Internship report

Department of Finance
Internship report on Askari commercial bank
Narowal
Submitted by: Arooj Naseem
Roll no: 0003-BS-BBA-2018
Submitted to: Dr Muhammad Munir

Department of management and

administrative sciences

University of Narowal
Table of Contents
ACKNOWLEDGMENTS....................................................................................................................................................iii
Dedication......................................................................................................................................................................iii
EXECUTIVE SUMMARY...................................................................................................................................................iv
INTRODUCTION...............................................................................................................................................................1
History........................................................................................................................................................................1
Internship program.........................................................................................................................................................3
Week 1.......................................................................................................................................................................3
Opening and Closing of Accounts..........................................................................................................................3
The basic requirements to open a bank account are:.............................................................................................3
An informal session with the customer.................................................................................................................3
Week 2.......................................................................................................................................................................4
Accounts Opening Form:.......................................................................................................................................4
Week 3 and 4..............................................................................................................................................................4
Account Closing Procedure:..................................................................................................................................4
Week 5.......................................................................................................................................................................5
Cheque Clearing....................................................................................................................................................5
week 6........................................................................................................................................................................5
Dormant Account Activation................................................................................................................................5
VISION, MISSION AND VALUES.......................................................................................................................................6
VISION......................................................................................................................................................................6
MISSION...................................................................................................................................................................6
PRIMARY VALUES.................................................................................................................................................6
Commitment..........................................................................................................................................................6
Integrity.................................................................................................................................................................6
Fairness..................................................................................................................................................................7
Teamwork..............................................................................................................................................................7
Service...................................................................................................................................................................7
Organizational structure.................................................................................................................................................8
ACHIVEMENTS AND REWARDS.......................................................................................................................................9
PRODUCTS OR SERVICES...............................................................................................................................................10
BANKING FOR CORPORATE, COMMERCIAL, AND INVESTMENT PURPOSES...........................................................10
BRANCH BANKING....................................................................................................................................................10
Current account...................................................................................................................................................10

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 BANKING IN THE DIGITAL AGE.................................................................................................................................10
Introduction of Departments........................................................................................................................................11
Finance Department.................................................................................................................................................11
Marketing Department.............................................................................................................................................11
Customer Service.....................................................................................................................................................11
Askari Bank's Operations Department.....................................................................................................................12
Human resource Department....................................................................................................................................12
IT Department..........................................................................................................................................................12
Cash department......................................................................................................................................................13
FINANCIAL HIGHLIGHTS................................................................................................................................................14
HORIZONTAL AND VERTICAL ANALYSIS..........................................................................................................15
Horizontal Analysis..................................................................................................................................................15
Vertical Analysis......................................................................................................................................................17
Profit and loss account..................................................................................................................................................18
SWOT analysis...............................................................................................................................................................21
THE Askari commercial bank Ltd.'S STRENGTHS (Askari Bank Limited)..........................................................21
WEAKNESSES OF THE BRANCH.......................................................................................................................22
OPPORTUNITIES FOR THE BRANCH................................................................................................................22
THREATS FOR Askari commercial Bank Limited................................................................................................23
The following are the threats to ABL......................................................................................................................23
PROBLEMS.....................................................................................................................................................................23
Insufficient Support on Helpline and Customer Service..........................................................................................23
Less banking staff against large number of customers............................................................................................24
Issues in Digital Banking...........................................................................................................................................24
Less Data Capacity of Server and More Work Load.................................................................................................24
Money laundering....................................................................................................................................................24
SOLUTIONS OF THE ABOVE-MENTIONED PROBLEMS..................................................................................................25
Support on Helpline and Customer Service.............................................................................................................25
To Expand the Existing Workforce and The Number of Bank Tellers......................................................................25
Data Capacity of Servers..........................................................................................................................................25
Strengthen the procedure of KYC and CDD.............................................................................................................26
CONCLUSION.................................................................................................................................................................27

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 ACKNOWLEDGMENTS

the name of Allah, the most merciful and the most beneficent. I thank to ALMIGHTY ALLAH for His

blessings that I was able to perform the internship program effectively and efficiently. During this period of

my internship work, I have received generous help from Askari bank staff. I would also like to thank the

management of Askari commercial bank Narowal Branch for permitting me to conduct the interviews from

their different department and for supporting us in the whole procedure. Their contributions are highly

appreciated and gratefully acknowledged. I would like to thank my honorable teachers who helped me a lot in

the preparation of the report.

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 Dedication

I dedicate this "work" to my parents and teachers, who have guided me and demonstrated their faith in me,

allowing me to know that I am capable of completing this "work." I dedicate my work to my friends and

coworkers who have been extremely helpful to me throughout this process. May Allah's blessings be upon

them all. Amen.

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 EXECUTIVE SUMMARY

This internship report based is on 6 -week internship program that I have successfully completed in Askari

commercial bank Ltd. NAROWAL branch as a requirement of BBA program of UNIVERSITY OF

NAROWAL NAROWAL.

This report includes the history of askari commercial bank limited that was established as a public limited

company in Pakistan on October 9, 1991.

This report also includes the vision and mission statement, achievements and awards along with the products

and services offering to its customers and SWOT Analysis of Askari bank. The report also includes the

problems of Askari bank NAROWAL Branch, and the possible solutions to mitigate those problems. Askari

bank is facing problems of insufficient support on helpline and customer service, because if someone loses

their card or has any other issues, he will keep calling the helpline and no one would respond. Secondly, less

banking staff against large number of customers like in most Askari bank branches there are few bank tellers

and a large number of customers, issues in digital banking for example if bank customers need to transfer

money or pay fees etc. through digital banking, they will unable to do so due to system maintenance. Major

problem of Askari bank is facing problems in their data capacity servers like when the work load gets

increased the system get collapsed. These problems in the bank are challenging and should be minimized as

soon as possible.

The solutions suggested in this report for these problems are that Askari bank should have responsive and

engaged customer care departments that help the customers. Secondly, it should expand the existing workforce

and the number of bank tellers. This will help Askari bank to resolve all the problems within their branch and

will gain an efficient position in this competitive industry

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 INTRODUCTION

History
Askari commercial bank was established on October 1991 as a public limited company in Pakistan.

The Pakistan Stock Exchange trades the Bank's stock (earlier it was listed on Karachi, Lahore and Islamabad

Stock Exchanges).

Askari bank now have 245 branches and sub branches, including 31 specialized Islamic banking branches and

a wholesale bank branch. A shared network of 5,319 online ATMs covering significant cities in Pakistan,

internet banking (i-net), and contact centers operating 24 hours a day, seven days a week support the

alternative delivery channels for customer service.

Bank has put improvement as a priority since its establishment.

Customer social responsibility is an important part of their business. The ACBL is known for taking the

initiative, and it has done so once again by introducing a new product to the local card market. Askari

commercial bank Ltd. is the first bank in Pakistan to provide the "Askari WORLD MasterCard Credit Card,"

which is backed by MasterCard. This premium card was created to provide Askari commercial bank Ltd.

cardholders with extra alternatives.

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 Internship program

During my 6-week internship at Askari Bank, I worked in the following departments

i. Know your customer

ii. Check clearing

iii. Accounts opening and closing procedure

iv. Dormant account activation

v. Check book issuing method

vi. Foam filling procedure

Week 1
Opening and Closing of Accounts
The first step in establishing a bank-customer relationship is to open a bank account.

The basic requirements to open a bank account are:

i. Foam for account opening

ii. CNIC number

iii. applicant’s sign

iv. Other requirements depend upon the type of account

An informal session with the customer

An informal customer session should be scheduled to examine and determine the client's believability.

The following items must be assessed during an interactive face to face session with the customer so that all

relevant and necessary information is included in the comments field while filling out the know your customer

form.

In the know your customer form, the customer must submit the following information

i. Name of employer

ii. Customer’s designation

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iii. Salary

iv. Sources of fund

v. Background

Specimen signature card (SSC)

When a customer comes to open an account, he/she has to fill a Specimen signature card (SSC) along with other

documents. This card is used to add the signature of the customer in records as they’ll have to use that signature

for using their account. The customers are guided to be very careful while filling this card as the information of

this card is used for verifications in future. The SSC helps the bank in keeping a valid proof and record of what

the customer’s signature looks like.

Week 2

Accounts Opening Form:

i. The type of account must be specified.

ii. The account holder's residency status (Resident or Non-Resident) must be specified.

iii. You must specify the currency in which the account will be opened.

iv. Customer full information including name CNIC, father’s name, husband’s name and next of kin, address, date

of birth and place of birth etc. should be clearly provided

v. Any further instructions, such as mail holding, must be noted on the AOF.

Week 3 and 4

Account Closing Procedure:

i. Account closing requires a written request from the customer.

ii. Customers are obliged to give back the ATM card and Cheque Book with their written request.

iii. If the account balance is zero, the bank charges Rs 200 to shut the account; otherwise, bank charges are

deducted from the account amount.

iv. When the account is closed, the Operations Manager will designate the ATM card and cheque book as

discarded.

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 v. If the customer wishes to transfer the account's cash balance to another bank, the bank will issue a Banker

Cheque. A Banker Cheque is a more secure instrument than a Cheque. I spent a week at the Accounts Opening

Department, where I completed all of the department's tasks. I completed the account opening form and had the

in-charge and operations manager sign it.

Week 5

Cheque Clearing

Cheque clearing is the process of transporting a check through banks, resulting in the transfer of funds.

There are two types of check clearing: one is the traditional check clearing and the other is the electronic check

clearing.

i. Inward clearing

ii. Clearing Outward

week 6

Dormant Account Activation

Customers' accounts become inactive if they haven't withdrawn money or used their accounts for at least six

months.

A dormant activation account form is filled out to activate the accounts of such customers, which includes the

following information

i. Title of account

ii. Account number

iii. CNIC number

iv. Reasons of not using account

v. Signature of the applicant

vi. After completing the form and attaching a copy of the customer's CNIC, the customer's Nadra record is verified

using biometric verification.

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vii. After that, a KYC (Know Your Customer) form is printed, which comprises all of the customer's information,

from his or her name to his or her monthly income.

viii. A hot scan is also performed in addition to know your customer.

VISION, MISSION AND VALUES

VISION

“To become the region’s first choice of bank”

MISSION

"To be the top private sector bank of Pakistan providing quality service with the use of innovative technology

and effective human resource management in a modern culture, maintaining high ethical and professional

standards that contributes to society."

PRIMARY VALUES

Commitment

" Interactive about our customers' success and pleasing them with the standard/quality of our service,”.

Integrity

"A uniqueness in investment that delivers exceptional performance and value."

Fairness

"Exemplary supervision and business ethics,".

Teamwork

"Taking care of our workers and assisting them in their development"

Service

"Dedication to social progress and improved quality of life"

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 Organizational structure

BOARD OF
DIRECTORS

CEO

CHIEF CHIEF CREDIT CHIEF

FINANCIAL OFFICER INFORMATION
OFFICER OFFICER

DIRECTOR CREDIT INFORMATION

AUDIT AND COMMITTEE TECHNOLOGY
INSPECTION DIVISION

DIRECTOR RISK
FINANCE MANAGEMENT IT MANAGER
COMMITTEE

FINANCE BUDGET CHIEF

MANAGER STAFF
OFFICER

STAFF STAFF

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ACHIEVEMENTS AND REWARDS

i. "The Best annual Report Award for the Year 2011" was given to ICAP and ICMAP.

ii. Annual Report Award" The South Asian Federation of Accountants is a group of South Asian

accountants.

iii. It was named Pakistan's "Best Retail Bank" by Asian Banker.

iv. In 2004, the Consumer Association of Pakistan presented him with the "1st Consumer Choice Award."

v. "Corporate Excellence Award" from the Management Association of Pakistan (MAP) in 2002, 2003, and

2004

vi. In 2001 and 2002, Global Finance magazine named us "The Best Bank in Pakistan."

vii. "Best Internet Bank for Consumers," Global Finance magazine, 2002 and 2003 issues"
 PRODUCTS OR SERVICES

In order to achieve long-term market expansion and penetration goals, Askari Bank released a number of new

products for its clients to fulfill the demands of all segments of society. Askari Bank's corporate, commercial,

and investment banking, branch banking, digital banking, consumer banking, small and medium company

banking, agriculture banking, and Islamic banking products and services are included below.

BANKING FOR CORPORATE, COMMERCIAL, AND INVESTMENT PURPOSES

i. Banking for companies

ii. Business for banking

iii. Banking for investment

iv. Banking for Internet

BRANCH BANKING
Current account
i. Institutional sales

ii. Askari bachat account: saving account

iii. Askari asan account:value plus current account

BANKING IN THE DIGITAL AGE

i. Banking on the internet

ii. Banking via sms

iii. Loan financing

iv. Mastercard credit card

v. Teller machine with automated options

vi. Loan for fertilizer dealers

vii. Agriculture banking

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 Introduction of Departments

The bank's departments include finance, marketing, information technology, operations, and customer service.

Finance Department

The Finance Department is in charge of the following tasks.

i. Creating a financial budget for the bank's annual operations

ii. Calculating and comparing variances in actual results with budgeted amounts

iii. Reconciliation of various accounting records with external entities' records.

iv. Payment of other parties' debts

The bank's finance department reports directly to the Group Head Consumer Finance, and all reports transmitted

to the head office and other authorities are subject to the Group Head Consumer Finance's permission and

authority. The operations department is very interested in the finance department.

Marketing Department

The marketing department is in charge of promoting the company.

Customer Service

The term "customer service" is self-explanatory. Client services include things like after-sale support and

addressing customer needs if they have issues with the service.

Askari Bank's Operations Department

This department prides itself on being efficient in its operations. A department has been created specifically to

carry out the operations. The operations department keeps a close check on all of the bank's departments,

however certain departments are assigned to the operations department due to their well-known importance.

i. Mailing Department

ii. Authorization Department

iii. Human Resource & Greeting Department

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iv. IT Department are the departments that make up the Operations department.

Human resource Department

The human resource department monitors the entire system to ensure that employees are giving it their all. The

HR department's responsibilities include:

i. Recruiting new personnel.

ii. Renewals of contracts.

iii. Appraisals of performance.

iv. An increase in pay

v. Bonuses Determinations

vi. Leaves

IT Department

This is one of the most important sectors these days, and no organisation is complete without the assistance of

an IT department, as is the case with Askari Bank. The IT department's most important role is to connect the

departments with one another, and every department is linked to the other department via computer networking

and a central intercom with about 300 telephone sets. In the centre, the IT department has a lot more to offer.

Bill clearing department

This department is responsible for is collecting bill payments from the customers. These bills can be utility bills,

or any other bills issued by government. The records kept by this department are shared/linked with government

records through a very secure network.

Cash department

Cash department is the most important part of bank. Cash department should be placed in

branch where manager can watch everything from the table either clients or vaults. It is the most

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important department of the bank since from desk cash department has direct interaction with

customers.

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FINANCIAL HIGHLIGHTS

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 SWOT analysis

THE Askari commercial bank Ltd.'S STRENGTHS (Askari Bank Limited)

The following are Askari Bank Limited NAROWAL branch’s strengths

i. Customers are treated with respect. They feel that their consumers are the most important aspect of their

business. As a result, there is a positive relationship between management and their clients.

ii. At the bank, there are good security arrangements. The bank has four security guards, as well as security

cameras and alarms, indicating that it is secure and safe.

iii. Attractive structure with a pleasant working atmosphere. The working atmosphere is particularly conducive to

work because everything needed to carry out the bank's responsibilities or activities is readily available and

accessible.

iv. Availability of services such as tea delivery to customers. They provide specific services in order to maintain a

long-term relationship with their customers.

v. An ATM is available at the branch twenty-four hours a day, seven days a week, and anyone can use it at any

time.

vi. At the bank, customers' privacy is respected. It is never revealed to anyone because it is a matter of their

privacy. However, following the client's death, only relevant information is given to the client's family when the

bank's requirements are met.

vii. The branch's location is commercially viable. The branch is mostly located in the commercial district of

JASSAR BY PASS. Customers can readily visit banks or use their services as a result of this accessibility.

viii. The employees are very supportive of one another and their clients as well, fostering a friendly environment in

which everyone is eager to assist one another.

ix. Safe lockers are available.

WEAKNESSES OF THE BRANCH

The branch has a number of flaws, which are listed below

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 i. When it comes to operations like account opening, customers are sometimes overburdened. Certain processes

are overly lengthy and time-consuming, and as a result, clients have grown tired of them.

ii. Due to job load, the operations department's working hours are occasionally exceeded. As a result, they are

unable to attend family gatherings, as a result of which they have become motivated and frustrated.

iii. A high rate of employee turnover. Only a few employees receive promotions or bounces as a result of a

flawed evaluation system, which teases other employees who are working just as hard.

iv. Limited capacity for clients to be accommodated when demand increases. Because the bank is limited in

terms of its customer base, accommodating such a huge number of consumers is tough

OPPORTUNITIES FOR THE BRANCH

The following are opportunities of Askari commercial Bank Limited that cannot be controlled but

may certainly be exploited

i. The recent remodeling of the branch building was done in accordance with the current surroundings, which

may serve to increase client appeal.

ii. Increasing the number of consumers is possible through introducing and improving user-friendly

technologies such as phone banking, internet banking, and home deliveries.

iii. For better results, personnel may be given more time to train in order to handle larger groups of consumers.

THREATS FOR Askari commercial Bank Limited

The following are the threats to ABL

i. Competition! The branch is situated in a very commercial neighborhood with a number of other banks.

ii. In order to maintain this branch in sync with other Askari commercial bank limited branches, continuous

innovation in applications and technology provided by the branch must be ensured.

iii. The government's changing regulations may jeopardize the smooth operation of the financial system, for

example. The government has imposed a higher percentage of tax each transaction, but Montana customers

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 are not ready to accept this shift in proportion. This left the bank in a condition of confusion weather to help

the customer or to follow the government rules.

iv. Rapid technological advancements must be incorporated as soon as possible; failure to do so could result in

serious consequences.

PROBLEMS

Insufficient Support on Helpline and Customer Service

The support on the helpline and customer Service of Askari bank is not satisfactory. If customers have issue like

for every online transaction, they must first activate their credit card which is a good security feature, but the

bank does not answer their calls. Similarly, they must keep contacting the concerned bank all day to get their

credit cards activated. Regarding this, many customers sent them numerous emails expressing their

dissatisfaction, but the organization did not respond. If someone loses their card or has any other issues, God

forbid, he will keep calling the helpline and no one would respond.

Less banking staff against large number of customers

In most Askari bank branches, there are few bank tellers and a large number of customers. Many clients will be

standing in line and waiting for their time to restore, activate, or reopen their accounts and so on. Consequently,

it is wastage of time and a major problem for customers.

Issues in Digital Banking

Due to system maintenance, Askari Bank`s ATMs, Internet (I-net) banking, mobile phone banking, and

debit/credit card services are unavailable for the time being. If bank customers need to transfer money or pay

bills urgently through digital banking, they are unable to do so due to system maintenance, which is a huge issue

for them.

Less Data Capacity of Server and More Work Load

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The data servers of Askari bank are not upgraded which results in difficulty for clients as well as for the staff.

As in the Eid days or at the end of the month when the work load is more, the systems collapse, and the

customers get angry and dissatisfy. Hence, it is the main problem of clients.

Money laundering
Askari Bank Ltd has been penalized by the SBP for procedural violations of KYC (known your customers and

CDD) bank procedures, which are used to identify client risk and regulatory requirements to line with Anti

Money Laundering Law (Customer Due diligence). Money laundering does not always have to do with drug

trafficking or terrorism financing. The Financial

Action Task Force (FATF) recognized the offenses as sources of illegal wealth that includes: Tax crimes,

Corruption, Bribery, Environmental crime etc. which is the difficulty for Askari bank.

SOLUTIONS OF THE ABOVE-MENTIONED PROBLEMS

Support on Helpline and Customer Service

Askari Bank should have a responsive and engaged customer care department. Customers must keep contacting

the banks if they have any issues, such as trying to activate their credit cards. The bankers should pay attention

to the customer's experience, apologize if they make any mistakes, focus on the solution to the customer's

problems, and notice complaints before the customers do.

To Expand the Existing Workforce and The Number of Bank Tellers

To expand the existing workforce in Askari Bank branches, precautions should be taken in the recruitment of

workers who are well-educated, competent, and experienced. Additionally, the number of tellers should be

expanded in order to better serve consumers who are waiting in line. The customer's problem, especially, time

wastage, may be solved easily in this manner.

Data Capacity of Servers

Askari Bank should upgrade the storage capacity and technological ability of the systems to lessen the work

load of the employees and to perform all the work of customer quickly because when the work load increases
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i.e. in Eid days or at month end when salaries are paid then the load on the servers get doubled due to which the

systems get hanged or sometimes the work of customers get delayed which results in frustration and

dissatisfaction of the customer so Askari bank should keep fast and effective and new generation data servers

with more storage capacity and hire more expert IT professionals to manage all these problems and suggest with

the best possible servers and systems and their maintenance as well so that these system can more fast and

efficiently even with a lot of work load so that neither the customers suffer nor the staff.

Strengthen the procedure of KYC and CDD

Askari bank should strengthen the procedure of KYC (Know who your customers) and CDD (Customer Due

Diligence) procedures that both are necessary functions for assessing consumer risk and a legal obligation for

adhering to anti-money laundering (AML) regulations. Knowing a customer's identity, financial activities, and

risk level is essential for effective know your customer and customer due diligence. Askari bank should take the

following procedures to strengthen know your customer and customer due diligence:

i. Determine the identity of your customers.

ii. Understand the nature of the customer's operations (the primary purpose is to ensure that the customer's

finances come from a reliable source).

iv. Evaluate the customer's money laundering risks in order to keep track of their activity.

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 CONCLUSION

Choosing Askari commercial bank Ltd. for my internship turned out to be a wise move. The Bank provided me

with a conducive learning atmosphere. It has aided me in polishing my abilities. The 6 week I spend in several

bank departments helped me learn a lot about the banking sector's dynamics.

Askari Bank is a Pakistani retail and commercial bank. It was purchased by the Fauji Group in June of 2013. In

Pakistan's financial services business, it is a major player. Askari bank always look for the betterment of its

customers but it has many problems within organization which should be resolved by taking immediate actions.

Askari bank being a leading bank of Pakistan has great responsibilities upon its shoulders to serve each

Pakistani. By solving the problems of the organization, the employees at Askari bank can perform better to

bring positive changes in the organization. It is necessary that the organization takes proactive actions in today’s

competitive and challenging world, to be one step ahead of the competitors, for that they have to change some

of their policies and need an up-gradation of their servers and systems as well and get them better than their

competitors and lastly always look forward to solve the problems of each and every customer because in the end

satisfied customer is important for the prosperity of any organization.

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