Askri Bank Internship Report

INTERNAL ANALYSIS OF ASKARI COMMERCIAL BANK LIMITED

DEDICATION We dedicate this project to all the dedicated staff Of Askari Commercial Bank.

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ACKNOWLEDGEMENT By the grace of God and the most efforts of our group. We are able to accomplish our project well in time. At this moment we must pay special thanks to our guiders for their Cooperation and guidance that made us accomplish our Project. Also it is matter of great pleasure for us to put our efforts just in front of well esteemed Organization i.e. Askari Commercial bank. Also we are grateful to the staff of the bank, who showed a keen interest and cooperated whole heartedly through out the entire course of activities.

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ASKARI COMMERCIAL BANK LIMITED INTRODUCTION: Askari Commercial Bank Limited is a division of Army Welfare Trust of Pakistan (AWT). It was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced its operation on April 1, 1992. Askari Commercial Bank Limited is a scheduled commercial bank and it works under the prudential regulations of the State Bank of Pakistan and is engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed in Karachi, Lahore and Islamabad Stock Exchanges and its share price is currently the highest quoted from among the new private sector banks in Pakistan currently 48% of its shares are held by AWT. Askari Bank has expanded into a nation wide presence of 98 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2005, the Bank had equity of Rs. 8.6 billion and total assets of Rs. 145.1 billion, with over 600,000 banking customers, serviced by our 2,754 employees.

OBJECTIVES: • • •

To achieve sustained growth and profitability in all areas of business. To build and sustain a high performance culture, with a continuous improvement focus. To develop a customer-service oriented culture with special emphasis on customer care and convenience.

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• • • • • •

To build an enabling environment, where employees are motivated to contribute to their full potential. To effectively manage and mitigate all kinds of risks inherent in the banking business. To maximize use of technology to ensure cost-effective operations, efficient management information system, enhanced delivery capability and high service standards. To manage the Bank’s portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. To deliver timely solutions that best meets the customers’ financial needs. To explore new avenues for growth and profitability.

MISSION STATEMENT: “To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to our stakeholders and contributing to society”

THE VISION: “To be the Bank of First Choice in the Region”

CORPORATE PHILOSOPHY: Inspiring Relationships From knowing its customers requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, 4

form enhancing stakeholders value to practicing corporate ethics, ACBL is striving consistently and continuously to address newer challenges with a single motivation, which is

“The power to inspire and be inspired”

Inspiring Ethic And Core Values Of ACBL: Integrity is the most valued standard in whatever we do. We understand that our commitment to satisfy customers' needs must be fulfilled within a professional and ethical framework. We subscribe to a culture of high ethical standards, based upon development of right attitudes. The intrinsic values, which are the corner stones of our corporate behavior, are:  Commitment  Integrity  Fairness  Teamwork  Service

ANALYSIS OF ASKARI COMMERCIAL BANK LIMITED OPERATIONAL ANALYSIS

The departments in ACBL are divided into large ‘groups’ and each group has other small departments to handle and those small departments are called ‘divisions’. Each division is then divided into ‘units’. Following are different groups along with their responsibilities and overview of their divisions and 5

units:

OPERATIONS AND CREDIT GROUP: The operations and credit group is responsible for all operational as well as credit and risk management activities of the Bank. This includes development and implementation of systems, operational policies and procedures and procedures, process re-engineering, automation, branch expansion and acquisition of premises, regulatory reporting, compliance management and legal affairs. The Group comprises of the • • • • •

Credit Division Electronic Technology Division Systems and Operations Division Compliance and Data Division Legal Affairs Department

THE CREDIT DIVISION (CRD) The credit division is responsible for ensuring identification, control and management of credit risk through its policies. It concentrates on evaluation and appraisal of the credit proposals through a team of experienced bankers, at all levels. The Credit Administration Unit of the CRD constantly monitors the existing credit portfolio and ensures timely action and constant follow-up to regularize and mitigate any weak areas, which may emerge with the passage of time. A Special Asset Management Unit, operating as a part of the CRD, closely monitors the problem loans of the Bank. To ensure low ratio of Bad Debts, it takes necessary remedial measures for timely recoveries. ELECTRONIC TECHNOLOGY DIVISION (ETD): The Electronic Technology Division is responsible for managing the Bank’s technology needs. This includes not just establishing and maintaining technology infrastructure for providing operational support to all units of the Bank, but also introduces latest state-of-art technology-driven products and service delivery systems. This division has made significant contributions towards successfully expanding and managing the customer base of the bank. This division has provided the entire Bank with a countrywide communications network including Satellite, Radio, Leased Line Links, LAN, and WAN, on-line countrywide ATM and inter-branch transaction capability. Because of this division, the Bank won a “Best Consumer Internet Bank in Pakistan” Global Finance Award for year 2003. Many other future

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technological projects are under processes, which include Call Centers, Data Mining and Warehousing, enhancement of ATM networks to international standards. SYSTEMS AND OPERTIONS DIVISION (SOD): This division is responsible for ensuring smooth and effective systems and operations of the Bank. It focuses on disseminating and facilitating implementation of the Management’s policies and decisions for various operational activities of the Bank. It also develops manuals for various departments and operating activities of the Bank. It is also responsible for procurement of equipment for branches and coordinates the development of new branch premises. The responsibility for the Bank’s ‘Annual Branch Expansion Plan’ and all aspects from planning to implementation rests with this division. It includes cost-cutting measures by improving procedures and providing capital and operating expenses budgets. COMPLIANCE AND DATA DIVISION (CDD): The compliance and Data Division is responsible for ensuring effective compliance with regulatory and data reporting requirements. LEGAL AFFAIRS DEPARTMENT: This department is responsible for ensuring effectively managing all legal matters pertaining to the Bank and to protect its interests in this regard. It provides counseling on all legal matters, complicated corporate affairs and other similar legal affairs.

CORPORATE BANKING AND FINANCIAL INSTITUTIONS GROUP: This group is responsible for serving the banking needs of large corporate clients in the public and private sector, managing correspondent banking relationships, overseas operations and undertaking money market/capital market transactions. The Group is organized in three divisions namely • • •

Corporate and Investment Banking Division International Division Treasury Division

CORPORATE AND INVESTMENT BANKING DIVISION (CBD & IBD): The Corporate and Investment Divisions (CBD & IBD) are strongly positioned across priority markets with a distinct strategy for developing 7

corporate business. The strategic framework generates sustainable returns based on strong market presence and financial solutions ranging from debt and equity market transactions to syndicate finance, and from transaction banking to finance advisory services CBD has dedicated marketing support units functioning at Karachi and Lahore. In order to enhance focus on relationship management and service quality, more dedicated staff is being assigned for this purpose. IBD is brought up to full strength and is fast taking shape as an independent strategic business unit. This will provide increased focus on debt/capital markets, advisory services and capital raising, trading and portfolio management. INTERNATIONAL DIVISION (IND): This division plays a key role in extending support to the branches undertaking foreign trade and exchange business. While managing business relationships with correspondent banks, IND remains on the look-out for opportunities of extending its operations and presence in the international market. TREASURY DIVISION (TRD): The Treasury Division is responsible for managing money market and foreign exchange activities for the Bank.

RETAIL BANKING GROUP (RBG) The Retail Banking Group is responsible for serving the banking needs of retail market comprising of individual customers and small and medium sized enterprises. These market segments are gaining increasing importance since the margins in the corporate and commercial banking segments have reduced to unprecedented levels, while margins in retail banking, though considerably reduced are still much better than the former. The Group is managed in two separate business divisions that are: • •

Asset Production Division Investment Products Division

ASSET PRODUCTION DIVISION (APD): Asset Production Division is responsible for development and managing of retail credit schemes and is presently offering several innovative consumer credit products. As far as future is concerned, APD continues to focus on growth by innovating new products, creating strategic alliances, enhancing marketing and sales efforts, and improving customer service through greater

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care and operational efficiency.

INVESTMENT PRODUCTION DIVISION (IPD): The Investment Production Division is responsible for the development and managing of brands that serve the investment needs of the retail market. It focuses on deposit mobilization and provision of value added services and products based on modern technology. IPD offers a range of products designed to cater for diverse customer needs. Apart from those divisions, which come directly under Groups, there are some divisions, which do not come directly under any Group, which are: • • • • •

Credit Cards Division Planning and Corporate Affairs Division Human Resource Division Finance Division Internal Audit Division

CREDIT CARDS DIVISION (CCD): The Credit Cards Division is responsible for managing the Credit Card business of the Bank. It is headquartered in Karachi as a separate Strategic Business Unit (SBU) of the Bank, with all internal functions including credit, operations, marketing, sales, finance and audit; performed independently.

PLANNING AND CORPORATE AFFAIRS DIVISION (PCD): Established in September 2002, this division provides strategic direction to the Bank and developing a futuristic outlook. It remains in touch with market and assimilates both formal and informal information in order to identify new opportunities for growth and increased profitability and counter any emerging threats. A number of other activities are under consideration, including setting up of an Islamic Banking Unit. The aim remains to constantly move towards a learning organization and a dynamic culture.

HUMAN RESOURCE DIVISION (HRD): This division is responsible for managing and facilitating the most important

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and strategic resource of not only ACBL but also any organization, which is the human resource. Its focus is on harnessing the potential and energy of workforce to ensure effective attainment of goals set by the Bank. Recruiting the best, creating an environment that values merit across the entire organization, improving human resource policies, enhancing monetary benefits, organizing social events, providing training and development opportunities, and initiating human resource planning, including carrier and succession planning, are the major objectives of HRD.

FINANCE DIVISION (FND): This division is the hub of all financial information for maintaining different accounts and measuring the performance of the Bank. While ensuring overall financial management, financial control, financial reporting and accounting function, FND is responsible for maintaining the accounting records and systems in accordance with internal policies, regulatory requirements, corporate governance and international accounting standards. It also establishes policies and procedures relating to finance function, monitors returns/spreads and reports on various performance indicators. FND watches for external factors and economic indicators to protect and enhance shareholders value. The Division directs control of the budgeting process in accordance with annual plans, policies, management directives and strategy. It ensures quality budgets and forecasts for approval. FND exercises budgetary control on all income and expense items, continually reviews accounting and control systems, monitors capital adequacy. Many similar financial tasks lie with this division.

INTERNAL AUDIT DIVISION (IAD): The Internal Division (IAD) reports to the audit committee of the Board of Directors as a part of good governance practice, primarily performs its functions independent of the management. It focuses on monitoring and promoting internal controls, risk management and governance. IAD serves as a front line when it comes to monitoring and promoting internal controls, risk management and governance. It also arranges workshops on anti-money laundering. It maintains an appropriate internal audit infrastructure. IAD ensures that it is abreast with the knowledge to meet challenges of modern-day banking.

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These were the departments of ACBL overall. In AWT Plaza Main Branch the departments that function are • • • • • • • • •

Credits Foreign Currency Foreign trade Deposits Remmittences Credit and ATM cards dealing and Locker Services Accounts OBC/Clearing Cash

INDUSTRY AND MARKET ANALYSIS

• SmartCash (Running Finance Facility for Consumers)

This perso Major product lines market segments

Askari Commercial Bank offers the following retail products to serve the needs of the consumer market:

• Askari Bank’s Value Plus (Rupee Deposit Account)

“The best that you deserve” Askari Bank leads the banking with the introduction of Askari Bank's Value Plus, a rupee deposit account, which promises greater financial freedom and security, in an unmatched way. With an investment of as little as Rs.10,000/- in a value plus savings deposit and the customer is entitled to earn monthly returns, while still enjoying the flexibility of a normal checking account.

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• Askari Travellers Cheques (Rupee Travellers Cheques) Askari Bank says

Don't leave home without the convenience of Askari Travellers Cheques in your pocket. Available in the denomination of Rs.10, 000/- , Askari Bank’s Travellers Cheques are light, safe and ideal for all travel purposes. Free Issuance: Customer doesn’t have to pay any service charges for purchasing Askari Travelers Cheques. They can buy these either against cash or debit to their personal account. Customers can enjoy the privileges of buying Askari Travelers Cheques by simply visiting any of Askari Banks branches located all over Pakistan

Earn 0.10% encashment Commission: This unmatched feature lets the customer experience yet another innovative customer care solution. The customer will receive 0.10% commission whenever the traveler cheque is encashed after 30 days of holding Enjoy Added Safety & Security With Askari Bank’s state-of-.the-art in-built security features the customer is assured that this is the best way to make and accept payments. High security lithography, ultra violet printing, special thread, anti scanner pyramid design and unique micro lines, all done and printed in UK gives customer the comfort of dealing in the most safest substitute for cash, easily refundable in case of loss and theft

• ASKCARD (Debit Card)

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Askari Bank is committed to provide innovative and competitive solutions to customers banking needs in a more efficient and personalized manner. Askari Bank enjoys a strategic competitive advantage over all domestic players by virtue of its leadership, large network and technological advancement. In line with the tradition of innovation, Askari Bank is proud on its recent launch of "ASKCARD"- Askari Bank's Debit Card. ASKCARD is made to take care of your shopping needs and is a valuable financial solution reflecting the commitment to build lasting relationship with its customers. ASKCARD means freedom, comfort, convenience and security, so that customers can have retail transactions with complete peace of mind. ASKCARD is a shopping companion which enhances customer’s quality of life by letting them do shopping, dine at restaurants, pay their utility bills, transfer funds, withdraw and deposit cash through ATM anywhere, anytime.

• ASKPOWER (Prepaid Card)

The Ultimate ..........Power Player is here What is ASKPOWER? ASKPOWER is another name for Askari Bank's Pre-paid Card. Unlike an ATM or debit card, ASKPOWER is not connected to any account. ASKPOWER is an instant cash card that can be used at any ACBL ATM or other ATMs carrying 1-Link symbol, i-Net Banking and at all designated Point of Sale terminals. The card offers remarkable convenience for:

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Everyday purchases

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Payment of bills

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Safe alternative for carrying cash during traveling, special occasions, and emergency back up.

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Easy transfer of money from one ASKPOWER card to other ASKPOWER card.

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As a pre-paid card, ASKPOWER has its own built-in spending limit; set by how much money is loaded to it and how frequently it is taken out.

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Money can be conveniently loaded to any card either by depositing cash at any ACBL Branch or through the ATM

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i-Net Banking from another ASKPOWER Card.

FEATURES: •

Issued to ACBL / Non-ACBL customers. (NIC Card holders)

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Minimum Issuance Limit: Rs. 500/- .

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100% customer acceptance.

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Card can be reloaded anytime.

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Transfer of money from one card to another card.

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Payment of Utility Bills through ATMs and Internet.

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Instant access to money; 24 hours a day, 7 days a week.

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Easy cash withdrawal through ACBL ATMs or ATMs carrying 1-Link or Orix Leasing network symbol.

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Fast, private, safe and secure option for cash transfers.

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Replacement of card in case of loss, theft, damaged or defective card.

ADVANTAGES:

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Ultimate way of carrying cash.

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Easy access to cash and commodities.

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No waiting in long queues for paying utility bills.

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No issuance fee.

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No credit approval required.

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Account relationship with ACBL not mandatory.

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Can be issued to anyone having National Identity Card.

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Convenient and inexpensive money transfers.

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Secured online access to transaction records and purchases.

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Countrywide acceptance and availability

ASKPOWER is acceptable at numerous locations including grocery stores, retail stores, restaurants, gasoline stations and also at our existing and continuously expanding network of ATMs and Point of Sales terminals, where ASKPOWER symbol, 1-Link or Orix Leasing Network logo is displayed. ASKPOWER is safe and secure since it offers unmatched security to the cardholders. It functions on a PIN-based mechanism as opposed to the ordinary signature-based cards available in the market. Since only you know your confidential number, you are protected against all sorts of frauds.

The ATM Factor: •

Cash Withdrawal

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Utility Bills Payment

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Funds Transfer (to any other ASKCARD)

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Balance Enquiry

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Mini Statement

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ATM PIN Change

The Internet Factor: •

Utility Bills Payment

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Funds Transfer (to any other ASKCARD)

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Balance Enquiry

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Full Statement

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Internet PIN Change

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The POS Terminal Factor

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For product purchases

• Askari Master Card (Credit Card Facility) This card has worldwide acceptability. It provides customers with service at thousand of locations in Pakistan and over 14 million establishments’ worldwide. Askari Master also gives traveling safety: Customer just needs to purchase their travel tickets on ASKARI MASTER CARD and they are automatically covered under ACBL’s Travel insurance plan. Askari Master Card has low service charges. Askari Master Card provides customer the experience of revolving their spending at comparatively low charges. It has no processing fee on cash payments. When customer pays his/her Askari Master Card bills in cash, bank does not charge any processing fee from them. In case of card being lost or stolen the customer is always a phone call away from the assistance needed. Once customer has registered the loss of credit card, liability against its fraudulent use will be limited and we will send a replacement cared within 48 hours of reporting. The product now has a portfolio of more than 20000 cards. The brand is

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accepted worldwide and at over 3000 locations in Pakistan.

Askari bank’s cash management services The product is for National and Multinational companies. The transaction process flows, operational methodologies and service pricing varies from customer to customer, with marginal modifications, depending upon volumes and nature of transactions involved. Askari Cash Management Services aim at effectively managing the accounts receivable portfolio of medium and large corporate entities. This service helps the corporate entities improve their liquidity, due to ACBL’s well-diversified branch network. The service primarily aims at providing clearing, collection and cash/transfer facility to corporate, under one resource center, which handle the process through the branches and provide adequate reporting to the corporate clients, on various aspects of their accounts receivable portfolio, every month.

• Askari Bank’s Personal Finance (Loan Scheme) One can avail unlimited opportunities through Askari Bank’s Personal Finance. With unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Bank’s Personal Finance makes sure that the customers get the most out of their loan. No matter what their needs are, Askari Bank has more ways to serve its customers.

FEATURES: •

Loan amount from Rs.30, 000 to 300,000

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Repayment period from 1 to 3 years

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Fixed monthly repayment

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Low rates that never change

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No pre-payment penalties

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Shortest processing time

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Funds may be obtained at any ACBL branch

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• ASKAR (Auto Loans)

Car Financing Made Easy

Askar offers the most convenient and affordable vehicle-financing scheme, which provides its valuable customers an opportunity to own a brand new vehicle of their choice. Askar's "No eligibility" clause automatically qualifies a person to own a latest car of their choice. With minimum down payment, lowest insurance rates and widest range of available car makes and models, Askar offers the best value to its customers.

• Askari Bank’s Mortgage Finance (Home Loans)

Ever since the inception of life, shelter has been rated among the primary needs of humanity. Owning a home for oneself remains an exclusive dream for many. Askari Bank has made possible the dream of its customers to have their own house. Whether the customer plans to build a house or buy a constructed house, Askari mortgage finance enables to pursue goal without any problems. Askari mortgage finance offers the convenience of owning a house of its customer’s choice while living in it at its rental value. The customer only has to pay the price of property in affordable installments for a fixed time simply as it pays monthly rentals for his/her residence. The installment plan is carefully designed to suit both customers’ budget and accommodation requirements. Askari Mortgage Finance brings the house of its customer’s choice within its reach as no other mortgage-financing plan offers such a facility, backed by the trust that is sealed into every transaction bearing the Askari Bank mark.

• Askari Bank’s Business Finance (Business Loans)

Askari Bank’s Business Finance is a credit facility available for businesses. If lack of funds has so far been the only reason why you haven't been able to grow the business, then one can stop worrying about daily cash requirements of the business, and start enjoying ACBL’s unique running finance facility ranging from Rs. 500,000/ - to Rs. 5,000,000/-. Available up to 60% of the 18

assessed market value of the residential property, through equitable mortgage, the business pays mark-up on the daily outstanding loan balance.

Three good reasons why should this facility be availed •

Enjoy the flexibility of either small business finance (up to Rs. 1,000,000/ -)

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Medium business finance (up to Rs. 5,000,000/-).

The business is protected from immediate cash flow constraints. Businesses enjoy the convenience of most attractive financing with minimum loan approval turnaround time. nal line of credit is set up with a specified credit limit agreed upon by the customer and ACBL. i.Customer

can withdraw cash from his/her credit line as and when

required. ii.The

markup is charged only on the utilized amount and for the number of days the credit is used.

iii.The

markup is lower than a credit card.

iv.Personal v.Finance

loan and balance transfer facility.

Amount: Up to Rs 1 Million revolving credit line

• Touch n Play (Utility Bills Payment)

Electronic Bill Payment Services lets pay utility bills through ACBL’s ATM network. Customer can forget about the inconvenience of readjusting normal daily routine to the traditional banking hours, or standing in long lines, since Touch n Pay gives the option to pay multiple telephone bills, from different

accounts, in different ways

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as per customer’s own choice and

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convenience. At present, ACBL joined hands with PTCL and this arrangement facilitates Utility Bills subscribers to pay their monthly Utility bills from Askari Bank's ATMs, Point of Sale Terminals (POS), and the Internet and at the Bank's branches through direct debit to their personal accounts. In future, such transactions can be made through Kiosks and Smart cards. ACBL currently has more than 150 ATMs in more than 17 cities including ATMs of the Consortium Banks, which will be made available for bill payment Other products/services offered: In addition to the above-mentioned products, other products/services offered by ACBL are: • On-line Branch Banking Network • Askari i-Net Banking (Internet Banking Solutions) • One Link (ATM Sharing Network) These were the major products and services offered by ACBL. The following show various products and services along with the market segments they cater: CONSUMERS (including housewives, employees and self employed people): • Askari Bank’s Personal Finance • Askari Bank’s Mortgage Finance • Askari Traveler’s Cheques • Askari Master Card • AskCard • Ask Power • Smart Cash

BUSINESSES: • Askari Bank’s Cash Management Services • Askari Bank’s Business Finance BOTH CONSUMERS AND BUSINESSES: • Askar

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• •

Touch n Play Askari Value Plus

Growth rate for the entire industry Banking industry is an industry whose growth rate has always been on an increase during past, in the present and in the future. Each sector has small branches of various banks are opened that are convenient for customers. As far as growth rate is concerned, there the hot topic and of focused area of banking these days is Retail Banking also called consumer banking. These days growth rate of retail banking/consumer banking is rapidly increasing. Now almost every bank is offering consumer-financing products. Because of the various retail products, a common person’s life is made easy. Retail banking is on the growth and this area of banking is to grow more in future.

COMPETITOR ANALYSIS

Major Competitors These days there is cutthroat competition amongst the banks to get a biggest market share possible. Specially, in the banking industry each bank is a competitor of every other bank whether it operating on a large scale or a small scale. SPCBL has many competitors but the following banks are its major competitors:    

Bank Alfalah MCB Bank Habib Bank Limited Askari commercial bank

As far as multi national banks such as Citibank, ABN Amro and Standard Charted Bank are concerned, SPCBL has competition in only one or two products but they are not major competitors. the target market of the above mentioned banks are different where as target market of SPCBL is different. That is why SPCBL is not in direct competition with them.

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DEPARTMENT WORKED DURING INTERNSHIP AND SPECIFIC/LEADING CONTRIBUTIONS MADE WEEK # 1 Accounts Department MAJOR FUNTIONS OF ACCOUNTS DEPARTMENT. Following are the major functions of Accounts Department, which is carried out, in the daily course of business:

   

Daily position reporting Daily Activity Checking Reporting Purchasing Function



REPORTING OF DAILY POSITION. Daily position is prepared daily by the Accounts department to calculate the cash balance to be maintained with the SBP and it involves the following points. 1. Firstly the NIFT statement is obtained from the OBC 22

2.

3.

4.

5.

6.

7.

department, which involves the Main summary page, Inter city clearing (RwpIsd) and Intercity Clearing (Isd-Rwp). The Balance of main summary page is favourable if it is positive otherwise it is against. The Balance of Intercity Clearing of (Isd-Rwp) [Cheques which is received by us] is subtracted from the Net Nift balance of the main summary page. Similarly the Balance of Intercity Clearing of (Rwp-Isd) [Cheques which is delivered by us] are Added in the balance of main summary page. The balance so arrived by Adding and subtracting is said to be favourable Clearing if it is positive otherwise unfavourable clearing. SBP balance is obtained from UNIDD100 and the balance of the Net Nift Clearing is added or subtracted accordingly. Afterwards, any cheque favouring SBP 23

prepared by the cash Department should be subtracted from the balance 8. Any Deposit in the State Bank should be added back to arrive at the net balance maintained with the State bank. 9. This balance is then to be reconciled with the Annexure A. 10. The balances of Assets and liabilities is posted in Annexure 1A which includes the following:

         

Demand Deposits. Saving Accounts & ASDA Accounts Time Deposits. Borrowing from SBP (If any) Short Term Payable Sundry Creditors DTL Sundry Creditors OL Contra Accounts Other Liabilities Excluding FCF FE-25 FCF FE-25 11. The balance of Liabilities should be matched with the balance of liabilities of the Affairs. 12. The Balance of Assets from the Affairs should be posted in the Asset side of the Annexure 1-A and includes the following items:

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

      

Cash on Hand in Foreign Currency Account, Local Currency Account and Cash in ATM (from UNIDD 100) Balance with SBP Investment in National Prize Bonds Total Loans and Advances All Other Assets M.O Account Expenditure Account M.O Account 13. The balance of Assets should be matched with the balance of Assets of the Affairs. 14. Following Figure should be entered from UNIDD 100 in the Annexure 1B statement which includes the following:

     

Payment Against Document PAD (7240) Local Bill for Purchase LBP (7280) Foreign Bills for Purchase FBP (7260) Finance Against Foreign Bills FAFB (7270) LC’s Foreign (8240) LG’s Other Guarantees (8230) 15. Punching the Number of Accounts from UNIDD170 is made by entering the Total Number of Live Accounts in Annexure 1D. This report the total number of accounts in which any movement takes place in the preceding day. 16. In Annexure 1C the posting of Foreign Currency Account having code Number (3255, 25

3855,4040) is entered on every Saturday so that these figures should be deducted from the demand and time liabilities. 5% of these Demand & Time Liabilities is calculated which is considered to be the Cash reserve requirement for the whole week (From MondayFriday). 17. After preparation of these reports, these should be signed from the Accounts In-charge and Manager Operations. Afterwards the Statement of Cash reserve with the State Bank of Pakistan (Annexure A) should be faxed to treasury well on time. 18. After Fax is made to treasury this statement is filed in daily cash position file along with other files. 19. Reports such as UNIDD62, UNIDD170, UNIDD100, is filed separately. 20. Main Summary, UNIDD100, UNIDD113, UNIDD110 Today is filed jointly in miscellaneous file.

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DAILY ACTIVITY CHECKING Current Deposit Account (CD)

Types of Customers:    

Business Business Man Business Partners Salaried Persons

Classification:    

01-01-010-1234-5 01-01-012-1234-5 01-01-014-1234-5 01-01-015-1234-5 Quake Relief Fund)

(President

Earth

H.O EXTRACT

Before getting print of H.O Extract, we have to balance the Dr. & Cr. Side of H.O Extract. H.O is also known as M.O (Main Office).It is treated as Asset as we send the excess fund to the Treasury. Treasury after receiving funds made investment on it and pay 8% per month on the balance of M.O account with them. Through this H.O IBCA (Inter Branch Credit Advice) we transfer funds from One Branch to another branch. There are two types of H.O Vouchers namely:  Originating  Responding ORIGNATING VOUCHERS. The branches usually transfer funds from one branch to other. The branch, 27

which transfers the funds, is called the originating branch whereas the branch to which the funds are transferred is called the responding branch. Originating vouchers basically credit vouchers. For example: Br. Code FROM: Rawalpindi Main MAIL TO: Karachi Main

01 02

RESPONDING VOUCHERS: These vouchers are Dr. Vouchers and used by the responding branch that actually receives those funds from the originating branch. For Example: FROM: Karachi Main MAIL TO: Rawalpindi Main 01

Br. Code 02

Following things should be check in case of H.O Extract:    

Branch Code Transaction Number Amount of IBCA IBCA Number

Transaction Code 14 is used for Credit Amount, Transaction Number 15 is used for Debit Amount and Transaction Number 05 is used for online transaction. The first posting of transaction in the H.O Extract is considered as final posting as no amendment is accepted again in the report on the same day. Any amendment made is highlighted on the next day.

ASKARI SPECIAL DEPOSIT ACCOUNT (ASDA)

ACCOUNT NUMBER: 01-01-165-0001-3 28

01 Shows The Branch Code 01 Shows The Currency Code 165 Denotes The Asda Account 0001 Is The Account Number Of The Asda Account Holder 3 Is The Computer Digit Generated By Computer Itself. ASDA is the hybrid account having the features of both CD Account and PLS Account.

ACCOUNT (FISDA) FINANCIAL INSTITUTION SPECIAL DEPOSIT

Account Number: 01-01-168-0001-3 01 Shows The Branch Code 01 Shows The Currency Code 168 Denotes The Fisda Account 0001 Is The Account Number Of The Fisda Account Holder 3 Is The Computer Digit Generated By Computer Itself This A/c is specially for financial Institution like Askari Leasing & Askari General Insurance.

FAIDA ACCOUNT.

Account Number: 01-01-172-0001-3 01 Shows The Branch Code 01 Shows The Currency Code 172 Denotes The Faida Account 0001 Is The Account Number Of The Faida Account Holder 3 Is The Computer Digit Generated By Computer Itself FAIDA account was an option given to those customers of Askari commercial bank who have their accounts in foreign currency to convert them to local currency, after the nuclear explosion in 1998 according to SBP regulations. No FAIDA account is opened now days.

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ACTIVITY CHECKING OF CD, ASDA, FISDA & FAIDA ACCOUNT

Modes Of Posting:   

Cash Clearing Transfer

Types Of Vouchers:    

Cheques Deposit Slips Debit Vouchers Credit Vouchers

Physical Checking: CHEQUES a. Sorting of Cheques: Separation of Cheques according to classification of Account such as 010-, 012-,014-,015Arrange the Cheques in Ascending Order according to Account Number. b. Checking of Cheques: The Instrument containing the Account Number, Document Number, Cheque Number, and Amount in figures, Date of Instrument (i.e. The instrument should not be post dated), stamp must be reconciled with the activity in order to ensure that the posting in the Unibank is done accurately in all respect.

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DEPOSIT SLIPS a. Sorting of Deposit Slips: Sort the deposit slips according to account numbers b. Checking of Deposit Slips: Check the Account Number, Title of Account, document Number, Instrument number, Amount in figures, stamps with Activity report.

DEBIT VOUCHERS (Yellow / Pink Vouchers) Debit voucher used by Bank employee for transfer of funds. The reconciliation of Account Number, Document Number, Title of Account, Amount in Figures, stamping with the vouchers is required.

CREDIT VOUCHERS (Green Vouchers/CMA Credit Slips)

It also requires the same checking of vouchers with the activity as requires in Debit Vouchers.

TALLY UNCHECKED TRANSFER REGISTER.

AMOUNTS

WITH

Those entries, which are unchecked, should be checked with the transfer register to find out the ID of the person. Any ID other than 00, 99, and 95 should be entered in the Missing Vouchers Register for follow up.

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MISSING VOUCHERS REGISTER. Missing vouchers register is maintained to note down all missing vouchers in daily activity report. Following particulars should be entered in the register:       

Date of Missing Vouchers Account Number Title of Account Amount Dr / Cr Type of Account ID

BUNCH BINDING OF VOUCHERS.

Staple the vouchers separately in Dr/Cr bundles in Yellow Paper. Counting is done for the vouchers to enter on the front page of the Yellow Wrapping Paper.

VOUCHERS NUMBER REGISTER.

Total Number of Dr and Cr is counted and entered in the Vouchers Number Register for the respective Account for completion of the process.

VOUCHERS BAGS. After making bunch of vouchers it is transferred in white cotton bags. The date of activity is entered on the bags for easy access to the vouchers in case of need.

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Week #2 FOREIGN TRADE Foreign trade is the act of import and export or transaction of goods between different countries of the world. It is also called International trade. It plays an important role in the development of the economy of the country. Exports are more preferred than import by all the countries but countries have to import the goods that are not available in their own country. Foreign trade take place as a result of three factors regarding the endowment of productive resources in different parts of the worldwide i.e. Climate conditions, availability of the natural resources and technical know how. If a specific resource of a country is abundant than that good is easily available in that country and vice versa. It is also called the External Trade that involves the external or foreign countries.

FOREIGN IN ACBL: imports and exports In exports goods are foreign countries in imports goods are

TRADE DEPARTMENT This department deals in of the goods for its customers. export or send to the other mentioned by the exporters and imported for the applicant.

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EXPORT’S WORKING: When documents are received for collection in FDBC (Foreign documentary Bills for Collection). Following steps are followed: 1. FDBC stamp will be affixed on all the documents. 2. FDBC number from FDBC register will be allotted. 3. Proper register entry is made. 4. Taking two photocopies of each bill of exchange commercial invoice and bill of lading or AWB (Air Way Bill). 5. Liability is booked. 6. Schedule is prepared. 7. Documents are send.

• In Vouchering:

DR: Customer’s Liability CR: Banker’s Liability

• For KTML:

Customer’s liability A/c:01.703.0005.7 Banker’s liability A/c :5420.04-01.5 For LDBC only A/C number of the customer and banker’s liability change.

• For KTML: DR: 01.685.0005.2 CR: 5410.0410.0 Realization of FDBC: For simple realization: Above step are followed. For Advance Payments: There will be no courier, postage charges are involved.Foriegn currency accounts of the party will also not credited. Liability will be lodged and reversed in the same day.

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FCF Loan Involve: When IBCA is received from KHI Treasury, if there is FCF Loan involve, that IBCA is returned to KHI Treasury requesting them to send the data for two different IBCA.One for FCF loan and for exports proceeds. When IBCA is received: DR: FCF LOAN A/c CR: H.O A/c

 FAFB (Finance against Foreign Bills): For FAFB markup’s amount is calculated through bank rate Sheet on quarterly basis markup is calculated. Different rates will be applied for different quarters. Goods are exported on two terms defined by the State Bank of Pakistan i.e. FOB and CNF. FORMS: Forms that are used in exports are E Form M Form “E” FORM: These are used by exporters who give a declaration to customers’ authorities for goods exported. This form has four parts “original, duplicate, triplicate and quadruplicate. Triplicate part is used for reporting to state bank of Pakistan along with the copy of commercial invoice and B/L/AWB. Quadruplicate part is used by exporter on which he gives declaration to custom authorities for goods exported. E forms are issued free of cost on the written request of exporters. E form is issued to the exporter having an account with the same branch of the bank. In case the exporter maintains his account at a branch other than the exchange dealing branch, the request is routed through his branch. The set of E from after completion of all formalities is then entered in the E form issuance register and acknowledgement is obtained from the exporter or any authorized person of the exporter. Blank E form is not issued if full and exact details of consignment are not available. At least exporters’ name, 35

address, goods to be exported etc must be filled in the E form. After filling all the required spaces on the E form, it is submitted to the authorized dealer for certification purposes. The authorized dealer would scrutinize the E form and will pay the special attention to the following points. Exporter’s registration number is verified. All blank spaces should be correctly filled without any overwriting. Goods should not be exported to ban countries like Israel etc. Banned items should not be exported. E form should be signed by the authorized person; his signature will be verified by the bank indicating the capacity of the signatory. E form can only be signed by the attorney holder of the bank. After certification on E form, all four copies are submitted by the exporter along with shipping bill to the custom authorities for clearance of the consignment. Three copies of E form are returned by the custom authorities retaining the original after the endorsement of shipment on the relative portion of the E form. The quadruplicate copies retained by the exporter, while the duplicate and triplicate copies are submitted to the authorize dealers along with other documents for negotiation within fourteen days from the shipment. The bank retains the duplicate copy for its record while the triplicate copy is send to SBP on realization of proceeds. “M”form: These forms are used for reporting to SBP on monthly basis. Four types of M form are prepared for reporting: a. Bank commission b. Agency commission c. FCF loan d. Adjustment of FCF loan. All charges are reported on this form. Different stamps are used on this form Export proceeds realization: This is also used for report of export proceeds to the state bank of Pakistan.this is also prepared on monthly basis. This includes: FDBC number. Invoice date and value. Shipment date. Bill amount. Equivalent Pak rupees. Bank charges. Realization date. Month in which it is prepared. 36

Statements used for reporting: For: E form A1.O1 I form E2,P2 M form E4,P4 R form JO3 R form is also used for reporting to SBP. IMPORT In import section goods are imported on behalf of their customers by opening a letter of credit on the request of the customer. Exporters and importers do not trust on each other, so they involve to bank to help them to complete their transaction of importing and exporting of goods. Letter of credit(L/C): A letter of credit is the written undertaking by the importer’s bank known as the issuing bank on behalf of its customers. The importer promising to make payment in favor of the exporter within the prescribed time limit and against stipulated documents. How does LC works: The mechanics of the LC are easily understood and separated into the following three steps. issuance flow of goods flow of documents and payments Issuance: After the importer and exporter agree on a sale of goods, where the payment are made by the letter of credit (LC). The importer requests that its bank (issuing bank) issued an LC in favor of the exporter. The issuing bank then sends the LC to the advising bank (exporter’s bank). A request may be included for the advising bank to add its confirmation. The advising bank is usually located in the country where the exporter does business and may be the exporter’s bank. The advising bank verifies the LC and sends to the exporters.

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Flow of goods: Upon receipt of the letter of credit the exporter used the LC to insure that it correspond to the terms and conditions in the purchase and sale agreement. Assuming that the exporter is in the agreement with the LC then he arranges the shipment of the goods. Flow of documents and Payments: After the goods are shipped, the exporter present the documents specified in the LC to the advising bank. Once the documents are checked and found to comply with the LC, the advising bank forward these documents to the issuing bank. The issuing bank examiner the documents to insure that they comply with the LC. If the documents are3 in order, the issuing bank obtain payment from the importer for payment already made to the confirming/advising. Documents are delivered to the importer to allow it to take possession of the goods. Who can get an LC opened: Customer maintaining a current account with the branch and you are satisfied that the goods being imported match the customer’s line of business. Process of opening an LC: Customer approaches L/C department with L/C application form. Performa Invoice (duly signed by the applicant & beneficiary). I. form (signed by applicant). Insurance Policy (110% of LC value). Customer, s group statement is taken using UNI BANK System. A stamp is affixed on the statement. Customer’s group statement is sent to the credit dept. which gets its approval. Approval from International Division is obtained. International Division may authorize a different advising bank that what was requested by the applicant. Int.Division is requested for its approval and following is also sought. L/C advising bank. Reimbursing bank. 38

Request is faxed to the International Division. L/C particulars are entered in L/C opening register in the following manner: Date L/C # Name & Address of the opener. Name & Address of the beneficiary. Amount of L/C in FC. Equiv. Pak Rs. Expiry date. Name & address of the Advising bank. Shipment date Particulars. Initial. Date at which documents are received and liability reversed. Remarks. 9. L/C message is prepared on an excel sheet and is signed by two attorney holders and a round stamp is affixed on it before TEST is applied on it by the TEST Key Holders in the bank. 10. It is faxed to the Swift Centre which prepares SWIFT messages on Mt 700 and transmitted the L/C. 11. Copy of the transmitted message is sent back to the branch. 12. In Vouchering DR: Customer account CR: Commission on L/C CR: Postage charges. CR: SWIFT charges. Commission is different on different amounts but Postage charges are Rs.300 flat and SWIFT charges are Rs.1600 flat. 13. For every L/C a separate L/C file is opened for following documents. L/C application I. form Performa invoice L/C check list. Approval from International division. L/C message to be transmitted to SWIFT Centre. 14. On the basis of the approval form the International Division Reimbursing. Authorization is sent to the reimbursing bank using MT 740 as application. 15. Documents are received in two mails. 16. After the first mail received, documents are scrutinized according to a Scrutiny sheet in order to make sure that L/C terms and conditions are met. 39

17. Payment is made on behalf of the customer to the advising bank and latter that amount is collected from the importer by the bank.

Types of L/C: Sight Usance If payment is to be made at the time that document are presented, this is referred to as a site of L/C.If payment is to be made at a future fixed time from the presentation of documents, this referred to as Usance L/C.

WEEK # 3 CREDITS DEPARTMENT Officer in Charge: Ms Nadia Khatoon Supervisor: Mr.sajid There was a lot of work in credits department. Reason being every borrower had to pay monthly installments of the loans since ACBL has hundreds of borrowers. These include borrowers of both, small and heavy amount loans. My job was to help Sir Sajid in updating Personal Finance (PF) files and records. ACBL has an information system which keeps a record of not only loans taken by businesses and consumers and their payments but also day to day transactions whether they are of General Banking, Foreign Currency, Credits or Accounts. Each employee has its own ID, branch code and password. Internees are not authorized to use that information system because they don’t have ID as they are internees not employees. During the first four days my job was to sit with Sir Sajid and dictate name of borrower, amount of loan, personal account number, loan account number, number and amount of loan installments and disbursement date (date at which loan is given to borrower) from a huge file that contained PF Due Date Diaries and his job was

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to check whether the payments have been credited to customer’s account at a specified date. If the payments have been credited to customer’s account, then again my job was to enter the month, date of installment, initials and remarks. If no then my duty was to flag that person’s record. Flagging the record means to attach a pink colored piece of paper, this shows that there is some problem. When this checking job is over then these flagged records are included in exception report. In addition, there was a Loan Amortization Schedule attached with each PF Due Date Diary, which contained the month, principal amount, interest and some other calculations. Some of the entries were to be made manually and some were automatic. Meaning to say in the manual entries, each debit and credit entry is to be made by the person itself. The person first checks whether the payment is made by the borrower then the installment amount is debited to its account where as interest is credited. Interest is calculated by subtracting the loan installment amount with the principal, which is in the amortization schedule. The interest was already present in that schedule but to counter check, this calculation was done. Where as, in automatic entries (also called auto) the debit and credit entries are made automatically by the system, the only thing is to check the borrower’s account if the installment has been paid then the entry is to be made. There are two differences between entries of manual records and automatic records. First difference is the ‘initials’ column. In manual entry the person has to sign in initials column where as in automatic entry, word ‘auto’ is written. The word auto shows that the entry is an automatic entry and the signatures identify the person who has updated the record. Secondly, in manual entries a document number is written in ‘Remarks’ column. Document number is a computer-generated number, which gives a number to a transaction, in case there is a problem or inquiry, the transaction is consulted with that document number. In automatic entries, nothing is written in that column. Regardless of records being manual or automatic if loan installment for July 2006 is last one then on its due date diary two parallel lines are drawn and word ‘ADJUSTED’ is written between them and then that page, having a particular file number, is taken out of file. On first day, I with Sir Sajid checked and cleared the manual entries. It took about five hours to complete this job since there were approximately five hundred accounts to be checked and entries to be made. I was dictating the above mentioned data as well as calculating the interest and was checking whether the amount is correct and if there are any significant differences between the calculated amount and amount mentioned in Amortization 41

schedule. After each calculation, I made entries in PF Due Date Diaries. While doing the entries only job Sir Rashid did was his signature in initials column. The next two days, we updated automatic records. Since, they were thrice in amount as manual records so they took two days to be updated and their entries to be madeOn fourth day, the exception report was prepared. This report contains the name of those borrowers who have not paid their loan installments whether recent or previous. The report (prepared monthly) includes name of borrower, amount of loan, personal account number, loan account number, loan disbursement date, total number of installments, number of installments due and their amount. Flagged records were once again checked whether their payment has arrived. If yes then flag was removed and entry made. If no, then the name was included in exception report. When the report is completed Officer in Charge Credits and Manager signs the report which then goes to Head Office where the concerned people take action. In preparing this report, my job was to give Sir Sajid all the relevant information that was to be entered. This report took one day to be prepared. Other three days were spent in filing PF records. PF due date diaries are arranged according to file numbers. Many borrowers had their last installment in the month of July whereas loans were given to new borrowers. This disturbed the file numbers as the adjusted page was taken out of file. Loan adjustment of present borrowers and giving loans to new borrowers created a need to fill those empty file numbers and enter them in PF record after being processed by RBG. This process is called loan disbursement. The records of all the borrowers are kept in separate files, called personal files, along with the necessary documents including the amortization schedule. At ACBL, there is no manual calculation for Loan Amortization Schedule. There is an information system, which does all the calculations. There is just a need to give input and all the calculation is done. Filing of PF records or in other words loan disbursement starts with the identification of adjusted file numbers. All the missing and adjusted file numbers are written on a piece of paper. Some new file numbers were also identified. On a blank page of Personal Finance Due Date Diary the file number, name of borrower, amount of loan, personal account number, loan account number, total number of installments, amount of installment, disbursement date and application number is written. All this information is gathered from a file called personal file. The second step is to take out Amortization Schedule from the file, write down the name of borrower, personal and loan account number and disbursement date along with two other account numbers; which are written on the front page of file; on the schedule and then get it photocopied. The original copy goes back 42

in personal file while photocopied schedule is stapled with its due date diary. At a first glance, this process seems to be easy. It is easy but time consuming and tiring, as there were nearly hundred empty file numbers to file and it took me approximately three days to complete this job. The main achievement for me while doing this job is that I did it all by my own self, completed it before deadline, no body helped me, and at all these points, staff at Credits department was very happy with me. Staff at Credits department awarded me with lots of appreciation and prayers. The day at which I completed the job was my last day in credits. Checking of manual and automatic PF due date diaries, doing their entries, preparing exception report and filing empty file numbers were my specific/leading contributions.

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WEEK # 4 AND 5 GENERAL BANKING Officer in Charge: Mr. Zaheer Supervisors: • Mr. Ehtehsham and Ms Asma(account opening) Mr. Bilal,Mr. Shahid, Mr.Daud (clearing) Mr. Imran(ATM pins issuance) Ms Zakia(chequebook issuance) Departments in General banking are: • Account Opening (including cheque book issuance) • Cash department • Clearing • On line banking • ATM Pins issuance In General banking I was rotated in Account opening and Clearing department. I also issued ATM pins willingly during my period in General banking. I spent first three days in each department.

CLEARING The clearing department consists of OBC, LBC and IBC. My job was to prepare Inter Branch Credit Advices (IBCAs) both for Rawalpindi/Islamabad and for areas outside them, do OBC, IBC, LBC entries in their respective registers, and stamp the cheques. IBC means ‘inward bills for collection’. When an account holder of ACBL Main Branch makes a cheque payment to a person who has an account in other bank, that bank presents the cheque to ACBL for payment. The cheque then becomes IBC for ACBL as other bank presents it for payment. It is called IBC because the bill (cheque) comes in the bank premises for clearing/payment. OBC means ‘outward bills for collection’. When an account holder of ACBL presents a cheque of other bank along with the deposit slip, ACBL presents it in that bank for payment. This cheque is OBC for ACBL because it presents the cheque to other bank. If the cheque is OK, that bank credits ACBL Head Office account, on realization ACBL branch debits Head Office Branch and credits account holder’s account. The cheques presented in OBC/IBC for collection can be of other bank and can be of any other branch of ACBL. 44

LBC stands for ‘local bills for collection’. It is same as OBC. The only difference is that OBC is for presentation of cheques outside Rawalpindi/Islamabad area. LBC is for cheque clearing within Rawalpindi/Islamabad. It is free of charge. OBC is for presentation and payment of cheques outside Rawalpindi and Islamabad. The bank debits courier charges from customer’s account. Before the entries of IBC, OBC and LBC are made in their respective journals, the cheques representing them are stamped. IBC cheques are stamped with ACBL crossing and clearing stamp at the front. At the back, it is stamped with a stamp showing that ‘payees account will be payees account will be credited on realization’. The crossing stamp shows that the cheque is property of ACBL Main Branch. Clearing stamp shows that the cheque has been presented for clearing. OBC and LBC cheques are stamped with a crossing and a stamp having a blank space for OBC/LBC number (which is seen from register) at the front and at the back there is a stamp showing that ‘payees account will be payees account will be credited on realization’. After stamping the cheques their entries are made in their respective journals. OBC and LBC numbers, name of bank, the amount of collection, cheque number (if it is a pay order then ‘Pay order” is written, date on which the cheque was received and the date when payees account is credited, name of payee account number of payer and payee are entered in OBC and LBC journals respectively. In IBC register, name of payer and payee, cheque number, account number of payer, name of bank that ACBL in this case, IBCA number and date of payment are entered. Inter Branch Credit Advices are white and blue colored slips which are sent to ACBL branches in Rawalpindi/Islamabad telling that cheque of respective branch is paid and the amount is listed both in figures and words. They have a number at the top that is called IBCA number. It is different from IBC number but is entered in IBC register. Authorized persons sign the slip, head office account number of ACBL Main Branch is written and original cheques are attached. Credit advices of ACBL branches other than Rawalpindi/Islamabad are white in color. Another job that I did in clearing but not mentioned above was to attach dishonored cheques with a special white colored slip, which had a blank space for dishonored cheque number, and various reasons why cheque was dishonored in MCQ form. I was supposed to write the dishonored cheque number on that slip, attach original cheque and get the cheque along with the slip photocopied. I was also supposed to cheque amount in words and figures. 45

ACCOUNT OPENING In account opening, I was supposed to help the customers in filling account-opening forms. Besides the table of person dealing in account opening, first I was supposed to make sets of account opening forms. Sets are made by attaching the account opening form, chequebooks requisition and specimen signature card then arrange these forms on side table along with application forms for Debit card, give the form to customers when they ask and help them fill the form. Specimen signature card is a yellow colored card that verifies signatures when a cheque is cashed or when a chequebooks requisition is given. I also took customer calls when Sir Ehtesham was not on his seat. Different people come and ask for their account statements. He used to give printing command on computer and I was supposed to bring the printed statement and it over to the customer. For an important client it was supposed to be in an envelope. The reason for my bringing the statement and handing over to the customer was to observe the difference between customer handling of ordinary and important clients. In a day there used to be at least fifty statements. I was also supposed to get the heavy amount cheques verified by Manager Operations.

ATM PINS ISSUANCE ATM cards have a pin number given by the Head Office, which is entered in ATM. The ATM then asks for a new pin number. Customer enters pin number of his/her own choice twice, which becomes his/her new pin number and he/she has access to ATM usage. The pin given by Head Office is enclosed in green and black colored envelope that I was supposed to issue to customers. The envelopes have a series of numbers. These numbers are card numbers that are arranged in series. The customer shows his/her ATM card that has the account number, title of account and ATM card number. The envelope corresponding to that card number is given. At the same time, their entry is made in a register and the customer signs it. Date on which ATM pin was issued, account number, card number and name of person are entered followed by the signature. Before customer timings, I used to arrange the pins according their series and kept them back after customer timings. I did this job simultaneously with account opening as 46

well as chequebook issuance.

CHEQUE BOOK ISSUANCE Chequebook issuance was done during fifth week only. Customers give their chequebook requisition to Sir Ehtesham. He verifies the signature from computer signs it and gives the requisition to Sir Aqeel. Minimum number of leaves in a chequebook is 10 and maximum is 100. On the requisition account number, title of account and numbers of leaves required in a chequebook are specified. Chequebooks normally have 10, 25 .50 and 100 leaves. Each type of cheque has its own register. Chequebooks also have their own series that have starting and ending numbers. Those series numbers along with account number, title of account and number of leaves are entered in their respective registers. Account number and title of account are written on cover of chequebook. Numbers of account number stamp are adjusted according to mentioned account number and bottom of each cheque is stamped. In General banking, this is the most sensitive job. A single mistake can cause a person to lose its job.

WEEK # 6 TELEPHONE EXCHANGE Telephone Operator and Supervisor: Ms. Anjum Last week of internship was spent in telephone exchange taking customer calls, sending faxes to other ACBL branches through computer with a program called i-fax (short name for Internet Fax), scanning specimen signature cards, entering outgoing calls, incoming and outgoing faxes in their respective registers and printing faxes and rate sheets. I used to take customer calls when operator used to be busy or not on seat. Ms. Anjum used to send faxes through fax machine where as I used to send them through i-fax. Sending faxes through i-fax first needed scanning of message then specification of e-mail address of destination branch, which consists of branch code with alphabetical letter ‘b’ in beginning, then clicking the ‘Send’ command. I also scanned specimen signature card (mentioned in account opening) and save them in computer system. There used to be about hundred cards for scanning each day. I used to enter all outgoing calls with the telephone number, incoming and outgoing faxes with their subjects, destination and source branches in their respective registers. Daily during last week, I used to connect ACBL’s computer system with Paknet (ISP). I was

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also supposed to keep track of mail from Treasury Division, print three copies of foreign currency rate sheets ‘A’ and ‘B’ and give them to FC department. Although the above-mentioned jobs seem to be very easy, every one can do them but they are my leading contributions.

FOREIGN CURRENCY DEPARTMENT Supervisors: • Ms Alia Janjua • Mr. Naeem. • Mr. Adnan. There was no specific week that was spent in FC department. Last two days of week # 4 (fulltime) and whenever I was free regardless of the department working, I used to see how FC works. I made FBC cheques entries in FBC register. This process is called FBC lodging. FBC stands for ‘foreign bills for collection’. This is same as IBC, OBC with the difference that the cheques are send abroad through a bank called ‘American express’ and amount is in FC. The cheque was stamped at front with ACBL Main Branch crossing and a stamp having blank space for FBC number. At the back it was stamped with stamp showing that payees account will be credited on realization The only difference between entries of LBC and FBC is that the FC amount is converted to Pakistani Rupees and rounded off to nearest thousand and this rupee amount is written and there is no room for mistake. I sorted different reports according to their category and date. This sorting took me two days and this report sorting is my major contribution in FC department.

PHOTOCOPY This is the only job that I did regardless of the department worked. The photocopied items included national identity cards, student identity cards, cheques, letters, defense saving certificates and profit coupons.

SWOT ANALYSIS OF ASKARI COMMERCIAL BANK LTD

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STRENGTHS:  In Askari Bank I observe that there is a great co operation among all the employees.  Working Environment of all of the departments is very friendly.  There is sharing of responsibility regarding work.  Employee works as a team and coordination among the employees is excellent.  Employees are fully devoted towards their work.  Employees of all of the departments are highly qualified and fulfill all the job requirements.  They maintain proper files, which helps them in case of different sort of inquiries, regarding any document.

WEAKNESSES:  Spacing Problem is very crucial here in Askari Bank.There is lake of space in Accounts department according to the Employees.  Designation of the employees is not properly mentioned which creates a lot of confusion for customers as well as for the other employees of the bank.  There is lack of equipment according to the requirements of the department like there are only four PC’s in Foreign Trade, but the number of the employees in this department is seven. So they have to wait for a long time for postings. Beside the System of UNI BANK, they have to maintain proper files and records which involve a lot of time consumption.  Name of the department is not mentioned any where which create problems for the new customers and ultimately frustrate the customer.  A lot of documentation creates overburden on employees which 49

sometimes irritate them.  There is not any proper procedure for the Job Rotation foe the MTO’s (Management Training Officers).  There is not any specific Job Description of employees which ultimately confused the employees regarding their Job responsibilities.  Too much noise that makes the employees irritates and they lost their concentration in the work.  There should be separate washrooms for Ladies and Gents.  Some employees think of internees as servents

IMPROVEMENTS:  There should be proper spacing according to the number of employees.  Proper designation of the employees should be rightly mentioned on each employee’s desk.  There should be a separate place for the department.  Name of the department should also be mentioned on a proper board.  Number of the PC’s should also be increased. So that employees can perform their duties properly.  Filling of documents should be reduced and it can be reduced due to proper reporting on the UNIBANK System. It is not an easy job to maintain a lot of documents on file.  Employees should show a positive attitude towards internees. And they should guide them properly and should deliver as much knowledge as they can.

BRANCH MANAGER SHER AFGHAN: 50

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