Professional Documents
Culture Documents
1
Askari Bank Limited Multan.
Internship Report
2009-2010
Uzma Faiz
08-arid-1463
FINANCE
0333-5562733
blue2bracellet@yahoo.com
Report Date
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Askari Bank Limited Multan.
16-Feb-2010
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Askari Bank Limited Multan.
Evaluation
Uzma Faiz
Askari Bank Ltd
Internship report submitted for the final Evaluation in Partial Fulfillment of
the requirements for the Degree of
1. -------------------------------------------------
2. -------------------------------------------------
DEDICATION
TO MY
PARENTS, FAMILY,
TEACHERS
AND MY FRIENDS.
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Askari Bank Limited Multan.
The Holy Prophet (PBUH) Said! If oceans are contrived into ink
to write qualities of my creator. Then the whole oceans would
be consumed in writing before his qualities, comes to an end.
[AL- KAIF]
“Shell I tell you a thing, by which you can attain good in this
world and here after ? Remember it is the company of those,
who remember and glorify ALLAH, day an night.”
[AL- SUNNAT]
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Askari Bank Limited Multan.
Preface
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Askari Bank Limited Multan.
EXECUTIVE SUMMARY:
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Askari Bank Limited Multan.
Credits and Foreign Trade department and have given below the
caption of activities I was involved in during the period of six weeks.
Low profit rates used to be one of the major reasons for not meeting
the deposit targets. The profit rates on Askari deposit schemes were
quite low when compared with other Banks especially with the
National Saving Centers, but now Askari Bank is giving a
comparatively high profit rates to its customers. In today’s every
customer is a rational customer, he knows the value of money and
wants a best return on his money.
________________________________________
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Askari Bank Limited Multan.
INTRODUCTION TO BANK:
Askari Associates.
Askari Leasing.
Askari General.
Private Business.
Textile Mills.
Cement Industry.
Askari Commercial Bank.
Askari Bank Limited continues to scale new heights in all areas of its
operations. The safety and security of depositor’s funds, high
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Askari Bank Limited Multan.
ASKARI ASKARI
ASKARI COMMERCIAL
ASSOCIATE GENERAL
INSURANCE BANK
(PVT) Ltd.
ASKARI BUSINESSES
LEASING
CEMENT
PETROLEUM TEXTILE
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Askari Bank Limited Multan.
BANK HIERARCHY
PRESIDENT
VICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE 2
OFFICER GRADE 3
JUNIOR OFFICER
PABX OPERATOR
DRIVER
PEON
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Askari Bank Limited Multan.
DEPARTMENTS:
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Askari Bank Limited Multan.
Cash Department
TYPES OF ACCOUNTS
In AKBL, there are the following types of accounts:
Current account.
Saving Account.
Askari Special Deposit Account.(ASDA)
Basic Banking account
Term Deposit.
CURRENT ACCOUNT
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Askari Bank Limited Multan.
SAVING ACCOUNT
The purpose of this account is to induce the habit of saving
individuals in the neighborhood. The minimum deposit for opening
the account is Rs.1050/- (as obvious in the Annexure).
Though individuals open such accounts for saving purpose, persons
belonging to Armed forces and different military institutions are free
to use this account on current basis.
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Askari Bank Limited Multan.
TERM DEPOSITS
INDIVIDUAL'S ACCOUNT
When a single man or women opens an account in his/her own name
and has the right to operate it is called individual Account.
DOCUMENTATION REQUIREMENT
For literate person copy of National Identity Card is required as a
primary requirement. For illiterate person and Veiled Women, along
with the copy of National Identity Card requirement he or she must
come in person for opening the account.
OPERATION
The person place a "Check Mark " in the type of account and
type of operation required
He/She fills in part-I of the form , a fix his /her either two or four
similar signature (or thumb expression in the signature space
and get it introduced and signed by a person who already has
an account with the bank and write his account no in the
specific rows in a specific space.
The person fills in "next of Kin " position where he/she father,
mother, husband/wife or any other relative's name, his /her
address, phone no and affix his/her signature to certify this
requirement. This requirement is needed because in his/her
absence bank can have correspondence with the specific
person.
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Askari Bank Limited Multan.
JOINT ACCOUNT
When two or more persons, neither partners, nor trustees, open an in
their name is called joint Account. Husband and wife or two persons
of same sex can open joint account.
DOCUMENTATION
For joint account copy of National Identity Card of all the persons is
obtained other things remaining same as in individuals account.
OPERATION
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Askari Bank Limited Multan.
PROPRIETORSHIP ACCOUNT
When an owner of a firm operating singly, opens an account in his
firm name, this account is called a proprietorship Account the proper
himself liable for all his acts.
DOCUMENTATION REQUIRED
For this kind of account, an application for opening the account on
the firm letter -pad (having the firm name) is required along with the
NIC Card of proprietor.
OPERATION
All operation remains the same except that the firm name is written in
the "Title of the Account” area and signature of the proprietor are
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Askari Bank Limited Multan.
affixed in the S.S. Card and the area specified for signatures on the
form.
DOCUMENTATIONS
OPERATION
All other requirement remain same except that the form is dully
signed by all partners cards are signed by all those partners who will
act on behalf of the firm and along filling part-I , Part-Iv is also filled.
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Askari Bank Limited Multan.
DOCUMENTATION REQUIRED
Memorandum of Association.
Articles of the Association
Resolution of the Board of Director.
Certificate of Incorporation.
Certificate of commencement of business
N-I-C
OPERATION
The persons authorized in the Resolution of the Board of Directors
put their signatures on S.S Cards. Next of kin "requirement "is not
need in case of a Limited Company. After completing each and every
formality, introducer signature is verified by S.S card and is stamped
"Verified" customer signatures are admitted by stamping “Admitting"
near signature and again signatures on S.S card are admitted in the
same way. The same process of verification and admission of the
signatures is repeated on Form-A and next of Kin area.
After completing each and every formality, Accountant is open in the
computer by writing name, address, A/C Number etc.
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Askari Bank Limited Multan.
At the start of the letter 2nd day, AKBL issues letter of thanks to
"Account opener" and " Account Introducer " for the trust the have on
AKBL.
ISSUING PROCEDURE
Signatures on cheque – book requisition are verified by
matching with signatures on SS.
Cheque – book leaves number, account number, account
holder’s name are mentioned in the cheque- book is made by
mentioning the and the total of sum of excise duty and
provincial tax.
The name of A/c holder and date of cheque – book issuance is
written on cheque – book requisition the account-opening
officer puts his initials on requisition leave.
A/c number is stamped over the leaves of cheque book and
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Askari Bank Limited Multan.
ACCOUNT CLOSING
Account is closed on the written request of the customer AKBL free
of cost. But to surrender the cheque book yet if some leaves are yet
to be write to the bank as a necessary requirements for closing the
account.
PROCEDURE
The customer for individuals account write an application to the
manager of the bank an a simple paper about the closing of his
account with the bank (In case of proprietor ship partnership
and limited company account the application should be written
an firm or company letter –head)
The individual or in case of other type- proprietor firm and
company surrender the cheque book to the bank.
The cheque book is then torn from one side and is attached
with the application.
In case of Ltd. Company account resolution of the board of
directors is also obtained to attach it with the application.
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Askari Bank Limited Multan.
EVERYDAY POSTING
Following transaction of cheque book is posted:-
ATM CARD
ATM – Cards are only issue to Account Holder
ISSUING PROCEDURE
The person, first open the account within the blank.
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Askari Bank Limited Multan.
$card
Biannually takes Rs 75.
ACCOUNTING DEPARTMENT
Accounts department is a department which deals and checks all the
activity of all the department .It also deals in expression of finance of
the bank. Salary payment is also one function of the bank.
OTHER ACTIVITIES
Preparation of daily bank positions statement
Payment of salaries
Preparation of the statements
Depreciation calculation
Lockers Issuance
REMITTANCE DEPARTMENT:
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Askari Bank Limited Multan.
Issuance Procedure:
Payment Procedure:
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Askari Bank Limited Multan.
Pay Order:
It is an instrument issued for payment in same city. Pay order issued
from one branch can only be payable from the same branch. It is
normally referred to as Banker’s cheque. It is also called confirmed
cheque, because Bank issues this on it own guarantee.
Issuance Procedure:
The standard form is given to the customer. He fills in the
details and signs it.
The concerned officer checks the form.
Bank charges (or commission) as per the schedule of charges
and the withholding tax of 0.3% are applied.
The cash amount of the pay order is received.
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Askari Bank Limited Multan.
Payment Procedure:
On presentation of the pay order receipt, two authorized
officers of the branch sign the receipt.
The bills, which are received by the Bank and sent to other cities
(branches) for the local clearing in that city, are called Outward Bills
for Collection.
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Askari Bank Limited Multan.
Procedure:
The bills, which are received by the Bank from other branches out of
the city for local clearing are called Inward Bills for Collection.
Procedure:
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Askari Bank Limited Multan.
FACILITIES
This account provides following facilities:
Traveling quota
Out ward remittances
In ward remittances receiving
To make remittances procedure flexible
EXPORT
IMPORT
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Askari Bank Limited Multan.
SWOT ANALYSIS
Strengths:
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Askari Bank Limited Multan.
Weaknesses:
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Askari Bank Limited Multan.
Opportunities:
Threats:
AKBL has many competitors, which are continuously increasing
its products and marketing aggressively. It may cause its
customers to shift to competitors.
Some other Banks have competent taskforce, which is also a
threat for AKBL. Because human resource is the most valuable
resource.
Due to the increased bad situation of Pakistan in which army is
Financial Analysis:
Financial Highlights
36
Askari Bank Limited Multan.
The current year’s profit (2007) after taxation of the bank stood at Rs.
2,681,012 as compared to Rs. 2,249,974 for last year. The deposits
decreased by 16.49% to Rs. 11,197,424 as against Rs. 13,044,593
as on 31 Dec 2006. The loans and advances figure stood at R.s
5,521,030 reflect on the improving market image of Askari Bank as a
formidable financial institution.
Ratio Analysis
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Askari Bank Limited Multan.
Earning assets are the assets which are very important for any
company for the bank earning assets are the assets on which bank
can earn its profit which may includes loans, advances, operating
fixed assets and other assets on the loans and advances bank can
make profit by giving or investing in some where so Askari Bank has
increased it’s earning assets in the year 2008 as compared to the
previous year that show the good trend in the profitability of the
Askari bank and the customer believe on the Bank.
Ratio tells that on what percentage earning assets contribute the total
assets. Well bank also has increased it’s earning assets ratio shows
the more profitability of the bank as it can be shown by the profit and
loss account of the 2008 that shows the net mark up income more for
the year as compared to the previous year so bank is going gradually
to the more profitability by giving more advances and loans.
Earning assets
ASSETS 2008
Cash 13356055
Balances with other banks 3497054
Lending 14444143
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Askari Bank Limited Multan.
Investments 39431005
Advances 100780162
Operating fixed assets 5128428
Total earning Assets 176636847
Other assets 5535038
TOTAL 182171885
This ratio indicates the how much of earning assets take part in
making of the profit before taxation. This ratio is decreased during the
year. Why is it so it has different reasons these are as follows
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Askari Bank Limited Multan.
Formula:
Profit after tax / earning assets
= 2,681,012 / 176636847
= .015
Profit before taxation is low for the 2008 due to more expenses
because bank is in expanding mode that’s why its expenses are
increasing day by day.
Provisions and bad debts also increased in the year 2008 because
bank also has invested more in this year and ad more also granted
more loans.
Formula:
Provision against non-performing loan and advances / profit
(loss) before tax
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Askari Bank Limited Multan.
= 3,920,240 / 2,299,785
= 1.70
Loan to deposit
Well there is a concept that bank’s loans are its assets while its
deposits are liabilities. But if a bank has low deposits then obviously it
will give low loans because bank gives it’s loans by the deposits and
earn on the loans then pay mark up on the deposits to the customers.
Well bank has increased its loans to deposits ratio in the year 2008
showing its more deposits as well more loans and that is good for the
bank to remain in the market and to penetrate in the market.
But profit has not increased with the same ratio because
Formula:
Loans / deposit
= 14444143 / 11,197,424
= 1.289
Current ratio
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Askari Bank Limited Multan.
This ratio indicates the liquidity of the bank. Well this ratio has been
decreased but nt much decreased during the year to a small extent
due to
So overall we can say bank is the liquid enough to pay its liabilities
Formula :
Current assets / current liabilities
= 171508419 / 166214583
= 1.03
Debt Ratio:
Debt ratio remained the same in previous year it was .93 and
in 2008 its again 0.93. Bank has not decreased its debt ratio in 2008.
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Askari Bank Limited Multan.
HORIZONTAL ANALYSIS
LIABILITIES
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Askari Bank Limited Multan.
-
interest income after provision 2535876 4491095 1955219 -43.5355
Non markup/interest income
-
2299785 3346855 1047070 -31.2852
-
-381227 1096881 1478108 -134.756
Profit after taxation 2681012 2249974 431038 19.15747
VERTICAL ANALYSIS
2008 2007
ASSETS
LIABILITIES
due to more investments done by the bank and by giving more and
more advances to the customers but this also has increased the bad
debts and provisions of the bank as compared to the previous years.
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Askari Bank Limited Multan.
More advances
Increase in deposits
All these reasons are favorable to the bank in year 2007 because at
one side bank’s assets have been increased in the form of advances
and at other side markup income increased due to deposits because
bank can more invest it.
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Askari Bank Limited Multan.
Recommendations:
Already the bank is having a good infrastructure not much
recommendations are needed as a manager but few can work :-
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Askari Bank Limited Multan.
on that.
There is not a proper environment of customer dealing on that
floor that’s why customer feels difficulty in that.
Accounts department was much congested, so area of that
department should be extended.
After annuall closing of bank there should be a get together of
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