Internship Report on Askari Bank by irfanalimtm

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									CHAPTER NO.1

                OBJECTIVES OF STUDYING THE
                               ORGANIZATION

The objectives or purposes of internship are to learn the existing accounting and
finance practices being followed in the bank. The main objectives are given as
under:
   1     To understand financial system of banking.
   2     To understand role of banking sector in financial system of country.
   3     To understand the application of theoretical knowledge in practical life.
   4     To attain specialization in banking and finance.
   5     To understand application of Prudential Regulation issued by SBP.
   6     I want to get job in bank so I select bank for studying.
   7     Askari bank is leading bank in the country.
   8 To study the accounting and financial internal control system of Askari
         Bank Limited.
   9 To review its appraisal and auditing system.
   10 To analyze the financial system and financial reports..
   11 To study the role of Askari bank in banking Sector of Pakistan.
   12 To get the thorough knowledge of different credits offered by bank.

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

   14 To printout/identify problems, opportunities and providing recommendation
         there on.

To develop understanding of finance and accounting function integrated, Askari
bank Limited is an organization, which can help a student to learn finance and
accounting practices in a system fully equipped with latest technology to cater
for the needs of present business environment.



                                              1
CHAPTER NO.2
ASKARI BANK LTD.: AN OVERVIEW


2.1: BRIEF HISTORY


           skari Bank Ltd was incorporated in Pakistan on October 09, 1991, as a


   A       Public Limited Company. The initial public offering of PKR 120 million
           was over subscribed 16 times. 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.

   AKBL is one of the financial ventures of the Army Welfare Trust (AWT) that is
   rated as the “top” private bank in the country. The bank is one of leading bank in
   the country. The Askari Bank is one of the major resource pools for the AWT,
   which has 4.91 percent stakes in the Bank. A Board of Directors, dominated by the
   AWT, however, controls the Bank. Another 39.67 percent shares are owned by its
   various directors, who are mostly retired military personnel. These retired generals
   have personal financial stakes as well.

   In the early years, the focus of the business was primarily on non-corporate sector
   of the retail market. However, with substantial growth in its deposit base, the bank
   has shifted its focus to wholesale trade, manufacturing and project financing,
   while retaining its niche with the medium-sized customers, who continue to
   provide the best return on the earning assets. As a result of annual compound
   growth rate of 26% over the last three years in its deposit base, and a growth of
   modest 9% in the loans portfolio, the bank has been able to generate substantial
   surplus liquidity,




                                         2
     which it diverted to high yielding government paper. This has given its asset base
     a great deal of leverage, while at the same time generating high quality earnings.

  During the same period, the bank has been heavily involved in the financing of the
international trade and handled imports and exports to the tune of PKR 61,356 million,
   establishing excellent correspondent banking the leading banks around the globe.




2.2: NATURE OF THE ORGANIZATION



Askari Bank Ltd. The Group's principal activities are to provide lending, depository
and related financial services. Financial services include credit risk management,
foreign trade, treasury, corporate and merchant banking, retail banking, electronic
banking, credit cards, marketing and customer service. The Bank operates through 200
branches. On 30-May-2008, the Group acquired Askari Investment Management
Limited.




                                           3
  2.3: BUSINESS VOLUME



                  2004                2005            2006                2007            2008

Revenue           7,890,513           8,780,698       12,596,921          15,143,241      18,393,313


Deposits          93,318,795          117,794,690     131,839,283         143,036,707     167,676,572


Advances          69,838,392          85,976,895      99,179,372          100,780,162     128,818,242


Investments       17,239,156          25,708,194      28,625,915          39,431,005      35,677,755




  2.4: NUMBER OF EMPLOYEES


                                              2006                 2007                 2008
Permanent                                     3241                 3834                 4252
Temporary/on contractual basis                687                  1273                 1703
Daily wages                                   __                   __                    __
Commission based                              657                  789                  541
Outsourced                                    641                  912                  1064
Total Staff at the end of the years           5226                 6808                 7560




                                                  4
2.5: PRODUCT LINE



PRODUCTS AND SERVICES


   Askari Bank Ltd. offers a full range of banking products and services to its
   customers across the country. The elegantly designed products offer to the
   customers the ease and convenience of conducting banking transactions in full
   confidentiality in a first class way. Askari Bank Ltd. gives its customers the
   convenience of 24 hours telephone banking service; internet banking and online
   ATMs and funds transfer facility.


   Following are the list of products Askari Commercial Bank Ltd. Is dealing with:

              A.   Retail banking
              B.   Corporate & investment
              C.   Askari master card
              D.   Agricultural banking




  A- RETAIL BANKING

   The Retail Banking Group offers auto, mortgage, personal and business finance as
   its core products. The Group is organized on a hub and spokes basis and its 6
   hubs, i.e., Retail Banking Centers (RBC), in Rawalpindi, Peshawar, Lahore,
   Karachi and Quetta are now supported by 38 spokes, i.e. Retail Banking Units
   (RBU), which operate from the branches in close proximity of the relevant RBCs.




                                          5
             Products


             • Ask Card (Debit / ATM card)
             • Ask Power (Prepaid card)
             • Askari Bank’s mortgage finance (Home loans)
             • Askari Bank’s business finance (Business loans)
             • Askari Bank’s personal finance
             • SmartCash (Running finance facility for consumers)
             • I-Net Banking (internet banking solutions)
             • Askar (auto loans)
             • Askari Touch 'N' Pay (online utility bill payment services)
             • Askari Value Plus (flexible deposit accounts)
             • Cash Management Services
             • Rupee traveler cheques
             • Askari investment certificates


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. Once a good credit history is established, the door to
    opportunity opens much wider.


        Featuring:


                    Loan amount up to 500,000
                    Repayment period from 1 to 5 years
                    Fixed monthly repayment
                    Competitive Rates




                                          6
                No pre-payment penalties
                Shortest processing time
                Servicing available at all ACBL branches
                And certainly unmatched service quality

Not restricted to new financing, under Personal Finance scheme, ACBL offers
extended facilities, which are:

       - Back to Original:

       Under this scheme borrower can avail extended amount of finance up to
       the utilized allocated amount, if his/her repayments are regular.


       - Balance Transfer Facility:

        It gives the customer the opportunity to pay off his/her outstanding dues
       on their credit cards or other loans at a rate of interest much lower than
       what one pays on them. That not only frees up their credit limit, but cost of
       servicing the debt is greatly reduced.

       - Computer Loans:


       This scheme was launched to promote the I.T. technology in the country.
       In this regard, we have signed MOU’s with Multinational companies and
       large local corporate including schools & colleges.

       - Dream Life (Financing for Consumer Durables):

       We are the financial market player in delivering quality service to
       customers with highly professional standards. We have joined hands with
       various Electronic Companies for sale, of the domestic appliances against
       consumer financing. Under this scheme, Askari Bank is financing products
       of these companies, which would benefit those people who can only afford
       to buy home appliances on installments due to limited resources. In




                                      7
            addition to this, we have also signed agreements with other top
            manufacturers of automobiles for financing of motorcycles to the general
            public at most competitive rates.

            You            are             eligible         to          apply           if:
            Your          age         is          between        21         and         57
            You have a verifiable minimum gross monthly income of Rs. 10,000/-

            Salaried:
            Minimum length of confirmed service with present employer is at least six
            months with a total length of at least one year service

            Self-Employed:
            In business for the last one year.




Mortgage Finance

Ever since the inception of life, shelter has been rated among the primary needs of
mankind. Owning a home for oneself still remains an exclusive dream for many. Askari
Bank has made the realization of your dream to have a house of your very own possible.
Whether you plan to build a house, tailor made to your requirements or buy a
constructed house, Askari mortgage finance enables you to pursue your goal without
any problems.

     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 facility initially for employees of corporate companies for
     purchase/ construction/ renovation of house.




                                              8
   Featuring:

          Finance limit up to Rs. 10,000,000/-
          Tenure : Up to 20 years
          Markup Servicing: Monthly
          Life/Property Insurance
          Early settlement charges NIL
          Balance Transfer Facility

You are eligible to apply, if you:

          Are a Pakistani national & wish to acquire/construct a residential
           accommodation in Pakistan.
          Are interested in obtaining financing for a residential property
           located in the urban developed areas
          Are 25 years & above and under 60 years of age, having a
           verifiable income
          Have a minimum income of 20,000 per month
          Are a permanent employee for at least 2 years of service with
           present employer
          Are self employed individual with at least 5 years of business
           track record
          Have a total debt burden not exceeding 35% of your net
           verifiable income




                                9
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. The goal is to offer a loan, which enables business
community to receive the financing required by them based on their cash flows. Valued
customers can enjoy the convenience of getting financing on attractive terms with the
minimum processing turnaround time.



            Featuring:

                    Running finance facility ranging from 500,000 to 3,000,000
                    Pay mark up on daily outstanding loan balance

            You are eligible to apply:

                    If your age is between 25 and 55 years
                    If you are a resident of Pakistan
                    If you have 1 year or more business or professional experience in
              the present business
                    If you are the member of the relevant trade body
                    If you are willing to provide your own or co-borrower residential
              urban property as security.

ASKCAR (Car Finance)

     Yet another of AKBL’s products, Askar offers the most convenient and affordable
     vehicle- financing scheme, which provides to the 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 the esteemed customers.




                                            10
ASKCARD

    Askari Bank’s debit card is tailored to the customers shopping needs and is
    another valuable financial solution reflecting commitment to building lasting
    relationship with the customers. ASKCARD means freedom, comfort,
    convenience and security, so that you can have retail transactions with complete
    peace of mind. ASKCARD enhances the quality of life by letting the customers to
    shop, dine at restaurants, pay your utility bills, transfer funds, withdraw and
    deposit cash through ATM anywhere, anytime

Travelers Cheques

    The range of products and value added services enhances with introduction of
    Rupee Travellers Cheques (RTCs) launched in March 2002. In spite of the
    constraint on issuing higher denomination of RTCs against restrictions imposed by
    the Central Bank of Pakistan ACBL has been striving to attain our shares with
    sizeable portfolio.

AskSmart

    This personal line of credit would be set up with a specified credit limit up to Rs.
    500,000/-

Value Plus

    The first liability product launched by AKBL is showing a remarkable
    acceptability in the market. It promises greater financial freedom and security in
    an unmatched way. A unique partnership between AKBL and New Hemisphere
    Insurance Group brings global accidental protection for the entire family. It offers
    a choice enrolment plan with an automatic monthly premium deduction facility at
    a price as low as Rs=20/- per month.




                                           11
B: CORPORATE & INVESTMENT

The Corporate and Investment Banking Divisions (CBD & IBD) are strongly
positioned across priority markets with a distinct strategy for developing corporate
business. The 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.


In 2007 The Corporate Banking Division (CBD) undertook a number of dept re-
pricing swap transactions, aimed at reducing the financial burden of its key client
portfolios and also managed advisory and loan arrangement activities. The major
new relationships cover telecommunications, oil and gas, and chemicals sectors.
CBD has dedicated marketing and support units functioning at Karachi and
Lahore. In order to enhance focus on relationship management, and service
quality, more dedicated staff is being assigned.


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 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.




                                      12
Corporate and Investment Banking Group Products


      Loan syndications (arranger / co-arrangers & lead manager)
      Structured finance
      Equity financing
      Working capital financing
      Corporate finance advisory services
      Commercial paper
      Debt swaps
      Balance sheet restructuring
      Debt capital markets
      Capital raising
      Trading activity (equities and derivatives)
      Discretionary portfolio management




                            13
C- ASKARI MASTER CARD



   Askari MasterCard is global member of MasterCard International. AKBL knows
   the customer requirements & provide them payment solutions & continue to bring
   new & exciting ways to pay & support the valued customers, from utilizing
   modern technology to making responsible social contributions; we are
   continuously & consistently striving to address newer challenges with single
   motivation: "The Sensible Choice"


           Products
           • Askari MasterCard (credit card facility)
           • Balance Transfer Facility
           • Smart Installment Plan




                                         14
D- AGRICULTURE BANKING

   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.



   The Agriculture Credit Division (ACD), a relatively new setup, dedicated to serve
   the needs of the largest sector of our economy. ACD’s primary focus remained on
   the development and introduction of agriculture financing products based on the
   farmer’s needs and sound credit management principles and practices. Since its
   launch, ACD has introduced a broad range of products, under the 'Askari Kissan'
   agri finance program, to adequately meet short and long term financing
   requirements of the farmers for raising crops, dairy farming, poultry, fisheries,
   forestry and orchids. Agri loans are also provided for farm mechanization,
   transportation, marketing of agriculture produce, storage, land improvements and
   irrigation.




   The initiation of all proposals is based on sound and well defined criteria for
   assessing quantitative and qualitative risk profiles of each applicant / transaction
   within the admissible lending practices of agriculture credit allowed by SBP. All
   finances are asset based / collateralized and / or secured by other acceptable
   securities. Appropriate margins on securities are applied where specified by SBP,
   or determined by the Bank, on the basis of disposal costs and potential prices



                                        15
     movements of the underlying assets. Crops / asset and life insurance of borrowers
     are mandatory for mitigating risks arising from uncertainties.


     The Division remains proactively engaged in evolving policies and procedures for
     strengthening the credit framework for the benefit of all stakeholders, and is
     determined to make its full contribution towards ensuring that Pakistan is a food
     and fiber surplus country.




Askari Kissan Agriculture Finance Program

     The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet
     ON FARM / OFF FARM credit requirements of farmers on the most convenient,
     flexible, easy terms and conditions. The program features:

            Featuring:

                   A broad array of credit lines designed to meet farming
                    requirements.
                   Repay and borrow at your convenience on revolving credit basis at
                    lowest mark-up rates renewal able after three years.
                   Convenient repayment terms based on cash flow abilities.
                   Availability of leased Tractors / Transport without Land /
                    Collateral.
                   No Hidden Cost.
                   Availability of interest free package for inputs and tractors etc.
                   No Pre-adjustment penalties.
                   Earn prompt payment Bonuses and reduce financial costs.
                     Insurance cover of leased assets, animals, crops and life
                assurance of borrowers




                                           16
Products

              Askari Kissan Ever Green Finance
              Askari Kissan Tractor Finance
              Askari Kissan Aabpashi Finance
              Askari Kissan Livestock Development Finance
              Askari Kissan Farm Mechanization Finance
              AskCard
              Askari Kissan Farm Transport Finance




                           17
CHAPTER NO 3.

              ORGANIZATIONAL STRUCTURE

3.1: STUCTURE OF OVERALL ORGANIZATION


Board of Directors
Lt. Gen. Javed Zia
   Chairman


Lt. Gen. (R) Imtiaz Hussain
Mr. Kashif Mateen Ansari , FCMA
Mr. Zafar Alam Khan Sumbal
Mr. Muhammad Riyazul Haque
Mr. Shahid Mahmud
Mr. Ali Noormahomed Rattansey , FCA
Dr. Bashir Ahmad Khan
Mr. Tariq Iqbal Khan, FCA
 (NIT Nominee)
Mr. M.R.Mehkari
 President & Chief Executive




                                      18
Audit Committee
Dr. Bashir Ahmad Khan
Chairman
Mr. Ali Noormuhammad Rattansey, FCA
Mr. Zafar Alam Khan Sumbal




Company Secretary
Mr. Saleem Anwer , FCA




Auditors
A.F. Ferguson & co.
 Chartered Accountants



Legal Advisor


Rizvi, Isa, Afridi & Angell


Shariah Advisor
Dr. Muhammad Tahir Mansoori




                                      19
REGISTER & SHARE TRANSFER OFFICE
Askari Asssociates (Private) Limited,
6th floor,AWT Plaza, The Mall,
P.O. Box 678, Rawalpindi.
Tel. (051) 9272442-44
Fax: (051)9272447
E-Mail: askaribank@isb.compol.com




REGISTERED OFICE/ HEAD OFFICE
AWT Plaza, The Mall,
P.O.Box No. 1084,
Rawalpindi- Pakistan.
Tel. (051) 9372150-53
Fax. (051) 9272455
Website: www.askaribank.com.pk




                                        20
3.2: STRUCTURE OF THE PIRMALAH BRANCH


Branch Manager
Aftab Ahmad Zia


Operational Manager
Assmat Tahir


In charge General Banking
Ahsan Iftkhar


Agriculture Credit Officer
Haider Ali


System Administration
Yasir Imran


Accounts
Rashid Mehmood


C.D. Incharge
Muhammad Hanif


Remittance Incharge
Junaid Baber


Cash Officer
Muhammad Ruuman



                             21
3.3: REVIEW OF VARIOUS DEPARTMENTS



VARIOUS DEPARTMENTS OF THE ORGANIZATION


This Group is responsible for serving the needs of large corporate clients in public and
private sector, managing correspondent banking relationships and undertaking money
market transactions. The Group is organized in three divisions namely Corporate and
Merchant Banking Division, International Division and the Treasury.


3.3.1: CORPORATE AND MERCHANT BANKING DIVISION
This Division is engaged in provision of financing facilities to large corporate clients
including multinationals. Principal activities include syndicated loans, guarantees, and
working capital finance, underwriting and advisory services. The Division has played an
important role in providing development finance for the modernization and expansion
of the country's core industries. Credit risk is well diversified with exposures in sectors
like fuel & energy, chemicals, textiles and fertilizers. Three units have been set-up at
Karachi, Lahore and Rawalpindi for sales and operations, which are supported by
centralized marketing from the Head Office.


3.3.2: 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




                                            22
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.




3.3.3: 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.


3.3.4: RETAIL BANKING GROUP


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 i.e. Investments products unit, asset products unit, 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.


Askari Bank's Value Plus is a unique deposits account, which offers handsome monthly
profits, accidental insurance cover, partial liquidity on all time deposits and free
Privilege Card membership. The Unit is also administering the sales and distribution,
including arrangement for strategic partnership alliances for Askari- i-Net Banking, the




                                            23
first internet banking in Pakistan, which allows routine banking transactions from any
where in the World, round the clock, over the internet.


 ASSET PRODUCTS UNIT.
This Unit is engaged in the development and management of retail credit schemes. The
consumer market in Pakistan has not only grows exponentially over the last decade or
so, but the needs of this segment have become extremely diverse. In order to sustain
competition, it is but imperative to continue offering innovative consumer credit
schemes. With the launch of Askari Bank's Personal Finance an Askar (auto-loans), this
unit is emerging as a significant contributor to the Bank's loan growth. The unit also
administers the first e-commerce banking solution in Pakistan, under the brand name
ASK-IBL online. This is a b2b automated credit transaction module, offering
merchandise credit to retailers on goods purchased form one of the largest distributors n
the country. Strong collection and prudent risk management policies have restricted
delinquencies to very low levels.


3.3.5 CREDIT CARDS DIVISION.
This Division manages Askari Master Card brand and is headquartered at Karachi. With
a new fully automated transaction processing system, the brand was re-launched in
2001, supported by an aggressive advertising campaign and strong sales team network.
The product now has portfolio of nearly 20,000 cards, in less than one year. The brand
is accepted worldwide and over 3,000 locations in Pakistan.




                                           24
OPERATIONS AND CREDIT GROUP


A support function group mainly responsible for development of systems and
procedures, process re-engineering, automation and credit management. The group is
organized in three divisions i.e. System and operations division, electronic technology
divisions and the credit division.


3.4.1: SYSTEM AND OPERATIONS DIVISIONS
This group has been instrumental in development of procedures and manuals for various
operating requirements of the bank. After careful mapping of the existing process flows,
the division recommends automation and re-engineering requirements. To improve
transaction efficiencies. The division is active in providing equipment procurement
support and development of new branches. The protection of fixed assets of the bank is
also managed by the by this division, as directs function. During year 2001, the division
has proposed several cost cutting initiatives based upon improvement of our existing
procedures and documentation reduction. Seven new branches have been opened during
this year. The division successfully implements the model branch concept during 2001,
which has been proved to be a milestone towards improving our customer service
standards and achieving process uniformity with optimum resource utilization.


3.4.2: ELECTRONIC TECHNOLOGY DIVISION
This division operates as the backbone for all operational functions in the bank.
Responsible primarily for the development of banking software and provision of
computer hardware to all business units, the division also engaged in the development
of technology based value added customer service products. The division has helped the
bank in playing the pioneering role in offering Internet banking service e-commerce
solution and on-line banking. The division provides online real time branch connectivity
and has full-automated transaction processing support programmers in the place. The
division is focusing on use of data-warehousing technology to enhance the relationship
management program of the bank.




                                           25
3.4.3: 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.


The decentralization has benefited the bank and its customer tremendously as the new
arrangements now provide for faster credit delivery, focused credit development, and
more effective monitoring and controls. Further steps are being taken to streamline
credit appraisal procedures and training to credit officers at all levels.


3.4.4: HUMAN RESOURCE DIVISION
Strategically, perhaps the most important division at the head office is responsible for
human resource management, including recruitment staff training and evaluation. The
division also handles matters relating to administration. This division operates on future
oriented strategy focusing on employee’s personal and professional growth.


Staff development activities are geared to enhance their capabilities for applying the
knowledge and facts towards development of practical situations. Under our human
resource management policy, we develop and groom our management personal for
positions of greater responsibilities analytical, interpersonal, conceptualized and




                                             26
specialized skills to enable them understand cause-and-effect relationships and to think
logically.


Staff is given on the-the -job as off-site training in diverse areas of banking and
management. Our hiring philosophy is based upon meritocracy and selecting the right
person for the right job. We lay greater emphasis on employee’s honesty and integrity
besides technical competence. Candidates are selected through well defined and
systematic selection procedure.


3.4.5: 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.




                                           27
3.4.6: 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 division is responsible for evaluating every aspect of the bank's operations with the
goal of improving the effectiveness of risk management and internal control. There is
also a regional audit function attached to each area office; the nature of this business is
of more quality assurance rather than strictly audit. The regional audit report to the area
manager, and assist them in ensuring that there is proper compliance with all the relative
directives, and also that customer service standards are maintained and improved, at the
branches in the area.


The system of regional and area offices has been introduced since 1999for 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.The
bank's branch network has been divided into 6 regions:


   1) North region
   2) Comparison of Islamabad and Rawalpindi area and the north area.
   3) Central region
   4) Comprising of Lahore and East area.
   5) South region: and
   6) West region


A process of effective decentralization has been implemented, with delegation of
authority and greater responsibility and accountability. Under this system the regional




                                            28
heads have the primary responsibility for business development, profitability
productivity, operational efficiency and credit quality.


The system helps our customers through quick decision-making and fast product
delivery. It has now enabled the bank to further expand and diversify its geographical
reach and business activities




                                            29
CHAPTER NO 4.

STUCTURE AND FUNCTIONS OF THE ACCOUNT
                    DEPARTMENT




4.1: STUCTURE OF ACCOUNT DEPARTMENT


 Branch Manager
          Mr. Aftab Ahmad Zia



 Operational Manager
            Assmat Tahir


 Incharge Account Department
         Rashid Mehmood




                                30
4.2: ACCOUNTING OPERATIONS


Accounts Department is quite important department of the Bank. This is the department
who is responsible for all account statements like as expenses, taxes etc. it prepare the
reports on daily, weekly, monthly, quarterly, and annually basis. It makes the
correspondence with the head branches also.
Following are the responsibilities of the said department.
           a. Checking of Activity on Daily Basis
           b. Maintenance of SBP Account
           c. Payment of Bills to Different suppliers/couriers etc.
           d. Depreciation Vouchers at end of Each Month
           e. Payment of Staff Salary
           f. Submission of all relevant statements to SBP/Head Office




DAILY BANK POSITION STATEMENT
All relevant reports pertaining to the whole day working are printed out in the daily
working procedure of End of Day run by the Computer Department. Some reports in
which each financial transaction either pertaining to customer’s accounts or to General
Ledger Accounts is printed in this procedure are called Daily Activity Reports.
This is responsibility of Accounts Department to check each transaction made through
computer posting in order to assure that the entry passed in quite right and correct.
Each & every voucher is sorted out and then is placed in the following bunches
according to its nature.
   1. Saving Accounts
   2. FCY Accounts
   3. Head Office Vouchers
   4. Current Deposit Accounts




                                            31
Features

    It manages the vouchers of their day to day transactions.
    It has the responsibility to see on line transactions like transfer of amounts by
      customers and check and verified them through vouchers.
    They make the budget for their monthly and daily expenses (refreshment,
      stationary; etc.) Salaries of the staff are prepared in this department.
    Approval of expenses of exceed from budget.
    It makes the account statements on daily, weekly, monthly, quarterly and
      annually basis.
    It deals in the tax also.
    It makes the correspondence with head office and head branches also.
    Incharge of this department also is the incharge of all labor type employees.
      Simply In charge of this department is also responsible for maintaining of
      branch and refreshment in the branch.
    Salaries of employees.
    Maintain fixed assets register / Depreciation of assets.




                                           32
4.3: ROLE OF FINANCIAL MANAGER



The financial manager does all financial transactions with other financial institutions:
Payment of cheques
Payment of demand draft
Cash receive from other financial institutions
Included
1: Cheques
2: Demand Draft
3: Travel Cheques
All these transactions done by financial manager of bank, he can receive and pay all
such kind of payments with all other financial institutions. And all other transactions
with any financial institutions are also done by financial manager.
Lend money to other banks and also borrow money from other banks is also
responsibility of financial manager in bank.
Responsible for bookkeeping and accounts at head office, prepare all financial return
and the MIS through its management-reporting wing. It actively involved in preparing
market comparative analysis, consolidation of bank's budgets, its monitoring and
constant review of various financial indicators.


Financial manager reports directly to the president and chief executive of the bank, has
been instrumental in preparation of banks business plans and future strategies.
Preparing the bank's annual accounts and coordinating external audit is also a direct
function of the finance manager.




                                            33
4.4: ELECTRONIC DATA IN DECISION MAKING
Banks use different types of electronic data in decision making. Internet is the major
source for collecting data. With the help of internet and intranet banks perform their lot
of transactions and it make possible to do E banking.
Electronic data which is most useful in decision making include
D.D. system
Data related to computerized demand draft also include in decision making in banks
Computerized D.D. includes electronic and hard copy demand draft.
O.B.C (Outward Bill for Collection)
 Banks add data of cheques which is sent by bank to other banks for collection.
Electronic Reports
After getting information from ATM and Emails banks make electronic reports.
Such kinds of reports are very helpful in decision making.
Software used by Bank
Unibank
Unibank is readymade software which performs all kinds of banking transactions in
Askari bank.
Functions on Unibank
Debit and Credit
Transfer balance
Account Opening
Electronic Vouchers
Commission Charges
Cheque Book charges
Connecting to Head Office
Closing Format (day end)
Weekly Format
Basic Data (monthly closing report)
Monthly tax statement




                                           34
4.5: SOURCES OF FUNDS FOR LAST FIVE YEARS


DEPOSITS
Rupees in ‘000
                 2004          2005             2006          2007          2008
Customers
Fixed            13,275,201    37,999,587       40,349,941     29,997,574   39,675,699
deposits

Savings           49,911,504   57,854,949        64,698,318    81,605,907   80,428,214
deposits

Current          18,463,536     20,089,228       23,925,338   28,465,592    43,245,593
accounts

Special          75,836          304,924        24,306        90,474        30,562
exporters’
account

Margin            1,207,079     1,076,511        1,375,381     1,640,800    1,983,653
accounts

Others             97,829        125,010          290,634       415,904     257,099
Financial
Institutions

Remunerative     287,810       1,344,481         1,175,365    818,132        2,047,388
deposits

Non-               _____         _____            _____
remunerative                                                     2,324         8,364
deposits

Total            83,318,795    118,794,690      131,839,283   143,036,707   167,676,572
Deposits




                                           35
4.6:GENERATION OF FUNDS FOR LAST FIVE YEARS


INVESTMENTS
Rupees in ‘000
                  2004         2005              2006         2007         2008
Federal           14,085,489   20,515,272        22,117,276   32,337,592   22,588,396
Government
Securities
Fully     paid 1,042,428       2,903,644          1,908,590   2,664,781     3,413,107
up ordinary
shares
Fully     paid 100,000         115,700             125,000                 125,000
preference                                                    125,000
shares
Term              1,454,827    1,886,579         2,639,540    2,813,929     7,737,752
Finance
Certificates
Foreign           296,604       _____            304,550        408,034    576,780
Securities
Other             297,150      298,570                          846,955     2,636,214
Investments
Total             17,276,498   25,719,765        27,094,956   39,196,291   37,077,249
investment
at cost
Less:             (38,066)     (1,511)           (1,887)        (3,388)      (3,896)
Provision for
impairment
Investments       17,238,432   25,718,254        27,093,069   39,192,903   37,073,353
(net         of
provisions)
Add/Less:          ____         ____             (2,308)         1,728       22,384




                                            36
Surplus   on
revaluation
(Add/Less) : 178            (10,060)          1,535,154      236,374    (1,417,982)
Deficit   on
revaluation
Total          17,238,610   25,708,194        28,625,915   39,431,005   35,677,755
investments
at   market
value




                                         37
4.7: ALLOCATION OF FUNDS FOR LAST FIVE YEARS


ADVANCES
Rupees in ‘000
                2004         2005           2006          2007          2008
Loans, cash 56,456,782       73,272,718     84,162,090    92,653,899    123,023,379
credits,
running
finances,
etc.
Ijara           14,502,581     ___          31,694        549,809       2,092,884
Financing
Bills            ___         14,761,426     17,194,676    13,864,485    14,602,958
discounted
and
purchased
Financing       659,480      361,718        1,336,419     1,120,574     111,752
in respect of
continuous
funding
system
Advances - 71,618,843        88,395,862     102,724,879   108,188,767   139,830,973
gross
Less         : (1,780,451)   (2,418,967)    (3,545,507)   (7,408,605)   (11,012,731)
Provision
against non
performing
advances
Net             69,838,392   85,976,895     99,179,372    100,780,162   128,818,242
Advances




                                           38
LOANS


Rupees in ‘000
                  2004        2005             2006        2007         2008

Call     money      ___       1,980,000        1,500,000   1,500,000    675,000
loans


Repurchase        750,000     4,313,011        2,250,210   8,836,151    2,554,754
agreement
lending




Purchase          150,000     100,000          640,000     449,992      1,150,000
under resale
arrangement
of       equity
securities


Trade related 619,839         404,946          852,740     558,000        _____
deals


Others            805,000     3,374,285        3,150,000   3,100,000    100,000

Total Loans       2,324,839   10,172,242       8,392,950   14,444,143   4,479,754




                                          39
CHAPTER NO 5.


   CRITICAL ANALYSIS OF THE THEORETICAL
         CONCEPTS RELATING TO PRACTICAL
                                 EXPERIENCE

During our education we study lot of subjects but during any job or business
applications of all these subjects are not possible. But some of them must apply in any
job or business.
Every organization must follow theoretical concepts but it’s not possible to apply as
well as. It’s possible they use such concepts in their own way.
So during my MBA I study 20 subjects but I observe that few of them applicable in
bank like CREDIT MANAGEMENT, FINANCIAL MANAGEMENT, BANKING
LAW, COST ACCOUNTING, FINANCIAL ACCOUNTING, INVESTMENTS.
Which concepts I study during my college work, I observe during my internship bank
also apply these concepts. I am not saying that they apply as well as but they follow
such rules and laws. For example we study about bank accounts, bank also follows such
rules but they divide the features of such accounts according to their products.
Other point is that theoretical concepts are relating to the rules of state bank of Pakistan
and the banks also work under the SBP.
All other theoretical concepts like debit, credit, vouching, general entries, ledgers,
financial statements have the same application in bank.
In short bank must follow all theoretical concepts in their practices but its possible they
use such concepts according to their requirements or needs, and it’s not possible for
them to make their own concepts for banking.




                                            40
CHAPTER NO 6.

                            FINANCIAL ANALYSIS


6.1: FIVE LATEST YEAR BALANCE SHEETS

 Rupees in ‘000

                      2004          2005             2006          2007          2008
Assets
Cash           and 8,762,866        11,766,925       14,879,230    13,356,055    16,029,35
Balance        with
Treasury Banks
Balance        with 4,847,899       5,550,148        7,333,002     3,497,054     3,954,814
other banks
Lending          to 2,324,839       10,172,242       8,392,950     14,444,143    4,479,754
financial
institutions
Investments           17,239,156    25,708,194       28,625,915    39,431,005    35,677,755
Advances              69,838,392    85,976,895       99,179,372    100,780,162   128,818,242
Operating fixed 2,595,023           3,192,862        3,810,331     5,128,428     8,266,458
assets
Deferred        tax     _             _                _             _               _
assets
Other Assets          1,559,023     2,732,641        3,812,788     5,535,038     8,964,480




Total Assets          107,167,540   145,099,907      166,033,588   182,171,885   206,191,138




                                                41
Liabilities
Bills Payable         1,227,093    1,315,680        1,839,077     2,627,051     2,584,828
Borrowings            13,781,555   10,562,338       14,964,087    17,553,525    15,190,148

Deposits       and 83,318,795      118,794,690      131,839,283   143,036,707   167,676,572
other accounts
Sub-ordinate          1,000,000    2,999,700        2,998,500     2,997,300     2,996,100
loans
Liabilities
against       assets 14,159        1,459               _             _              _
subject          to
finance lease
Deferred        tax 1,282,980      567,217          736,298       471,519       12,987
liabilities
Other liabilities     526,866      2,045,340        2,603,113     3,219,796     4,759,140


Total Liabilities     101,151,448 136,286,424       154,980,358 169,905,898     193,219,775



Net Assets            6,016,092    8,813,483        11,053,230    12,265,898    12,971,363




                                               42
6.2: FIVE LATEST YEAR INCOME STATEMENTS


Rupees in ‘000

                        2004           2005          2006         2007          2008
Mark_up/Return/ 4,487,206              8,780,698     12,596,921   15,143,241    18,393,313
Interest earned

Less                    1,117,206      4,278,374     6,977,313    8,685,624     10,650,719
Mark_up/Return/
Interest expense
Net markup/             3,370,000      4,502,324     5,619,608    6,457,617     7,742,594
Interest income


Provision against 277,398              638,547       1,128,137     3,920,240     3,824,778
nonperforming
loan           and
advances
Provision         for     38,066        (36,555)          376         1,501            508
impairment in the
value             of
investment
Bad debts written              7           __             __            __        247,311
off directly


                        315,471        601,992       1,128,513     3,921,741     4,072,597


Net                        3,054,529    3,900,332    4,491,095    2,535,876    3,669,997
markup/Interest
income            after
provision




                                                43
Add Non markup /Interest income
Fee, Commission         708,377        838,561         1,013,660    1,072,868     1,257,584
Dividend income          26,318        51,143           109,326      137,079        173,621
Income         from 180,992            356,218          584,344      655,761        873,512
dealing           in
foreign currency
Gain on sale of         540,193        99,825           112,474     2,361,251       36,743
investments
Un realized gain          __             __              (2,308)        1,728       22,384
Other income           177,648         206,819          321,758       336,809      343,156

Total          non 1,633,528          1,552,566        2,139,254    4,565,496     2,707,000
markup/
interest income
                       4,688,057     5,452,898        6,630,349    7,101,372    6,376,997
Less Non markup/interest expenses
Administrative         1,845,317     2,591,985        3,277,353    4,789,536    5,904,169
expenses
Other provisions       2,842,740         __               __            __           459


Other charges                  138      1,832            6,141       12,051      10,987
Total expenses         1,845,317     2,593,817        3,346,855    4,801,587    5,915,615
Profit before tax 2,842,740           2,859,081        3,346,855    2,299,785     461,382
Less Taxation
Current year            876,089      828,774          987,875        98,535       17,363

Prior years                __        (188,247)          __         (233,950)     (50,000)

Deferred                 43,611      196,558          113,006      (245,812)     107,794

Total Tax               919,700      837,085          1,096,881    (381,227)     75,157

Profit after tax       1,923,040     2,021,996        2,249,974    2,681,012    386,225




                                                 44
Unappropriated         ____      1,538,432   1,617,597   1,799,979   2,144,810
profit    brought
forward

Profit available for 1,923,040   3,560,428   3,867,571   4,480,991   2,531,035
appropriation




                                      45
6.3: RATIO ANALYSIS FOR THE LAST FIVE YEARS


                               CURRENT RATIO


                 Formula = Current Asset / Current Liabilities


Rupees in ‘000

               2004           2005            2006            2007            2008
 Current         97,399,780   123,452,014     142,684,517     153,567,222     180,525,632

   Asset
 Current         98,100,350   132,356,728     149,741,870     163,587,532     185,862,820

Liabilities
   Ratio          0.99:1         0.93:1          0.95:1          0.94:1         0.97:1



Interpretation:

Current ratio of Askari Bank Ltd over period of 2004 -2008 has not very much
fluctuate and remain less than 1.It is not very good sign for the bank.
There is no large difference in the current assets and current liabilities of the
organization in this assessment period so that Current Ratio is not extra fluctuate.




                                            46
                   CAPITAL ADEQUACY RATIO


   Formula = Total eligible regulatory capital/ Total Risk Weighted
                                     Assets


Rupees in ‘000

                  2005             2006             2007              2008
Total eligible      12,075,503       98,013,672        15,850,145        15,121,040

  regulatory
    capital


  Total Risk       108,018,760       127,691,297      169,596,168       164,083,344

  Weighted
    Assets
    Ratio            11.18%            10.93%            9.35%             9.22%


Interpretation:

The risk weighted assets to capital ratio, calculated in accordance with the State
Bank of Pakistan’s guidelines on capital adequacy and the ratio decrease every
year from 2005 to 2008.




                                       47
                          DEBT TO EQUITY RATIO


                  Formula = Total Debt / Share holder Equity


Rupees in ‘000

              2004            2005            2006            2007             2008
  Total       101,151,448     136,286,424     154,980,358     169,905,898      193,219,775

   Debt
  Share          5,573,149      7,595,145        9,619,066     12,099,898      12,034,895

  holder
  Equity
  Ratio            18:1          17.9:1            16:1           14:1            16:1


Interpretation:

There is slightly fluctuation in the period of 2004 to 2008. Ratio decrease in first four
years and increase in last year. High ratio is a good sign for organization.


                           DEBT TO ASSETS RATIO
                      Formula = Total Debt / Total Assets


Rupees in ‘000

              2004            2005            2006            2007             2008
  Total       101,151,448     136,286,424     154,980,358     169,905,898      193,219,775

   Debt
  Total       107,167,540     145,099,907     166,033,588     182,171,885      206,191,138

  Assets
  Ratio           0.94:1         0.94:1           0.93:1         0.93:1          0.94:1



                                            48
Interpretation:

Debt to Assets ratio almost same and less then 1 in the evaluation period.




                    INTEREST COVERAGE RATIO
                     Formula = E.B.I.T./Interest Expense


Rupees in ‘000

               2004           2005              2006            2007         2008
 Earning         4,688,057      5,452,898           6,630,349   7,101,372    6,376,997

  Interest       1,845,317         2,593,817        3,346,855    4,801,587    5,915,615

 Expense
   Ratio           2.5:1             2:1             1.98:1      1.48:1       1.08:1


Interpretation:

Interest Coverage Ratio constantly reduce in the period of 2004 to 2008. And the
heighest ratio is good for bank.




                                               49
                       RETURN ON INVESTMENT


                  Formula = Net Profit after Tax/ Total Assets


Rupees in ‘000

             2004            2005           2006            2007           2008
   Net           1,923,040    2,021,996         2,249,974    2,681,012        386,225

  Profit
After Tax
  Total       107,167,540    145,099,907     166,033,588    182,171,885    206,191,138

 Assets
  Ratio           0.02:1        0.02:1           0.02:1        0.02:1        0.002:1

Interpretation:

The Ratio of return on investment is the same in 2004 to 2007 but a very vast decline in
2008.

                      ASSETS TURN OVER RATIO
                    Formula = Total Earning / Total Assets


Rupees in ‘000

              2004           2005           2006            2007           2008
  Total          4,688,057     5,452,898        6,630,349    7,101,372       6,376,997

 Earning
  Total       107,167,540    145,099,907     166,033,588    182,171,885     206,191,138

  Assets
  Ratio           0.04:1        0.04:1           0.04:1        0.04:1         0.03:1




                                           50
Interpretation:

   The ratio is same in 2004, 2005, 2006 and 2007 due to same increase in markup ,
   interest earned and assets during the following years but slightly decrease in 2008.



                  LOANS TO TOTAL ASSETS RATIO


                      Formula = Total Loans / Total Assets


Rupees in ‘000

              2004            2005             2006           2007          2008
 Total        1,000,000       2,999,700        2,998,500      2,997,300     2,996,100
 Loans
 Total        107,167,540      145,099,907     166,033,588    182,171,885    206,191,138

 Assets
  Ratio          0.009:1         0.02:1           0.02:1       0.016:1        0.014:1



Interpretation:

Loan to total assets ratio shows the empirical relation between loan and assets acquired
by the bank. Lower the ratio is better for the institution.

The loan to assets ratio of AKBL is flactuate in the whole period, in 2004 ratio is very
short and in next two years it is same and again decrease in 2007 and 2008.




                                             51
  INTEREST EXPENSE TO INTEREST INCOME RATIO


                 Formula = Interest Expense / Interest Income


Rupees in ‘000

                  2004           2005             2006         2007           2008
                  1,117,206      4,278,374        6,977,313    8,685,624      10,650,719

Interest
expense
                  3,370,000      4,502,324        5,619,608    6,457,617      7,742,594

Interest
income
     Ratio           0.33:1         0.95:1          1.24:1        1.35:1         1.38:1



Interpretation:

Interest Expense to income ratio constantly increase in the whole period of 2004 to
2008. In early two years ratio is less then one due to low expenses but in last three years
ratio is more then 1 due to increase in interest expenses.




                                             52
        MARK UP TO NON MARK UP INCOME RATIO
            Formula = Mark up Income / Non Mark up income


Rupees in ‘000

                       2004         2005          2006          2007           2008
Mark_up/Return/ 4,487,206           8,780,698     12,596,921    15,143,241     18,393,313

Interest earned
Total            non 1,633,528      1,552,566     2,139,254     4,565,496      2,707,000

markup income
        Ratio            2.75:1        5.7:1        5.89:1        3.32:1          6.8:1


Interpretation:

Markup to Non Markup income ratio flactuate in the whole period. A big increase in
2004 to 2005 and ratio also increase in 2006 but big fall in 2007 and ratio again rise in
2008.


   MARK UP EXPENSE TO MARK UP INCOME RATIO
                Formula = Mark Up Expense / Mark Up Income


Rupees in ‘000

                       2004         2005          2006          2007           2008
Mark_up/Return/ 1,117,206           4,278,374     6,977,313     8,685,624      10,650,719

Interest expense
Mark_up/Return/ 4,487,206           8,780,698     12,596,921    15,143,241     18,393,313

Interest earned
        Ratio            0.25:1        0.5:1        0.55:1        0.57:1         0.58:1




                                            53
Interpretation:

Mark up to Non Markup expense ratio constantly increase in the evaluation period a
vast chat in initial year but very slightly change in last four years.




       ADMIN EXPENSE TO TOTAL MARKUP RATIO


                 Formula = Admin Expense/ Markup Income


Rupees in ‘000

                        2004          2005          2006           2007          2008
Administrative          1,845,317     2,591,985     3,277,353      4,789,536     5,904,169

expenses
Mark_up/Return/ 4,487,206             8,780,698     12,596,921     15,143,241    18,393,313

Interest earned
       Ratio              0.4:1         0.3:1          0.3:1             0.3:1     0.3:1


Interpretation:

Admin expense to markup ratio almost same in the period of 2004 to 2008. Because in
the whole period admin expense and markup income both are increase but with the
same ratio.




                                              54
 NON MARK UP EXPENSE TO NON MARK UP INCOME RATIO


             Formula = Non Mark Up Expense / Non Mark Up Income


Rupees in ‘000

                   2004         2005             2006        2007         2008
Total       Non 1,845,317       2,593,817        3,346,855   4,801,587    5,915,615
Mark         up
expenses
Total       non 1,633,528       1,552,566        2,139,254   4,565,496    2,707,000
markup Income
    Ratio            1.13:1       1.67:1           1.56:1      1.05:1       2.19:1

Interpretation:

Non Mark uo expense to non mark up ratio fluctuate in the period of 2004 to 2008. And
always more then one which is not good for bank.


                      RETURN ON EQUITY (ROE)
                 Formula = Net Profit after Tax / Share Holder Equity


Rupees in ‘000

                  2004         2005              2006        2007         2008
  Net Profit       1,923,040    2,021,996        2,249,974   2,681,012     386,225

  After Tax
Share holder       5,573,149    7,595,145        9,619,066   12,099,898   12,034,895

   Equity
    Ratio           0.35:1        0.27:1          0.23:1      0.22:1        0.03:1




                                            55
Interpretation:

Return on equity ratio constantly decrease in the whole period of 2004 to 2008. In first
four year the change is very slightly but a very vast decline in 2008. This is due to very
small profit in 2008.


                             EARNING PER SHARE


             Formula =Net Profit after Tax / Total no. of shares

Rupees in ‘000

              2004            2005            2006            2007             2008
   Net           1,923,040      2,021,996         2,249,974     2,681,012           386,225

  Profit
After Tax
Total no.     125,584,737     150,701,684      200,433,239     300,649,859     405,877,308

of shares
  Ratio           0.02:1         0.02:1            0.01:1       0.0089:1        0.0009:1

Interpretation:

Earning per Share ratio is very small and lower then 1. In 2004 and 2005 it is same but
constantly decrease in last three years due to high increase in assets and low increase in
net profit but a very small ratio in 2008 due to heighest decrease in net profit.




                                             56
         6.4: HORIZONTAL ANALYSIS OF THE BALANCE
                  SHEET FOR THE LAST FIVE YEARS


                      2004   2005        2006   2007   2008

Assets

Cash           and 100%      34%         69%    52%    -82%
Balance        with
Treasury Banks
Balance        with 100%     15%         51%    -28%   -19%
other banks

Lending          to 100%     338%        261%   521%   93%
financial
institutions


Investments           100%   49%         66%    129%   107%

Advances              100%   23%         42%    44%    84%

Operating fixed 100%         23%         47%    98%    219%
assets

Other Assets          100%   75%         145%   255%   475%



                      100%   35%         55%    70%    92%




                                    57
Liabilities

Bills Payable       100%   23%         50%    114%   111%

Borrowings          100%   -24%        1%     27%    10%


Deposits      and 100%     43%         58%    72%    101%
other accounts
Sub-ordinated       100%   200%        199%   199%   199%
loans

Deferred        tax 100%   -56%        -43%   -63%   -99%
liabilities

Other liabilities   100%   288%        394%   511%   803%

                    100%    35%        53%     70%    91%

Net Assets          100%   46%         84%    104%   116%




                                  58
HORIZONTAL ANALYSIS OF BALANCE SHEET

For the purpose of Horizontal Analysis of Balance Sheet for the last five years 2004 to
2008. I select 2004 as a base year and evaluate assets and liabilities of all other four
years on the base of 2004 and compare all this period. Cash and Balance with
Treasury Banks, increase 34% in 2005, 69% in 2006 and in 2007 52% but it decrease
with -82% in 2008 as compare to base year.
Balance with other banks, go up from 2004 with 15%and 51% in 2005, 06 then it
decrease with -28% and -19% in 2007, 08. Lending to financial institutions,
constantly increase but with fluctuations. It rise 338% in 2005, then 261% in 2006,
521% in 2007, but only 93% in 2008. Investments repeatedly increase up to 2007 then
bit decline. So 49% increase in 2005,66% in 2006,and 129% increase in 2007 but in
2008 percentage increase is 107, as compare to 2004. Advances of the organization
continually grow in whole evaluation period, if we compare it with base year 23%
growth in 2005, 42% in 2006, and 44% expansion in 2007,but a high growth of 84% in
2008. Operating fixed assets also have same condition similar to advances, 23%
enlargement in 2005, 47% in 2006, and 98% in 2007, but a very vast growth 219% in
2008 as compare to 2004. Other Assets also increase constantly In evaluation period,
75% increase in 2005, measure up to 2004, in 2005, 145% in 2006, 255% but a big
change in 2008 of 475%. This continuity in expansion is due to enlarge in assets of
organization every year. Total Assets of the organization are also continually rise from
base year to final year, 35% enhance in 2005, 55% in 2006, 70% in 2007, and 92%
growth in 2008, as compare to 2004.


Bills Payable is the first item of liability side, and it fluctuates during its growth. In
2005, 23% enhance as compare to base year. And 50% increases in 2006, 114%
increase in 2007, but in 2008 growth rate in 111% in bills payable.
There is large fluctuation in Borrowings of the organization in the selected period. Thus
-24% decrease in 2005, but in 2006 only 1% increase in Borrowings and 27% in 2007,
but only 10% increase in 2008 as compare to 2004. Deposits and other accounts
regularly rise with the passage of time, 43% increase in 2005, 58%,72% and 101%
growth in 2006,07and 08, as compare to base year. Sub-ordinated loans 200% rise



                                           59
in2005, but a same growth of 199% in rest of three years as compare to 2004. Deferred
tax liabilities frequently turn down in the whole period of evaluation, -56%,-43%,-63%
and -99% in 2005 to 2008 as match up to to base year. Other liabilities raise gradually,
289% in 2005, 394% in 2006, 511% in 2007 and 803% in 2008 as evaluate to 2004 that
is base year. Liability side of the balance sheet also go up continually, 35%, 53%, 70%
and 91% from 2005 to 2008, as measure up to to base year.
After subtracting liabilities from the assets side of the balance sheet the   Net Assets
are also continually grow up as compare to base year, 46% in 2005,84% in 2006, 104%
in 2007 and 116% growth in 2008.




                                            60
            6.5: HORIZONTAL ANALYSIS OF INCOME
            STATEMENT FOR THE LAST FIVE YEARS


                       2004   2005          2006      2007      2008
Markup/Return/         100%   96%           181%      237%      310%
Interest earned

Less                   100%   283%          525%      677%      853%
Markup/Return/
Interest expense
Net markup/            100%   34%           67%       92%       130%
Interest income


Provision against 100%        130%          307%      1313%     1279%
nonperforming
loan            and
advances
Provision        for 100%      -196%        -99.02%   -96.06%   -98.67%
impairment        in
the    value      of
investment
                       100%   91%           258%      1143%     1191%
Net                    100%   28%           47%       -17%      20%
markup/Interest
income         after
provision
Add Non markup /Interest income
Fee, Commission 100%          18%           43%       51%       76%
Dividend income 100%          94%           315%      421%      560%




                                       61
Income         from 100%      97%          221%    262%    383%
dealing           in
foreign currency
Gain on sale of        100%   -82%         -79%    337%    -93%
investments
Other income           100%   16%          81%     90%      93%

Total          non 100%       -5%          31%     179%    66%
markup/
interest income
                       100%   16%          41%     51%     36%
Less Non markup/interest expenses
Administrative         100%   40%          78%     160%    220%
expenses
Other charges          100%   1228%        4350%   8633%   7862%
Total expenses         100%   41%          81%     160%    221%
Profit before tax      100%   0.6%         18%     -19%    -84%
Less Taxation
Current year           100%   -5%          13%     -89%    -98.2%
Prior years            __      __          __      __      __
Deferred               100%    351%        159%    -664%   147%
Total Tax              100%   -9%          19%     -141%   -92%
Profit after tax       100%    5%          17%     39%     -80%




                                      62
HORIZONTAL ANALYSIS OF INCOME STATEMENT


For the purpose of Horizontal Analysis of Income Statement for the last
five years 2004 to 2008. I select 2004 as a base year and evaluate incomes
and expenditures of all other four years on the base of 2004 and compare
all this period. Markup Earned of the bank is fluctuate in the whole period, it
increase 96% in 2005, 81% in 2006, 237% in 2007, and 310% growth in 2008 as
compare to 2004. Markup Expense gradually increase in evaluation period, thus 283%
increase in 2005, 525% increase in 2006, 667% rise in 2007, and 853% increase in
2008. This expense increase gradually due to increase in deposits of the bank every
year. Net Markup also rises constantly due to rise in markup income. And 34% growth
in 2005, 67% in 2006, 92% in 2007 and 130% growth in 2008 as compare to 2004.
Provision against nonperforming loan and advances rapidly increase from base year
to final year. It rise 130%,307%,1313% and 1279% from 2005 to 2008. Provision for
impairment in the value of investment constantly decrease with fluctuation, -196%
fall in 2005, -99.02% in 2006,-96.06 in2007,and -98067% fall in 2008 as compare to
base year. Net Markup after Provision fluctuate in evaluation period 28% growth in
2005, 47% in 2006, but -17% fall in 2007,as compare to base year and only 20% rise in
2008, on base of 2004.Non Markup Income, include Fee or Commission gradually
rise with 18%,43%,51%a and 76% from 2005 to 2008 on the base of 2004.Divident
income too rise constantly on the base of 2004, 94% increase in 2005, 315% in 2006,
421% in 2007, and 560% in 2008.Income from Foreign Currency as well grow
gradually 97% grow in 2005, 221% in 2006, 262% in 2007,and 383% grow in 2008
from base year. Gain on sale of investment fluctuate in the whole period, -82%,-79%
decrease in 2005 and 2006,but in 2007 it increase 337% then again fall of -93% in 2008
from base year. Other Income rise continually 16%,81%,90%and 93% from 2005 to
2008 on the base of 2004. After addition of all these income, 16% increase in 2005,
41%,51%and 36% in 2006,07and 08.Non Markup Expense include Administrative
Expenses 40%,78%,160% and 220% from 2005 to 2008, on the base of 2004.Other




                                         63
Charges     expense    make     a   big    difference   as   compare     to   base    year
1228%,4350%,8683%and 7862% from 2005 to 2008 fluctuate. Profit before Tax is
rise in start 0.6% and 18% in 2005 and 2006 then decrease constantly from 2007 to
2008, -19% and -84% compare with base year. Total Tax is ebb and flow with -
9%,19%,-141%,-92% from 2005 to 2008 on the base of 2004.Profit after Tax increase
in start but at last year suddenly fall due to increase in expenses of the organization. As
compare to 2004, 5% growth in 2005, 17% in 2006,and 39% in 2007 but in 2008 it
decrease with -80%.




                                            64
   6.6: VERTICAL ANALYSIS OF BALANCE SHEET FOR
                             THE LAST FIVE YEARS


                      2004      2005        2006   2007   2008

Assets
Cash           and 8%           8%          9%     7%     8%
Balance        with
Treasury Banks
Balance        with 5%          4%          5%     2%     2%
other banks

Lending          to 2%          7%          5%     8%     2%
financial
institutions

Investments           16%       18%         17%    22%    18%

Advances              65%       69%         60%    55%    62%

Operating fixed 2%              2%          2%     3%     4%
assets

Other Assets          2%        2%          2%     3%     4%



                      100%      100%        100%   100%   100%




                                       65
Liabilities

Bills Payable       0.10%   0.9%        1%     1%     1%


Borrowings          13%     7.3%        9%     10%    7%



Deposits      and 79%       82%         79%    78%    81%
other accounts
Sub-ordinated       0.9%    2%          2%     2%     2%
loans



Deferred        tax 1%      0.4%        _      _      _
liabilities



Other liabilities   0.5%    1.4%        2%     2%     3%


                    94.5%   94%         93%    93%    94%

Net Assets          5.5%    6%          7%     7%     6%

                    100%    100%        100%   100%   100%




                                   66
VERTICAL ANALYSIS OF BALANCE SHEET


For the purpose of Vertical Analysis of Balance Sheet for the last five
years 2004 to 2008. I evaluate assets and liabilities of the organization that
how much its share includes in total. Cash and Balance with Treasury Banks
have 8% share out of 100% in 2008,7% in 2007, 9% in 2006, and again 8% in 2005,04.
Balance with other banks have 2% contribution in 2008,07 and 5% in 2006 and 2004
but 4% in 2005, out of 100% total assets. Lending to financial institutions have
2%,8%,5%,7% and2% share in 2008 to 2004 out of 100%. Investments include 18% in
2008,22% in 2207, 17% in 2006, 18% in 205 and 16% in 2004.the largest contribute in
assets is Advances that have contribution of 62% in 2008, 55% in 2007,60% in 2006,
69% in 2005 and 65% in 2004. Operating fixed assets and Other Assets both have
same ratio 4% and 3% share in 2008 and 2007 and 2% in 2006 to 2004, in total assets.
On liability side Bills Payable is the first item and it has 1% share in total liabilities
from 2008 to 2006, and 0.9%, 0.10% in 2005, 04. Borrowings include in total liability
7%, 10%, 9%, 7.3% and 13% from 2008 to 2004.The largest contribution in liabilities is
Deposits and other accounts that is 81%in 2008,78% in 2007, 79% in 2006,82% in
2005 and again 79% in 2004 out of total liabilities in all five years. Sub-ordinated
loans include in total liabilities 2% from 2008 to 2005 and only 0.9% in 2004. Deferred
tax liabilities only include in 2005 and 2004, 0.4% and 1%. Other liabilities have 3%
share in 2008, and 2% in 2007 and 2006, 1.4% in 2005, and 0.5% in 2004 in total
liabilities. Total Liabilities have 94% in 2008 and 2005, 93% in 2007 and 2006, and
94.5% in 2004.
After subtracting total liabilities from total assets we Net Assets have 6% in 2008 and
2005,7% in 2007 and 2006, 5.5% in 2004.




                                           67
           6.7: VERTICAL ANALYSIS OF THE INCOME
           STATEMENT FOR THE LAST FIVE YEARS


                           2004      2005            2006         2007        2008
Mark_up/Return/              67%          74%              72%       59%       74%
 Interest earned
  Non markup
     Income
Fee, Commission              14%          14%              13%       9.7%       12%
Dividend income              0.5%         0.9%             1.5%      1.2%       1.3%
Income          from
dealing in foreign           4%           6%               7.5%         6%      8.5%
currency
Gain on sale of
                             11%          1.6%             2%           21%     0.5%
investments
Un realized gain             ___          ___              ____      0.1%       0.2%
Other income                 3.5%         3.5%             4%           3%      3.5%
Total            non
markup/                      33%          26%              28%       41%        26%
interest income

Total Income               100%      100%            100%         100%        100%



Less Non markup/interest expenses
Administrative
                            37%       43%              42%           43%        56%
expenses
Other charges          _             _                _             _           _
Total expenses         37%          43%              42%          43%         56%
Profit before tax      63%          57%              58%            57%         44%
Less Taxation
Current year           18%          14%              13%          0.89%       0.17%




                                                68
Prior years         ___         (3)%              __         (2)%           (0.5)%
Deferred           0.9%          3%            1.5%          (2)%           1%
Total Tax          18.9%        14%            14.5%         (3.11)%       0.67%
Profit after tax   44.1%          43%           43.5%           60.11%        44.67%




VERTICAL ANALYSIS OF INCOME STATEMENT



Vertical Analysis of the organization from 2004 to 2008. I get interest income plus non
interest income as 100 % as baseand compare all other income statement figures with it
I evaluate all the incomes and expenditure for all five years. Mark up earned is the
maim source of income and mark up expense is the main expenditure of bank. Markup
are 74% in 2008, 59% in 2007, 72% in2006, 74%in 2005 and 67% in 2004 of interest
income,
.Total non markup income is 26% in 2008,41% in 2007,28% in 2006, 26% in 2005and
33% in 2004 out of total income. So total income is 100%.
Then less non markup expenses 56% in 2008, 43% in 2007 and 42% in 2006, 43% and
45% in 2005and 2004.
We get profit before tax 44% in 2008, 57% in 2007, 58% in 2006, 57% in 2005 and
63% in 2004 out of total income of bank. And the total taxes of these five years are
0.67%,-3.11%, 14.5%, 14%, and 18.9% from 2008 to 2004. After subtracting total tax
we obtain Profit after Tax, 44.67% in 2008, 60.11% in 2007 and43.5 in 2006, 43% in
2005 and 44.1% in 2004 out of total revenue of bank.




                                          69
CHAPTER NO.7

     COMPARE THE ORGANIZATION WITH ITS
                               COMPETITORS

                     Askari Bank Ltd vs. United Bank Ltd



Rupees in ‘000
                   Askari Bank Ltd              United Bank Ltd

                   2007          2008           2007             2008
Assets             182,171,885   206,191,138    546,795,871      592,185,170

Liabilities        169,905,898   193,219,775    498,904,933      540,965,713

Profit after Tax   2,681,012     386,225        5,776,553        5,855,847




Balance Sheet Ratios
                   Askari Bank Ltd             United Bank Ltd
                   2007          2008          2007           2008
Current Ratio      1.04:1        1.02:1        1.05:1         1.06:1

Debt Ratio         0.06:1        0.05:1        0.06:1         0.053:1
Debt to Total 0.93:1             0.9:1         0.9:1          0.9:1
Asset Ratio




                                          70
                     Askari Bank Ltd vs. United Bank Ltd




Profitability Ratios
                     Askari Bank Ltd            United Bank Ltd
                     2007         2008          2007         2008

Profitability   in 0.015:1        0.002:1       0.01:1       0.009:1
Relation        to
Investment


Return on Equity     0.89:1       0.095:1       0.7:1        0.58:1


Interest Coverage 1.48:1          1.08:1        2.32:1       2:1
Ratio




                                       71
                     Askari Bank Ltd vs. Bank Alfalah Ltd


Rupees in ‘000
                    Askari Bank Ltd             Bank Alfalah Ltd

                    2007          2008          2007          2008
Assets              182,171,885   206,191,138   330,679,872   310,209,754

Liabilities         169,905,898   193,219,775   313,265,718   292,632,928

Profit after Tax    2,681,012     386,225       638,812       1,008,807




Balance Sheet Ratios
                    Askari Bank Ltd             Bank Alfalah Ltd
                    2007          2008          2007          2008
Current Ratio       1.04:1        1.02:1        2.1:1         1.75:1

Debt Ratio          0.06:1        0.05:1        0.08:1        0.065:1
Debt     to   Total 0.93:1        0.9:1         1.6:1         1.2:1
Asset Ratio




                                      72
                     Askari Bank Ltd vs. Bank Alfalah Ltd



Profitability Ratios


                     Askari Bank Ltd             Bank Alfalah Ltd

                     2007         2008           2007           2008
Profitability   in 0.015:1        0.002:1        0.05:1         0.045:1
Relation        to
Investment
Return on Equity     0.89:1       0.095:1        1.3:1          0.60:1


Interest Coverage 1.48:1          1.08:1         1.02:1         1.5:1
Ratio




                                       73
                     Askari Bank Ltd vs. Bank of Punjab



Rupees in ‘000
                   Askari Bank Ltd             Bank of Punjab

                   2007          2008          2007           2008
Assets             182,171,885   206,191,138   2 34,974,195   2 00,400,065

Liabilities        169,905,898   193,219,775   2 15,978,401   1 89,455,998

Profit after Tax   2,681,012     386,225       718,689        204,609




Balance Sheet Ratios
                   Askari Bank Ltd             Bank of Punjab
                   2007          2008          2007           2008
Current Ratio      1.04:1        1.02:1        0.9:1          1.05:1

Debt Ratio         0.06:1        0.05:1        0.05:1         0.09:1
Debt to Total 0.93:1             0.9:1         0.8:1          0.95:1
Asset Ratio




                                     74
                      Askari Bank Ltd vs. Bank of Punjab




Profitability Ratios
                     Askari Bank Ltd             Bank of Punjab
                     2007          2008          2007         2008
Profitability   in 0.015:1         0.002:1       0.13:1       0.055:1
Relation        to
Investment
Return on Equity     0.89:1        0.095:1       0.70:1       0.60:1


Interest Coverage 1.48:1           1.08:1        1.38:1       0.85:1
Ratio




                                       75
CHAPTER NO.8



 FUTURE PROSPECTS OF THE ASKARI BANK

  The operating environment for banks in 2010 will be very challenging in the wake
  of intense competition in the pricing of asset and liability products. Effective asset
  liability management together with banks’ ability to offer improved and
  innovative products will play a key role in producing better results.
  AKBL will be start a new soft ware in 2010.Which is helpful to control the
  expenses because only one admin control whole branches of the region.


  AKBL should be continued to pursue strategic expansion of its nation-wide branch
  network which reached 200 by the end of the year 2007. Further expansion is
  planned and is in progress. In addition to the existing network which offers
  conventional banking services, the Bank will be launching dedicated Islamic
  Banking branches during 2011. The Bank will also be looking at augmenting its
  existing delivery channels with new IT backed channels to boost customer
  convenience. The Bank will continue to diversify its credit portfolio with
  emphasis on consumer, SMEs and agriculture while ensuring credit growth strictly
  on the basis of quality, risk and pricing, aimed at improving returns on assets and
  capital.


  In 2010, AKBL will further consolidate its corporate identity and offer to the
  clients a better -service and more customized products. Through this more focused
  approach, AKBL plans to out perform the competition.




  Askari Bank should be consistently focused on building long term shareholders’
  value, as the primary objective. The strength of the brand name, supported by




                                        76
strategic expansion and the depth of the customer relationships, gives AKBL a
strong foundation on which to build and continue growing in the times ahead. The
key elements of planning have been to increase market share, mobilize resources,
develop retail, agriculture and Islamic banking, introduce fresh initiatives for
corporate and investment banking, capitalize on new business opportunities and
implement various technology initiatives.


At AKBL planning is done at top level. Every year board meeting is held to
discuss various business issues. It begins from studying the market trends and
goes on to forecasting future where various indicators such as market indicators,
industry picture and internal processes are given thorough consideration. Board of
Directors takes keen interest in the affairs of the Bank and in the formulation of
policies. The agenda approved by the Board of Directors is then passed on to the
Executive Committee where further essentials are carefully planned and then the
goals formulated are assigned to various business heads.




                                     77
CHAPTER NO.9



                              WEAKNESSES


       Perfection is only the claim of Allah Almighty. No other being living or dead
can say this for itself. Similarly, Askari Bank also has some shortcomings that need to
be mentioned:




    Most of the employees are overloaded with work.
    Lack of expert finance managers.
    Lack of training of employees.
    Inefficient software (Unibank)
    Less Advertising in Electronic Media.
    Lack of Marketing Promotion.
    Low number of branches.
    It is slow in the introduction of new services
    Domestic bank with operations only in Pakistan and does Not Possess Foreign
       Network.
    Less walk in customers
    Few consumer products

    High expenditure

    High degree of centralization in the bank




                                          78
Opportunities


     capitalizing on the real estate sector’s boom by introducing flexible house
      financing
     more facilities for credit card users
     more retail banking products

     Extension of local branch network

     Establishing foreign branch network

     Capitalizing on information technology

     Unexplored market of multinational corporations

     Growth in textile sector

     Adopt E-banking


Threats


     Mergers of small banks with bigger banks thereby increasing competition
     Foreign investments are increasing. Standard Chartered bank acquired Union
      bank
     Private banks are increasing their customer base and no of deposit




                                              79
CHAPTER NO.10

                               CONCLUSION

The Askari Bank continued to aggressively fortify its banking network across the
country during financial years 2004-08. The bank under its expansion program of its
operations added highest number of branches in this period.

The bank will continue to expand as per SBP’s instruction as work is already underway
to some proposed locations during the current year as well. The Askari bank aims to
explore new markets by expanding its network to smaller towns and by offering
agriculture banking products supported with technology-based services.

EPS during the period stood at Rs13.42 compared to Rs12.76 previously. The Bank also
declared final cash dividend at Rs1.50/share along with 33per cent bonus shares payout.
The interest income of Askari Bank portrayed exceptional growth of 21per cent to Rs18,
393million, primarily due to 82per cent increment in interest earned on loans and
advances to customers to Rs.12,818 million as against Rs100,780million during last
year.

Moreover, markup earned on investments also increased. These are the cumulative
consequence of increased branch network, effective asset/liability management and
substantial growth in business volumes.

From the above discussion it is evident that the bank is progressing. Being a domestic
bank it has been able to satisfy its customers with the latest technology. The expansion
of the network of branches of the bank will further enable it to maintain its competitive
position.




                                           80
CHAPTER NO.11

                         RECOMMENATIONS

Askari bank is a very good organization on every point of view, i.e. public dealing and
also with the business point of view. Here the customers do not feel any difficulty
dealing with the bank due to the hard working staff. Inspire of this effective and
efficiency but I have some suggestions, which can add some input in than in than
aviating environment.


ADMINISTRATIVE ANALYSIS


CENTRALIZATION
Askari bank is a totally centralized bank. In order to improve the working condition of
three branches, modern techniques of decentralization must be adopted. Some of the
authority must be delegated to the lower management and the staff, unto some extend.
This will improve the confidence of the employees, their working performance and may
result in quick and prompt attenuation paid to the customers.


CONTROL AND EXPENATIONS
Expenditures must be control, which are very high.
New software
Want to introduce new soft ware which easily use and fill up all aspects.


PERSONNEL MANAGEMTN ANALYSIS.


NEED FOR BETTER TRAINING
It has been noticed that the training program of Askari bank is not proper. Special
marketing and financial management training should be given to the employees. They
should be given to the employees who concerned with marketing. They should learn the



                                           81
new methods for motivating customers. The training program of the bank should
include scientific techniques to improve the decision making inter-done by
incorporating case studies, sensitivity training and special projects. Both the specialized
and generalized training should be provided to the fresh as well as the on-job workers to
maintain the high standard of the fresh as well as the on-job workers to maintain the
high standard of the services. A recommended training program for the employees
training is given bellow


PRACTICAL MARKET RESEARCH SKILLS
This program should be designed for department and filed Sales personnel who are
some times required to actually conducting their own market research without having
any professional skill. The focus of this course should be on those specific market skills
are more likely to be used in Pakistan.
BETTER FIELD FINANCE MANAGEMENTS
This should aim at improve the skills and the knowledge used by the filed finance
mangers in controlling financial activities,. Executive in charge of the finance
areas/territories and who supervise several staff. The basic trust of this program should
be one presenting the filed finance manager job comprising of leading team, motivating
sub-ordinates to perform, and controlling a profit center.


APPRAISING THE MARKET
This would offer the trainees the practical ways to reduce new project risk by proper
market appraisal. Market appraisal of the new project can not be done in Pakistan and
shows how four techniques can be systematically applied in estimating the real market
potential, judging the price trends, identifying the market risks and forecasting the
capacity utilization


SOCIALZING
The most important recommendation is that the branch should have more of social
Parties and evenings where the employers are invited so that this becomes a source of
motivation. Because working the entire time makes one socially dull.




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Currently banking sector is experiencing some major changes because of mergers
and acquisition. Standard Chartered Bank has set a new trend in the banking
industry of the country after having acquired Union Bank. Policy-makers at the
State Bank believed that the banking environment has changed and the merger of
the Union Bank was the outcome of the policies adopted by the SBP. The SBP has
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been pursuing the policy of merger of small banks with strong banks.               Such a
scenario will increase the competition for domestic banks and Askari Commercial
Bank LTD is one of them. Reports suggest that some more European banks are
interested in increasing their stakes in the financial industry of Pakistan.


Higher-ups in the banking industry said that they expected the country to see more
deals in the banking industry such as the merger of Union Bank. They said a lot of
inquiries about the performance of financial institutions and regulatory laws were
being received from European banks. Bankers said that the attraction was not just
the surplus money floating in the European banking industry but the performance
of banking industry in Pakistan was also attractive.


In order to compete in such a rapid changing environment AKBL needs to be
more aggressive. It should be flexible enough to adapt to the ever changing
banking industry of Pakistan. The banks promote retail banking aggressively and
needs to work on lowering rates. Keeping a close watch on competitors and
continuously updating banking facilities for its customers is necessary for survival.
Also introduction of innovative products catering to the banking needs of the
customers both the corporate clients as well as the individuals is required.




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                  REFERENCES




James C.Van Horne, 2000. Financial Management

N. Khurram, 2004. Financial Analysis

www.askaribank.com.pk

www.sbp.pk

www.wikipedia.org

www.ubl.com.pk

www.bankalfalah.com.pk

www.bop.com.pk

Audited Financial Reports of Askari Bank




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