Professional Documents
Culture Documents
COMMERCIAL BANK
“The commercial bank receives surplus money from the public and
lend to others who needs funds. Bank collects cheque, bills of
exchange etc from customers. It transfers money from one place to
another. It provides agency and general utility services. Purpose of
commercial bank is to earn profit.”
Askari Bank is the only bank with its operational head office in
the twin cities of Rawalpindi-Islamabad, which have relatively limited
opportunities as compared to Karachi and Lahore. This created its own
challenges and opportunities, and forced as to evolve an outward-
looking strategy in terms of Askari market emphasis. As a result,
Askari developed a geographically diversified assets base instead of a
concentration and heavy reliance on business in the major commercial
centers of Karachi and Lahore, where most other banks have their
operational Head offices.
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.
FIELD OF ACTIVITIES
INTERNATIONAL DIVISION
Mainly responsible for managing correspondent banking relationships
and planning overseas operations, the Division plays a vital role in
extending foreign trade transactions support to the branches. The
Bank became a member of SWIFT in the Year 2000 and is also a
contributor to the equity of Pakistan Export Finance Guarantee Agency
Ltd With a network of 167 correspondents spread over 95 countries
worldwide, the Bank continued to reinforce its leadership position in
trade finance, transacting business of over Rs. 70 billion, during this
year. Through the concerted efforts of this Division, we are a
participating Bank under the "Pakistan Trade Enhancement.
Facility" of the International Finance Corporation, and our customers
are entitled to avail of the "Political Risk Guarantees Scheme"
extended by the Asian Development Bank.
TREASURY
Responsible for managing Bank’s liquidity and foreign exchange
transactions, our Treasury in one of the most active in the market.
Through reported transactions, purchase of Government paper and
foreign exchange trading, the Division adds substantially to the Bank's
sustained earnings.
Retail banking group was formed in 2000, this group is responsible for
serving the needs of the retail market. Focusing on individual
consumers and small and medium size enterprises, for purpose of
product differentiation, the group is managed in three business arms.
16 Investments products unit,
17 Asset products unit,
18 And the credit cards division.
INVESTMENT PRODUCTS UNIT
Responsible for developing and managing brands which serve the
investment needs of the consumer market, this unit focuses on deposit
mobilization, provision of value added services based on modern
technology and undertaking the centralized marketing and advertising
for the Bank. This unit is also actively involved in the acquisition
business and has signed-up over 300 merchants nation-wide which
offers shopping discounts to the Bank's Privilege Card members.
CREDIT DIVISION
Providing extensive support to branches for credit administration,
control and monitoring, the division has played a pivotal role in helping
the bank achieve a remarkable loan
Growth of 31%, with well diversified risk exposures. Most of the loans
are of shot -term trade financing on a secure and self-liquidating basis.
The division has a special assert management team, which is
responsible for ensuring low ratio of bad debts, effective monitoring of
delinquent advances and close follow-up of recoveries. Bank's head
office credit committee, reviews the credit quality and pricing on
regular basis not only to ensure healthy credit growth but also the
management of bank's risk assets in almost prudent and profitable
manner
Taking into account the expanding branch network and the increasing
customer base, credit administration was strengthened by
decentralizing the delegation of lending authorities at the regional and
area management level.
FINANCE DIVISION
Responsible for bookkeeping and accounts, this division at head office,
prepare all financial return and the MIS through its management-
reporting wing. The division is actively involved in preparing market
comparative analysis, consolidation of bank's budgets, its monitoring
and constant review of various financial indicators.
Finance division works as the backbone for the bank's operations. The
division, which reports directly to the president and chief executive of
the bank, has been instrumental in preparation of banks business
plans and future strategies. The budgetary performance are constantly
reviewed and through a sophisticated " monthly performance report”
which is a computer based program, the division provides feed back to
the senior on strategic issue like reasons for budgetary variance and
methods to arrest negative performance factors.
Preparing the bank's annual accounts and coordinating external audit
is also a direct function of the finance division. Through the dedicated
efforts of staff at this division, the bank has been winning various
awards foe the best presentation of the annual accounts and also the
management has also been able to monitor and review the bank's
performance in proactive manner.
AUDIT DIVISION
The audit division reports directly to the board through the executive
committee, which is also the audit committee. The audit division is
completely independent of the management and is responsible for
checking and reporting on the management compliance with the
boards policies and directives, as also the prudential regulations and
other directives of the SBP. However their role is not intended to just
that of fault finding; but also guiding and assisting branches in
improving their operations.
The system of regional and area offices has been introduced since
1999 for effective supervision and control of branches. The scope of
the system also spans the development and management of bank's
business and activities, on a regional basis.
22 North region
23 Comparison of Islamabad and Rawalpindi area and the north
area.
24 Central region
25 Comprising of Lahore and East area.
26 South region: and
27 West region
VISION
CORE VALUES
28 Commitment
29 Integrity
30 Fairness
31 Team-work
32 Service
MANGERIAL POLICIES
42 Financial policies
43 Procurement policies
44 Marketing policies
45 Promotional policies
46 Lending policies
47 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:
48 Source of funds
49 Use of funds
SOURCE OF FUNDS:
The bank finance policy is acquiring funds from the following sources:
50 Deposits of account holders.
51 Interest on advances and loans granted to the borrowers.
52 Income and commission from the services provided by the bank.
53 Bank open various types of accounts for its customers Services
are provided for earning.
54 Interest income and commission bank providing the services to
its customer.
USE OF FUNDS:
After the acquisition of the funds their acquisition become
necessary. The bank seeks the best way for making investment to got
more profit with the maximum security. The bank has an investment
portfolio in which it allocate its funds for crediting to borrowers,
investment in the stock market, investment in the real estate property
etc. for allocation of funds a bank has to follow some banking policies
and the prudential regulations of SBP these are:
A bank has to maintain a liquidity with central bank ,i.e. 25 %of its
total deposits.
A bank cannot invest all of its funds otherwise it will be difficult to
meet urgent needs.
A substantial part of funds is received from interest on loans and
advances. Before granting a loan the bank analyze and observe the
borrower and conduct a complete ratio analysis. Bank prepare credit
line for this purpose the major thing is granting an advance is the
security offered by the borrower and its actual market value.
PROCUREMENT POLICIES
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:
55 Creation of new product and services.
56 The bank marketing must be consumer oriented.
PROMOTIONAL POLICIES
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:
60 The bank only invests in those sound and viable projects, which
have good rate of return.
61 Bank prefers to advance loan to their account holders.
62 Loan is given to reliable person only.
63 No political loan is sanctioned by bank.
64 Any account holder can apply for running finance or demand
finance. The manger apprises the past record of account holder
and his credit worthiness. If he finds any thing wrong he can
refuse to sanction the amount.
65 The bank while taking security prefers govt. Securities to
shares.
66 It also advances working capital loans.
PERSONAL POLICIES
DEPARTMENTS
CREDIT DEPARTMENT
FOREX DEPARTMENT
82 Import department
83 Export department
84 Foreign currency department
ACCOUNTS DEPARTMENT
IT- DEPARTMENT
IMPORTANCE OF INTRODUCTION
FOR A\C OPENING
Introductory references As soon as a person opens an account with the
bank, the banker customer relationship is established. In such
situation this is advisable the banker should not open new accounts of
unknown persons unless references regarding the integrity and
responsibility of the purposed persons are obtained from respectable
parties.
Failure to exercise this care may result in serious consequences not
only for the banker concerned but also for the other bankers and
general public. It is not sufficient to obtain the reference but its
genuineness must also be verified. Omission of this may have serious
consequences.
In practice we see that there is tough competition among bankers for
procurement of deposits, so to press a prospective new customer to
find the desired reference may offend him, yet he is to be welcomed
by the banker as a source of fresh deposits. But these practical
difficulties have to be handled tactfully because the risk involved to
carry out this requirement partially or wholly may lead to undesirable
results.
97Address:
Enter the complete business/residential address. With in the brackets
you may also provide prominent address identification marks for ease
of physically locating the address.
98 Contact Numbers:
Enter home, official, mobile, fax number and e-mail address (if
available). Banker can verify the number by giving the customer a
courtesy call or by sending him a e-mail.
100Special instructions:
Clear-cut special instructions must be obtained from customers. If the
customer has not given any special instruction specified column must
be cancelled by drawing a line, as this column must not be left blank in
any circumstance.
101Existing/other bankers:
Almost most all the bankers usually have a banking relationship with
another bank. In case of customer who does not have an existing
banking relationship, or does not want to disclose the existing
relationship, then it is strongly recommended that at least for some
time this particular account must be kept under observation.
TYPES OF ACCOUNTS
102Minor account
103Illiterate person account
104Joint account
REMITTANCE DEPARTMENT
112Pay Order
113Demand Draft
114Pay slip
115Telegraphic Transfer
116Payment of Remittances
117Cancellation of pay order & demand draft
The remittance department deals with the transfer of money from one
place to another.
This department deals with the local currency transfer only. ACBL
provides these services to both customers & non-customers
Remittance can be made through:
1) Instrument transfer
2) Electronic transfer
3) Mail transfer
PAY ORDER
Pay order issued from one branch only be payable from the same
branch. It is normally issued for payment in the same city. It is
normally referred as banker's cheque
DEMAND DRAFT
It is an instrument on demand for which value has been received,
issued by the branch of the bank drawn i.e. payable at some other
place(branch) of the same bank. In case of agency arrangement-
demand draft can also be issued by one branch of the bank payable to
other branch of the other bank e.g. DD issued by ACBL payable by
MCB.
PAY SLIP
The bank for settlement of it own payment issue pay slip.
127No excise duty
128No commission
CASH DEPARTMENT
All physical movement of cash in the bank is made through the cash
department. Normally cash department performs following functions
129Receipt
130Payments
131Act according to any standing instructions
132Transfer of funds from one account to another
133Handling of ATM
134Verification of signatures
135Posting
136Handling of prize bond
CLEARING DEPARTMENT
MEANING OF CLEARING
The word clearing has been derived from the word “Clear” and is
defined as “ a system by which banks exchange cheques and other
negotiable instruments drawn on each other within a specific area and
thereby secure payment for their clients through the Clearing House At
specified time” in an efficient way”.
1. Since clearing does not involve any cash etc. and all the
transaction take place through book entries , the number of
transaction can be unlimited.
2. No cash is needed as such the risk of robbery, embezzlements
and pilferage are totally eliminated.
3. As major payments are made through clearing, the banks came
manage cash payments at the counters with a minimum amount
of cash in vaults.
4. A lot of time, cost and labor are saved.
5. Since it provides an extra service to the customer of banks
without any service charges or costs, more and more people are
inclined and attracted towards banking.
CLEARING HOUSE
It is a place where representatives of all banks sit together and
interchange their claims against each other with the help of controlling
staff of State Bank of Pakistan And where there is no branch of State
Bank of Pakistan the designated branch of National Bank of Pakistan
act as controlling member instead of State Bank of Pakistan
MEMBERSHIP CEASES
137It ceases to be a scheduled Bank.
138It is not able to meet its liabilities.
139State Bank of Pakistan or Central Govt. prohibits it to receive
fresh deposits.
SPECIAL CLEARING:
In addition to the normal clearing function at Clearing house it is
mutually agreed to hold an extra clearing at the clearing house on the
particular day and time which is known as “special clearing” it is
arranged due to the rush of work arising out of say, more Holidays
declared by the Central Govt. at a time, but normally special clearing
is he4ld on last working day of our half yearly and yearly closing i.e.
30th June and 31st Dec. every year.