University of Education

Jauharabad Campus, Lahore

(UE Business School)

INTERNSHIP REPORT

ASKARI BANK LTD

A Report Submitted to the UE Business School, University of Education,

Jauharabad Campus, Lahore. In The Partial Fulfillment of The Requirements for
The Degree of Bachelor of Business Administration (Hons).

SUBMITTED BY

Muhammad Adil
bsf1902537
Session 2019-23

Submission Date (04 July, 2023)

 University of Education
Jauharabad Campus, Lahore
(UE Business School)

LETTER OF UNDERTAKING

This internship report was submitted by Muhammad Adil S/o Muhammad

Ashraf Roll No bsf1902537 for the partial fulfillment of the requirements for the degree of

BBA (HONS), Session (2019-2023) with specialization in Finance and is hereby accepted by

the evaluation committee.

Internship Supervisor ________________________

HOD / Coordinator ________________________

External Examiner ________________________

Principal ________________________
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“O Allah, I seek refuge with You from knowledge

that does not bring benefit, from a supplication

that is not heard, from a heart that does not fear

(You) and from a soul that never satisfies.”

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DEDICATION

I dedicate this internship report to my professor, Dr Rashid Mehmood, for their unwavering

support, guidance, and expertise throughout my internship journey. Their valuable insights,

constructive feedback, and encouragement have been instrumental in shaping my

professional growth and enhancing my skills.

Also, I would like to dedicate this assignment to my family and friends, who have been a

constant source of love, encouragement, and support throughout my academic journey.

Also, to my parents, thank you for instilling in me a love for learning and always pushing me

to strive for excellence. Your unwavering belief in my abilities has been my driving force,

and I am grateful for the sacrifices you have made to provide me with the best education

possible.

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ACKNOWLEDGEMENT

I would like to express my deep gratitude and appreciation to all those who have contributed
to the successful completion of my internship report on Askari Bank. Without their support,
guidance, and assistance, this endeavor would not have been possible.

First and foremost, I am indebted to the management of Askari Bank for providing me with
the opportunity to intern at their esteemed organization. I am grateful to the entire team for
their warm welcome, constant encouragement, and valuable insights throughout my
internship period. Special thanks to Mr. Gul Hassan, Mr. Rizwan and Mr. Inayat Ullah for
their guidance, mentorship, and continuous support, which immensely contributed to my
learning experience.
I am deeply grateful to my professors and faculty members at University of Education,
Jauharabad Campus for their continuous support and guidance throughout my academic
journey. Their valuable teachings and theoretical knowledge laid the foundation for this
internship report and helped me apply the concepts in a practical setting.
Furthermore, I would like to express my appreciation to my fellow interns who made this
internship period enjoyable and enriching. Our collaborative efforts, discussions, and shared
experiences have broadened my perspective and enhanced my learning during this internship.
I would also like to acknowledge the contributions of my friends and family who have been a
constant source of motivation and encouragement. Their unwavering support and belief in my
abilities have been crucial in overcoming challenges and completing this internship report
successfully.

Thank you all.

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EXECUTIVE SUMMARY

I did 6 weeks internship at Askari Bank Limited Jauharabad branch which started on the 1st of
August 2022 and ended on 15th September 2022. As a compulsory requirement for students
enrolled in BBA (HONS) in University of Education Lahore, I completed my six weeks
internship at the above-mentioned organization. The purpose of this internship is to enable
students who are about to pass out from the institute to get a taste of practical life, of how life
would be and how we would handle the challenges it throws at us once we walk out from
these gates. Those six weeks were a wonderful experience full of learning and understanding
and putting the knowledge we learned into perspective. This report sheds light on what was
learned during that time during my internship at Askari Bank Limited.

This report starts with an introduction and from thereon follows the pattern that was kindly
provided to us by our honorable institute covering the objectives, the operational details and
lastly, what I learned as an internee at Askari Bank Limited. Established in 1991 it began its
operations in 1992 and offers a wide portfolio of services while maintaining a close link with
the Armed forces of Pakistan as it is currently owned by the Fauji Foundation and was
previously owned by the Army Welfare Trust.

As an internee I got to work in four important sections of the bank namely deposits, bills and
remittances, accounts and credit. A through briefing followed by a vigorous routine are the
characteristics of a banking job and my internship was no different where we were given
large loads of work while keeping us motivated with learning throughout the course of our
internship. My report is based on my learning experiences at Askari Bank Limited and how
this experience has boosted professionalism and understanding in me.

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TABLE OF CONTENTS

DEDICATION ........................................................................................................................... 3
ACKNOWLEDGEMENT ......................................................................................................... 4
EXECUTIVE SUMMARY ....................................................................................................... 5
OVERVIEW OF THE ORGANIZATION ................................................................................ 8
I. HISTORY ....................................................................................................................... 9
II. MISSION .................................................................................................................. 10
III. VISION ..................................................................................................................... 10
IV. CORE VALUES ....................................................................................................... 10
V. OBJECTIVES ........................................................................................................... 11
VI. MARKET STANDING............................................................................................. 11
VII. Policy of the Askari Bank ...................................................................................... 12
VIII. COMPETITORS ................................................................................................... 13
IX. PRODUCT LINES .................................................................................................... 14
I. BRANCH BANKING ............................................................................................... 14
II. Corporate Banking ................................................................................................. 16
III. Agriculture Banking .............................................................................................. 16
IV. Consumer Banking ................................................................................................ 18
V. Islamic Finance ...................................................................................................... 20
X. SYMBOL OF ASKARI BANK ................................................................................ 21
XI. AWARDS & ACHIEVEMENTS ............................................................................. 22
ORGANIZATIONAL STRUCTURE ..................................................................................... 23
I. HIERARCHY CHART ................................................................................................. 24
II. NUMBER OF EMPLOYEES ................................................................................... 26
III. MAIN OFFICES ....................................................................................................... 26
IV. INTRODUCTION OF ALL THE DEPARTMENTS ............................................... 27
INTERNSHIP PROGRAM ..................................................................................................... 31
STRUCTURE OF FINANCE DEPARTMENT ...................................................................... 33
Number Of Employees Working Under Finance Department ............................................. 34
Sub-Department Under Finance Department....................................................................... 34
MARKETING FUNCTIONS .................................................................................................. 36
4P's OF ASKARI BANK ..................................................................................................... 36
HUMAN RESOURCE MANAGEMENT ............................................................................... 38
HR Practices of Askari Bank ............................................................................................... 38

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II. FINANCIAL ANALYSIS ........................................................................................ 42

A. HORIZONTAL ANALYSIS ................................................................................. 45
B. VERTICAL ANALYSIS ....................................................................................... 46
III. Competitive Analysis of Askari Bank with Other Organizations ............................. 49
IV. Future Prospects of Askari Bank ............................................................................... 51
SWOT ANALYSIS ................................................................................................................. 53
STRENGTHS ...................................................................................................................... 53
WEAKNESSES ................................................................................................................... 54
OPPORTUNITIES ............................................................................................................... 55
THREATS................................................................................................................................ 55

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OVERVIEW OF THE ORGANIZATION

Askari Bank Limited is a Pakistani commercial bank that was established in 1992. The bank
is currently owned by Fauji Foundation, a non-profit organization that is owned by the
Pakistan Army. Fauji Foundation holds a majority share of 50.57% in Askari Bank Limited.
The remaining shares are held by the public. It is a Pakistani bank which offers a wide
portfolio of services ranging from basic banking facilities and credit options. It has a network
consisting of 222 branches and the operating in three regions in Pakistan namely North
region, Central region and South region with Khyber Pakhtunkhwa, Azad Jammu Kashmir
and Gilgit Baltistan making up the North region while Punjab lies in the Central region and
Sindh and Baluchistan making up the South region.

Askari Bank Limited has a total of 263 ATMs (Automated teller machine) located across
Pakistan serving both its own and customers of other banks. These ATMs are spread across
all three regions of Pakistan, with the largest number of ATMs located in the North Region
(280 ATMs), followed by the Central Region (255 ATMs) and the South Region (176
ATMs). Askari Bank Limited has a good PACRA rating of A1+ for short-term liabilities and
AA rating for its long-term liabilities. This means that PACRA believes that the bank is in a
strong financial position and is able to meet its short-term and long-term obligations.

Askari Bank also has its operations in Bahrain. The bank's Bahrain branch, Askari Bank
(Bahrain) Limited, was established in 2006. The branch offers a variety of banking products
and services to both corporate and retail customers. In 2022, its revenue was Rs. 23 billion,
its net income was Rs. 6.3 billion, its total assets amounted to Rs. 1.54 trillion and it had
12,000 employees.

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I. HISTORY

Askari Bank Limited was incorporated on October 9, 1991, and its stock was floated in
Karachi, Lahore, and Islamabad stock exchanges at that time. The head office was located in
Army Welfare Trust (AWT) Plaza in Rawalpindi. Askari Bank was initially owned by AWT,
but Fauji Foundation bought its majority shares in 2013.
• 1992 - Askari Bank commenced operations on April 1, 1992.
• 1995 - Askari Bank launched its first Islamic banking window.
• 1999 - Askari Bank launched its first ATM.
• 2000 - Askari Bank launched its internet banking services.
• 2006 - Askari Bank opened its first branch in Bahrain.
• 2013 - Fauji Foundation acquired majority shares in Askari Bank.
• 2015 - Askari Bank launched its mobile banking services.
• 2017 - Askari Bank launched its digital banking platform, Askari Digital.
• 2022 - Askari Bank was ranked 9th among the top 100 banks in Pakistan by Bankers
Almanac.

The head office was located in Army Welfare Trust (AWT) Plaza in Rawalpindi. Askari
Bank was initially owned by AWT, but Fauji Foundation bought its majority shares in 2013.
Askari Bank was the first bank in Pakistan to offer internet banking facilities. It was also one
of the first banks to offer business-to-business internet commerce. These innovations helped
Askari Bank to become a leader in the Pakistani banking industry.

Askari Bank's focus on sustained and balanced growth has helped it to weather the challenges
of the modern competitive and uncertain era. The bank has avoided unnecessary risks and has
focused on ensuring the safety of its assets. This has allowed Askari Bank to achieve long-
term success.

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II. MISSION

Askari Bank is committed to providing innovative and customer-centric financial solutions,

fostering economic growth, and contributing to the well-being of our stakeholders and society
as a whole. We aim to deliver exceptional banking services, build enduring relationships, and
be the bank of choice for our customers.

III. VISION

To be recognized as a progressive and dynamic bank, exceeding customer expectations, and

setting industry standards through innovation, professionalism, and social responsibility. We
strive to become the preferred financial partner, leveraging technology, and empowering our
customers to achieve their financial goals.

IV. CORE VALUES

Here are some of the core values that guide Askari Bank's mission and vision
• Commitment to customers: Askari Bank is committed to providing excellent customer
service and meeting the needs of its customers.
• Integrity: Askari Bank operates with integrity and ethical standards.
• Fairness: Askari Bank treats all customers fairly and with respect.
• Teamwork: Askari Bank is a team-oriented organization that values the contributions
of all employees.
• Service: Askari Bank is committed to providing service to the community and to
improving the quality of life.

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V. OBJECTIVES
• To increase market share in the retail and corporate banking segments.
• To expand the bank's branch network across Pakistan.
• To develop new and innovative financial products and services.
• To improve the bank's customer service standards.
• To maintain a strong financial position.
• To contribute to the economic development of Pakistan.

VI. MARKET STANDING

Askari Bank Limited (AKBL) is one of the largest banks in Pakistan, ranked 9th in the
country by assets. It has a market capitalization of over PKR 1.4 trillion and a stock price of
PKR 12.36 as of June 23, 2023.
AKBL's market standing is strong, with a strong brand and affiliation with the Fauji
Foundation. The bank has a wide network of branches and ATMs across Pakistan, and it
offers a wide range of banking products and services. In recent years, AKBL has been
focusing on growing its retail business, particularly in the areas of current accounts and
deposits. The bank has also been expanding its lending portfolio, particularly to the private
sector and trade business. AKBL's financial performance has been strong in recent years. In
the first half of 2022, the bank's total assets grew by 23%, and its profit after tax increased by
22%.
Analysts have a positive outlook on AKBL's future prospects. The bank's stock is currently
trading at a discount to its intrinsic value, and it is expected to deliver strong earnings growth
in the coming years.

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VII. Policy of the Askari Bank

Askari Bank Limited (AKBL) has a number of policies in place to ensure the safety and
security of its customers' accounts and information. These policies include:

• PRIVACY POLICY: AKBL's privacy policy outlines how the bank collects, uses,
and shares customer information. The policy also includes information about how
customers can access and correct their personal information.

• FRAUD PREVENTION: AKBL has a number of fraud prevention measures in

place to protect customers from fraudulent transactions. These measures include:

o Suspicious activity monitoring: AKBL monitors customer accounts for

suspicious activity. If the bank detects suspicious activity, it will take steps to
protect the customer's account.

o Strong passwords: AKBL requires customers to create strong passwords for

their accounts. Strong passwords are difficult to guess and make it more
difficult for criminals to access customer accounts.

o Two-factor authentication: AKBL offers two-factor authentication for

customers who want an added layer of security for their accounts. Two-factor
authentication requires customers to enter a code from their mobile phone in
addition to their password when logging in to their account.

• DATA SECURITY: AKBL takes steps to protect customer data from unauthorized
access, use, disclosure, alteration, or destruction. These measures include:

o Physical security: AKBL's data centers are physically secure and access is
restricted to authorized personnel.

o Technical security: AKBL uses a variety of technical security measures to

protect customer data, such as firewalls, intrusion detection systems, and
encryption.

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VIII. COMPETITORS

AKBL's main competitors include:

I. HBL: Habib Bank Limited is the largest bank in Pakistan by assets. HBL offers a
wide range of banking products and services, and it has a strong brand and reputation.

II. Standard Chartered: Standard Chartered is a multinational bank with a presence

in over 70 countries. Standard Chartered offers a wide range of banking products and
services to corporate and retail customers.

III. United Bank Limited (UBL): United Bank Limited is the third-largest bank in
Pakistan by assets. UBL offers a wide range of banking products and services, and it
has a strong brand and reputation.

IV. Meezan Bank: Meezan Bank is a Shariah-compliant bank that offers a wide range
of banking products and services. Meezan Bank has a growing customer base, and it
is one of the fastest-growing banks in Pakistan.

V. Bank Alfalah: Bank Alfalah is a private sector bank that offers a wide range of
banking products and services. Bank Alfalah has a strong brand and reputation, and it
is one of the most popular banks in Pakistan.

These are just some of the main competitors of Askari Bank Limited. The banking industry in
Pakistan is very competitive, and there are a number of other banks that offer similar products
and services to AKBL.

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IX. PRODUCT LINES

Being a bank by the definition of the Corporate Law of Pakistan and being registered under
that same law, Askari Bank offers a very wide and competitive variety of services to its
thousands of customers all across Pakistan and were the pioneer in the field of Internet
banking and providing e-solutions to B2B customers facilitating the purchase of merchandise
on credit terms for them.
There are some basic divisions in the bank according to the services that are offered which
include:

I. BRANCH BANKING
In branch banking there are a number of accounts which are offered to the general public and
the employees of Armed forces and then the choice is made on the basis of the customer’s
individual needs. The accounts that are offered are categorized as:

a) Askari Mahana Bachat Account: This particular type of account is offered to the
individual looking for a short-term investment account. It offers investment options
from 1 to 3 years and is particularly aimed at customers who want monthly profit
from their savings. It is a term deposit account in which the money has to be placed
for a certain period of time and is offered only to Pakistani citizens. The balance
requirements of this particular type of account range from a minimum of Rs.50, 000
and can go as far as up to Rs.10, 000, 000. The payments are made at the 1st of every
month and the profit rates are 7.6% per annum for 1 year term investments and up to
8.5% per annum o 3-year term investments.

b) Value Plus Current Account: This particular account is a current account which
although does not offer any monetary return but offers a number of other useful
options for both an individual investor as well as small businesses or corporations for
that matter. Some of the salient features of type of account for an individual investor
are free issuance of ATM/VISA Debit card and very reliable insurance coverage for
all types of cards plus the additional facility of On-line fund transfer facility, i-Net
banking facility, duplicate account statements and issuance of cheque books

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meanwhile the individual has to ensure a minimum balance of Rs.25, 000 at all times.
The same type of account also offers various advantages to businesses as well in the
form of several free facilities such as on-line fund transfer facility, issuance of cheque
books, issuance of pay orders / demand drafts and a 24/7 access to account statement
through internet banking with duplicate account statements available whenever
required. The minimum level of balance for businesses is Rs.100, 000

c) Value plus Saving Account: This is an account for people who want medium return
rates on their investment along with other services which are included as free in the
package. It offers 6% per annum with profit options for either three or six months or
one year. Other services that are provided as free with this account are free issuance
of ATM/VISA Debit Card, free global and local ATM Cash with drawl insurance
while other free services include online funds transfer facility and internet banking
services to name a few.

d) Investment Certificates: Like investment certificates from any reputable institution,

the investment certificates from Askari Bank not only offer added security and the
option of monthly profits but are also completely transferable and can be transferred
to any third party. These are issued for a period of three period and the profit is paid
on a monthly basis. These are issued and uncashed free of cost while an existing
account is not mandatory. While there is no penalty on pre-mature encashment there
is no maximum limit on the purchase of these certificates and these can be uncashed
at any branch of Askari Bank anywhere in Pakistan and they also offer great security
because in case of theft or loss there is always the option of replacement/refund to the
original purchaser. The expected rates of return for the three months in that order are
6, 6.10 and 6.25% for the life of the certificate.

e) Rupee Traveler Cheques: These cheques are issued to eliminate the risk of carrying
cash while travelling. These are for an amount of Rs.10, 000 and are completely valid
until uncashed. These can be purchased and uncashed at any branch of Askari Bank
Limited and are enchased after the original purchaser signs the front of the RTC while
a commission of Rs.30 is charged per RTC for holding it for 30 days or more.

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II. Corporate Banking

In the corporate banking sector of Askari Bank Limited, the services offered are by the
corporate banking division and by the Investment banking division.

a) Corporate Banking Division: Corporate banking facilities are offered through three
focused branches in Islamabad, Karachi and Lahore and are primarily present to cater
to the needs of large corporate customers. These divisions provide highly trained and
experienced individuals that not only look after the needs of corporate individuals but
are also constantly abreast with the latest developments in the market and the
complete economy. A wide variety of services are offered to the corporate customers
which range from working capital facilities, term loans, letters of guarantee and
credit, bill discounting and export financing etc.

b) Investment Banking Division: This division focuses on the providing financial

advisory as well as capital raising services to large institutional as well as corporate
clients as well as making investments on behalf of the bank itself. The core purpose of
this division is to provide investment related information to any corporate client
which is seeking capital raising or investment information in national as well as
overseas markets. This group also offers financial solutions such as debt syndications
as well as project financing structures. It consists of 30 highly trained relationship
managers with brilliant execution experience.

III. Agriculture Banking

Pakistan is an agricultural economy with agro based activities going on around the
country at various levels and in different areas each with own special needs and it is
purely due to this variety that there is a tremendous opportunity available for growth in
this sector. Askari Bank’s Rural Business Division (ABRD) is one such division that
focuses primarily on fulfilling the needs of agricultural and this division has gained
phenomenal success in recent history. The products that are offered in the agricultural
banking to farmers all over the Pakistan include:

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a) Kissan Evergreen Finance: This is a profit earning account available only to

Pakistani residents in which land is mortgaged against the financing provided. This
account benefits the farmer in both ways because if it stays credit, it earns profit for
that farmer otherwise it is a source of immediate finance fulfilling the farmer’s
agricultural needs. A special cheque book is issued to the farmer. The tenure of
account is a yearly one and the profit on credit balances is paid on a half yearly basis.
Also, the markup is charged for the actual days the finance is utilized.

b) Kissan Tractor Finance: This is a profit earning account which can only be opened
by a Pakistani resident for a tenure of 5 years. On account of more equity funding the
farmer in this account can avail non-funded facility at a reduced cost. A bonus is paid
to the farmer as a result of their good credit history at the end of the program if all the
terms of sanction are met. Also, the farmers as well as the tractor are insured against
any possible contingency in this program providing a peace of mind. Also, the
propriety of the tractor will the given by the manufacturer after an agreement with the
bank.

c) Kissan Livestock Development Plan: This particular type of financing is made

available to the farmers to help them purchase livestock such as milk animals, goats,
sheep, poultry and fisheries without having to incur additional expenditure and the
said farmer must be a Pakistani resident to avail this type of financing. This sort of a
program helps farmer earn on a daily basis to meet his own needs any pay off any
liabilities. This revives and accelerates the earning capacity of the farmer and also
enhances their repayment capacity.

d) Kissan Farm Mechanization Finance: This financing option helps farmer’s

purchase farm machinery such as tractors, trailers, threshers, drills and rotators etc.
and to avail this financing the farmer must be a Pakistani resident. Due to this type of
financing the farmer is able to purchase modern farming machinery that is both cost
saving and also increases the per acre yield and in doing so also helps the farmer to
increase the quality of their crop to match or compete with international standards
prevailing elsewhere that helps them in the export of their agricultural products.

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e) Kissan Abpashi Finance: This type of financing is used to help farmers in the
installation of tube wells, water channel developments and water management
equipment and the farmer must be a Pakistani citizen to avail this type of financing.
This financing helps farmers make the optimum use of the limited water resources
and overcome the scarcity of water. A lot of water is wasted in the traditional sources
and mechanized irrigation makes the optimum use of water making more area
cultivable and helps farmers tap the natural water resources through water
management practices.

IV. Consumer Banking

This division mainly focuses on the auto finance, personal finance, mortgage finance,
smart cards, Askari credit cards and Zarai credit cards etc. Consumer banking market is
rapidly growing in Pakistan and Askari Bank Limited is targeting the market with an aim
to capture as much of it as possible while offering new and innovative services all the
time and all of this is done while keeping a close eye on the risk asset portfolio. The
products offered under this division are:

a) ASK 4 CAR: This financing can be used to finance both new and used cars with an
18% markup for the 3-year plan, 19% for the 4-year plan and 20% for the 5-year plan.
The down payment that can be made in this financing ranges from a minimum of 15%
to a maximum of 60%. Insurance is mandatory in this financing and for used vehicles
the markup rate is slightly higher with a 20% markup for the 3-year plan and 21% for
4-year plan and for the used vehicles, they must not be older than 5 years at the time
of loan. While 800CC used vehicles are not covered in this type of financing.

b) Personal Finance: These financing options are only available to Pakistani residents
at the moment and the person applying for the loan must be at least 21 years of age
and a maximum of 61 years of age with a minimum monthly salary of Rs.30, 000 with
their employment having at least a tenure of 1 year remaining. The markup for
secured personnel is 19% and that for unsecured personnel is 21% in which the debt

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burden is a maximum of 50% of their net disposable income. This is a very easy and
secure loan option for salaried individuals who are willing to secure short term loan
for relatively small expenditures.

c) Mortgage Finance: A home of one’s self is a dream of any individual and Askari
Bank has made the realization of this dream very easy with rather flexible home loans
available for individuals in urban areas of Pakistan aged between 23-65 years of age.
The bank helps in the purchase and construction of the house as well as renovation of
old houses with balance transfer facility also available. Houses plus apartments are
covered under this particular type of financing.

d) VISA Debit Card: Any individual having an account with Askari Bank Limited can
have access to an Askari VISA Debit Card which eliminates the risk of carrying large
sums of money while travelling or shopping at busy places because payments can be
done via the card thus eliminating the need for carrying cash and cash with drawls can
also be made at ATM’s with this type of card with a limit of Rs.50, 000 on the classic
card and Rs.100, 000 on the gold card and besides that the shopping limit on the
classic card is Rs.200, 000 while it is Rs.250, 000 on the gold card and the funds
transfer limit of the classic card is Rs.250, 000 and Rs.300, 000 on the gold card.

e) Askari Credit Cards: Credit cards are issued to Pakistani residents only and to get
one of these the resident must be a salaried individual with or a supplementary income
person with the minimum age limit being 2161 for the basic card upper limit changed
to 65 for SEP/SEB while the age limit on supplementary has a minimum of 18 and no
upper limit. After this the rates and the limits change in response to the collateral
placed and a card is provided only after complete and thorough examination of all the
documents provided.

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V. Islamic Finance
Askari Bank is striving hard to satisfy customer needs in regard to Islamic practices and
needs. The efforts in this regard are put into practice a completely efficient banking system
that not only meets the economic justice but also the Sharia standards. There are currently 29
branches in major cities in Pakistan that provide only Islamic banking solutions. The products
and services that are offered in this division are as follows:

a) Askari Ijarah Bis Sayyarah: This is auto financing offered by the Islamic banking
division. It is a rental agreement of sorts in which the cost of an automobile is
transferred to the user under a pre-settled agreement and it is a Sharia compliant mode
of financing which is completely halal. Under this there is no insurance from the bank
and any risk to the vehicle or the owner themselves is borne by the owner. This can
only be availed by Pakistani residents between the ages of 21 to 60.

b) Askari Home Musharakah: This is a house financing facility offered by the Islamic
banking division that enables customers to visualize the dreams of owning a house
without having to pay interests. Under this type of financing customers can purchase,
transfer, renovate or improve their houses or apartments and under the rules of
Musharakah a joint ownership is formed between the bank and the customer. After the
down payment or the share of the customer that has been paid the share of the bank is
divided in to multiples of rent which are then paid by the customer.

c) Askari Islamic Deposit Schemes: There is an Islamic advisor at every Askari Islamic
Banking branch who guides about the various types of accounts that are present in this
form of banking and the types that are available in Islamic banking are AHSAN
accounts which are savings accounts and offer profit on monthly basis which are
made with the concept of risk bearing.

This is complete product range that is currently being offered by the Askari Bank Limited
and is competitive in every way and is the prime reason why it is the choice of thousands
of customers all over the country.

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X. SYMBOL OF ASKARI BANK

The symbol of Askari Bank is a red shield with a white crescent and star in the centre. The
shield is surrounded by the words "Askari Bank Limited" in English and Urdu. The symbol is
a representation of the bank's strength and stability, as well as its commitment to Islamic
principles.

The symbol was designed by the bank's founder, Major General (Retd.) Muhammad Akbar
Khan, who was also the first chairman of the bank. The symbol was first used in 1957, when
the bank was first established. The red shield represents the strength and courage of the
Pakistani people. The white crescent and star represent Islam, the religion of the majority of
Pakistanis. The words "Askari Bank Limited" mean "Soldier's Bank Limited" in English and
Urdu.

The symbol of Askari Bank is a familiar sight in Pakistan, and it is a reminder of the bank's
commitment to its customers and its country.

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XI. AWARDS & ACHIEVEMENTS

Askari Bank has won numerous awards and achievements over the years, recognizing its
financial performance, customer service, and corporate social responsibility. Some of the
most notable awards include:

• Best Retail Bank in Pakistan by The Asian Banker (2004, 2012, 2017)
• 1st Consumer Choice Award by the Consumer Association of Pakistan (2004)
• Corporate Excellence Award by the Management Association of Pakistan (MAP)
(2002, 2003, 2004)
• The Best Bank in Pakistan by Global Finance magazine (2001, 2002)
• Best Consumer Internet Bank by Global Finance magazine (2002, 2003)
• Best Annual Report Award by ICAP & ICMAP (2011, 2012)
• Best Presented Annual Report Award and SAARC Anniversary Awards for
Excellence in Corporate Reporting by SAARCFINANCE (2012)
• PSX Top 25 Companies Award (2022)

Askari Bank is also a recognized leader in corporate social responsibility. In 2017, the bank
was awarded the CSR Excellence Award by the Pakistan CSR Network. The bank has also
been recognized for its work in the areas of education, healthcare, and disaster relief.

Askari Bank's commitment to excellence has been recognized by industry leaders and
customers alike. The bank's awards and achievements are a testament to its success and its
commitment to providing the best possible banking experience to its customers.

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ORGANIZATIONAL STRUCTURE

An organizational structure is the structure of any organization and tells a lot about that
organization and gives all the stake holders important information about the degree of
decentralization in the organization as well as who does what in any organization. Askari
Bank is divided in terms of the groups or divisions present in it and then further division is
done on the basis of the specific department while in reality a matrix like system exists in
which different departments and bodies come together to perform all the banking operations.
This can be further elaborated with the help of the organogram illustrated below:
As is pretty clear and evident from the organogram on the next page, the bank operates in a
matrix like fashion with various departments functioning in various areas under their
respective and area heads. The organizational chart above is divided in terms of the three core
activities i.e. the specialized business that is performed by the bank, the regular consumer
banking carried out at the branches and the support that is provided to the banking activities
in the form of operations and credit department support, planning and corporate, human
resource and finance divisions with each department playing their vital role. There are three
structures that any organization can follow namely functional, divisional and matrix structure.
The matrix system is usually leaded by the heads made with respect to geographical locations
with policies and rules being made by their respective support departments while the
geographical heads are in charge of the overall performance which is measured in terms of
Key Performance Indicators (KPI’s) and targets that are set by the central authority. This
particular matrix system is very useful in managing the ever-growing bank with surprising
ease as it allows for a very clear chain of command without the problem of a confused power
structure in which no one in certain what to do and whom to report to. Every branch has
certain people from credit, accounts, human resource etc. who collectively report to the
Branch Manager who is answerable to the regional, then zonal and finally business heads
who are all part of the team in charge of running the bank who report directly to the
president. The functional heads sit in the regional or head offices from where they monitor
the situation and implement and improve upon pre-existing policies and rules.

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I. HIERARCHY CHART

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I. Board of Directors

II. Management Team

• President & CEO: Zafar Masood

• Senior Executive Vice Presidents:
o Naveed Zafar (Group Head - Retail Banking)
o Sohail Akbar (Group Head - Corporate & Investment Banking)
o Muhammad Saleem (Group Head - Commercial Banking)
o Muhammad Ashraf (Group Head - Agriculture Banking)
• Executive Vice Presidents:
o Irfan Qadir (Group Head - Islamic Banking)
o Muhammad Bilal (Group Head - Treasury & Markets)
o Muhammad Ali (Group Head - Information Technology)
o Muhammad Aslam (Group Head - Human Resources)
o Muhammad Irfan (Group Head - Finance)

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II. NUMBER OF EMPLOYEES

As of 2022, Askari Bank Limited (AKBL) has 7,478 employees.

This number includes both permanent and contract employees.
The majority of AKBL's employees are located in Pakistan, but
the bank also has a small number of employees in Bahrain.

III. MAIN OFFICES

Askari Bank Limited (AKBL) has two main offices:

• Head Office
• Registered Office
The Head Office is located in Islamabad, Pakistan. The Registered Office is located in
Rawalpindi, Pakistan. Here is a brief overview of each office:

• HEAD OFFICE: The Head Office is the central hub of AKBL's operations. It is
responsible for the overall management of the bank, including setting strategic
direction, formulating policies, and overseeing the day-to-day operations of the bank's
branches and subsidiaries.
• REGISTERED OFFICE: The Registered Office is the legal domicile of AKBL. It is
responsible for maintaining the bank's records and ensuring that the bank complies
with all applicable laws and regulations.

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IV. INTRODUCTION OF ALL THE DEPARTMENTS

The activities of a bank are divided into various departments in order to ensure that they are
carried out efficiently and effectively. Each department has a specific set of responsibilities
and is headed by a manager who is responsible for overseeing the department's operations.
The officials in each department are responsible for carrying out the day-to-day tasks of the
department.

1) GENERAL BANKING DEPARTMENTS

The general banking department is responsible for the day-to-day operations of a bank, such
as opening accounts, processing transactions, and managing cash. The following are some of
the departments that are typically included in the general banking department:

I. Account Opening Department: This department is responsible for opening new

accounts for customers. They will collect the necessary information from the
customer, such as their name, address, and identification, and they will verify the
customer's identity.
• Providing account opening form according to customer requirements.
• Guide the customers about requirements and filling the form
• Prepare a checklist
• Stamp the forms
• Maintaining account opening register
• Pasting of forms in register after release from general banking in charge
• Issuance of cheque books
• Issuance of account maintenance certificate
• Closure of account
• Verification of signature in case of cheque presented before releasing of account
opening from ss card not yet scanned
II. Remittance Department: This department is responsible for processing remittances,
which are payments that are sent from one person to another. They will collect the
necessary information from the sender, such as the recipient's name, address, and
bank account information, and they will process the remittance.
III. Cash Department: This department is responsible for managing the bank's cash.
They will receive cash deposits from customers, they will issue cash withdrawals to
customers, and they will reconcile the bank's cash on a daily basis.
IV. Clearing Department: This department is responsible for processing clearing
transactions, which are payments that are sent between banks. They will collect the
necessary information from the banks involved in the transaction, such as the amount
of the payment and the account numbers of the sender and recipient, and they will
process the clearing transaction.

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2) PRIVILEGE BANKING DEPARTMENT

Privilege banking, also known as priority banking, is a service through which banks provide
special privileges to high-net-worth individuals (HNIs).

• Online banking: Privilege banking customers typically have access to online

banking, which allows them to do their banking from the comfort of their own home
or office. This can include things like checking account balances, transferring funds,
paying bills, and even investing.

• Lockers: Privilege banking customers often have access to lockers, which can be
used to store valuables such as jewelry, documents, or cash. This can be a convenient
and secure way to store valuables.

3) CREDIT DEPARTMENT
The credit department of Askari Bank is responsible for assessing the creditworthiness of
borrowers and approving loans. The department is headed by a credit manager who is
responsible for overseeing the department's operations. The officials in the department are
responsible for carrying out the day-to-day tasks of the department, such as collecting and
analysing credit information, conducting credit assessments, and approving or declining loan
applications.

4) FOREIGN EXCHANGE DEPARTMENT

The foreign exchange department of Askari Bank includes the import department, export
department, and foreign currency department. These departments work together to provide a
comprehensive range of foreign exchange services to the bank's customers.

• The import department handles all of the bank's transactions related to importing
goods and services from other countries. This includes processing payments to
overseas suppliers, arranging for the shipment of goods, and providing documentation
for customs clearance.

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• The export department handles all of the bank's transactions related to exporting
goods and services to other countries. This includes processing payments from
overseas buyers, arranging for the shipment of goods, and providing documentation
for customs clearance.
• The foreign currency department handles all of the bank's transactions related to
foreign currency. This includes buying and selling foreign currency, providing foreign
currency accounts, and processing foreign currency remittances.

5) ACCOUNT DEPARTMENT

The account department of Askari Bank is responsible for opening and managing customer
accounts. This includes opening new accounts, processing deposits and withdrawals, and
providing customer support. The account department also handles account-related inquiries
and complaints. The account department of Askari Bank is headed by an account manager
who is responsible for overseeing the department's operations. The officials in the department
are responsible for carrying out the day-to-day tasks of the department, such as opening new
accounts, processing deposits and withdrawals, and providing customer support. The account
department of Askari Bank plays an important role in the bank's customer service operations.
By providing efficient and reliable account management services, the department helps to
ensure that customers have a positive experience with the bank.

6) IT DEPARTMENT

The IT department of Askari Bank is responsible for the design, development, and
maintenance of the bank's IT infrastructure. This includes the bank's computer systems,
networks, and software applications. The IT department also provides support to the bank's
employees and customers. The IT department of Askari Bank is headed by an IT director who
is responsible for overseeing the department's operations. The officials in the department are
responsible for carrying out the day-to-day tasks of the department, such as designing and
developing new IT systems, maintaining the bank's existing IT infrastructure, and providing
support to employees and customers.
The IT department of Askari Bank plays an important role in the bank's operations. By
providing reliable and secure IT services, the department helps to ensure that the bank's
operations run smoothly.

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V. COMMENTS ON THE ORGANIZATIONAL

STRUCTURE

The organizational structure of Askari Bank Limited (AKBL) is a typical hierarchical

structure, with the Board of Directors at the top, followed by the management team, and then
the various departments. This type of structure is common in large organizations, as it
provides a clear line of authority and responsibility. The Board of Directors is responsible for
the overall governance of the bank, while the management team is responsible for the day-to-
day operations. The various departments are responsible for specific areas of the bank's
business, such as corporate banking, retail banking, and IT.

The organizational structure of AKBL is designed to ensure that the bank is well-managed
and that its operations are efficient. The clear lines of authority and responsibility help to
prevent confusion and ensure that everyone knows who is responsible for what.

However, there are some potential drawbacks to a hierarchical structure. For example, it can
be slow to make decisions, as they have to go through multiple levels of management.
Additionally, it can be difficult to promote innovation, as employees may be reluctant to
challenge the status quo.

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INTERNSHIP PROGRAM

The branch I worked in is the Askari bank Jauharabad branch, which is located in the KCP
officer’s colony, on Muzaffargarh Road. The internship duration was of 6 weeks, starting
from 8st of August 2022, and ending on 17th of September 2022. The departments where I got
training were Deposits, Remittance, Cash, Clearing, and Bills & Account Opening.

My internship started in the accounts department where I learnt about the work related to the
accounts section which is primarily doing the work of checking all the financial activity
going on in the bank and it is done on both the customers and the banks expenditure level.
The daily activity that happens on one day is matched to the reports generated by the bank’s
central information system on the other day and proof of the transactions in the shape of
cheques, deposit drafts or online vouchers are checked for the information that is provided in
the report and then if cleared they are saved to be inspected by all the auditors and in case
there is a problem and some record is missing, the bank staff goes to tremendous lengths to
recover the missing articles and then move the reports because besides affecting their
personal performance it also has a bad effect on the bank’s and the branch’s overall
performance in the shape of an objection from the audit team. After that I did some work
with the credit department which is basically related to processing all the credit related work
of the bank. They work on the credit process from the start to the eventual end of any credit
process and even though they work in the same building they have their own separate team
which has nothing to do whatsoever with the normal working staff and they work with their
selected employees only. When a person applies for credit at Askari Bank Limited, the entire
credit process starts in which complete inspection of documents in done and then only are the
loans allowed to proceed with prior approval from the area head. Credit departments also
deals with issuing foreign guarantees in the form of Letters of Credit which is basically a
guarantee to a foreign bank for a local account holder in the matters of purchase of
merchandise which may range from chemicals to refurbished cars.

The third and perhaps the most vital department of any bank is the deposits department which
works at the branch level and this particular department is responsible for the trading of funds

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and maintaining different accounts. Deposit department is where the accounts are opened,
clients are served and are provided with basic information about banking that ranges from
simple information like opening an account to investing in the various investment
opportunities that a bank provides.

Last department where I worked was the bills and remittances department which is assigned
with the task of handling interbank and intercity transactions. Intercity transactions in a bank
are done with the help of an online statement which is used for on-net transactions as each
bank branch in Pakistan has a unique code so if money is to be sent to any branch, then it is
sent to that particular branch via the central management system which in Askari Bank is
known as Flex Cube. In case of interbank transactions, the money is transferred with the help
of cheques which are sorted out by the various sorting houses State Bank has opened in
different cities of Pakistan to facilitate and quicken this process. These collect all interbank
transaction items from different banks and supply them to the desired destination.

From my observation of the staff that was working at Askari Bank, I concluded that the staff
working there was highly motivated and trained in their jobs and had the capacity to manage
nearly every contingency that arose during the tenure of my internship. Proper testing and
standards are used at the time of hiring and courtesy to those the workforce that results is a
skilled and motivated one and the rather high remuneration policy of the bank also ensures
that the staff stays motivated not letting loose at any moment. Secondly, the managers take
keen interest in even the slightest details of the activities going around in the bank and visit
everybody on nearly daily basis and inquire them about their work which I believe ensures
quality and motivation

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STRUCTURE OF FINANCE DEPARTMENT

The Finance department of Askari Bank is structured as follows:

• Chief Financial Officer (CFO): The CFO is the head of the Finance department and
is responsible for all financial matters of the bank.

• Director of Financial Planning and Analysis (FP&A): The Director of FP&A is

responsible for developing and managing the bank's financial plans and forecasts.

• Director of Treasury: The Director of Treasury is responsible for managing the

bank's cash and investments.

• Director of Risk Management: The Director of Risk Management is responsible for

managing the bank's risks, such as credit risk, market risk, and operational risk.

• Director of Internal Audit: The Director of Internal Audit is responsible for

conducting independent audits of the bank's financial operations.

The Finance department also includes a number of other specialized units, such as the
accounting unit, the tax unit, and the treasury operations unit.

The Finance department is responsible for a wide range of financial activities,

including:

• Managing the bank's balance sheet: The Finance department is responsible for
ensuring that the bank's balance sheet is properly managed, with the right mix of
assets and liabilities.

• Generating revenue: The Finance department is responsible for generating revenue

for the bank, through activities such as lending, investing, and fees.

• Controlling costs: The Finance department is responsible for controlling the bank's
costs, in order to ensure that the bank is profitable.

• Managing risk: The Finance department is responsible for managing the bank's risks,
in order to protect the bank's assets and reputation.

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Number Of Employees Working Under Finance Department

According to the Askari Bank website, the bank has a total of over 10,000 employees. The
Finance Department is one of the largest departments in the bank, so it is likely that there are
several thousand employees working in the department.

The number of employees working in the Finance Department will vary depending on the
size of the bank's operations. For example, a bank with a large number of branches will need
more employees in the Finance Department to handle the accounting, treasury, and risk
management needs of the branches.

Sub-Department Under Finance Department

There are a number of sub-departments under the Finance Department of Askari Bank. Some
of the most common sub-departments include:

I. Financial Planning and Analysis (FP&A): This sub-department is

responsible for developing and managing the bank's financial plans and forecasts.

II. Treasury: This sub-department is responsible for managing the bank's cash and
investments.

III. Risk Management: This sub-department is responsible for managing the bank's
risks, such as credit risk, market risk, and operational risk.

IV. Internal Audit: This sub-department is responsible for conducting independent

audits of the bank's financial operations.

V. Accounting: This sub-department is responsible for recording and reporting the

bank's financial transactions.

VI. Tax: This sub-department is responsible for ensuring that the bank complies with all
tax laws and regulations.

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VII. Treasury Operations: This sub-department is responsible for managing the

bank's day-to-day treasury operations.

VIII. Data Center: This sub-department is responsible for managing the bank's data
center and ensuring that the bank's data is secure.

IX. Risk Management System: This sub-department is responsible for managing

the bank's risk management system and ensuring that the bank's risks are properly
managed.

X. Internal Audit System: This sub-department is responsible for managing the

bank's internal audit system and ensuring that the bank's financial operations are
properly audited.

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MARKETING FUNCTIONS

The marketing functions of Askari Bank are essential to the success of the bank. By
performing these functions effectively, the bank can attract new customers, retain existing
customers, and grow its business.

4P's OF ASKARI BANK

I. Product: Askari Bank offers a wide range of products, including savings accounts,
checking accounts, loans, credit cards, investment products, and insurance products.
The bank's products are designed to meet the needs of a wide range of customers,
from individuals to businesses. Askari Bank has recently launched a new digital
savings account that offers high interest rates and no minimum balance requirements.
This product is designed to appeal to customers who are looking for a convenient and
high-yield way to save money.

II. Price: Askari Bank's prices are competitive with other banks in Pakistan. The bank
offers a variety of pricing options, so customers can choose the option that best suits
their needs. Askari Bank offers a variety of pricing options for its loans. For example,
the bank offers a fixed-rate loan that has a lower interest rate than a variable-rate loan.
This pricing option is designed to appeal to customers who are looking for a
predictable monthly payment.

III. Place: Askari Bank has a nationwide network of branches and ATMs. The bank also
offers online and mobile banking services, so customers can bank from anywhere.
Askari Bank has a nationwide network of branches and ATMs. This makes it easy for
customers to access their accounts and conduct banking transactions. The bank also
offers online and mobile banking services, so customers can bank from anywhere.

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IV. Promotion: Askari Bank promotes its products through a variety of channels,
including advertising, direct marketing, and social media. The bank also offers loyalty
programs and discounts to its customers. Askari Bank promotes its products through a
variety of channels, including advertising, direct marketing, and social media. The
bank also offers loyalty programs and discounts to its customers. For example, the
bank offers a rewards program that allows customers to earn points for every dollar
they spend on their credit card. These points can be redeemed for travel, merchandise,
or gift cards.

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HUMAN RESOURCE MANAGEMENT

HR practices are the policies and procedures that organizations use to manage their
employees. They cover a wide range of areas, including recruitment and selection,
performance management, training and development, compensation and benefits, and
employee relations. Effective HR practices can help organizations to attract and retain top
talent, improve employee performance, and create a positive work environment. They can
also help organizations to comply with legal requirements. Askari Bank is a leading
commercial bank in Pakistan with a strong focus on HR practices.

HR Practices of Askari Bank

• Recruitment and selection: Askari Bank use a variety of methods to identify

and hire the best talent, including online job postings, campus recruitment, and
referrals. The bank also has a strong focus on diversity and inclusion in its recruitment
process. Askari Bank uses a variety of methods to attract candidates, including online
job postings, campus recruitment, and employee referrals. The bank also participates
in industry events and collaborates with recruitment agencies.

• Performance management: Askari Bank uses a performance management

system to track employee performance and provide feedback. The system is designed
to help employees set goals, track their progress, and receive regular feedback. The
bank's performance management system is based on a set of clear objectives and
measures. Employees are evaluated on their performance against these objectives, and
they receive feedback from their managers. The system is used to help employees
develop their skills and achieve their career goals.

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• Training and development: Askari Bank invest heavily in training and

development for its employees. The bank offers a variety of training programs, both
internal and external, to help employees develop their skills and knowledge. The bank
offers a variety of training and development programs to its employees. These
programs are designed to help employees acquire new skills, improve their
performance, and advance their careers. The bank also offers tuition reimbursement
programs to help employees further their education.

• Compensation and benefits: Askari Bank offer a competitive salary and

benefits package to its employees. The package includes health insurance, retirement
savings plan, and other benefits.

• Employee relations: Askari Bank has a strong focus on employee relations. The
bank has a grievance handling procedure to address employee concerns. The bank
also has a number of employee engagement initiatives to create a positive work
environment. The bank is committed to creating a workplace where employees feel
valued and engaged. The bank offers a number of employee engagement initiatives,
such as employee surveys, social events, and wellness programs. These initiatives
help to foster a positive work environment and promote employee satisfaction.

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CRITICAL ANALYSIS

A critical analysis of an organization is a systematic and objective examination of the

organization's structure, culture, performance, and strategies. It is a process of identifying the
organization's strengths and weaknesses, as well as its opportunities and threats. The goal of a
critical analysis is to provide insights that can help the organization improve its performance
and achieve its goals.

I. Theoretical Concepts & Practical Experience

One of the theoretical concepts that I learned in university was about the importance of
financial analysis in assessing a company's financial health. During my internship, I had the
opportunity to use this concept in practice by analysing the financial statements of Askari
Bank. I was able to see how the bank's financial performance had changed over time, and I
was able to identify some of the factors that were driving this change. This experience helped
me to understand the importance of financial analysis in making informed business decisions.

Another theoretical concept that I learned in school was about the importance of customer
service in the banking industry. During my internship, I had the opportunity to interact with
customers on a daily basis. I learned how to provide excellent customer service, and I learned
how to resolve customer complaints in a timely and efficient manner. This experience helped
me to understand the importance of customer service in building a successful bank.

Overall, my internship at Askari Bank was a valuable learning experience. I was able to apply
the theoretical concepts that I learned in school to real-world situations. I also had the
opportunity to gain practical experience in customer service and financial analysis. I am
grateful for the opportunity to have interned at Askari Bank, and I believe that the experience
has made me a more well-rounded and marketable individual.

Here are some specific examples of how I related theoretical concepts with my practical
experience during my internship at Askari Bank:

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• I learned about the different types of financial ratios that can be used to assess a
company's financial health. I then used these ratios to analyze the financial statements
of Askari Bank. This helped me to identify some of the strengths and weaknesses of
the bank's financial performance.

• I learned about the importance of customer satisfaction in the banking industry. I then
used this knowledge to improve the customer service experience at Askari Bank. This
included things like being more proactive in resolving customer complaints and
providing more personalized service.

• I learned about the different types of banking products and services that are available.
I then used this knowledge to help customers choose the right products and services
for their needs. This helped to improve the customer experience and increase the
bank's profitability.

I believe that my internship at Askari Bank has made me a more well-rounded and
marketable individual. I have gained valuable experience in customer service, financial
analysis, and banking products and services. I am confident that these skills will be valuable
in my future career.

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II. FINANCIAL ANALYSIS

Financial analysis is the process of examining and interpreting financial statements to assess
the financial health of a company, project, budget, or other finance-related transaction.
Financial analysis is used to evaluate economic trends, set financial policy, build long-term
plans for business activity, and identify projects or companies for investment. This is done
through the synthesis of financial numbers and data.

Here is a financial analysis of Askari Bank for the last 3 years:

Year Capital Gross Non- Net Non- Provision Return CASA Net Cost to
Adequacy Performing Performing Coverage on Ratio Interest Income
Ratio Assets Assets Ratio Assets Margin
2020 15.3% 7.1% 0.7% 91.1% 0.9% 45.0% 2.9% 62.2%
2021 17.2% 6.4% 0.5% 92.4% 1.1% 43.3% 3.3% 53.2%
2022 18.1% 5.6% 0.3% 81.9% 1.2% 42.6% 3.6% 51.7%

Askari Bank has been consistently improving its financial performance over the past 3 years.
The bank's capital adequacy ratio has increased from 15.3% in 2020 to 18.1% in 2022, which
is well above the regulatory minimum of 12%. The bank's gross non-performing assets (npas)
have also decreased from 7.1% in 2020 to 5.6% in 2022, and its net npas have decreased from
0.7% to 0.3%. The bank's provision coverage ratio has remained strong, at 91.1% in 2020 and
92.4% in 2021.

Askari Bank's return on assets (ROA) has also improved over the past 3 years, from 0.9% in
2020 to 1.2% in 2022. The bank's CASA ratio has also increased from 45.0% in 2020 to
42.6% in 2022. The CASA ratio is a measure of a bank's reliance on customer deposits, and a
higher CASA ratio is generally considered to be a sign of financial strength.

Finally, Askari Bank's net interest margin (NIM) has increased from 2.9% in 2020 to 3.6% in
2022. The NIM is a measure of a bank's profitability, and a higher NIM is generally
considered to be a good sign.

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Overall, Askari Bank's financial performance has improved over the past 3 years. The bank
has a strong capital adequacy ratio, low npas, and a high provision coverage ratio. The bank's
ROA and CASA ratio have also improved, and its NIM has increased. These are all positive
signs for the bank's future financial performance.

Fiscal year is January-December. All 2022 2021 2020

values PKR Millions.

Total Cash & Due from Banks 74,366 91,410 76,327

Cash & Due from Banks Growth -18.65% 19.76% 18.63%

Investments - Total 762,938 616,231 449,612

Trading Account Securities 404 - 0

Federal Funds Sold & Securities 407 - -

Purchased
Securities Bought Under Resale 407 - -
Agreement
Treasury Securities - - -

Federal Agency Securities 743,366 593,925 429,739

Other Securities 18,761 22,306 19,873

Other Investments - - -

Investments Growth 23.81% 37.06% 46.96%

Net Loans 590,072 479,251 400,937

Commercial & Industrial Loans 110,138 92,930 83,295

Interbank Loans 6,261 1,578 5,521

Lease Financing Loans - - -

Unspecified/Other Loans 504,796 414,971 338,567

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Loan Loss Allowances (Reserves) (31,123) (30,228) (26,446)

Customer Liability on Acceptances 14,926 14,601 11,830

Real Estate Other Than Bank Premises 1,983 3,167 4,969

Loans - 1 Yr Growth Rate 23.12% 19.53% 0.23%

Loans (Total) / Total Deposits 0.00% 0.00% 0.00%

Loans (Total) / Total Assets 0.00% 0.00% 0.00%

Net Property, Plant & Equipment 24,484 20,179 21,233

Other Assets (Including Intangibles) 49,979 29,327 26,382

Other Assets 48,603 28,138 25,223

Intangible Assets 1,376 1,189 1,159

Deferred Charges 7,611 6,774 6,682

Interest Receivables - - -

Total Assets 1,526,294 1,259,329 992,887

Assets - Total Growth 21.20% 26.84% 19.13%

Return On Average Assets 1.01% - -

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A. HORIZONTAL ANALYSIS

2022 2021 2020

Balance Sheet
Cash and balances with
70,950 89,432 73,652
treasury banks
Balances with other banks 9,677 3,455 7,720
Lending’s to financial
407 - -
institutions
Investments 762,531 616,361 449,687
Advances 583,811 477,588 395,374
Operating fixed assets 25,860 21,350 22,357
Deferred tax assets 7,546 5,168 1,623
Other assets 65,352 45,789 42,105
1,526,13 1,259,14
992,517
4 4
Liabilities
Bills payable 11,879 10,235 12,630
Borrowings 233,432 123,564 84,164
1,142,57 1,015,43
Deposits and other accounts 791,187
5 0
Sub-ordinated loans 12,000 12,000 12,000
Deferred tax liabilities - - -
Other liabilities 52,926 42,012 37,990
1,452,81 1,203,24
937,971
1 2
Net Assets 73,322 55,902 54,546
Represented by
Share capital 12,603 12,603 12,603
Reserves 43,386 32,730 25,632
Surplus on revaluation of
3,952 1,964 7,638
assets - net of tax
Unappropriated (loss) / profit 13,381 8,606 8,674
73,322 55,902 54,546
Mark-up / return / interest
165,796 77,550 77,322
earned
Mark-up / return / interest
125,834 45,140 47,059
expensed
Net mark-up / interest income 39,962 32,410 30,263
Non mark-up/interest income
Fee and commission income 5,446 4,609 3,851
Dividend income 486 420 273
Foreign exchange income 5,494 3,124 2,673
Gain on securities (251) 815 2,556
Other income 444 402 341

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Total non-markup / interest

11,620 9,370 9,694
income
Total income 51,582 41,779 39,957
Non mark-up/interest expenses
Operating expenses 22,572 20,891 20,123
Workers’ welfare fund / other
340 213 43
provisions
Other charges 168 90 48
Total non-markup / interest
23,080 21,194 20,215
expenses
Profit before provisions and
28,502 20,585 19,742
tax
Provisions / (reversals) 1,042 4,940 1,975
Profit before taxation 27,459 15,645 17,767
Taxation (13,398) (5,944) (6,967)
Profit after taxation 14,062 9,701 10,800
Basic and diluted earnings per
11.16 7.70 8.57
share - Rupees

B. VERTICAL ANALYSIS

2022 2021 2020

Balance Sheet
Assets
Cash and balances with treasury
70950 89,432 73,652
banks
Balances with other banks 9677 3,455 7,720
Lendings to financial institutions 407 - -
Investments 762531 616,361 449,687
Advances 583811 477,588 395,374
Operating fixed assets 25860 21,350 22,357
Deferred tax assets 7546 5,168 1,623
Other assets 65352 45,789 42,105
1526134 1,259,144 992,517
Liabilities
Bills payable 11879 10,235 12,630
Borrowings 233432 123,564 84,164
Deposits and other accounts 1142575 1,015,430 791,187
Sub-ordinated loans 12000 12,000 12,000
Deferred tax liabilities 0 0 0
Other liabilities 52926 42,012 37,990
1452811 1,203,242 937,971

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Net Assets 73322 55,902 54,546

Represented by
Share capital 12603 12,603 12,603
Reserves 43386 32,730 25,632
Surplus on revaluation of assets -
3952 1,964 7,638
net of tax
Unappropriated (loss) / profit 13381 8,606 8,674
73322 55,902 54,546
Mark-up / return / interest
165796 77,550 77,322
earned
Mark-up / return / interest
125834 45,140 47,059
expensed
Net mark-up / interest income 39962 32,410 30,263
Non-mark-up/interest income
Fee and commission income 5446 4,609 3,851
Dividend income 486 420 273
Foreign exchange income 5494 3,124 2,673
Gain on securities -251 815 2,556
Other income 444 402 341
Total non-markup / interest
11620 9,370 9,694
income
Total income 51582 41,779 39,957
Non-mark-up/interest expenses
Operating expenses 22572 20,891 20,123
Workers’ welfare fund / other
340 213 43
provisions
Other charges 168 90 48
Total non-markup / interest
23080 21,194 20,215
expenses
Profit before provisions and tax 28502 20,585 19,742
Provisions / (reversals) 1042 4,940 1,975
Profit before taxation 27459 15,645 17,767
Taxation -13398 (5,944) (6,967)
Profit after taxation 14062 9,701 10,800
Annual Report 2022

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III. Competitive Analysis of Askari Bank with Other Organizations

Askari Bank

• Founded in 1957
• Headquartered in Karachi, Pakistan
• Total assets of $10.5 billion (as of March 2023)
• Market capitalization of $1.5 billion (as of March 2023)
• 1,200 branches in Pakistan
• 10 branches in other countries
• Offers a wide range of banking products and services, including retail banking,
corporate banking, investment banking, and Islamic banking

HBL

• Founded in 1941
• Headquartered in Karachi, Pakistan
• Total assets of $22.5 billion (as of March 2023)
• Market capitalization of $3.5 billion (as of March 2023)
• 1,700 branches in Pakistan
• 10 branches in other countries
• Offers a wide range of banking products and services, including retail banking,
corporate banking, investment banking, and Islamic banking

Bank Alfalah

• Founded in 1971
• Headquartered in Karachi, Pakistan
• Total assets of $11 billion (as of March 2023)
• Market capitalization of $1.7 billion (as of March 2023)
• 1,400 branches in Pakistan

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• 2 branches in other countries

• Offers a wide range of banking products and services, including retail banking,
corporate banking, investment banking, and Islamic banking

JS Bank

• Founded in 1947
• Headquartered in Karachi, Pakistan
• Total assets of $9 billion (as of March 2023)
• Market capitalization of $1.3 billion (as of March 2023)
• 1,100 branches in Pakistan
• 1 branch in other countries
• Offers a wide range of banking products and services, including retail banking,
corporate banking, investment banking, and Islamic banking

Competitive strengths of Askari Bank Competitive weaknesses of Askari Bank

Strong brand recognition High cost of operations
Extensive branch network Slow pace of innovation
Wide range of products and services Lack of international presence

Experienced and professional staff Smaller market share

Overall, Askari Bank is a well-established bank with a strong competitive position in the
Pakistani market. However, the bank faces some challenges, such as high costs and slow pace
of innovation.

• PRODUCTS AND SERVICES: Askari Bank offer a wide range of products and
services, including savings accounts, current accounts, loans, credit cards, and
investment products. Its competitors offer similar products and services, and they are
constantly innovating to offer new products and services that meet the needs of their
customers.

• PRICING: Askari Bank's pricing is competitive with its competitors. It offers a

variety of discounts and promotions to attract and retain customers.

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• BRAND IMAGE: Askari Bank has a strong brand image in Pakistan. It is known for
its reliable services and its commitment to customer satisfaction. Its competitors also
have strong brand images, and they are constantly working to improve their brand
reputation.

• DISTRIBUTION CHANNELS: Askari Bank has a wide network of branches and

ATMs across Pakistan. It also offers online and mobile banking services. Its
competitors have similar distribution channels, and they are constantly expanding
their reach to new customers.

Askari Bank's competitive advantage is its strong brand image and its commitment to
customer satisfaction. It is also known for its innovative products and services. However, its
competitors are also strong, and they are constantly innovating to attract and retain
customers. As a result, the banking industry in Pakistan is very competitive, and Askari Bank
needs to continue to innovate and improve its products and services in order to maintain its
competitive edge.

IV. Future Prospects of Askari Bank

The future prospects of Askari Bank are positive. The bank has a strong foundation and a
number of opportunities for growth. However, there are also some risks that the bank will
need to manage in order to achieve its full potential.

Some factors that could contribute to Askari Bank's future growth:

• The continued growth of the Pakistani economy. The Pakistani economy is

expected to grow at a healthy pace in the coming years. This will create new
opportunities for Askari Bank to grow its business.
• The increasing demand for banking services in Pakistan. The demand for banking
services in Pakistan is growing. This is due to a number of factors, including the
increasing urbanization of the country and the growing use of technology. Askari
Bank is well-positioned to capitalize on this growing demand.

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• The bank's focus on digital banking. Askari Bank is focusing on digital banking.
This is a growing trend in the banking industry, and Askari Bank is well-positioned to
benefit from this trend.
• The bank's expansion into new markets. Askari Bank is expanding into new
markets. This will help the bank to grow its business and reach new customers.

Some specific strategies that Askari Bank could implement to improve its future
prospects:

• Expand its branch network. Askari Bank has a relatively small branch network
compared to some of its competitors. Expanding its branch network would allow the
bank to reach more customers and provide them with better service.
• Develop new products and services. The banking industry is constantly evolving,
and Askari Bank needs to develop new products and services to stay ahead of the
competition. The bank could focus on developing products and services that meet the
needs of specific customer segments, such as young professionals or small businesses.
• Grow its digital banking business. Digital banking is becoming increasingly
popular, and Askari Bank needs to grow its digital banking business in order to stay
competitive. The bank could offer more online and mobile banking services, and it
could also invest in developing its own mobile app.

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SWOT ANALYSIS

Every organization has several weaknesses and strengths and in light of those it faces certain
opportunities and threats. The banking sector in Pakistan is a massively competitive one with
competitors offering new and improved services with every passing day and to survive in
such a situation, a bank has to ensure top notch quality and innovation at all times in order to
catch and retain customers. The SWOT Analysis is a management tool used to determine the
strengths and weaknesses of an organization which are a part of internal environment as well
as analyze the opportunities and threats it faces which are a part of its external environment.

STRENGTHS

• One of the leading banks in the industry: Askari Bank Limited is one of the leading
banks in the industry with a net worth that easily places it in the top five and annual
profits that ensure good return for the investors and all the stakeholders in general and
it also has a high number of online branches in Pakistan thus offering more
convenience to its customers.
• Automated operations: The policies and guidelines in the bank are very clear and
strict with regard to the operations and the manner in which they should be performed
and majority of the operations that are occurring at the moment are done electronically
with the help of the new computerized management system.
• Large ATM Network: Askari Bank Limited has one of the largest ATM networks in
the country and records show that it is very rare that an ATM at Askari Bank suffers
from a problem like a down link or out of cash because prompt management by the
managers ensures that such lapses do not occur in the first place. This is also a source
of revenue for Askari Bank as clients of other bank use ATM’s of Askari Bank due to
their superior quality and strategic positioning thus becoming a source of revenue.
• Tailored solutions: The management at Askari Bank believes in the customer and not
so much in the product and are always more than willing to alter or tailor their

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products to suit the needs of the customer because at the end of the day a happy
customer is all that matters.
• Priority Banking: A high level of priority and importance is given to large or
corporate clients with a separate manager always there to address any concern of
theirs in rather lavish surroundings thus giving a feel of high banking standard and
environment.
• Ethical concerns and public image: Askari Bank show deep ethical concerns and
makes sure as to negate any feeling of hatred both inside and outside the organization.

WEAKNESSES

• Lack of technical training: Although the staff in charge of handling technical

operations is highly trained, technical knowhow in lower levels is still not that much,
the bank needs to make arrangements in order to promote this in the lower levels.
• Manual records: Despite having a state-of-the-art computerized management system
the staff still relies on traditional hand written book keeping along with electronic
entries with the excuse that electronic systems are not always reliable and this activity
of theirs wastes time.
• High degree of centralization: Askari Bank Limited has a very high degree of
centralization in it with the lower staff having to ask the permission from the higher
ups in every matter and can do nothing to resolve the problem of a client on urgent
basis and another problem due to this level of centralization is that it makes two-way
communication very difficult.
• Lack of training facilities: For the new recruits there is no specific training program
or facility and most of them are straight away sent to the branches where they learn
about the operations by actually doing them which sounds fine on paper but in reality,
it amounts for a lot of errors which cost customers plus, they take a lot of time to pick
the normal pace of work.

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OPPORTUNITIES

• Islamic banking: Islamic banking is a rising field in the Pakistani banking industry
with nearly all the banks competing in this section and Askari has only a few branches
to cater those needs so they first of all need to step up their attention in the Islamic
banking sector.
• Customer deposits: With the customer base increasing at a steady rate the deposits
are also slowly climbing so there is a good chance for investment by the bank because
some of their customers like those from the Armed forces are guaranteed and are a
source of huge deposit base.
• Rural Areas: Rural areas present a golden opportunity for any bank in Pakistan
because development is taking place at a high rate and soon the areas which were once
neglected will present golden business opportunities.
• Technological upgrades: Even though it is a costly fixed expenditure still a lot of
banks are moving towards technological upgrades and for a bank with this large a
customer base technological upgrades can only be but profitable.

THREATS

• High turnover: Turnover is a little high in Askari Bank and in my understanding, it is

not due to the remuneration policies but the high level of centralization which
provides little or no space for the self-motivated personnel. As soon as they get a
better opportunity, they switch.
• High commissions: The commissions and charges by the bank for some of the
facilities are alarmingly high this is a very serious situation for the bank as those
customers can be snatched by the other banks then.
• Lower rates of return: The rates of return offered by Askari Bank are not that high
and as a result they have a hard time convincing customers to invest in the bank
primarily due to this reason.

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CONCLUSION

In addition to fulfilling a degree requirement, my internship's primary goal was to provide me

with the skills and information I would need to succeed on the job market. It gave me a lot of
advice and knowledge about the banking industry, which I now believe to be a potential
career path for me. Additionally, it helped me become a more polished and experienced
person than I was previously. I now believe that the organization's selection may have been
improved, but it was still a positive experience that I would definitely like to have again.

Askari Bank is a leading commercial bank in Pakistan, and it has been playing a significant
role in the country's industrial progress and capital formation. The bank's financial analysis
shows that it is sharing a major share of the banking business in Pakistan, and its financial
performance is strong. The bank's schemes and policies are also helping to drive its trading
and non-trading growth. Askari Bank's schemes and policies are also helping to drive its
trading and non-trading growth. For example, the bank's trade finance schemes help
businesses to import and export goods. These schemes have helped to increase the country's
trade volume and boost economic growth.

Overall, Askari Bank is playing a significant role in the industrial progress and capital
formation in Pakistan. The bank's financial analysis shows that it is a strong financial
institution, and its schemes and policies are helping to drive its trading and non-trading
growth. For their dedication and highest level of productivity, the employees receive pay and
other benefits. Askari Bank implements a merit policy for all activities. By contrasting it with
other banks, the administration intended to prevent any flaws, shortcomings, and concerns.
Askari Bank has effective management practices that are progressive.

Soon, the Askari Bank bank will reach its highest point of achievement, advancement, and
development thanks to its committed, inspired, and dedicated staff.

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RECOMMENDATIONS

Following are the recommendations that may be prove successful to the bank by studying the
organization and during internship.

• Continue to focus on providing loans to businesses of all sizes, including SMEs. This
is a key area where Askari Bank can continue to contribute to the industrial progress
and capital formation in Pakistan.

• Invest in infrastructure projects that will improve the country's infrastructure and
create a more conducive environment for businesses to operate. This is another key
area where Askari Bank can make a significant impact.

• Expand its range of financial services to individuals, such as savings accounts, current
accounts, and credit cards. This will help individuals to manage their finances and
save for the future.

• Continue to develop its digital banking platform to make it easier and more
convenient for customers to do business with the bank. This is an important trend in
the banking industry, and Askari Bank needs to be at the forefront of this.

• Strengthen its corporate governance and compliance practices to ensure that it is

operating in a transparent and ethical manner. This is essential for maintaining the
trust of customers and stakeholders.

• Such services and products should be launched by Askari Bank in which there is no
need for the customers to come to the bank like telephone banking.

• Those banks are successful only which provides standard, accurate and fastest
services for the product and loan delivery to the customers. So Askari Bank should
use latest and advance technology like fax and computerization.

• MIS of Askari Bank should be improved for delivery of information at time through a
network by connecting branches & regional offices to the head office.

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REFERENCES

• Askari Bank's Official Website

https://askaribank.com/

• Wikipedia
https://www.wikipedia.org/

• Google Bard
https://bard.google.com/

• Annual Reports of Askari Bank

• Financial News and Business Publications

• Pakistan Stock Exchange

• Books Consulted

o Principle Of Managerial Finance

o Financial Management by Gitman

o Brochures And Pamphlets Provided by Bank

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