final intership report askari

8/9/2019 Final Intership Report Askari

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ACBL Internship Report

PREPARED BY: Anum Naz

Roll no:

IAS University of the Punjab Lahore.


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ACKNOWLEDGMENTS

Turning ambitions into reality is quite easier when there are people who provide youconstant support from sharing of knowledge, experiences and precious time to moral

support. I thank all the persons who shared their knowledge, experiences and time with

me, and provided me firm moral support in times of desperation as I compiled my report.

I extend my utmost appreciation and thanks to the professional and emotional

endorsement of all these personalities.

I would ThankGod almighty who gives me ability and strength to make and complete

this report, then to my teachers and parents who are always there to support me when

ever I find any problem.

I would also like to thank to the entire team pf Askari bank Johar town branch Lahore,

who shared their knowledge and experiences with me and spared their precious time in

helping me to understand the working of their bank, banking systems and related

terminology.

Professional accomplishment is not the result of a single day's work. Carefully considered

actions build upon one another throughout life until the goal is achieved. So I am grateful

to all the teachers who taught me directly or indirectly during the course of my studies

because without them, I would not have been able to achieve my present position.



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PREFACE

In BS (Hons) Management sciences, Internship Program is an important part to give

students an opportunity to have an experience of practical field. Unless and until the

students experience the novelty of practical work, their knowledge of what they study in

theoretical courses remains incomplete. The most important point in an Internship

Program is that the student should spend their time in a true manner and with the spirit to

learn practical orientation of theoretical study framework.

This internship report is on my six weeks practical training at Askari bank Johar town

Lahore. In this internship report I have tried to give details about the Bank, its working

and different other aspects.



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Askari bank Limited History & Introduction

Askari Commercial Bank Ltd was incorporated in Pakistan on October09, 1991, as a Public Limited Company. It commenced operations on April 1, 1992 and is

principally engaged in the business of banking, as defined in the Banking Companies

Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad Stock

Exchanges.


ARMY WELFARE TRUST AWT

ASKARI

GENERAL

INSURANCE

ASKARI

ASSOCIATE

(PVT) Ltd.

BUSINESSES

ASKARI

COMMERCIAL

BANK

ASKARILEASING

TEXTILEPETROLEUM

CEMENT


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While capturing the target market share amongst the few banks, Askari has provided

good value to its shareholders. Its share price has remained approximately 12% higher

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

Since 1992, it expanded into a nation wide presence of over a 200 branches, comprising

commercial and Islamic banking branches, out of which 20 are dedicated Islamic

branches, while one wholesale bank branch in Bahrain, connected online and supported

by a network of 2991 Automated Teller Machines (ATMs). It also enjoys an offshore

banking unit in Bahrain.

Over the years, Askari Bank Limited has proven its strength as a leading banking sector

entity with ever increasing commitment to its clients, through a strategic investment in

electronic technology. It has A1+, the highest possible credit rating, for short-term

obligation, and AA+ for long-term rating. Beside day-by-day banking solutions, Askari

Bank Limited has a wide range of Corporate, Consumer, and Islamic Banking products.

Banks growth and success patterns since its foundation have far outgrown industry

standards. It is a matter of pride for the bank to be able to offer one of the widest arrays

of products to its customers through its extensive branch network all over the country.

Following is brief snapshot of the banks financial position1:

Total Assets Rs. 206.19 billion

Total Equity Rs. 12.97 billion

Total Employees 6496

Following is general information of the bank2:

Type Public Company

Median Age of Employee 28

1 Annual Report 20082 Business Week, August 12, 2009



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Gender Diversity Males: 90%, Females: 10%

Subsidiaries of Askari BankSubsidiaries of Askari Bank are:

Askari Investment Management Limited: engaged in managing mutual funds

Askari Securities: engaged in managing share brokerage respectively

Re Branding in July 2008

History has shown that change is the only constant and that with time, change

always comes. Just like innovation brings improvement, and progress offers the promise

of perfection. The bank is evolving, and the desire to grow with time coupled with a firm

commitment to maintaining excellent standards of banking quality and services has

enabled the bank to realize that they need to evolve from within.

The recent re-branding of the bank was a part of the same evolution process.

The New Logo

It is said that the shorter, smarter name, crisper new colors and fresh new look are

an insight to the views on banking. The bank aims to provide innovative financial

solutions to its customers, with the security of knowing they are dealing with one of the

strongest financial institutions in the country.

The New Slogan



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The new slogan of the bank reflects the customer service philosophy were Askari

Bank, ask us!

Latest News at Askari Bank

Ongoing Mergers

Askari Bank pursued a deal to amalgamate with Mybank, which according to

experts was a survival bid by smaller banks to consolidate their businesses. The merger

was an attempt by the two banks to raise their capital to a level sufficient enough to meet

SBPs minimum capital requirement (MCR).

However, the deal was cancelled recently and no reason of it was disclosed officially. But

it is believed that one of the banks had a big infected portfolio because of which the two

disagreed on the swap ratio. As a result, talks broke down. Another source said the two

banks might have concluded that they would not be able to achieve the purpose for which

they were seeking to merge. Askari Leasing is also interested to merge with sister

concern Askari Bank. This deal is in the pipeline.

Special Asset Management Team (SAM)

Keeping in view the recent financial turmoil and its repercussions, a Special Asset

Management Team has been strengthened at the head office with a purposeful approach

of facilitating recoveries of bad loans in coordination with field staff and ensuring regular

monitoring of the efforts made by them.

Investment in IT

OFSS

In 2009, the Bank has embarked upon one of the most ambitious projects in its history

by undertaking to upgrade its entire technology platform. The Bank has acquired Oracle

Financial Services Software (OFSS) (previously I-flex) as the core banking software and

its implementation has already commenced. The key objectives of this project are to



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improve business management,

upgrade customer service

strengthen the internal control environment

improve quality and timing of financial and non-financial information

People Soft and Siebel

In addition to OFSS, the Bank has also signed-up for acquisition of Oracle

Financial as finance and MIS software, PeopleSoft as human resource management

software, and Siebel as customer relationship management software. These soft wares

will be fully integrated with OFSS and collectively strengthen the banks product and

service delivery capacity while improving the overall operational and internal control

standards.

ISO 27001

Another major initiative on the technology front is compliance with ISO 27001

Information Security Management System (ISMS). Major work on this project has been

completed and it is in an advanced stage of implementation. It is hoped that the Bank will

achieve full compliance during the ensuing year.

MOTIVATION OF ASKARI COMMERCIAL BANK

While successfully penetrating the key domestic markets through strategic

expansion and business diversification they remain alive to the challenge emanating from

the development in the global financial markets; the opportunities and threats engendered

by greater deregulation and increased customer expectations. These provide them the

impetus (moment) to make the best use of available resources, including modern

technologies, to meet the challenges ahead.

Historically, Askaris core marketing focus for its asset base has been the middle

and upper middle business houses (including wholesalers and manufacturers) operating in



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the large urban centers of Pakistan, which are primarily oriented towards foreign trade.

This segment constitutes significant revenues to the bank. The liability side remains

focused on the middle and upper middle class retired and serving government and armed

forces personal and mid-size business houses.

Their corporate banking division was established in April 1999 with the primary

focus on servicing large corporate and multi-national companies (MNCs). Benefiting

from the banks growing balance sheet size, this division B now gaining momentum and

their long-term aim D to develop it into an independent Strategic business unit (SBU)

With this branch network of 75 and further expected increase in future, the

ATMs facility and internet Banking, Askari Banks reach is ever increasing. In

recognition of this reach, they have set up a retail-banking group in July 2000, the mobile

ATMs facility is first time started by Askari commercial bank in 2005 dedicated to

serving the urban consumer market; Askari is committed to aggressively market this

segment. The strategy is to provide their customers with a basket of innovative products

to meet their varying needs.

Askari Commercial Bank is the only Private Sector bank that has been approved by the

World Bank as a Participating Financial Institution for the US$ 200 million Line of

Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector

Deepening and Intermediation Project.

Askari's emphasis on further broadening its core foreign trade business translated into

handling a higher volume of Export and Import business of Rs. 36 billion registering a

growth of 42% over the pervious year. This enhanced foreign trade business was secured

due to excellent customer services and efficient international settlement arrangements

with our correspondent banks.

Askari Bank is operating throughout Pakistan. Most of the branches are connected

through our State of the Art, On-line Communications Network, which gives the bank a

competitive edge in providing instant services to its clientele. We also offer direct access

to the latest Foreign Exchange Rates through our Online Communications.

THE MISSION STATEMENT:



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To be the leading private sector bank in Pakistan

With an international presence,

Delivering quality services

Through innovative technology

An effective resource management

In a modern and progressive organization

Culture of meritocracy, maintain

High ethical and professional standards,

With providing enhance value to all our stakeholders,

And contributing to society

Vision

To be the leading bank in the region.

Thinking

Consolidation and creating opportunities with innovation

Core values

"Professionalism without integrity is like a book without pages"

Because the right may not always be obvious, Askari must be guided in every action

by a set of well-defined values, governing Askari decisions. Askari understand that its

commitment to satisfy customers needs must be fulfilled within a professional and

ethical framework. Askari subscribe to a culture of high ethical standards, based upon

development of right attitudes.

The following primary core values provide the guiding principles for Askari corporate

behavior:

Commitment

Integrity

Fairness



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Team-work

Service

As part of Askari internal communications program, these core values are inculcated

in Askari employees through internal memos, posters and most importantly leading by

example.

Corporate objectives

As Askari Bank looks ahead to the future by moving through the decade of the 1990's

its efforts are guided by a broad framework of corporate objectives, which are as

follows:

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

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

focus.

To develop a customer-service oriented culture with special emphasis on

customer care and convenience.

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

to their full potential.

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

business.

To maximize use of technology to ensure cost-effective operations, efficient

management information system, enhanced delivery capability and high service

standards.

To manage the Bank's portfolio of businesses to achieve strong and sustainable

shareholder returns and to continuously build shareholder value.

To deliver timely solutions that best meets the customers financial needs.

To explore new avenues for growth and profitability.

Strategic Planning



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To comprehensively plan for the future to ensure sustained growth and

profitability.

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

Business Goals and Objectives.

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

procedures.

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

profits.

To identify strategic initiatives and opportunities for profit.

To create and leverage strategic assets and capabilities for competitive advantage.

HOW CHALLENGE BE DELIVERED

These objectives and guiding mission will be achieved through

Focused objective

Winning as a team

Excellence in delivery

Relentless quality

Upward rising sales

CODE OF BUSINESS PRINCIPLES

Askari code of business principles is to:

Deliver solutions that meet customers financial need;

Build and sustain a high performance culture;

Build trusted relationships with all shareholders;

Build and manage the banks portfolio of businesses to achieve strong and

sustainable shareholder returns; and

Create and leverage strategic assets and capabilities for competitive advantage.

CORPORATE PHILOSOPHY

The Challenge... to bring a dream to life



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From knowing Askari customers' requirements to understanding employee needs,

from utilizing modern technology to making responsible social contributions, from

enhancing stake-holders' value to practicing corporate ethics, Askari is continuously

and consistently striving to address newer challenges with a single motivation

The power to inspire and be inspired.

Organizational goal and strategy define the purpose and competitive techniques that set it

apart from others organizations. Goals are often written down as an enduring statement of

company intent.

A strategy is the plan of action that describes the resource allocation and activities for

dealing with the environment and for reaching the organizational goal. Goals and

strategies define the scope of operations and the relationship with employees, clients and

competitors.

With over 14 years of experience in trade finance and an extensive international branch

network, Askari Commercial Bank is committed to help the customer succeed in every

competitive environment. To keep pace with changing needs, ACBL constantly review

its comprehensive cash, trade and treasury products and services, ensuring that a full

range of flexible and innovative services is always available for the customer wherever

they trade.

Awards and achievements

In 1994, 1996 and 1997 the bank received

Euro money and Asia money awards. Askari

has A1+ rating for short-term obligations the

highest possible for the category, while the

long-term rating stands at AA. Askari Bank Won the prestigious Best presented Annual

Accounts awards for 2000 and 2001 from the institute of cost and Management

Accountants of Pakistan, for the services sector.



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

'The Best Retail Bank of Pakistan 2004'

For the past four years, the Bank has received prizes from the South Asian Federalism of

Accountants for The Best presented Annual Accounts for the financial sector, in the

SAARC region.

Over the years, Askari Bank has proved its strength as a leading banking sector

entity, by achieving the following firsts in Pakistan banking.

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

ii) First bank with a nation-wide ATM network.

First bank to offer Internet Banking services

First Bank to offer e-commerce solutions.

The Askari Commercial Bank Limited has been declared The Best Bank in

Pakistan by the Global finance, an international financial magazine of high repute as a

result of their latest study of Banks in the Emerging Markets. This is the 2nd consecutive

year that the magazine has selected their bank for this prestigious Award.

Over the years, we have received several awards for the quality of our banking

service to individuals and corporate.

These Include:

Best Commercial BankConsumer Choiceaward 2005 by The Consumers

Association of Pakistan

Best Retail Bank in Pakistan award 2004 & 2005 by The Asian Banker

Best Corporate Report 1st prize awarded for 2000, 01, 03 & 04 by Institute of

Chartered Accountants of Pakistan (ICAP) and institute of Cost & Management

of Accountants of Pakistan (ICMAP)

Corporate Excellence awards for 2002 & 03 The Management Association of

Pakistan (MAP)

Best Corporate / Institutional Internet Bank in Pakistan award for 2004 by

Global Finance magazine



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Best Consumer Internet Bank in Pakistan

award for 2002, 03 & 04 by Global Finance magazine

The Best Bank in Pakistan

award for 2001 & 02 by Global Finance Magazine

Best Presented Accounts

Ranking prizes awarded from 1997 to 2002 by South Asian Federation of

Accountants (SAFA)

Commercial Bank of the Year

award for 1994 & 96 by Asia money magazine

Best Domestic Bank in Pakistan

award for 1995 by Euro money

Corporate Information

Management

Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Tariq lqbal Khan Director (NIT Nominee)

Mr. M. A. Ghazali Marghoob Company Secretary



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Audit Committee

Dr. Bashir Ahmad KhanChairman

Mr. Ali Noormahomed RattanseyMember

Mr. Zafar Alam Khan Sumbal Member

Auditors

A.F.Ferguson & Co. Chartered Accountants

Legal Advisors

Rizvi, Isa, Afridi & Angell

Registrar & Share Transfer Office

M/s THK Associates (Private) Limited,

Ground Floor, State Life Building # 3,

Dr. Ziauddin Ahmad Road, Karachi - 75530

P.O.Box No. 8533, Karachi.

Telephone: (021) 5689021, 5686658, 5685681

Fax: (021) 5655595

UAN: 111-000-322

Registered Office /Head Office

AWT Plaza, The Mall,

P.O.Box 1084, Rawalpindi.

Tel: (051) 9063000

Fax: (051) 9272455

URL: www.askaribank.com.pk



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HIERARCHYSTRUTURE


PRESIDENT

SENIOR EXECTIVE VICE PRESIDENT

EXCUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICER GRADE I

OFFICER GRADE 2

OFFICER GRADE 3

JUNIOR OFFICER

PABX OPERATOR

DRIVER

PEON

BRANC

H

HIERARCHY


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Managerial Policies

Financial policies

Procurement policies

Marketing policies

Promotional policies

Lending policies

Personal policies

Financial Policies

The financial policies of any bank are the most important policies through which the

whole banking activity is conducted. These policies are primarily conducted on:

Source of funds

Use of funds



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alternative is to lend its money and earned interest markup or invest in govt. securities etc.

as already mentioned in the above paragraph the major sources of funds for a bank are the

deposit of the general and the other sources of income includes interest or markup charges

received for various services offered by the bank to its clients.

A bank tries to attract maximum no. of accounts so that it can increase its deposits and

this lending ability. In order to get maximum no. of accounts the staff of the bank must be

efficient as compared to the other banks and the manager of the branch must take

personal interest in attracting deposits. Good quality of the service is the key to success.

Marketing policies

Marketing policies are also one of the most important policies because they are

related to the growth of the organization. Marketing for a bank would mean:

1. Creation of new product and services.

2. The bank marketing must be consumer oriented.

Following are the marketing policies of Askari Bank

Keeping the track of latest development in the world and incorporating the latest

and most modern equipment to make the banking procedures simple and easy for

the customers

Development of products for the customers

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

These policies can be implemented by providing the right product and service to the

customer at the right place, at the right time, at the right price. It is necessary for the

managers to keep in touch with consumers, observe their needs and develop products,which meet their needs.

Promotional policies

Public relation and advertising has assumed a great importance in the modern banking

business. As for as promotional activities are concerned, the main objective of the bank is



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to inform the existing clients and other people about its new products or change in the

existing services. AB establishes its purpose through:

Direct contact with customers

Relation with business organizations

Community relations

Standard medium of advertising and promotion

Lending policies

Every bank has its own lending policies except for those, which are common for all

the banks, i.e. the policies, which are imposed on all the commercial banks by the SBP,

are known as prudential regulations. The lending policies of ACBL are as follows:

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

return

Bank prefers to advance loan to their account holders

Loan is given to reliable person only

No political loan is sanctioned by bank

Any account holder can apply for running finance or demand finance. The

manager appraises the past record of account holder and his credit worthiness. If

he finds any thing wrong he can refuse to sanction the amount

The bank while taking security prefers govt. Securities to shares

It also advances working capital loans

Personnel policies

Personnel policies have an important role in the success of any organization.

ACBL have its proper personal policies. Good personal policies motivate the employees

towards hardworking.



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Following are the main personnel policies of ACBL

Selection of employees on merit

Selection of capable employees

Attractive salary package for motivation of employees

To train and develop the future management of the bank

Every employee must have certain set of clearly defined duties

Effective communication at al levels of the organization

All of these policies are formulated by the top level management after gaining sufficient

insight into market norms and employees feedback at lower level. Every branch of Askari

Bank has a Suggestion Box where even employees can suggest changes and work for

improvement. In this way, all employees get a chance to have a say in management

decision making. Employee feedback is considered very important in this regard, and this

motivates employees as well.

Building Blocks of the Askari Bank Empire

Customer Relationships

"Before we discover, we must explore"

Knowing Askari customers and their needs is the key to Askari business success.

Askari products and services are structured to touch and improve the quality of lives of

all segments of society. Service quality standards are designed and monitored to ensure a

consistent and convenient customer experience. Askari client relationship managers are

well equipped and well trained to provide most efficient and personalized service to each

and every customer. Askari products and services are as diverse as Askari market

segments. Askari have structured and syndicated financing arrangements, working capital

finance, Balancing-Modernization Replacement (BMR) facilities, financing of

international trade, consumer credit, small business loans, credit cards and unparalleled

investment products for the individual saver. Askari Bank is proud of the pioneering role



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in providing the most modern technological services to its customer base, which today

exceeds 150,000 relationships.

Employee Relationships

"Unusual effort on part of the employees who are apparently ordinary workers is

one of the key indications of a superior enterprise"

Askari staff is Askari most valuable asset. The human resource philosophy at

Askari Bank focuses on multi-talent hiring, professional grooming, requisite training

and meritocracy based reward system. Askari lays great emphasis on the development

and nurturing of "Askari Culture", a cohesive teamwork, where each relies on the

strength of the other and together they achieve common objectives.

Staff welfare has always been a priority. New initiatives like hospitalization

plan, car buy-back facility and home loan insurance have added new dimensions to

the staff-care policy and motivated them to out-perform Askari competitors.

Employee productivity enhancement is organized through extensive in-house

and external training programs. Askari continue to offer opportunities for people to

develop their knowledge, skills and personalities, thus ensuring greater self-

fulfillment and progression in the organization.

Technological Innovation

"Modern science is not an option, it is an obligation

Technology is rapidly changing the way Askari think, act and does business. It has

played a pivotal role in enhancing customer expectations, particularly with respect to

speed and quality of service.

Askari enjoy a strategic competitive advantage over all domestic players by virtue of

Askari leadership in technological innovations. Askari have fully automated transaction-

processing systems for back-office support. Askari branch network is connected on-line



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real-time and Askari customers have access to off-site as well as on-site ATMs, all over

Pakistan.

Askari Phone Banking service and Internet Banking facility allows customers to enjoy

routine banking services from anywhere in the world, 365 days a year, 24 hours a day.

Askari have also pioneered commerce venture in Pakistan through a major retail

distributor.

Askari qualified and experienced technology team is now focusing on data

warehousing to enhance the Customer Relationship Management (CRM) program

Inspiring Ethical Values and Code of Conduct

Integrity is the most valued standard in whatever AB does. They understand that their

commitment to satisfy customers' needs must be fulfilled within a professional and

ethical framework. They subscribe to a culture of high ethical standards, based upon

development of right attitudes.

Askari Bank follows a stringent code of ethics policy which encompasses the following

items

Presence of a corporate culture that seeks to create an environment where all

employees are treated equitably and with respect

Employees must carry out their responsibilities in a professional manner at all

times. They must act in a prudent manner and must avoid situations that could

reflect unfavorably on themselves, the Bank or its customers.

Employees must commit to the continued development of the service culture in

which the Bank consistently seeks to exceed customers expectations.

Fairness, Truthfulness and Transparency govern customer relationships in

determining the transactional terms, conditions, rights and obligations.

Employees must safeguard confidential information which may come to their

possession during the discharge of their responsibilities. Respect for customers

confidential matters, merits the same care as does the protection of the Banks

own affairs or other interests.



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Employees must ensure that know your customer principles are adhered by

obtaining sufficient information about the customers to reasonably satisfy

themselves as to their reputation, standing and the nature of their business

activities.

Employees must avoid circumstances in which their personal interest conflicts, or

may appear to conflict, with the interest of the Bank or its customers.

Employees must never use their position in the Bank to obtain an advantage or

gain.

Employees must not enter into an agreement, understanding or arrangement with

any competitor with respect to pricing of services, profit rates and / or marketing

policies, which may adversely affect the Banks business.

Employees must not accept gifts, business entertainment or other benefits from a

customer or a supplier / vendor, which appear or may appear to compromise

commercial or business relationship.

Employees must remain alert and vigilant with respect to frauds, thefts or illegal

activities committed within the Bank premises.

The Banks Philosophy

"The greatest of life's pleasures are shared"

The philosophy followed at the bank is: Corporate Responsibility for Askari Bank is

embodied by the concept of Privileged. What this means is that everything that the

bank must take from this society is taken as privilege, not a right. This is why the bank

believes in giving back to others who have accorded it with this Privilege of being a

part of this society.

Askari Bank believes in taking utmost care of its customers and society of which we are

all part of. This is how business is conducted, and is the core of the banks overall

strategy to make Askari Bank the Bank of First Choice in the Region. It requires the bank

to make informed, reasoned and ethical decisions about how business is conducted, how



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employees are treated and how the bank behaves towards its customers and clients and

how it acts as a corporate citizen.

Askari Bank gives key importance to accountability and transparency to build

trust and confidence among its stakeholders. The bank is committed to integrity andconsiders it as most precious attributes of the organization. The competitive environment

in the banking industry is shaped by the increasing demand for accountability and

knowledge-driven economies. Therefore, the credibility and innovation are keys to value

creation. Compliance with international standards, good corporate governance and

adherence to ethical norms has become a necessity.

Askari Bank managed to manifest sustainable performance over the years in the banking

sector of Pakistan. Over the past the banking industry of Pakistan remained fraught with

financial scandals which shattered the confidence of the customers as well as

shareholders. Askari Bank while fully acknowledging the volatility and vulnerability

factor prevalent in the contemporary banking industry of Pakistan, from the time of its

inception remained fully committed to watch the security and interest of all the

stakeholders.

"Community investment is the substantial time given by our staff in supporting the work

of community organizations, whether raising money, organizing sporting or educational

events, providing business expertise or simply providing another willing pair of hands."

Askari Bank believes in giving back to society that has blessed it with an environment to

thrive in. Just like the ancestors who fought great wars so that we may live in peace and

harmony.

Askari Bank supports the community in which it operates both through the involvement

of its employees and through sponsorships. Persons with physical, sensory, or mental

impairments, that can make performing an everyday task more difficult, have specialneeds. They are a part of the bank and Askari Bank enthusiastically promotes functions

organized for them.

GROWTH



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

change"

Askari live in a moment of history where everything is changing so fast that

Askari begin to see the present only when it is already disappearing.

Askari customer needs are changing and their expectations are growing.

Technology is fast proliferating the distribution channels and now banking services

can be accessed from multiple contact points. Askari believe that balanced growth is

the key to survival in today's global banking environment.

From a humble beginning with just 7 branches in 1992, today Askari enjoy a

network of 73 outlets in Pakistan, spread across the country. A network of self-service

ATMs supports these outlets.

Askari total assets now exceed Rs.50.9 billion and Askari have over 17

products and services to match Askari customers' individual needs. Bank's equity base

stands at Rs. 2.58 billion with 20% growth over the last 5 years. The human resource

capital of the bank today exceeds 1,200 employees. As part of Askari growth strategy

Askari is now extending Askari banking services to the remote and rural areas.

Divisions of the Bank

International Division

International Division of the bank strives to place at the disposal of the branch

network, efficient correspondent banking arrangements on global basis. With this

attempt, it would be possible to cater to the needs of banks client Diaspora. This is made

possible through a variety of arrangements with various banks around the globe, which,

amongst other benefits of liaisons and linkages, ensures placement of suitable Credit lines

at banks disposal by the counter-party banks to facilitate Foreign Trade and Treasury

related activities.

Askari Bank today has an International Division which prides itself in multi-faceted

correspondent banking relationships with over 200 Banks in 77 countries around the

world thereby improving the capacity of Askari Banks branches in serving their clients.



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International division of the bank has to perform another very crucial role in international

scenario - the role of making feasibilities and risk management in international front,

which has gained immense importance due to recent financial turmoil. International

Division is entrusted to arrange evaluation and approval of exposure limits favoring

various local/overseas banks and Non-banking Financial Institutions with whom the

banks Treasury and branches deal on day-to-day basis. Within the context comes the

Country exposure, which is managed and monitored at this division, whereas the banks

liaison with State Bank of Pakistan, in respect of Foreign Trade related issues, helps the

bank to provide timely directions and efficient advisory to branch network.

Optimum monitoring of business reciprocity with other banks compliments this efforts to

manage the business flows and ensure greater profitability and balanced distribution of

business amongst international correspondents.

In addition and as a part of the ongoing exercise of Know Your Customer (KYC)

compliance with regard to the foreign correspondents, International Division carries out

regular Due Diligence exercises to ensure that the bank deals only with financial

institutions that are able to meet the prescribed standards and criteria.

Major correspondents are:

Bank of Ceylon, Colombo Credit Suisse, Zrich

Standard Chartered Bank, Dhaka Danske Bank A/S, Copenhagen

Standard Chartered Bank, Mumbai Bayerische Hypo-und Vereinsbank

AG, Munich

State Bank of India, New Delhi Citibank NA, London

MashreqBank PSC, Dubai City Commerzbank AG, Frankfurt am

Commonwealth Bank of Australia,

Sydney

Habibsons Bank Limited, London

Royal Bank of Canada, Toronto Lloyds TSB Bank plc, London

National Westminster Bank Plc, Standard Chartered Bank, London



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London

Standard Chartered Bank, Tokyo National Bank of Pakistan, Tokyo

The National Commercial Bank,

Jeddah

Svenska Handelsbanken AB (publ),

Stockholm

Legal Affairs Division

This is another very important division of the bank, and is responsible for

managing all legal matters pertaining to Bank and is mainly involved in the opinion

making, addressing queries, advising on the laws applicable to Bank and other concerns

relating to carrying out of pre-contractual investigations and securitization aspects.

This area includes

Carrying out of analysis

Preparing research studies

Examining, scrutinizing, drafting of documents

LAD has also to strategize legal actions and supervise implementation and ensure

compliance. Advising on legal viability of the corporate and commercial lending

agreements also falls into the ambit of LADs duties. More frequently LAD suggests

ways for the efficient structuring of the transactions, effecting mortgages, perfection of

securities and provides general assistance to deal with the impacts of Regulatory,

Corporate, Labour and Fiscal Legislation. Attending litigation portfolio, which includes

Recovery cases and suits filed either for or against the Bank, is also one of the core

functions of LAD.

Islamic Banking Services

With the collapse of conventional banking in West and

its ripple effects on the global financial system, Islamic

banking is claimed to be one the banking styles in the future.

Keeping pace with the future trends and ensuring sharia-



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compliant banking, 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. Objective of the

bank is to put in place an efficient banking system supportive to economic justice and

welfare of society in line with Shariah standards.

A comprehensive range of Islamic Banking products and services is being offered, in

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

Islamic Corporate Banking

Islamic Investment Banking

Islamic Trade Finance

Islamic General Banking

Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah Advisor. As per

Shariah requirements, funds and products of Islamic Banking are managed separately

from the Conventional Banking side. All funds obtained, invested and shared in Halal

modes & investments, under supervision of the Shariah Advisor.

Corporate & Investment Banking Group (CIBG)

Askari Bank understands the unique business requirements of its corporate and

institutional clients, and accordingly, strives to meet their expectations through the

provision of a customized, relationship based banking approach, through the Corporateand Investment Banking Group (CIBG).

The Corporate and Investment Banking Divisions (CBD & IBD) are strongly positioned

across priority markets with a distinct strategy for developing corporate business. CIBG

is a one-window operation that provides all requisite banking services for the corporate



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clientele in an efficient, dependable, consistent, and competitive manner the objective

being to become the bank of first call for all financial management needs of its

corporate and institutional clients.

CIBG is specifically structured to provide dedicated banking services and products to itscorporate customers through two key divisions.

Corporate Banking Division

The Corporate Banking Division (CBD) undertakes a number of dept re-pricing swap

transactions, aimed at reducing the financial burden of its key client portfolios and also

manages advisory and loan arrangement activities. The major relationships cover

telecommunications, oil and gas, and chemicals sectors.

Investment Banking Division

The investment banking activity mainly covers, debt / capital markets, advisory services

and trading (both equities and derivatives).After the initial start-up phase, the capital

market desk, based at Karachi, increased the volume of capital market related

transactions.

The banks strategic framework generates sustainable returns based on strong market

presence and financial solutions ranging from debt and equity market transactions to

syndicate finance, and from transaction banking to corporate finance advisory services.

The corporate and investment banking will continue to play a major role in loan

syndications, structured financing and debt / capital raising transactions with the

objective of providing entire range of corporate and investment banking solutions to its

valued clients under one umbrella.

Human Resource Department

The Challenge .. To bring a dream to life

When it comes to hiring and managing people, Askari Bank has a very dedicated

approach. This is also reflected in its core values. At Askari Bank, the vision is to be the

Employer of 1st choice in the Region.



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The Financial Services industry in Pakistan particularly the Banking sector has grown

tremendously over the past few years. Growth of local private sector banks coupled with

entrance of many foreign banks into the Pakistani markets has resulted in multifaceted

career growth for the Bankers. Such a tremendous growth has also put pressure on banks

to attract and retain good employees.

Since its inception, Askari Bank is taking rapid strides in developing new businesses to

offer complete financial services to cater all clusters of customers. The bank has entered

in to new avenues and remained focused on delivering quality service to customers. The

bank humbly gives the credit for all this to none but its employees who love challenge

and excellence in everything is their passion.

Askari Bank is an empowered organization in which individuals have the knowledge,

skill, desire, and opportunity to personally succeed in a way that leads to collective

organizational success. Bank gives the employees ample opportunities to deliver, grow

and prosper. But the story has just begun as the bank has only scratched the surface of

unlimited opportunities lying in the business domain around.

The bank offers very good growth opportunities and most congenial working

environment. Askari Bank, being in its expansion phase, offers unique career

development opportunities for both young graduates as well as experienced bankers.

HR Philosophy

Askari Bank has a progressive and a dynamic human resource (HR) philosophy.

The Bank believes in transforming its human capital into a key source of competitive

advantage. There is a strong value system in place, which is driven by result orientation,

adaptability to change, humility and respect for subordinates and peers. The Bank

believes that investment in human capital is critical for achieving and sustaining growth.

The Banks constant endeavour is to create a performance driven work culture with focus

on employee satisfaction and retention.

Believing in the core reality that the interests of the Bank and the employees are

inseparable leads to an employee-oriented approach followed by the bank. At Askari a

we culture is found where there is mutual trust and respect for each other. Ownership



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behavior is encouraged so that everyone feels responsible for the performance and

reputation of the Bank. The bank is committed to develop and enhance each employees

skills and capabilities through extensive in-house and external training programs and job

rotations.

Hiring and Recruitment

Finding the right person for the jobs is a huge and risky task. So a certain set of standards

are followed along with other evaluations to ensure that the best talent is attracted and

retained by the bank.

The first item looked at is academics and college/university. An excellent

academic history and degree classification is expected of potential incumbents.

The reputation of college/university also makes one stand in good stead.

However, it is the other, extra curricular activities that set one apart from his

peers.

The right skills, personality and work experience helps one get the role one wants

in the division of his choice / preference. One needs to make the most of his assets

and experience and think about how his knowledge, qualifications and skills fit

into the desired applicant profile.

Applying to Askari Bank

Resumes may be submitted along with profile by establishing an account and

using the websites Current Jobs - Apply Online Section.

One is not required to apply for a specific position. If one does not find an opportunity

that he is interested in, he can submit his profile only by logging in and using the Online

Registration. If he chooses to apply later, his profile information will be saved.

In this way, both the candidate profile and resume are stored in the banks database and

becomes available to the banks HR Department recruiters nationwide. Once a profile is

established on the site, one is able to access the profile at any time.



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Recruitment Process-Entry Level Positions

For entry level positions (OG-III/II), the recruitment process involves the following steps;

Criteria Based initial short-listing of those who have applied. Criteria may be

Age, minimum qualification, minimum CGPA/Percentage, year of passing etc.

Written Test

Interviews - The interviews for entry level positions comprise of,

o Behavioral Competency Set (Communication Skills, Analytical Skills,

Initiative Taking, Learning Aptitude etc)

o Personality Traits Set

o Academic Knowledge based.

Recruitment Process - Experienced Positions

For experienced positions, besides the above areas, the interview format also includes the

Technical Skills Set, required of that specific position. This means that a candidate would

also be evaluated about his past experiences (the quality, depth & relevance with the job

etc.).

Required Skill Set

Askari Bank values commitment, teamwork, integrity, fairness and professionalism.

Generally, the bank looks for strong quantitative and analytical skills as well as good

communications and selling abilities

Qualification

The bank hires graduates from following disciplines:

Core Banking Positions: M/Com and MA/MSc Economics for core banking

positions. Recently, the bank has also started entertaining B.Sc 4 years



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(Economics/Finance) degree holders from well-reputed universities. However,

there are occasionally areas that require a more specific skill set or background

accumulated via MS/M.Phil or Masters Degree in other disciplines.

IT and HR Positions: MIT/ equivalent for IT Division, HR specialists for HRD

Audit: ICMA/ACCA/CA/CFA for Audit, Finance & RM, depending on the

relevance of their studies to banking and previous work experience

In addition to above mentioned specialists, Askari Bank also recruits intelligent, dynamic

and focused graduates who we feel they will be able to excel in the

Commercial/Islamic/Corporate & Investment banking field. A financial or mathematical

background is not a pre-requisite for a successful application. The comprehensive

training programs cover much of the financial knowledge required and prepare successful

banking Officers including management trainees for their careers within Askari Bank.

Compensation

Askari Bank offers a very competitive package to its valued employees. It has a mix of

financial and non-financial benefits package for employees. Askari Bank frequently

participates in salary surveys to determine its positioning within the industry. The results

of the surveys are then evaluated for enhancing / maintaining Askaris pay position in the

market. The pay includes all types of benefits in addition to monthly pay i.e. basic salary,

house rent and utilities including fuel. Other benefits include the following:

Medical/Hospitalization Benefit

Leave Fare Assistance

Staff Loans (Personal, Transport & House Building)

Consumer Loans (at a discount) & Credit Card facilities

End of services benefits

Miscellaneous benefits in Executive Grades



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Training and Development at Askari Bank Limited

Human Resources are the most valuable assets of a financial institution. Their

progress ensures the prosperity of the institution. Askari Bank Training and Development

programs refer to the application of structured learning activities for current and futuretasks to improve work-based performance to achieve business goals and objectives

effectively and efficiently.

Askari emphasizes much on Training and Development of employees and based it on the

conviction that individual as well as organization growth and development respectively,

are interdependent and that each one, complements the other. Askari Bank is committed

to provide on-the-job trainings and development facilities to its staff members. The

Management makes very effort to match staff members skills, competencies and abilitiesaccording to the job requirements.

The objectives of training and development programs are to enhance and improve the

capabilities, efficiency, and productivity of an employee up to the desired standards for

current and future assignments and responsibilities.

Askari Bank encourages employees to develop their professional skills by taking

advantage of both internal and external training opportunities. The bank focuses on

providing opportunities and facilitating its executives and officers for developing their

managerial and leadership skills through management development programs for present

and future responsibilities.

Training Centers

The bank has its own specialized in-house training facilities in the shape of Training

Academies. These are situated in the following cities

Rawalpindi

Lahore



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The Training Academies of the Bank are equipped with modern state of the art facilities

and are responsible for imparting multi-functional high quality trainings to all staff

members in the following areas:

Business Development

o Customer Service

o Liabilities Management

o Asset Development

o Consumer Finance

Commercial Banking

o General Banking

o Foreign Trade

o Credit Management

o Credit Administration

o Risk Management

o Consumer Banking

Soft Skills

o Effective Communication Skills

o Negotiation Skills

o Team Building

o Selling Skill

o Customer Care

Other Professional Courses



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The employees of Askari Bank are also sent to attend specialized courses by

various banking /non-banking training institutes.

Career for Women

Askari Bank is an Equal Opportunity Employer and jobs are offered on the basis

of skills and expertise categorically. There are women working at all level positions

throughout the Bank.

Opportunities for International Exposure

Presently, the bank has one OBU at Bahrain, where Pakistani nationals have been

posted. With a vision to become bank of first choice in the Region, Askari Bank plans to

enter in to International Markets in near future that will create multiple opportunities for

local Askarians to grow globally.

Job Rotation

At Askari, banking is not one specific service or function. It is an umbrella term

for a range of financial activities. At Askari Bank these activities are grouped into

divisions/offices and branches, each of which offer different opportunities for graduates

depending on your qualifications, skills, and career aspirations. Jobs are accordingly

offered on the basis of incumbents aptitude. Also, there is sufficient job rotation to let

the employees chose their best area of interest and to keep growing with it.

Internships

Though Askari Bank offer internship programs round the year, majority of these

programs spread over six to twelve weeks, are conducted between June and September

during summer semester breaks for most colleges/universities.

Career Ladder

Askari Bank values performances. There is an objective system of performance

evaluation based on Management by Objectives and Behavioral Competencies. The

system allows for mid-year reviews and is 100% open to appraise. A jobholder is

therefore secured in terms of career progression if the desired performance levels are



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achieved. Also, since Askari Bank is in its expansion phase, more and more jobs are

created at all levels providing opportunities for current jobholders as well as external

candidates. Promotions are also not time bound.

MANAGEMENT STYLES

Categories of Management Styles

There are three main categories of management styles:

Autocratic

Paternalistic

Democratic

Autocratic (Or Authoritarian) Style

These managers like to make all the important decisions and closely supervise and

control workers. Managers do not trust workers and simply give orders (one-way

communication) that they expect to be obeyed. This approach has some limitations as

well but it can be effective in certain situations. For example:

When quick decisions are needed in a company (e.g. in a time of crises)

When controlling large numbers of low skilled workers.

Paternalistic Style & Laissez-Faire

These managers give more attention to the social needs and views of their

workers. Managers are interested in how happy workers feel and in many ways they act

as a father figure (pater means father in Latin). They consult employees over issues and

listen to their feedback or opinions. The manager will however make the actual decisions

(in the best interests of the workers) as they believe the staff still needs direction and in

this way it is still somewhat of an autocratic approach.

Democratic Style

This style of management will put trust in employees and encourage them to

make decisions. They will delegate to them the authority to perform their tasks



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(empowerment) and listen to their advice. This requires good two-way communication

and often involves democratic discussion groups, which can offer useful suggestions and

ideas. These managers must be willing to encourage leadership skills in subordinates.

The ultimate democratic system occurs when decisions are made based on the majority

view of all workers. However, this is not feasible for the majority of decisions taken by a

business- indeed one of the criticisms of this style is that it can take longer to reach a

decision.

As banking company is involved in high risk and law compliance business,

democratic and laissez-faire styles find less room. There are manuals and

directions made for each and every step to be done so the style can generally be

regarded as Authoritative. However, at branch level and for non-financial issues

like setup of branch, democratic style is usually followed by branch manager. But

this again varies from person to person. Overall, Askari Bank has a culture of

discipline accompanied with feedback.



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PRODUCT AND SERVICES

The product & services of askari commercial bank limited are developed keeping

in view the customers needs & wants, & the expectation that the customer attaches withits financial institutions.

A product ACBL includes all those services which customer normally required for

effectively managing his business.

ACBL offers the following financial services to its customers.

1) Deposits

2) Advances

3) Products

1) DEPOSITS

One of the basic functions of commercial banking is to receive deposits. ACBL

accepts deposits in both local & foreign currency.

2. ADVANCES

Advances are major sources of earning of income for commercial banks. Banks

attracts surplus balances from the customers at low interest rates & makes advances at

higher interest rates to the individuals or business firms.

ACBL offer these facilities in two forms:

Funded facilities

Non- Funded facilities



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Funded facilities

In funded facilities the bank actually advances money against further repayment. These

facilities are known as cash credits.

Non- Funded facilities

Non- Funded facilities are those in which bank substitutes its own credit for its

customers.

ACBL offers to its customers are large number of non-funded facilities.

These facilities include:

1. Letter of Guarantee

2. Letter of credit

Irrevocable letter of credit

Revocable letter of credit

Sight letter of credit

Usance letter of credit

3. PRODUCTS

PERSONAL FINANCE

Personal Finance is a parameter driven product for catering to the needs of the general

public belonging to different segments. One can avail unlimited opportunities through

Askari Bank's Personal Finance. With unmatched finance features in terms of loan

amount, payback period and most affordable monthly installments, Askari Bank's

Personal Finance makes sure that one gets the most out of his/her loan.

MORTGAGE FINANCE

Askari "Mortgage Finance" offers the convenience of owning a house of choice, while

living in it at its rental value. The installment plan has carefully designed to suit both the

budget & accommodation requirements. It has been designed for enhancing financing



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facility initially for employees of corporate companies for purchase/ construction/

renovation of house. The maximum financing amount is Rs. 10 million with repayment

tenure up to 20 years.

BUSINESS FINANCE

In pursuance of the National objectives to review the economy of the country, ACBL is

providing loans to small and medium size business enterprises under Askari Bank's

Business Finance Scheme. Their goal is to offer a loan, which enables business

community to receive the financing required by them based on their cash flows.

ASKCAR (Car Finance)

Yet another of Askaris products, Askar offers the most convenient and affordable

vehicle- financing scheme, which provides its valuable customers an opportunity to own

a brand new vehicle of their choice. With minimum down payment, lowest insurance

rates and widest range of available car makes and models, Askcar offers the best value to

its esteemed customers.

ASKCARD

ASKCARD means freedom, comfort, convenience and security, so that you can have

retail transactions with complete peace of mind. ASKCARD is your new shopping

companion which enhances your quality of life by letting you do shopping, dine at

restaurants, pay your utility bills, transfer funds, withdraw and deposit cash through ATM

anywhere, anytime.

TRAVELLER CHEQUES

"Your Best Traveling Companion"

The range of our products and value added services enhances with introduction of Rupee

Travellers Cheques (RTCs) launched in March 2002.



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ASKPOWER

Askpower represents a useful tool with which to make secure payments without the need

to have any account, a debit or credit card. This card comes with a number of unique

features and diversified usage capabilities like cash withdrawal from ATMs, payment of

utility bills through ATMs and internet Banking, transfer of balance to another card and

refill option. The prepaid card is enjoying a great success all over the country.

VALUE PLUS

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

the market. The growth of this product is witnessed by its share, which has presently

reached at Rs. 1,079 Million even after lowering down the profit rates due to sufficient

liquidity in the market.

ASKARI MASTER CARD

Features of Askari Master Card

NO JOINING FEE

When you successfully apply for an Askari MasterCard, we will not charge you any

Joining Fee. Its almost like you are getting it for FREE!

GLOBAL ACCEPTABILITY

Your card provides you with service at thousands of locations in Pakistan, and at over 23

million establishments worldwide. As an added convenience, you will have the benefit of

receiving your monthly billing in Pak Rupees, regardless of the currency of purchase.

Think of the freedom this gives you!

24-HOUR CUSTOMER SERVICE

With Askari MasterCard, you are always a phone call away from the assistance you need.

To speak to one of our friendly Customer Service representatives, please call our UAN

111-000-787 for Karachi, Lahore or Rawalpindi/ Islamabad.

LOW SERVICE CHARGES



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Askari MasterCard provides you the experience of revolving your spending at

comparatively low service charges. In addition, the same rate also applies to cash

advance obtained on your Askari MasterCard.

ZERO LOSS LIABILITY

Please report loss or theft of your Askari MasterCard immediately at our Customer

Services UAN 111-000-787 for Karachi, Lahore and Rawalpindi/Islamabad. Once you

have registered the loss of your credit card, your liability against its fraudulent use will be

limited and we will send a replacement card within 48 hours of reporting.

SUPPLEMENTARY CARDS FOR YOUR LOVED ONES

Save yourself the inconvenience of applying for a separate Askari MasterCard for your

loved ones by requesting supplementary cards when you apply for your own card. You

will receive a consolidated monthly account statement, which covers all the cards. This

offer is available for your loved ones over 18 years of age.

CASH ADVANCE FACILITY

Cash advance facility is available for Askari MasterCard holders. You can get up to 80%

of your sanctioned credit limit as cash advance in Pakistan or anywhere else in the world.

The facility is available at all ATMs displaying the Cirrus logo around the world and in

Pakistan. You may also avail this facility at designated branches of Askari Commercial

Bank, during banking hours.

BALANCE TRANSFER FACILITY

With Askari MasterCard, you can avail an incredible offer of a Balance Transfer at the

exclusive rate of just 1.5%* per month.

A special privilege exclusively for Askari MasterCard members

FREE TRAVEL INSURANCE



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Just purchase your travel tickets on Askari MasterCard and you are automatically covered

under our 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.

STRESS FREE TRAVELLING

When you purchase your airline tickets for international travel on Askari MasterCard you

get:

UPto * Rs.10,000 insurance cover for flight delays exceeding 6 hours.

Upto* Rs.10,000 insurance cover for baggage delays exceeding 6 hours.

Upto* Rs.20,000 as baggage loss claim.

(*Certain conditions apply)

COMPLIMENTARY CIP & RAWAL LOUNGE FACILITIES

The next time you travel internationally, be a privileged guest at the CIP lounge of

Quaid-e-Azam International Airport, Karachi and RAWAL Lounge of Islamabad

International Airport. Your Askari MasterCard entitles you to a host of Complimentary

services like;

Snacks and Beverages

Free Internet, phone and fax facilities

Newspapers and magazines

Flight details information

Cellular phone charger connections

So, no matter where you are going, you are always assured of a red carpet welcome.

INVESTMENT PRODUCTS

Askari Mahana Bachat Account (1 + 3 Years Term)

Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one year!"



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Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for three

years!

Askari Mahana Bachat Account is a Term Deposit facility available to individual

customer with the option of 1 and 3 Years tenure. It has been designed keepingin view savings needs of individual investors who dont want to block their funds

for longer terms, with a competitive rate of return paid monthly on the 1st of every

month.

Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving

plan specially designed for individual investors who wish to invest now for a

regular return at a later stage while keeping their principal amount intact. With

Askari Roshan Mustaqbil Deposit investor can double his investment in a time

period of ten years. Invest now in the form of monthly deposits for five years and

get paid back the same amount for the next five years while receiving the

principal amount in full at the end of the tenure.

Askari Deposit Multiplier Account

Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at

maturity!

Askari enables the consumer class to aim higher with their investments

with Askari Deposit Multiplier account. This account is for individual investors

whose purpose is long term savings with high returns. With a tenure of 10 Years

and a competitive rate of return on maturity this account is ideal for investors who

wish to start saving for their future today.

OTHER PRODUCTS

Internet Banking Services

In pursuance of its quest to provide the most modern service to its

customers, Askari Bank offers banking through internet. Askari Bank is the first



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bank in Pakistan to provide such service to its valued customers which is

absolutely FREE.

Electronic Bill Payment Services

Askari bank achieves another milestone by adding electronic bill payment

service to its range of products. It has always been the banks endeavor to

introduce products and services tailor made to the requirements of its valued

customers.

Agriculture Finance Products

The role of agriculture in Pakistan economy is of pivotal nature. Due to

diverse geographical and climatic conditions the country has tremendous

potential for growth and development in agriculture. However, adequate and

timely financial assistance to the farmers will improve production potential of

agriculture sector in the country. The modern concept of agricultural credit

envisages establishment of an efficient institutional credit system to serve as a

package of credit, supplies and knowledge for the overall strength of the farmers

who at present suffer from low productivity and financial insecurity. A successful

credit evaluation system, therefore, should have the basic ingredients to provide

adequate amount at the right time and in the right form to help farmers in making

a productive use of loan funds. Askari bank offers the following agricultural

facilities:

Askari Kissan Agriculture Finance Program

Kissan Ever Green Finance

Kissan Tractor Finance

Kissan Aabpashi Finance

Kissan Live Stock Development Finance

Kissan Farm Transport Finance

Kissan Farm Mechanization Finance



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Pricing Policies

Banks do not have much discretion when it comes to major part of pricing their

policies, as they themselves get funds from SBP and general masses, and there are

established economic principles that govern how the mechanism of fixing the mark-up

rates. (The price of banks products)

Lending rates are KIBOR linked and spread is the income of the bank. But

increased competition has limited banks ability to earn excessive profits in this way.

However, banks do charge for the services they provide, for example, remittances.

Lending Products

Personal Finance

Upto 3 Years 18%

Upto 5 Years 22%

Smart Cash

1 Year (Renewable) 22%

Business Finance

1 Year 1 Year Kibor + 3% to be reviewed on

yearly basis

Mortgage Finance

20 years maximum 1 Year Kibor + 3% to be reviewed on

yearly basis.

Auto Financing13% to 15%



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OTHERPRICESI.E. BANKCHARGESAREMENTIONEDIN ANNEXURE.

Distribution Policies

WHENITCOMESTODISTRIBUTIONCHANNELOFABANK, WEHAVETOSEEHOWVASTAND

EXTENSIVETHEBRANCHNETWORKOFTHEBANKIS.



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YELLOW SOUTH

LIGHT BLUE CENTRAL

DARKBLUE NORTH

ASKARIBANKHASAFAIRLYWIDEANDLARGEBRANCHNETWORKALLOVERTHECOUNTRY, EXCEPTFOR

BALOCHISTAN. BUT THAT IS QUITE JUSTIFIED AS ECONOMIC ACTIVITY IS LESS IN THAT REGION.

ALSO, THEBANKHASSHOWNAGOODRATEOFINCREASE INNUMBEROFBRANCHES, ANDTHATIS

HEALTHYSIGNANDCANBEUSEDTOPREDICTTHAT ASKARIBANKWILLCONTINUETHESAMEPACE

(AS 55 BRANCHESWEREOPENEDIN 2008). HOWEVER, ITSTILLHASTOENHANCEITSOUTREACHIN

RURAL

AREAS

AS

THEY

OFFER

AN

UNTAPPED

SECTOR

OF

CREDIT

ADVANCEMENT

.

Promotional Policies

FOLLOWINGARESOMEOFTHEMEANSOFPROMOTIONAT ASKARI BANK:

Brochures

Sponsorships

TV Commercials

Special Efforts for Privileged and Valued customers (Mailing them about new

promotions, through postal mail or e-mail)

Tele marketing



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FINANCIAL ANALYSIS

Economy of Pakistan has seen one of the worst scenarios ever in the last two

years. Global financial crisis had a trickle down effect on the Pakistans economy.

Although it is believed by most of the experts that the financial sector of Pakistan was

saved from the impacts of the financial crunch in the global markets due to lack of

financial linkages, second round effects of a global slowdown of economy cannot be

ignored. With economic activity slowing down worldwide, and certain domestic issues at

home, banking sector has faced tough times in the last year despite excellent growth in

the earlier half of 2009.

OBJECTIVES OF FINANCIAL STSEMENTS

Financial statements are like a firm perfume to be sniffed but not to be

swallowed. (Abraham Brillof)

The firm itself and outside providers of capital creditors, and investors all take benefit

from the firms financial statements. The type of analysis varies according to the specific

interest of the party involved. Similarly objectives of the financial statements analysis

vary from person to person.

Trade creditors are primarily interested in the liquidity of the firm. Their claims

are short terms, and the ability of the firm to pay their claims quickly is best

judged by an analysis of the firms liquidity.

Bondholders are more interested in the cash flow ability of the firm to service a

debt over a long period of time. They may evaluate their ability by analyzing the

capital statement of the firm.



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Investors usually focus on the profitability of the firm. They would be concerned

with the financial conditions insofar as its affects the ability of the firm to pay

dividends and avoid bankruptcy.

Management employees financial analysis for the purpose of internal control and

to better provide what capital suppliers seek in financial conditions and

performance from the firm

Management needs to undertake the financial analysis in order to plan and control

effectively.

Financial ratios are the tools, which are used to analyze the financial conditions

and performances.

Finally, financial statement analysis deals with the outcomes of the past decisions

and leads to the future planning.



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Horizontal Analysis

Income Statement- Horizontal Analysis

All values in Million Rupees



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Vertical Analysis

Income Statement- Vertical Analysis



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Balance Sheet- Vertical Analysis



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Ratio Analysis

Ratio analysis is an important and age-old technique of financial analysis. However, the

ratios are only indicators, they cannot be taken as final regarding good or bad financial

position of the business other things have also to be seen.

Banks ratios analysis is some what different from the ratio analysis of manufacturing

concerns, as there are no sales, purchases, inventory, CGS, accounts receivable, accounts

payable etc. Therefore each bank has developed its own set of ratios for analysis. The

objective of ratio analysis is to evaluate the position of business with respect to its

liquidity, profitability, debts, capital adequacy and market. Most commonly used ratios in

banking sector can be divided into following five main categories:

Ratios and Their Analysis

Liquidity Ratios

Profitability Ratios

Debt Ratios

Capital Adequacy Ratios

Market Ratios



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Liquidity Ratios

The liquidity of a firm is measured by its ability to satisfy its short term obligations as

they come due. Liquidity refers to the solvency of the firms overall financial position.

1. Advances to Deposits Ratio

Advances

Formula =

Total Deposits

2008 = 128,818,242 = 0.7682 = 76.82%

167,676,572

2007 = 100,780,162 = 0.7046 = 70.46%

143,036,707

2006 = 99,179,372 = 0.7523 = 75.23%

131,839,283

Graphical Presentation

65

70

75

80

2006 2007 2008

years

percentage

Interpretation

This ratio demonstrates the degree to which bank has already used up its available

resources to accommodate the credit needs of its customers. This ratio is a

comparison of funds generation and its funds mobilization. It indicates the total loans



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sanctioned by the bank in relation to total amount of money deposited with the bank.

In 2007 it was 70.45% and in 2008 it is 76.82%.This shows that the bank has

improved its potential to advance additional loans.

2. Due from Banks to Total Assets Ratio

Due from banks

Formula =

Total Assets

2008 = 4,479,754 = 0.02172 = 2.172%

206,191,138

2007 = 14,444,143 = 0.0792 = 7.92%

182,171,885

2006 = 8,392,950 = 0.0505 = 5.05%

166,033,588


0

5

10

2006 2007 2008

years

percentage

Interpretation

This ratio is an indication of Askari Banks funds management policies. Financing to the

banks is the most secure way of lending. In the year 2006 this ratio is satisfactory but in

2007 it has increased up to its maximum, up till now as this was never before in the

History of Askari Bank. The situation was very much in favor of the Bank, since banks



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advances have been increased. Butin 2008 it has reduced to 2.172%, whichindicate that

bank's advances have been decreased. This needs a lot of improvement.

3. Due from Banks to Due to Banks Ratio

Due from banks

Formula =

Due to banks

2008 = 4,479,754 = 0.2949 = 29.49%

15,190,148

2007 = 14,444,143 = 0.8228 = 82.29%

17,553,525

2006 = 8,392,950 = 0.5608 = 56.08%

14,964,087


0

50

100

2006 2007 2008

years

percentage

Interpretation

This ratio is an indicator of the relationship between what the bank owes from other

banks and what is due to it. In 2006 position became unfavorable and the year 2007 the

situation is again very favorable. This indicates a reduction risk. In the phase of economic

instability, the banks management had efficient to assess the risk involved in lending and



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they had control this ratio up to an extent and they are doing well needs to be improved.

But in 2008 this ratio is 29.47 %, which is again a decline, showing the fact that the bank

has to receive fewer funds from the financial institutions and has to pay more. This ratio

needs a lot of improvement.

4. Due to Banks to Total Deposits Ratio

Due to banks

Formula =

Total Deposits

2008 = 15,190,148 = 0.0905

final intership report askari

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