Rafiquddin Mehkari

President & Chief Executive

Mr. Saleem Anwar Company Secretary

Audit Committee

Dr. Bashir Ahmad Khan Chairman

Mr. Ali Noormahomed Rattansey Member

Mr. Zafar Alam Khan Sumbal Member

Auditors

A.F.Ferguson & Co. Chartered Accountants

Rizvi, Isa, Afridi & Angell  

Registered Office /Head Office

AWT Plaza, The Mall, Rawalpindi

Islamic Banking Services

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

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

A comprehensive range of Islamic Banking products and services is bieng offered, in order to meet customer's demand of Shariah Compliant Banking, in the following areas:

Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking Islamic Consumer Banking

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

Islamic branches

There are 20 Islamic branches of Askari Islamic bank all over the country.

Askari Islamic banking operates its business on two basic portfolios

Assets

Liabilities

Assets

Branches of askari Islamic bank dealing with assets e.g. property and auto mobiles

analyze to safe guard the deposit of depositor, where and how the bank should invest and

where to bring more and more profit from by using the tools like Ijarah and Musharakah

similarly the consumer and corporate departments analyze and deal with heavy

investments e.g. investments of a company on machinery or production plants.

Liabilities

At liabilities side the bank approaches individuals, small medium enterprise, government

servants, offer services and products to bring maximum deposits to the bank especially

the bank has got an edge dealing with individuals in terms of selling, buying and renting

the property in Islamabad e.g. DHA housing schemes.

Mode of business of Askari Islamic Banking

Askari Islamic banking deals in the products like diminishing Musharakah.

Requirements

The basic requirement to create Musharakah is that financing from both parties that is

client and the bank should be received and added while financing in a project or

agreement.

The second requirement is to define the profit sharing ratio at the time of agreement.

Both the parties define the ratio of capital as well like 50-50% or 30-70% etc. especially

in the housing products. For insurance the Takaful Pakistan is involved in the agreement.

Bank doesn’t have any concern with the value of property or clients deal but it takes its

own value especially when a customer approaches the bank in order to buy or sale the

property. In fact the bank contacts real estate expert known as evaluator who tells:-

The estimated market price (to buy)

The for sale value (to sell out) of the property in which the client is interested for

purchase rental or sale. Then the bank takes the sale out value and bring forth the

financing on the basis of that value. Hence, main concern of bank is the for sale

value. Then Takaful is created on that value that is insurance. e.g. if there is a

share of the bank and the property of worth 10million and the clients demands

financing of 5million from the bank 5million will become the share of bank and

Takaful is created on that 5million. Hence, insurance rate is charged on bank

shares.

Basic concept of Total Quality Management

TQM requires six basic concepts

A committed and involved management to provide long term top to bottom

organizational support.

An unwavering focus on the customer, both internally an externally.

Effective involvement and utilization of entire workforce.

Continuous improvement of the business production and services.

Treating suppliers as partners.

Established performance measures for the processes.

These concepts outline and excellent way to run an organization.

Concept of Quality at Askari Bank and Quality Management

The quality statement of Askari bank is “to provide quality services to the quality

customers”

Hence, Askari Islamic banking system pays due attention towards the management of

quality of its services and value able products to earn maximum profit by providing the

customers with the quality products and offering standard services.

In this regard the bank has to manage the quality of services as well as the quality of

customers therefore, the three important tools of Askari Bank’s quality policies are

Attracting quality customers.

Annual audit.

Recovery.

Repayments from clients.

For TQM purpose Askari bank has a separate department responsible for maintenance

and management of standard and quality. Following are a few modes and requirements

for the quality management of askari Islamic bank.

Services Quality Management

Visit of property for sale

The criteria of property for sale like houses or buildings standard and quality is very strict

at the bank.

When the bank receives information about any plot or constructed house from evaluator

about its area, condition and price located at different housing schemes e.g. margalla

housing scheme, bahria town and DHA etc. the special inspection team of bank visits the

property and prepare a branch visit report before selling and handing it over to the

customer under diminishing Musharakah. The team also analyze the original market price

through other real estate agents.

Legal proceedings

The bank then proceed for the legal actions. Lawyers at the bank panel analyze the title

document of the property to see weather

The plot is register on CDA documents or registrar.

If there is any claim against that property.

The lawyers then approves documents and issues the original seen reports on his

official letter head about clearance of all the legal issues and that mortgage or

financial sale or deal can be conducted or created for this property. Hence, the

bank creates the feasible agreements on the property with the customer such as

token register mortgage or equitable mortgage etc.

Customer Quality Management

This is the most sensitive issue and requires the minute analyses of customer’s financial

position and his social status. The most important tool to analyze the customer’s position

is CIB report. Its mean credit information bureau report to check the dead burden ratio

which shouldn’t increase then 45%.

When ever a customer approaches the bank to buy property or auto mobiles the manager

gathers information about his requirement and net income and make judgment about his

financial position whether he is a business men or a government servant just like it he

demands a house costing sixty to seventy million in F-8 sector the manager makes up

mind about the first installment e.g. 400,00 monthly then he inquires the clients source of

payment according to the manager the client must have monthly income or reserves two

time the first installment e.g. for an installment of 100,000 his income should be more

than 200,000. every officer here has different criteria of inquiring the client and client

quality management similarly, for car Ijarah security deposits, rental and installment and

down payments the net income of client is inquired then it is verified whether the person

owns his own house or is living on rents, his dependence, school going children and over

all unavoidable expenses and other finance payments to be deducted from his salary and

remaining part left to pay the car rental are analyzed and estimated properly.

In addition to this PTCL land line must be connected to the residence of the client to trace

the customer, verification and recoveries the client must possess Pakistan nationality

having new computerized ID card and should be able to produce original documents like

birth certificate, qualification certificates, residential authorities business legal documents

etc. At the time of agreement.

Employee Standard Management

Askari banks hires the high qualified, competent and energetic employees passing MTS

test. Market conditions affect the bank business due to recession period in banking sector

askari management has restricted its policy and started downsizing on large scale in fact

employees are hired according to market operations, earnings and keeping the income of

bank in consideration by the end of fiscal year of the bank due to unique nature of

banking and less diversified portfolio of askari Islamic banking, quality of operations is

to be managed strictly because there isn’t any concept of interest and accumulation of

wealth.

Conflict management

Conflict mostly arises between the employees during high rush hours in the branches

dealing a great number of customers. However the over all management and staff is very

co-operative in caring. The senior management officers often resolve the conflicts at its

embryonic stage.

Employee valuing

The senior managers at askari bank Ltd. Arrange dinners with the newly appointed

employees at good reputed hotels and restaurants and try to make them frank with each

other. This promotes productivity and motivation. In addition to this a dinner at head

office is arranged for the employees, middle and first line managers once in September

and once in the month of June every income year. The environment of all the branches of

Askari bank Ltd is very friendly and free of hierarchical discrimination so that managers

from first line or middle management can directly visit the top line managers and

exchange their views freely and get guidance from them.

Employee Training at Askari Bank

At askari bank there is a complete setup of training of employees even for 3-3 months.

The staff office located at Peshawar road Rawalpindi conducts training. Every branch

manager is informed about the training programmed via e-mail and is restricted to send

every employee for the training of minimum 3 to 5 days. Every employee is obliged to be

sent for 3 to 5 days training at the end of each income year. The training is operated by

the head office of Askari bank. There are 15 pre-leaves for every employee. The newly

hired employees at Askari bank ltd are trained in different cities and appointed at various

branches for a specific period in order to get training, expertise and gaining the

experience of sales, customer attraction and management. When they become skillful

enough they are posted to concerning branches and departments.

Employee and customer feed back

In consumer banking while meeting with the consumer head the managers personally

give feed back and discuss the problems to be faced by clients because of technological,

environmental, behavioral miss-management or lack of awareness etc. they can also give

fruitful suggestions to bring innovation and to remove the flaws from the banking system.

In written form there is no system of getting feed back by either employees and

customers at askari bank limited. However, customers can approach the management by

dropping their written complaints and requests in the drop box. During the period of audit

of branches every employee is called for complaints or problems. In consumer banking

there is no concept of customer feed back.

Customer valuing

The higher management is arrange a dinner especially Aftar dinner during the holly

month of Ramazan for the clients having huge deposits at Askari bank and enquire about

their problems, future investments and also inform them about the future strategies of

creating financing opportunities.

Management styles at Askari bank ltd.

Unlike the name there is no concept of autocracy like military system of management in

fact the environment is democratic. In consumer banking the government employees or

salaries clients are given priorities due to security of their deposit and banks investment.

Major customer range of askari bank comprises upon the employees of strategic

departments or defense departments e.g. NDC (national defense complex), PAEC

(Pakistan atomic energy commission) and KRL (Kahota research laboratories). The

manager says “the services vary from customer to customer”. That’s why the manager

focuses upon customer needs, wants and demands, market competition, customer care

and standard of services before planning to invest. All policies and decisions are taken at

Askari bank viewing the business and the clients financial positions. The manager at

Islamic banking branch of Askari bank ltd. convince and guide the client personally but

not to sales executives. In addition to this the managers at every branch and their sub-

ordinates give due protocol to their especial customers having well known social,

educational and professional status.

Biggest steps towards TQM

Investment or financing of black money in any of the Askari bank’s schemes or its

deposition in any of bank account is highly prohibited and discouraged. It never offers

accounts to the politicians for this purpose they have developed a program known as

AML (anti money laundering) by which the technical experts of accountancy analyze the

nature of money and invest about the legality of sources through which it is earned.

Customer care

Askari Islamic bank ltd has designed customer friendly policy keeping the benefits given

to customer by conventional and other Islamic bank against the similar products. The

Islamic branches of askari bank always encourage and entertain the customers

approaching the bank them selves for the first time, how ever, since this the age of

globalization that demands facilities and services at door step. Therefore the sales and

marketing staff also target, attract and persuade the people going door to door.

Joke!!!

However, unlike MCB we found flies in the branch of Askari bank. TQM of

Askari Bank seemed to be failing at killing or at least trapping the pests.

MCB Bank

OUR VISION & MISSION

Vision Statement

Challenging and Changing the Way you Bank.

Mission Statement

MCB Bank’s team of committed professionals is dedicated to maintaining long term

customer relationships through outstanding service and convenience.

Introduction

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion

and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the

reputation of a solid and conservative financial institution managed by expatriate

executives. In 1974, MCB was nationalized along with all other private sector banks.  

The Bank has a customer base of approximately 4 million and a nationwide distribution

network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs,

in a market with a population of 60 million. During the last fifteen years, the Bank has

concentrated on growth through improving service quality, investment in technology and

people, utilizing its extensive branch network, developing a large and stable deposit base.

MCB; Muslim Commercial Bank being one of the oldest bank came into

existence right after a few years of independence of Pakistan a separate abode of Muslims

of South Asia is known as a Titanic of the Fleet of Pakistani Banks. Its one of the leading

National Bank having diversity of branches, huge National Capital reserves, unlimited

products and services, nationally qualified and trained staff, well equipped, lavishly

decorated, spacious, tasteful furnished huge buildings and enormous number of clients is

the proud core competence of MCB.

MCB has now become MCB Limited since it has started operating its branches in

foreign countries. MAY in a Malaysian Bank is the partner in 20% business of MCB.

Unlike the newly emerged foreign or local banks operating in Pakistan MCB’s operations

aren’t subjected to rush on. Infact MCB doesn’t compromise on quality and doesn’t want

to speed up the business process keeping customer at risk. Hence customer care through

slow but steady process is being adopted at MCB limited.

The employees of MCB are free of burden to exercise best of their knowledge and

expertise to provide valuable services to the customers.

Working environment of MCB Ltd. Is friendly and promotes organizational

learning.

MCB has organized a separate Branches and departments to maintain and ensure

the quality of business operations in every branch all over the country over 1000

quality experts are working in those departments.

Values of MCB

Trust

We are the trustees of public funds and serve with integrity & commitment. Ethical

behavior is of critical importance to us. We adopt full compliance with internal and

external policies and procedures, operating within the legal framework.

Customer Focus

We continuously seek to exceed our customer’s expectations, forging and maintaining

long term relationships

Innovation

We strive to be the market leaders in innovative products and services offering

customized financial solutions with flawless execution.

Teamwork

The diversity of our people is our strength. We inspire and challenge each other –

working together to achieve synergy.

Achievement

Our people are our most valuable asset. We are committed to a result oriented culture.

Our goals are clear and merit is the only criterion for reward.

Social Responsibility

As responsible citizens we contribute to the social welfare of the community we live in.

Corporate Information

Board of Directors

Mian Mohammad Mansha ChairmanS.M.Muneer Vice ChairmanTariq Rafi MemberShahzad Saleem MemberSarmad Amin MemberDr. Muhammad Yaqub MemberMian Raza Mansha MemberDato' Mohammad Hussein MemberAftab Ahmad Khan MemberAtif Bajwa President / CEOAudit Committee

Tariq Rafi ChairmanDr. Muhammad Yaqub MemberMian Raza Mansha MemberDato' Mohammad Hussein MemberAftab Ahmad Khan MemberHuman Resources Committee

Mian Mohammad Mansha ChairmanDr. Muhammad Yaqub MemberMian Raza Mansha MemberShahzad Saleemn MemberPresident MemberRisk Management & Portfolio Review Committee

Shahzad Saleem ChairmanTariq Rafi MemberSarmad Amin MemberMian Raza Mansha MemberAftab Ahmad Khan Member

Committee on Physical Planning, IT System & Contingency Arrangements

Sarmad Amin ChairmanS. M. Muneer MemberMian Raza Mansha MemberPresident Member

Business Strategy & Development Committee

Mian Mohammad Mansha ChairmanS. M. Muneer MemberShahzad Saleem MemberMian Raza Mansha MemberDr. Muhammad Yaqub MemberDato' Mohammad Hussein MemberPresident Member

Chief Financial Officer

Ali Munir

Principal Office

MCB 15 Main Gulberg, Lahore

Shariah Advisor

Dr. Muhammad Zubair Usmani, working as Sharia Advisor in our bank since July 2000 is a prominent scholar having Ph.D. degree in Islamic Finance as well as Fazil Takhassus from Jamia Darul Uloom Karachi, (i.e. specialist of Islamic Fiqh and Fatawa). He has attended and addressed several international and local seminars / conferences as guest speaker in Pakistan as well as abroad. He has also worked as Research Scholar and member of various forums and committees formed for promoting the cause of Islamic Banking in Pakistan and abroad. All products are approved by our Sharia Advisor Dr. Muhammad Zubair Usmani and these are further approved and vetted by Dar ul Ifta, Jamia Dar ul Uloom Korangi Karachi. Majority of the products are signed by Maulana Muhammad Taqi Usmani.

Legal Advisor

M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has vetted all documentation. The Co. for this purpose not only have expertise in legal and corporate affairs but also have competent lawyers possessing knowledge of Sharia.

Customers feed back

Customers care in one of the tools of core competence of MCB hence there is a

strong setup of customer suggestions and feed back.

Customers can complaint about any of the employees, supervisors or manager in

written form on complaint hand bills which is kept confidential.

Clients can also complaint against the technological setup to facilitate them e.g.

ATM machines etc.

MCB also compensate the clients in case of products and services e.g. if any of

the accessories of an automobile rented on lease to the client is subjected to

malfunctioning with in the warranty period the bank would take responsibility to

repair or replace it.

Employee feed back in MCB

Any employee of MCB can write a confidential complaint report against his

peers, subordinates or managers for any kind of misbehave or conflict.

A speedy sever action is taken by the management against the person responsible

for the misconduct.

Learning at MCB

In MCB Ltd. There is a unique setup of organizational learning and operational

and professional coaching. The training programmes are operated and governed

by head quarter at Karachi under the supervision of experts and senior bankers of

MCB.

Actually the employees learn with fun.

Joke!!!

The operational manager told us that after spending even five years at MCB and

attending a lot of workshops he still doesn’t understand the concept of total quality

management.

However according to him training workshops, seminars, and conferences are refreshers

for all the employees and trainings and learning schemes at different cities provide them a

platform to have introduction with employees with different branches of the same city or

from different cities of the countries. Hence, it give rise to a healthy working

environment and absolutely the exchange of vies and skills among the staff and strategies

to deal with the future challenges and to remove the flaws from the system.

That is why the pioneer Islamic banking system introduced by MCB in the country is

flourishing speedily and steadily thus, promoting a profitable environment in accordance

with Islamic Shariah.