INTERNSHIP REPORT

Askari Bank Limited

An internship report submitted in partial satisfaction

Of the requirements for the degree of

B.Com (hons.)

In

Banking & Finance

by

Hira Hanif

5049

University of Central Punjab

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ACKNOWLEDGMENT

All the praise for ALMIGHTYALLAH, the

creator of this universe who guides us to

overcome the difficulties in crucial situation

and all respects are for HIS HOLY PROPHET

MOHAMMED (P.B.U.H), who enables us to

recognize our creator and understand the

philosophy of life.

Beyond of all the material available, I am very

thankful to Ali Waseem (Operations

Manager Main Market Branch) who give me

appropriate knowledge about ‘‘ASKARI BANK’’.

And through his motivational behavior I was

able to complete our internship. And I am

thankful to the employees of Askari Bank

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Limited, during the study period and

preparation of this report.

Secondly I acknowledge the inspiring guidance,

encouraging attitude, valuable comments and

technical guidance, received from my

respective teachers of University of Central

Punjab.

PREFACE

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In the name of Allah who Is most merciful and

beneficial.

Allah give us many abilities with these I would

be able to do this report. This is the internship

report of Askari Bank Ltd.

In it the detail is given of the work I have been

done at Bank.

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DEDICIATION

I dedicated this assignment to my Parents and

Teachers who have always been a source of

inspiration to me and to Mr. Ali Waseem

(Operations Manager of Askari Bank) who gave

me great knowledge about banking sector.

Table of Contents

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Executive Summary 6

Introduction 7-8

Organization Profile 8-10

History of Askari Bank Ltd 11

Aims and Objective in this Organization 11-12

Departments of Bank 12-13

Account Opening Department 13-15

Cash Department 16

Clearing Department 16-17

Remittances Department 17-18

Accounts Department 18

Credit Department 19

Objective and purpose of Internship 19-20

Identification of Main Problems 20

Conclusion/ Recommendation 20-21

References 22

Executive Summary

SBP has priscribed the Askari Bank Ltd. For me. I had completed my

internship in the Askari Bank Main Market Gulberg Branch. I worked at various

department of the bank. Such as In acount opening department, accounts department,

cash department and did some work at clearing and remitances department. The working

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enviroment at Bank was veary good. The staff was very coopreative and friendly. I had

learn a lot form the bank and observe the marketing system of this bank i.e. How it works

and to what extent it is successful. I spent most of my time during internship in account

opening department, where I interact with people and know how to deal with customer.

And also about the working and procedure of the account opening. I also stamped all the

documents of account opening form; I dispatched the account opening form in a file.

Through this internship I learn about the marketing system of this bank i.e. how it works

and to what extent it is successful. With this internship I enhance my intellectual skills. I

deal with customer and help those customers, who are confused, help them in such a way

by filling credit or debit slips. In cash department I sort out the cash and count the cash.

In accounts department I had filling different reports. I also check the daily activity such

as online, customer and GL. In clearing department I clear the cheques, I stamped the

cheques. Maintaining good relationship with the customer has polished my interpersonal

skills and resolving customer’s Problems give them a feeling that the company

employees care for them. I used to maintain the record of each cheques book and ATM

issued both on the registered. I also used to place the document on their proper file.

Introduction

ASKARI BANK is the leading private sector bank in Pakistan, delivering quality

service through innovative technology.

In the success story of ASKARI BANK, one of the most important factors, apart

from its dynamic management and prudent approach, is the QUALITY of its SERVICES,

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which gives it a great edge over its competitors. ASKARI BANK has always strived to

facilitate its customers by introducing various high quality hi-tech services for the first

time in Pakistan.

We are proud of our pioneering role in providing the most modern and

technologically advanced services to our customers. Knowing our customers and their

needs is the key to our business success. Our products and services are as diverse as our

market segments. Technology has played a pivotal role in meeting customer

expectations, particularly with respect to the speed and quality of services.

We have fully automated transaction-processing systems for back-office

support. Our branch network is connected on-line real-time and our customers have

access to off-site as well as on-site ATMs, all over Pakistan. This includes not just

establishing and maintaining technology infrastructure for providing operational support

to all units of the Bank, but also encompasses introducing latest state-of-the-art

technology-driven products and service delivery systems, such as ATM networking,

Internet Banking, Mobile ATM, Credit Cards, Debit Card, Prepaid Card, utility bills

payment through ATMs & Internet which have brought about cost-effectiveness,

timesaving and safety.

Askari bank has also achieved another milestone with the launch of Askari Bank

Zari Credit Card. This is the first ever credit card offered to the farmers in Pakistan with

complete product features and service benefits. It aims to meet farmer’s production and

development needs and to supplement cash flows, whenever required.

It is also a matter of satisfaction that ASKARI BANK has been the first bank to

introduce PTCL and WAPDA utility bills payment electronically through ATM and

Internet on an Online-Real-Time Basis. For the first time in Pakistan, we have

introduced Mobile ATMs to provide banking facilities at the doorsteps of our customers.

Askari bank’s mobile ATMs first in the banking history of Pakistan, now four in number,

continue to serve customer needs.

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Our Phone Banking and Internet Banking Facility allows our customers, to

access their accounts from anywhere in the world, and effect transactions.

Bank has established its Data Warehouse and Customer Care Centre, a

dedicated customer call center to provide one window service to our valued customers in

terms of their telephonic enquires.

Askari bank remains focused on using technology for improving customer service

standards and expanding the range of products being offered and other technology based

solutions

Organization Profile

The Vision

To be the Bank of first Choice in the Region

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.

Core Values

The intrinsic values, which are the corner-stones of our corporate behavior are

Commitment, Integrity, Fairness, Teamwork and Service.

Corporate Philosophy

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From knowing our customers requirements to understanding employee needs,

from utilizing modern technology to making responsible social contributions, from

enhancing stake-holders value to practicing corporate ethics. We are continuously and

consistently striving to address newer challenges with a single motivation:

“the power to inspire and be inspired”

Askari Bank’s Products

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

sector entity with ever-increasing commitment to its clients, through a strategic

investment in electronic technology. Askari Bank achieved the following firsts in

Pakistani banking:

i) The first Pakistani bank to offer on-line real-time banking on a country-wide basis ii) The first Pakistani bank with nation-wide network of ATMsiii) The first bank in Pakistan, foreign or local, to introduce Internet banking in the

countryiv) The first bank in Pakistan, together with ABN-Amro, to develop an inter-bank switch

for the ATMsv) The first bank in Pakistan to launch Mobile ATM

Askari Bank offers the following retail products to serve the needs of the consumer market:

• Askari Bank’s Value Plus – Rupee Deposit Account• Askari Bank’s Personal Finance – Loans Scheme• ASKAR – Auto Loans• Askari i-Net Banking – Internet Banking solutions• Askari MasterCard – Credit Card facility• Askari Travellers Cheques – Rupee Travellers Cheques• ASKCARD –Debit Card• Askari Bank’s Mortgage Finance – Home Loans• Askari Bank’s Business Finance – Business Loans• Smart Cash – Running Finance Facility for Consumers• Askari Kissan – Agri Finance Programmer

“The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd.

Entity Ratings

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Askari Bank has the following Entity Ratings from the Pakistan Credit Rating

Agency Limited (PACRA):

Short Term A1+

Long Term AA

 

Definitions by PACRA:

A1+:

Obligations supported by the highest capacity for timely repayment.

AA:

'AA' ratings denote a very low expectation of credit risk. They indicate very

strong capacity for timely payment of financial commitments. This capacity is not

significantly vulnerable to foreseeable events.

A plus (+) appended to a rating denotes relative status within major rating categories.

Ugh support for local arts, education and sports.

History of Askari Bank Ltd

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in

Pakistan on October 9, 1991, as a Public Limited Company. It started its operations

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during April 1, 1992. The bank principally deals with mainly banking, as defined in the

Banking Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore &

Islamabad Stock Exchanges and its shares are currently the highest quoted from among

the new private sector banks in Pakistan.

Askari Bank has expanded into a nation wide presence of 136 branches, and an

offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering

all major cities in Pakistan supports the delivery channels for customer service. As on

December 31, 2005, the bank had equity of PKR 8.6 billion and total assets of PKR 145.1

billion, with over 600,000 banking customers, serviced by our 2,754 employees.

Aims and Objective in this Organization

Following are the main objectives of Askari Bank Limited are: -

1. 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.

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

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

focus.

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

customer care and convenience.

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

to their full potential.

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

business.

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

management information system, enhanced delivery capability and high service

standards.

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

shareholder returns and to continuously build shareholder value.

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

10. To explore new avenues for growth and profitability.

Departments of Bank

My learning in different department of bank. One of my job was to

deal with the customers in almost every department. Different customers ask for different

things. Like in the Account opening department, they ask about the procedure, charges,

balance inquiry etc. In the clearing department they ask about the bonus back of cheques

and related things. Some customer also got confused where to start, I had also guided

them. The names of department are as follow:

Account Opening Department

Cash Department

Clearing Department

Remittances Department

Accounts Department

Credit Department

Account Opening Department

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In Acccount opening department I had learn a lot.

Maintaining good relationship with the customer has polished my interpersonal skills and

resolving customer’s Problems give them a feeling that the company employees care for

them. There are several types of accounts such as:

1. Idivdual/ Joint Account

2. Sole Propreitorship/ Partnership/ Joint Stock

3. BBA(Basic Banking Account)

1. Idivdual/ Joint Account

In it they may open the following accounts

Current

Saving

ASDA

Document required for opening the account are

Original ID

Letter Head (in case of businessman)

In case of illetreate person photograoh of the person.

2. Sole Propreitorship/ Partnership/ Joint Stock

In it they may open the following accounts

Current

Saving

ASDA

Document required for opening the account are

For Sole Propreitorship

Copy of NIC (see original NIC)

Letter Head of business

NTN

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For Partnership

Copy of NIC (see original NIC)

Attested copy of “Partnership Deed” duly signed by all partners of

the firm.

Attested copy of Registration Certificate with Registrar of Firms.

In case the partnership is unregistered, this fact should be clearly

mentioned on the Account Opening form.

Authority letter, in original, in favor of the person authorized to

operate on the account of the firm.

Copy of registration certificate( if registered)

Company Letter Head

Two references

For Joint Stock

Certified copies of:

Resolution of Board of Directors for opening of account specifying

the person(s) authorized to operate the company account.

Memorandum and Article of Association

Certificate of Incorporation.

Certificate of Commencement of Business.

Copy of NIC (see original NIC)

3. BBA(Basic Banking Account)

This account is open by salary persons and also for

students. For opening the account folloing documents are required:

Copy of NIC (see original NIC)

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Salary Letter or bonafide letter for students

Initial deposit Rs.1000

Futher Instructions For Opreating Account:

1. The customer will get the cheque book when he/she will receive

the letter of thanks from Bank.

2. For ATM facility the coustomer will fill the ATM request form.

3. The customer will also get the i-net facility. Through which they

can access their account through internet.

4. If the account holder is going abroad and he/she will want to give

the right to another person to handle his account. He/She will sign the “third party

mandatry”.

5. If the customer want to change his mailing address. He/She will fill

the “Address changing form”. The Bank sent one letter on old address and one on

new address to confirm that he/she actually want to change address.

6. If the customer do not opreate his account from the last 6 mounths,

his account is dornmant (inactive). To activate the account the customer debit

(withdraw) the money from account.And also write the application to activate the

account and sign on it.

Cash Department

In cash department different facilities are given to the customer such as:

received cheques, receive cash, pay cash, online transaction. Online service is provided

by the bank to transfer money from one account to another.

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Work in cash department and learned how to accomplish different tasks like

deposit, credit card slips and how to build the scroll of PTCL and SNGPL bills. I have

counted bundles of cash, sorted the cash and make their packets and bundles again. The

spoiled cash is sent to the head office. Head office sent this to State Bank, which after

checking it burn the spoiled notes.

In cash department when we receive the cheques from the customer, we have to

verify the signatures of the issuer. The date of issue of cheque, signature and amounts are

checked. Cheque can be encashed after six months of its issue. If that period is over then

the cheque is returned unpaid. There is a limit, different officers verify up to different

amounts. If there is any problem in the signatures, then bank call the issuer on the phone

to confirm whether he draws the cheque or not. On the back of the cheque there should be

the sign of the issuer. If any other person presented the cheque then he has to give a

photocopy of CNIC of issuer.

In cash department I also learnt how to identify original cheque, this could save

from frauds.

Clearing Department

Work in clearing department and learned how documents are cheeked in clearing

department. If the customer deposited the cheque of another bank to our branch then we

use the stamp of clearing and sent it to the clearing house (NIFT). They have the

representatives from all banks. They checked the stamping, signatures, date, amount; etc.

if it is correct then they clear it. Otherwise these are returned to the branch. State Bank of

Pakistan Dr. or Cr. the amount of these cheques.

There are three types of clearing:

Inward Clearing:

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In inward clearing the bank is paying on the behalf of their customer. In it bank give

the payment to other bank.

Outward clearing:

In outward clearing the bank is receiving the amount on the behalf of their customers.

In it bank collect the payment from other banks.

OBC:

It is out of city where the branch of SBP does not exist.

Remittances Department

Remittance department provide a facility to a customer to transfer money

from one place to another. And can also refer to the accounting concept of a monetary

payment transferred by a customer to a business. Remittances are transfers of money by

foreign workers to their home countries. In remittances they tell me different functions.

They issue pay orders, demand drafts, call deposit receipt (CRD), fixed deposit receipt

(FRD), telegraphic (TT).

They can transfer money through

1. Pay Order (PO)

2. Demand Draft (DD)

3. Tele Transfer (TT)

Pay Order (PO)

This is used to transfer money within city. The charges where taken it depend

upon the amount.

Demand Draft (DD)

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This is used to transfer money outside city. The charges where taken it depend

upon the amount.

Tele Transfer (TT)

This is used to transfer money outside country. The charges where taken it depend

upon the amount.

Accounts Department

I have worked in accounts department and learned how the daily activities are

being handled. I have rechecked entries, vouchers and matched them with the entries in

the report. I have identified errors in it like missing stamps, wrong entry of document

number; etc.

Here I have checked there different reports of daily working like online report,

reconciliation report, and customer report. Here I have checked G/L account in which

there are different types of accounts like refreshment, suspense, depreciation account; etc.

In customer account report we have to see the vouchers of their day to day

transactions.

In online report we have to see on line transactions like transfer of amounts by

customers and check and verified them through vouchers.

In this they make the budget for their monthly and daily expenses (refreshment,

stationary; etc.) Salaries of the staff are prepared in this department.

Credit Department

Work in credit department and learned how loans are being approved and how

proposals are send to valued customers. Here we have to see different things like worth of

customers, there financial strengths, market repute; etc.

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There are different types of finances and for them there are different requirements

like requirements of working capital, mark up rate has been decided and clean up

requirements has also taken into consideration.

Clean up means for once in a year, the customers have to pay the whole loan.

Here the aim is to check that whether he/she is able to pay his loan or not.

TL or TF: It stands for term loan or term finance. It is for companies not for consumers.

Askari bank also provides finance facility for:

Pre-shipment finance own resources

Advances for current account

Advances in current account for pledge

Financing of export bills; etc.

Objectives and Purpose of Internship

I worked as an internee in Askari Bank to gain and experience the knowledge and

working of banking sector. These are the major objectives of my internship:

1. To learn how the bank’s departments function. I wanted to have myself in the

environment where I could get interact with the customer and be courtesy with

them as much as possible.

2. To learn about the techniques and processes used in Operations Department.

3. Dealing with the problems regarding their Accounts or any other related problem.

4. Guiding customers and making the banking function convenient for them.

5. To get the thorough knowledge of different credits offered by bank.

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6. To be a part of a competitive environment and enhances my skills.

Identification of Main Problems

The main problem that I think Askari Bank Ltd. facing is the lack of motivated

staff. I worked under many people and most of them were not satisfied with what they

were being paid. Actually when we compare the salaries being paid by Askari Bank Ltd.

with those of other banks, they are far lesser. Another problem is that of favoritism.

People here believe that employees, who are favored, get promoted earlier than those

who are not.

They think that their hard work is not being properly awarded. This is a big

problem, which the Askari Bank Ltd. is currently facing because we all know that lack of

motivation causes sharp fall in the performance of the employees and thus the

organization.

One more problem is that they give credit limit to their employees like to

deposit 500,000 in the year. But when there employees meet the requirement and even

give them far beyond there requirement, they do not award them.

Conclusion/Recommendation

The bank should use efficient Internet facility, which is available in the market

very easily. They should use DSL in Main Market Branch but sometimes the

speed of internet is very slow which create great problem especially for online

transactions.

There must be separate parking for both employees and the customers, in order to

facilitate them both. It is better for the bank employees to arrive at bank 5 to10

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minutes early then there bank timings, so they could have the proper parking

space for them.

Internees are given less importance. They do not have proper procedure for

training. Internees should be given more formal training.

In Main Market Gulberg Branch, there is less staff. So, they should hire more

employees to meet there working requirements efficiently.

Training programs offered by Askari Bank are less. They should increase them to

enhance the skills of their employees.

Many customers complaint that the bank numbers are busy all the time. Actually

one is not working properly, so they should remove this fault to avoid customer

dissatisfaction.

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References

Web Site: www.askaribank.com.pk

Mr. Ali Waseem (Operations Manager of Askari Bank Ltd.)

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