FIRST WEEK

I started my internship from "General Banking" in the first week. The General banking is
basically divided into the following sub departments, which are as follows:

Account opening

 Bills and remittances

 Clearing
 Term deposit
 Cash department

The first day of exposure to the practical field was at the (sub department) Account opening.

The relationship of customer starts with this department. every one is not allowed to come and
open an account in the bank, for this purpose there should be an introducer who himself is the account
holder in the same branch. He has to introduce the new client by signing the opening account form and
then his signature are verified.

Applicant's fills the account opening form and provides it to the bank with photocopy of I.D. card
and signatures card.

Then the banker inquires the about the option of opening a joint account or individual. If the
customer wants to open joint account then either it is "either or survivor" (i.e. Only one persons
signature is sufficient) or jointly (i.e. Both should sign the cheque).
ACCOUNT OPENING:

Although the procedure of opening an account in a bank is a quite complicated job but I
am going to tell you only the basic necessities for opening the account, which are as follows:

INTRODUCTION

 National I.D. card

 Personal data
 Details of dealing with other banks.

These are some of the basic requirements for opening the account.

ISSUANCE OF CHEQUEBOOK

Once the account is opened, ACBL issues the cheque books to the customer so that they
could withdraw their money whenever they like. The producer of issuance of the cheque book is
as follows:

For the customer who already has an account with the bank, the lastly consumed cheque
book requisition slip with the help of which a new cheque book is issued. And the person who is
going to open a new account for the first time gets the cheque book free without any requisition
slip.
For the new depositors the cheque book is not issued at the time of opening of account,
rather it is issued after three days but, as the most of the customers are from the armed forces so
the usually get the cheque earlier. ACBL issues the cheque books for both the local and foreign
currency accounts.

I remained there in the account-opening department for one week and daily I learnt a new
thing

I come to know about the details of the account opened by the banks, which I have
explained in previous portion of "Departments".

In the start I have stated the account opening procedure and issuance of cheque book in a
very comprehensive way, now let me tell u the further related detail of account opening

First of all a customer come and gets the information regarding the opening of account.
After getting the proper information he gets an introducer and goes for opening an account of
any kind whatever he wants

He fills the from regarding the opening of account which is in fact a request.
S.S card is filled which contains the signature that will be used in future in order to identify that you are
the same particular person who perfectly eligible for receiving the benefits.

The S.S card and the application form is verified and the verification stamp is imposed on it.

After verification the application forms are pasted in the file with the serial, no which is actually
the account no. Allocated to the respective customers.

The cheque book is issued to the customer after three days.

A letter of thanks is posted to the customer as well as the introducer. The introducer is
thanked for the two perspectives. First he should be thanked that because of him the bank get
another customer and the second reason behind sending the letter to him is that if the customer
had fraudulently get the signature of that person as an introducer then he should come to know
that some one has used his name as well as signature for his personal benefit and without the
consent of him (introducer).

The procedure for opening the account comes to an end after sending the letter of thanks.

Active and inactive Account

The account becomes Inactive if there is no debit transaction. Account becomes active if there is
credit transaction.

SECOND WEEK

In the second week I was shifted to the TDR (Term Depots Receipts) department. It was
again a good experience to work with the officer here. First of all he told me about the basics of
the TDR.

Deposit is lifeblood of a commercial bank. The main function of a commercial bank is to

channelize the saving from the savers to the ultimate users of the funds. This process of
collecting saving is called "deposit mobilization".

Deposits are of two a type one is the demand deposit and the other one is time deposit
(these have been explained in detail in the "department" portion). As the name signifies the
demand deposit is payable on demand so no interest or benefit is given on such deposits but the
time deposit is a kind of deposit, which gives you a benefit in terms of cash. Most of the people
who have surplus money with them especially the landlords deposit their money in such
accounts.
 Term deposits are payable on demand with certain maturity. Different percentages of
profit are given in the time deposit (the detail is given in the Marketing Mix)
These are called fixed deposit because they are fixed and no transaction is allowed till
maturity. In fix deposit you can open an A/c of the same title only than A/c number will be
changed. While in other accounts the A/c can't be opened under the same title even in other
branch of the same Bank.

Profit calculation

The Head office determines the provisional rates of the Profit. Every bank has its own
interest rate; usually established banks have low interest rates then the non-established banks as
the have to attract the Customers.

There are different types of accounts, which are shown in provisional rates of profit on
“PLS deposit” and rate of return minimum balance, and maturity is also shown in it. After every
six months the rates are revised on PLS deposit

On fixed deposit the interest is given on the Principle amount only while on other profit
and loss deposits the interest is given on profit an principle amount (provided that the interest has
not been received in the given time). On fixed deposits the month is started from the day from
which you deposit the amount.

As the interest rates vary frequently you will calculate the interest on the rate which is
applicable during that particular duration. It happens that sometimes the interest rate remains the
same. But during the year 2004 the interest rates were changed two times within six months.
First of all the interest rates were changed at the start of the year and then these rates were
changed again in the month of the February i.e. these were changed twice in the six months. The
changing in the interest rate depends upon the will of the Head office, which has the power to
change them at any time.

Zakat is deducted on the first of Ramdan. However, the Bank can't deduct the Zakat if
you have given Affidavit (declaration regarding not to deduct Zakat on Stamp paper).
Tax is deducted which is known as withholding tax only at the time of deposit e.g. When
you will deposit Rs.100,000 you will have to give additional money of Rs. 300/- as the
withholding tax. (The rate of withholding tax is 0.3%). If you have National Tax Number NTN
then 0.3% withholding tax is exempt.

The rate of withholding tax on profit is 10% i.e. if you are going to get a benefit of Rs.
10,000 then you will receive the cash of Rs. 9,000 as the remaining amount will be deducted as
the tax.

For non-residents the tax and Zakat is exempt (visa is required as the proof that the
particular person is really a non-resident).similarly Christians has not to pay the tax, they have to
pay the tax only.

Askari Bachat Certificates are tax-free.

The calculation of interest is done manually on the card and then you feed (debit) it in the
bank's account (Profit Saving Account) and will be credited in the customer's account. A
computerized voucher is prepared which will be used as the record.

If there is any mistake in the Debit Credit that will be checked out through Daily Balance
Sheet of the Particular department.
 For easy operations Customer prefer to give instruction that their interest should be
credited to their A/c otherwise a manual voucher will be made that will be cashed on cash
counter every time when you come to take the interest.

RECORD KEEPING:

The record of the TDR is although feed in the computer but there is also a hard copy of
the record. The verified TDR forms are pasted with serial number of receipt given to the
customer (the receipt of the form regarding the deposit of the amount).
Askari Bachat Certificates are attached or pasted in the file according to the date. The
date may be of any month and any year i.e if there is a card of the 8th then on this card you will
find the only 8th date of any month and any year in which the card was issued.

THIRD WEEK

In the third week of my internship I was shifted to the Clearing section and Bills for collection
section as well. Three days I worked with the "Clearing" and then with the "Bills for collection" section.

CLEARING

This is a "Inter-city clearing" i.e the cheques of Lahore city from different banks like
National Bank of Pakistan, Standard Chartered Bank, Muslim Commercial Bank are deposited
here. The deposited cheque is received carefully by checking the title of cheque, date, amount,
and signature on the cheque. All the cheques go to the State Bank of Pakistan. Everyday NIFT
receives all cheques and arranges them. By establishment of NIFT a lot of time, cost and labor is
saved. The cheques are stamped carefully. Two stamps are required on the cheques
CLEARING STAMP

Payee's account will be credited

If any stamp is missed or unclear, SBP returned one the cheque with reason.

When the cheques are deposited they enter all the cheques on the computer with account
number and these figures go to SBP.

There are four types of Balances in the computer

 Available balance
 Float amount
 Block amount
 Ledger balance

NIFT collects all the cheques at 2:00 pm. After that the computer department give clearing sheet
that is checked in clearing.

SAME DAY CLEARING

All the cheques are cleared in coming day. But same day cheques are cleared other same day
when it is deposited. The same day cheque amount is 50,000 below this amount the cheque, can't be
cleared in the same day.

CLEARING HOUSE
 It is a place where representatives of all scheduled banks sit together and interchange their
claim against cash other with the help of controlling staff of "state Bank of Pakistan" where there is no
branch of State Bank of Pakistan, the designated branch of State of Pakistan.

So, system by which banks exchange cheques and other negotiable instruments drawn on each
other within specific area and there by secure payment for their clients through the clearing house at
specific time In an efficient way.

BILLS FOR COLLECTION

Two types of cheques are deposited here

 Outstation cheques
 Askari other branch cheques (local)

Outstation cheques mean different cities cheques are deposited and Local means Askari's
other Branches like cantt, circular road, defence, Gulberg etc. Are deposited. All cheques
account numbers on the computer and these figures go to SBP.

The cheques are cleared in 5-6 days. Because "NIFT" receives and delivered to SBP
where these cheques are cleared in 3 days and deliver to the banks, which mention on the
cheques.

The cheques require three stamps

 Askari crossing stamp

 OBC number
 Payee's account will be credited.

If the cheques are returned due to some reasons, a returned memo.

Random is filled and entries are recorded on the register.

FOURTH WEEK

In the fourth week of internship I was transferred to the "Remittances department". I met there
with a quite sophisticated personality, she tells me about the issuance, procedure and the entries of the
demand drafts and pay orders.

DEMAND DRAFT

It is an instrument payable on demand for which value has been received, issued by the branch
of the bank drawn. Demand draft is payable at some other branches of the same bank. But Askari Bank
contract with MCB so ACBL's demand draft is payable at MCB also. Demand draft is very useful because
there is no chance o fraud. The person deposit cash and get demand draft. It is used for outstation
payment.

ISSUANCE OF DEMAND DRAFT

On the application form following particulars are given:

  Name of beneficiary
 Amount
 Mode of payment
 The place where DD is drawn
 Signature
 Name and address of the beneficiary

Request shall be made on standard application form. The customer writes his name, address, I.D
number, and phone number on the backside of the application form. Commission is charged as per
schedule of charges. The issuance of DD is computerized and the amount is automatically protect
graphed drawing printing for the avoidance of forgery.

The withholding tax and excise duty is deducted as per schedule. when the customer depots
cash in the cash department, he got voucher from the cash department and gave it to the person who
makes the DD.

PAYMENT OF DD

When a person brings DD (which have been drawn on you), you will check it from your DD
payable record and ask the customer to sign twice at the back of the DD so that it could be confirmed
that he is the eligible person for receiving the benefit, along with this you obtain the ID of that person
verify it and then make the payment. After making the payment entry is made in the register that this
DD has been paid.

DD PAYABLE REGISTER
 Every day you receive an IBCA from different banks and it contains a list of DDs, which have
been drawn on you. Banker records it in DD payable register. These DD are those, which other branches
have drawn on your bank.

PAYMENT OF DD FROM SUSPENSE A/C.

The payment of DD is made from the suspence account in the following cases:

 The amount of DD is paid from suspence a/c if advice is not received yet.
 If a DD is to be cancelled on the wish of the customer, in such a case the payment will be
made from suspence A/c.

CANCELLATION OF DD

Following procedure is followed for the cancellation of the DD.

 Obtain the application in writing for the cancellation of DD along with the original DD.
 Verify the signature of the applicant, which should tally, with the signature on the
application form (for opening the DD).
 Mark caution on DD issued register or on computerized entry.
 Make the payment from suspence account.
 Inform the Drawee bank regarding the cancellation and ask for IBCA. Inter Branch
Credit Advice is the advice regarding the payment (refund) of the amount which Drawer
bank have sent to them (which was deposited by the customer against the demand
draft).
 When a demand draft is made, an IBCA is sent to the Drawee bank regarding the
payment.
Types of DD

DD’s are of the following types:

 Crossed DD: In the case of crossed DD the amount is deposited to the A/c of the
benificiary.
 Open DD: Incase of open DD the amount is handed over to the benificiary at the cash
counter.

TELEGARPH TRANSFTER

The transfer of funds from one branch to another branch of the same bank is called telegraphic
transfer. The bank apply test on telegraphic transfer. The applicant receives Commission and charges, if
the Applicant’s account is in ACBL, he pays no charge above Rs. 100,000/-

If he has no account in the ACBL then he has to pay charges according to the amount e.g. for Rs.
100,000/- the charges are Rs. 250/-

If the account of benificiary is in another bank, his bank will present The TT to ACBL through for
payment.

PAY ORDER

Pay order issued from one branch can only be payable from the same branch. Pay order is used
for same city payment. E.g. If ACBL (Main Branch) issued pay order it is only payable for Main Branch of
ACBL.
PROCEDURE

 Applicant fill the application

 After paying charges he gets voucher and pay order is issued
 All pay orders shall be crossed "payee's A/c only".

Cancellation

 The applicant give application for cancellation

 Charges are recovered from the applicant.

FIFTH WEEK

In the second last week of my internship I worked for two days in the "ATM section" and then in
the "Accounts section".

ACCOUNT SECTION

I worked three days in accounts department but as it is a confidential department so they did
not give me enough in formation regarding their working. First day I sorted out the cheques of ACBL
with the help of the serial number and the nature of the account and arrange them in sequence. After
that i checked the activity which contains the title of the cheque, amount, date etc. Accounts
department maintains the record of expenses of all the departments, it also maintain the record of all
the employees regarding their basic salary, increment, benefits etc. It is the backbone of ACBL

On the next day Is worked in the mail dispatch section, the person appointed here asked me to
arrange the letters and to write the mailing address on the envelopes and then to put the letters into the
envelops. It was an interesting job but, the single thing which I learned from here was that, I learnt by
heart the addresses of many branches of the ACBL, which helped me to complete the Marketing Mix
portion of the same report where I have given the detail of the Place of the ACBL. On the following day I
repeated the same job and did nothing else.

ATM SECTION

I worked two days in ATM department. The countrywide network of automated teller machine
carrying the brand name "ASKCASH".

The branch network is corrected on-line real time and its customers have access to off-
sites as well as on-site ATMS all over Pakistan. Being a part of the first inter-bank ATM switch
in Pakistan with ABN AMRO and Habib bank, the customer now here have access to about 90
ATMS through the country.

For ATM cards first the customer open account in the bank after that he/ she fills the application
form for the ATM. the Head office send a ATM cards in a ATM department but pin codes are sent in
other department. So in this way the customer gates his/ her ATM cards.

ATM means "24 hours services" the customers get money at any time at any place but during
my period the function of ATM were held by the Head office for three days. The branch has no authority
to held the machine, if it is not working; the Head office knows the reason for it.

On the whole, it is an excellent strategy of ACBL and to sign a strategic partnership with ABN-
AMRO for ATM sharing arrangement is first time in Pakistan.S

SIXTH WEEK
 In the last week I was shifted to the "foreign exchange" department. For the first three days I
worked there but in the last three days I was shifted again to the account-opening department due to
the absence of one of the Account opening officer. Therefore I was sent back to the account-opening
department.

THE PROBLEMS I FACED

Doing the internship was a wonderful experience for me but as far as preparation of the
report is concerned it was the most difficult part of the project. Preparing for report become most
difficulty and tedious as most of the information was not available not only on net. I was unable
to get the following material.

 History of the bank

 Career ladder

 Job description

I was fortunate to have a wonderful Annual report of the bank. Especially it was rested
according to the circular of the State Bank of Pakistan, therefore, it was quite easy for me to
analyse the income statements of the bank. There are some other necessary requirements for
doing the financial analysis of the income statements i.e.,

 Information about the trends prevailing in the market,

 And information regarding the positions of the competitors of the bank that is the reason
that I was unable to depict the true picture of the financial position of the bank.

 We are also unaware about the off balance sheet finance of the bank so, can say nothing
regarding the true liabilities of the bank

Anyhow, it was a very learning experience for me that I will never in my entire life.