Borrowing funds from different sources has become an essential feature of todays business enterprises. But in the case of a bank borrowing funds from outside parties is al l the more vital because the entire banking system is based on it. The borrowed capital of a bank is much greater their own capital. Banks borrowing is mostly in the form of deposits. These deposits are lent out to different parties. Such deposit creation is done through opening an account in the Bank.
Types of Accounts
In AKBL, there are the following types of accounts:
Current account.
Saving Account.
Askari Special Deposit Account.(ASDA)
Basic Banking account
Term Deposit.
Current Account
In current account there is no interest on it. It is for only transaction purposes. They are paid on demand. When a banker accepts a demand deposit, he incurs the obligation of the paying all cheques drawn against him to the extended of the balance in the account. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. Current account is mostly opened for business.
Saving Account
The purpose of this account is to induce the habit of saving individuals in the neighborhood. The minimum deposit for opening the account is Rs.1050/- (as obvious in the Annexure).
Though individuals open such accounts for saving purpose, persons belonging to Armed forces and different military institutions are free to use this account on current basis.
Askari Special Deposit Account
ASDA account is an interest bearing current account interest is paid. The payment of return is monthly, where as the rate of return with aspect to the amount of minimum deposit clear. It is also cheqing account because cheques can be drawn on it. It is necessary for this account that the client must maintain a minimum balance of Rs. 50,000 at the end of the month. That's why it is similar to current account. It is mostly opened by Business but individuals to open this account.
Tax of 0.3% would be deducted on ASDA if withdrawals are more than Rs.25, 000.
Term Deposits
A term deposit is a deposit that is made for a certain periods of time at the end of the specific period. Thecustomer is allowed to with draw the principle amount.
AKBLs Term deposits are of types clear in the deposit scheme. One of them is "Askari" Advantage one month. The rate of return on this account is set by head office. The term deposit accounts vary one month to 1 year for all following accounts.
The amount of profit is given to depositors in three ways:
By cash
By sending a bank Draft to depositors Home address or Officers or whichever is specified as mailing Address.
The amount is credited in any one of the checking Accounts of the depositor.
Account Opening Procedure
For the cheque accounts (C/A, ASDA, SAVING), there are different types of account holders are required for all these types of account holders. The operation /procedure requirement that is needed for "Individual Account " differ greatly from " Joint account " proprietorship "Partnership ", "Limited Company"and "Club society or Association " as explained below.
Individual's Account
When a single man or women opens an account in his/her own name and has the right to operate it is called individual Account.
Joint Account
When two or more persons, neither partners, nor trustees, open an in their name is called joint Account. Husband and wife or two persons of same sex can open joint account.
Proprietorship Account
When an owner of a firm operating singly, opens an account in his firm name, this account is called a proprietorship Account the proper himself liable for all his acts.
Partner Ship Account
The account is opened in the firm name and all partner designate one two persons to act on behalf of the partnership firmer all acts on behalf of firm. The partners in the partnership firm are liable for the acts of the firm jointly and severely. Every partner has in a firm has an implied authority bind his co. partners by drawing and enclosed cheques.
Accounting Department
Accounts department is a department which deals and checks all the activity of all the department .It also deals in expression of finance of the bank. Salary payment is also one function of the bank.
Checking Bank's Daily Activity
Accounts department deals and checks the entire working of the Branch; all the vouchers that have been posted at the computer are scrutinized in accounts department. The "End of Day" i.e. computer print is also received from the computer. The next day the activity is separated some statements from the "End of Day". Then next day activity separated some statements from the "End of Day". The vouchers are sorted out head wise. The vouchers are matched with the entries in the statements.
Any abnormality if occurs, is immediately dealt with. All the vouchers and instruction are checked individually against the computer printouts. After checking they are signed by authorized signatories.
Other Activities
Preparation of daily bank positions statement
Payment of salaries
Preparation of the statements
Depreciation calculation
Lockers Issuance
Clearing Department
There is no obligation on a banker to collect cheques drawn upon other banks for a customer, however it is function of every modern bank of collection of cheques and bills on the behalf of customers DD,s pay and other negotiable instruments .Now a days NIFT is providing services of collecting cheques and bills etc
Remittance Department
The need of remittance is commonly felt is commercial life particularly and in everyday life generally. The main function of the remittance department is to transmit money from one place to another. By providing this service to the customer, Bank earns a lot of income. Also customer is able to meet its day to day financial requirements.
Demand Draft
It is an instrument payable on demand for which value has been received, issued by the branch of the Bank drawn i.e. payable at some other place (branch) of the same Bank. If two Banks are involved then the DD is sent to other Bank but in other case it is handed over to the applicant.
Pay Order
It is an instrument issued for payment in same city. Pay order issued from one branch can only be payable from the same branch. It is normally referred to as Banker's cheque. It is also called confirmed cheque, because Bank issues this on it own guarantee.
Outward Bills for Collection
The bills, which are received by the Bank and sent to other cities (branches) for the local clearing in that city, are called Outward Bills for Collection.
Inward Bills for Collection
The bills, which are received by the Bank from other branches out of the city for local clearing are called Inward Bills for Collection.
Foreign Trade Department
Foreign trade department deals in:
Foreign currency account
Exports
Imports
Foreign Currency Account
This account deals with the accounts having foreign deposits and remittances. This account provides following facilities:
Traveling quota
Out ward remittances
In ward remittances receiving
To make remittances procedure flexible
Export
Mainly export deals in:
Negotiation of documents
Sending the documents for collection
Pre-shipment financing
Post-shipment financing
Remittance against agent commission
Forward covered booking
Handling the documents for negotiation according to the UCP 500 (uniform custom and practices)
Handling the documents for collection according to URR (uniform rules for collection)
Submission of monthly returns to SBP regarding the export on form A-2/O-2.
Import
Opening the letter of credit .Scrutinize the documents receive from flowing bank under letter of credit. Account to UCP 500 and extending the credit facility to the importer informs FIM (finance against imported merchandise) FATR (finance against trust receipt).Arrange forward cover booking regarding import payments .Also arrange forward cover booking for letter of credit open other then AKBL
Submission of monthly returns to SBP regarding the import on form I
Organizational Management Analysis (OMA):
OMA is a unique process adopted by organizations to assess the efficiency and performance of their management. This tool not only helps executives with an overview of manager's strengths but also identify the area needs to be improved. Organizational culture also plays an important role in the analysis of management practice.
In Askri Bank, the organizational culture is seemed to be very strong. The Decentralized management approach is used with the cultural values like empowerment, recognition, affiliation and so on. OMA model checkpoint 360 individual feedback is used to generate and report about management groups in Askari bank. Each report identifies manager's strength and area requiring further improvement.
The leadership skills of manages are typically rated through three groups: their boss, their direct reports d their Peers. OMA model contains summarized information about the strengths and development areas of the managers and direction for the necessary skills training needed to improve their performance. Askari bank OMA's model contains 18 skills sets on the basis of which the management strengths are assessed:
Facilitates team success 2) Achieve results
Communicates effectively 4) motivates successfully
Provides direction 6) provides direction
Thinks creativity 8) instills trust
Works efficiently 10) delegates responsibility
Listen to others 12) works competently
Takes action 14) cultivates individual talents
Displays commitment 16) seeks improvement
Builds personal relationships 18) process information
The above skills sets process the OMA information and organizational development strategy is devised on the basis of this.
Internship Plan
Sr. No.
Starting Date
Ending Date
Name of Department
Duration (Days)
1.
30-04-2009
10.06.2009
MIS Dept.
Six weeks
Detail Description of The Task Assigned
Responsible for generation of computerized reports of all the depts. in Summit FT
Responsible to upload reports to HQ via FTP(file transfer protocol)
Help MIS officers in performing of their duties especially in hardware repairs or updating antivirus patches.
Maintaining daily transactions records
Sorting and finalization of bank customer files
Maintenance of reports on month end closing
Performed all those tasks which are assigned by my supervisor.
MIS Dept. of the Multan Branch:
As Askari bank Multan branch is the city's largest branch with extended number of departments. To cope with the needs of each dept. and to facilitate the operation of the automated system of the bank, a complete MIS dept. works for the smooth working of the branch. The Hierarchy of the MIS dept. is shown below in a chart.
MIS Manager
Assistant MIS Manager
MIS Officer (Hardware)
MIS Officer (Software)
MIS Department Structure and Functions
Number of employees in MIS Dept.
MIS dept. in Multan branch is consisted of four staff members. The control of the said dept. is with MIS manager. MIS manager works under kind control of vice president/ Branch manager of Multan branch. MIS manager also assumes in-charge of all Askari bank branches in Multan city and responsible to report to Regional MIS manager at Askari regional office.
Assistant Manager MIS is responsible for supervision of MIS officers who further deals with hardware and software issues in the branch.
Responsibilities and Functions of MIS dept.:
Management information system helps in data collection and processing of raw data into useful and meaningful information and to disseminate to the other users when and where required. In fact, MIS is blood bone in now a days business culture that all decisions are made on the basis of information generated through MIS systems. Significant cost effective and time saving benefits are associated with the use of MIS in organizations.
Acknowledging the need of MIS system, Askari bank also invested lots of its funds to its MIS system to generate information in much fruitful way. In Askari bank, each level of management use variety of information systems according to their needs and requirements. Typically following information systems are very important to make best use of information:
Executive Support Systems (ESS)
Decision Support Systems (DSS)
Knowledge Work Systems (KWS)
Transaction Processing Systems (TPS)
