Doing an internship is a part of BS (Business Administration) course. The main purpose of internship is to getting practical experience of what we have learned from our through out course. I am student of virtual university of Pakistan. Its gives us best education and offer specialization in finance, marketing, human resource and information technology and management. And it is necessary to complete BS (business Administrative) degree do six to eight week internship any organized organization.
I completed my internship in Askari bank limited Gujar Khan Branch because it is the competing bank nowadays in market and provided good training to their internee. It is best opportunities for me to make practice of that knowledge I had learned during the study period of BS (Business Administration)
During my internship I found that Askari Bank Limited is the best bank in the region that provided best service in banking sector in Pakistan.
During internship I have work various department of the Askari Bank Limited Gujar Khan branch (0108) such as Deposits, foreign Exchange OBC/Clearing/ Remittances, Accounts, Credits and ATM operation. I clear my concepts to working with different department of Askari Bank Limited and the most importance thing that I have learn in my internship is how to deals with customers and how to retain them for long period.
I describe in my internship report about the history of Askari Bank Limited and it product and service, different department of bank at various level employees, business volume, history of Gujar Khan branch and working of different department of Gujar Khan branch and I also describe the function of management that perform by the top management of Askari Bank Limited and the at the end of report I explain SWOT analysis and give some recommendation for improvement
Introduction of banking
Bank is a financial institute that deals with money and things that liquidity equal to paper money, which come of people and lends to other peoples, institute and corporation for personal and business used on interest. Its primary activities providing financial service to customer while increase asset value and creating profit for their shareholder.
The first bank were establishes during the third millennium B.C. Banks invent to deal with money. In the early age there was no concept of money in any form. Initially banking deposit consisted of grain and some other goods that having some value just like cattle, agricultural implements and some metals such as gold coin that was small in size and easy to carry from one place to other.
History of banking in Pakistan
At the time of independence Pakistan there was 19 foreign bank operate in Pakistan with very small numbers of branches their police and operation were controlled by abroad. These banks were solely engaged in export and import of crops from Pakistan. And there are only two banks at the time of intendance of Pakistan , Habib bank which was transferred its head office form Bombay to Karachi after the announcement of partition and one of the Australian bank which have been working in Pakistan territories to June 1947.
After independence it was not possible of government of Pakistan to set up the central bank immediately. To resolve the problem the reserve bank of India worked as a central bank of Pakistan till 30th September 1948. The government of Pakistan established own central bank 1st July 1948. The development in the banking sector of Pakistan was phase by phase and major phase are following
First phase (1947-1974) that know as Establishment of Commercial Banking
Second phase (1974-1979) that know as Nationalization of Banking
Third phase (1979-1991) Introduction of Islamic Banking in Pakistan
Fourth phase (1991-2000) Privatization and deregulation
Form 2000 to nowadays
Overview of the organization
Brief history
Askari Bank Limited was established 19 year ago since October 9, 1991, as a Public Limited Company, and is listed on Karachi, Lahore and Islamabad Stock Exchanges. The Bank has got its business commencement certificate on February 26, 1992 and started working April 1, 1992 and engaged its banking business according to the Companies Ordinance 1962. Askari Bank Limited continues improving its all activities and operation with the pass of time and get new heights in all areas of operations due to the high safety and security of depositor's funds, high productivity and optimum use of technology and its corporate strength. After the working of three year AKBL earned international recognition as Asia Money Award and the title of "Best Commercial Bank of Pakistan" and after one year 1995, the Euro money declared the best domestic Bank of Pakistan.
Askari Bank Limited has since expanded into a network of 235 branch/ sub branches, including 31 dedicated Islamic banking branches and a wholesale bank branch in Bahrain. A share network 4401 online ATM covering all major cities in Pakistan supports the delivery channels for customer's service. As at December 31, 2009 the bank had equity of Rs.16 billion and total assets of Rs.314.7 billion with 885,764 banking customer serviced by 6442 employees.
Nature of the organization
Vision
To be first bank of first choice in region
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 all our stakeholders, and contributing to society"
Corporate 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
To building an enabling environment , where employees are motivated to contribute to their full potential
To effectively mange and mitigate all kinds of risks inherent in the banking business.
To optimize use of technology to ensure cost-effective operations, strengthening of controls, 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.
Strategic Planning
To comprehensively plan for the future to ensure sustained growth and profitability.
To facilitate alignment of the Vision, Mission, Corporate Objectives with the business goals and objectives.
To provide strategic initiatives and solutions for projects, products, policies and procedures.
To provide strategic solutions to strengthen weak areas and to counter threats to profits.
To identify strategic initiatives and opportunities for profit.
To create and leverage strategic assets and capabilities for competitive advantage.
Business volume
According to Askari Bank Limited financial annual report 2010 the total business volume of bank are following.
Table 1Business Volume
Type
Quantity / Amount
Total No of Branches
235
Total Islamic Branches
31
Off shore Branch
1
Sub Branch
22
ATM share Network
4401
Total Employees
6442
Total Customers
885764
Total equity
16.0 billion in Rs
Total Assets
314.7 billion in Rs
Award and achievements
Over 20 years of working Askari Bank Limited has achieved several awards for his performance.
Entity Ratings
Askari Bank Limited has got the AA+ and A1+ rating form Pakistan credit Rating Agency limited (PACRA)
Long term AA+
Short-term A1+
Definitions by PACRA
AA:
"Very high credit quality: 'AA' ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitment. This capacity is not vulnerable to foreseeable events.
A plus (+) appended a rating, denotes status within rating categories.
A1+:
Obligations supported by the highest capacity timely repayments.
Head office address
AWT Plaza, The Mall,
P.O. Box No. 1084
Rawalpindi-46000,
Pakistan.
Tel: (92 51) 9063000
Fax: (92 51) 9272455
E-mail: [email protected]
Website: www.askaribank.com.pk
Products Line
Askari Bank Limited offers various product and service according to the customers need and divided into different divisions such as consumer banking service, SMEs, individual savers, farmers etc. some of the product and service that provide Askari Bank Limited are following
Branch Banking
Following are the comprehensive product menu range provides by Askari bank to their customer at branch level.
Deposit Multiplier Account
Mahanan Bachat Account
Paishgi Munafa Account
Value Plus Deposit
Repee Traveler Cheques
Roshan Mustaqbil Deposit
Consumer banking
There are two main type of consumer banking that deals by Askari bank Limited
Consumer Banking Product
Consumer Banking Service
Consumer Banking Product
Personal Finance:
Mortage Finance:
Ask 4 car
Askcard (Askari Debit Card )
Master Credit Card
Consumer Banking Service
Internet Banking service
Electronic Bill payment service :
Cash Management Service:
Investment Certificates:
Call Center
ATM
Agriculture Finance service
Agriculture finance service launch by specify for farmers to improve their life style for this purpose Askari bank lunched a separate division Askari Bank Agriculture and Rural Business Divisions (ARBD) that offers following product and service
Kissan Ever Green Finance
Kissan Tractor Finance
Kissan Aabpashi Finance
Kissan live stock development
Kissan Farm Mechanization Finance
Islamic banking service
Islamic banking was launched under the brand "Askari Islamic Banking" following are the product and service that offer by Askari Islamic Banking
Ijarat Bi Sayyarah
Home Musharakah
Deposit Schemes
Declared Weight Ages
Profit rates
Corporate & investment banking Service
Corporate & investment banking service are specially designs for business requirement of region clients and try to meet their expectation through provided customized and to create personal relational base service business sector of different region of Pakistan.
Corporate and investment banking Group(CIBG)
Corporate and investment banking Group (CIBG) further divided into key two divisions
Corporate Banking Division(CBD)
Investment banking Division(IBD)
Corporate Banking Division(CBD)
Corporate Banking has following products and service
Working Capital
Term loans
Structured Trade Finance
Letters of Guarantee
Letters of Credit
Fund Transfers
Bill Discounting
Export Financing
Receivable Discounting
Investment banking Division(IBD)
Bounds
Syndicated loans
Structured Finance
Leveraged Buyouts
Project Finance
Quasi - Equity Product
Privatization
Private Equity
Equity Underwriting & Placement
Mergers
Equity De-Listing
Corporate Restructuring
Acquisitions Friendly / Hostile / Tactical stakes
Alternate Delivery Channels
Internet (I-NET) Banking
Call Center
Auto Teller Machine (ATM)
Competitors
Competitors are firms or organization that provides the same product and service in the same market at same time. Askari Bank faces many of competitors that provided the same product and services. When competitions are increase other firms not only provide the same product and service but they also at the same place. I have observed most of the banking Branch side by side in different city of Pakistan due to this there are lots of chance to turn of customer to other bank branch if you are not satisfying customer at his desire .These are the followings banks that provided same product and service that provided by Askari Bank Limited.
MCB (Muslim commercial Bank Limited)
Faysal Bank Limited
Habib bank limited
Bank Alfalha Limited
Meezan Bank Limited
Bank of Punjab
United bank limited
Al-Habib Bank limited
National Bank of Pakistan
KSAB Bank limited
City Bank limited
Stander chartered Bank limited
Barclays Bank
Organizational Structure
Board of Directors
Audit
Committee
Executive
Committee
President &
Chief Executive
Company
Secretary
Chief Credit
Officer
Country Head Risk Management
Country Head
Special Asset
Management
Executive
Incharge
President Support
Country Head
Compliance &
Data
Group Head
Marketing &
Strategic Planning
Strategic Planning
& Economic
Research
Marketing &
Media
Service Quality
Complaint
Management
Chief Financial
Officer
Country Head
International
Banking
3 Regional
Foreign Trade
Units
Country Head
Human Resource
Training &
Development
Chief Information
Officer
Country Head
Electronic
Technology
Country Head
Credit
Administration
Head
Legal Affairs
Chief Information
Security Officer
Country Head
Establishment
Global Treasurer
Wholesale
Bank Branch
- Bahrain
Country Head Islamic Banking
Services
Islamic Banking
Branches
Country HeadConsumer Banking
Services
Secured Assets
Products
Unsecured
Assets
Products
Group Head
Commercial
Banking
Regional General
Manager
Central
Regional General
Manager
South
Country Head Agri. & Rural
Business
Group Head
Corporate &
Investment
Banking
Corporate Head
North
Corporate Head
Central
Investment
Banking
Capital Market
Operations
Group Head
Operations
Country Head
Audit & Inspection
Risk management
Committee
Regional General
Manager
North
Corporate Head
South
Board Members
Direct Reports to the president
Business Functions
Support Functions
Organizational Hierarchy chart
Corporate information
Board of Directors
Lt. Gen. Nadeem Taj(Chairman)
Lt. Gen. (R) Imtiaz Hussain (Chairman Executive Committee)
Maj. Gen. (R) Saeed Ahmed Khan(Director)
Mr. Zafar Alam Khan Sumbal(Director)
Dr. Bashir Ahmed Khan(Director)
Mr. Shahid Mahmud(Director)
Mr. Muhammad Riyazul Haque(Director)
Mr. Ali Noormahomed Rattansey, FCA (Director)
Mr. Wazir Ali Khoja (Director)
Mr. M.R. Mehkari - President & Chief Executive- Chairman
MR. M.A. Ghazali Marghoob (Company Secretary)
Audit Committee
Dr. Bashir Ahmad Khan - Chairman
Mr. Ali Noormahomed Rattansey, FCA
Mr. Wazir Ali Khoja (Member)
Company Secretary
Mr. M. A. Ghazali Marghoob, FCA
Auditors
KPMG Taseer Hadi & Co. Chartered Accountants
Legal Advisors
Rizvi, Isa, Afridi & Angell
Shariah Advisor
Dr. Muhammad Tahir Mansoori
Chief Financial Officer
Mr. Saleem Anwar, FCA
Departments of Askari Bank Limited
Human resource department
Credit Division
System and operation division
Electronic technologies Division
IT and Computer Department
Corporate and investment banking Division
Procurement Department
Audit Division
Marketing Department
Finance Department
International Division
Treasury
Legal Department
Risk Management Department
Comments on the organizational structure
Askari Bank limited organization structure are well manage and structured and under the supervision of top management and lower level management flow the rules and police that made by top management. Askari bank are going to centralized it all network now at time it's some decision are taken by lower level management. All departments are design in such a way that achieves goal and objective with in time frame. Askari bank structure is design to achieve goal and objective of bank and the organization well improving and enhancing their day to day activities with the pass of time and increase the employee coordination and job satisfaction.
My Internship Activity Plan
Induction of Gujar khan Branch
As the requirement to complete the degree of BS (Business Administration) to do internship in organized organization for this I completed my internship in Askari bank limited Branch (0108) Gujar Khan. Askari Bank Gujar Khan Branch stared its working 27 December 2006 and easily achieves its target that given by top management and get very good reputation in Gujar Khan Local market due its good customer relationship and good behaviors with walking and permanent customer. I have very well experience to be a part of Askari Bank limited For Six Week internship Program. All staff member good and enough experience in their own filed of banking how to deal with customers and crate long lasting relationship with for achieve the organizational target that set by top management. Bank Staff member start working with the recite of Holy Quran.
Branch Address And Tele phone No.
Askari Bank limited B-iii-360/1, G.T. Road Gujar Khan -Pakistan
PABX: + 92 513515671-74, Fax: +92513515676 SWIFT: ASCMPKKA.
Employee of Askari Bank Gujar Khan Branch
There are14 employees are working in Askari bank Gujar Khan Branch and 5 Security Guards. They names and grade are following.
Table 2 Name of Employees
Name
Designation and Department
Muhammad Ali Junjua
(Branch Manager)
AVP
Kamran Ali Khan
(Manager Operation)
Mudassar siddique
(OG1)
in charge Deposit department
Gulrez Qadeer
(OG1 )
in charge of cash department, clearing, remittance
Shabbana Aurangzeb
(OG2)
In charge of Accounts department.
Afsheen Altaaf
(OG2)
Assistant of Gulrez Qadeer
Mohammad Ameen
(OG2)
In charge of IT department.
Omar Inaam
(OG3)
Account opening officer
Abdul Shakoor
(COG3)
Cashier
Mohammad Jawad Kiyyani
(COG3)
Cashier
Syed Muntazir Imam Shah
(Contractual).
Agriculture department
Mohammad Nadeem
(Peon).
Mohammad Saqib
(Tea Boy)
Mohammad Aurangzeb
(Sweeper)
5 Security guards are servicing in the Askari bank Ltd Gujar Khan Branch
Arshad hussain
Security guard
Nazaqat Hussain
Security guard
khalid Hussain
Security guard
Rab Nawaz
Security guard
Nisar Ahmed
Security guard
Starting and ending dates of my internship
I was start my internship 17-jan-2011 and completed 28-Feb 2011
Names of the Departments and Duration of Training
I have completed six weeks internship in Askari bank Gujar Khan Branch and I have got training six different departments one week for each department.
Table 3 Department name and Training Duration
Department Name
Training Duration
Accounts Department
One week
Remittance & Clearing/OBC
One week
Foreign Exchange
One week
Credit department
One week
Deposit department
One week
ATM Operation
One week
Training program
Tasks and activities that I had performed in different department during internship are following. I have got training in six different department of Askari bank branch Gujar Khan. Department divisions are following.
General Banking Department
Credit Department
Deposit department
Foreign Exchange Department
IT department
ATM Operation
These entire department subs divide in to different division
General Banking Department is sub divide in three different departments
Accounts Department
Remittance & Clearing/OBC
Cash Department
Credit Department
Deposit department
Foreign Exchange Department
Import Department
Export Department
Foreign Currency Department
IT department
ATM operation
Accounts
First week I have got the training of accounts department and account department further divide in to two departments.
Account Opening
Account Maintenance
Account Opening
Following are the Officers that are responsible working of accounting opening department of Askari Bank Gujar Khan Branch
Muhammad Ali Junjua (Branch manger)
Karman Ali khan (Manager Operation)
Madassar Siddique (OGI- Incharge Department)
Umer Inam (OGII-Account opening Officer).
First day Officer Mr. Madassar Siddique total me the some basic information about accounts and the type of accounts and feature of different accounts and receipt that are used to deposit money or cheque in account and some tips how to fill these deposit receipt to reduce error. Types of accounts that operate in Askari Banks are following.
Account Of General Customers
Minor account
Illiterate person account
Joint Account
Accounts Of Special Customer
Proprietor Ship Account
Partnership Accounts
Limited Company's Account
Agent's Account
Joint Stock Company Account
Agency Account
Clubs, Societies /Association Accounts Trusts Local Bodies Etc.
Executor's And Administrator's Account
After that they told me about Account opening Form and its related documents that are necessary to open accounts in Askari bank and different currency accounts and its code. Askari bank operate four different currency type that are following
Table 4 Currency Type and code
Currency
Code
Pak Rupees
01
US dollar
02
G.B pound
03
Euro
04
In the account department I have learn and practice about
Filling of accounts opening Forms
Different requirement of accounts opening Forms
Filling different account receipts
Customers dealing
Signature Specimen Card (SS Card)
Stamping on account opening form
Verification of the documents
Entry in account opening register and assign accounts no
Procedure of account closing
Stop payment
Made letter of thanks
Key Feature of Account opening department
Provide Guideline to customer about Accounts and its type and feature and the requirements of accounts
Filling accounts opening Form and check the required documents
Check mistake in form and remove it
Signature and Stamping on the form and Preparing checklist
Maintaining account opening register and form in different folder
Issue cheque books, debit card and bank statement letters
Issue certificate of accounts maintenance,
Closure of account
Verification of signature on cheque
Account Maintenance
Following are the officer responsible working of this department
Muhammad Ali Junjua (Branch manger)
Karman Ali khan (Manager Operation)
Shabana Aurangzeb (OGII In charge Accounts Maintenance Department)
Umer Inam (OGII-Account opening Officer).
In accounts Maintenance Department I have learn about different activities report generate by computer department and sorting of whole day voucher and checking of different transaction made through computer posting and check that all posting transaction are right and check he Signature on each voucher for their relative officer .
Key Responsible of Accounts maintenance Department
Maintain the budget Branch
Disbursement of salary of employees.
Manage stationary and its expenses.
Check the branch cash inflow and cash outflow per month and annual.
Mange all day to day expenditure
Control all expenses according to budget
Proper Maintain the record of all accounts and report through filing
Check the activity of account which is operated through ATM machines.
Remittance & Clearing/OBC
Following are the Officer that are work in this Department.
Gulrez Qadeer (OGI)
Afsheen Altaaf (OGII)
In Remittance & Clearing/OBC I have got the training about the, Pay Order, Demand Draft, Pay slip filling and how Telegraphic Transfer, Payment of Remittances, Cancellations of pay order & demand are made and what bank charge on different amount to their own customers and non customer
Bank charges Schedule
Table 5 Bank charges
Amount (Rupees)
Charges (Rupees)
Charges on issue of Pay Order
Up to Rupees 1,000,000
65(flat)
Above 100,000
25
Charges on issue of Demand Draft
1 - 100,000
0.13% or 135
100,001 - 1,000,000
0.095%or 275
Over 1,000,000
0.080% or 1300
Cancellation of Pay Order/ Issuance of duplicate Pay Order is Rupees.300/- Flat.
Cancellation of demand draft Rs. 200/- (flat)
Issuance of duplicate demand drafts (in lieu of lost). Rs.300/- Flat
Key responsibly of Remittance department
The main function of Remittance department to transaction of money form one place to other some of basic function of the department is following
Demand Draft
Pay slip
Pay Order
Telegraphic Transfer
Payment of Remittances
Cancellations of pay order & demand draft
Clearing
Inward Clearing
Outward Clearing
Clearing meaning all banks interchange their claims against each other with the help of controlling staff of State Bank of Pakistan that know as clearing .Timing of clearing for every day in Askari bank
1st Clearing at 10:00 a.m.
2nd Clearing at 2.30 p.m.
Inward Clearing
When an Askari bank account holder draw's a cheque in favor of a Non- Askari bank account holder that is know as Inward clearing.
Outward Clearing
And against inward clearing the outward clearing take place when non Askari bank customer in favor of Askari bank customer and deposit it know as outward clearing
Foreign Exchange
Foreign Exchange deal with foreign currency in which foreign currency convert in local currency and local currency convert into foreign currency. Functions of Foreign Exchange Department are following
Foreign Bills for collection (FBC)
Deal with FC
Issuance of Proceed realization certificate
Inward remittances
TDR
Issuance of Proceed realization certificate
Inward remittances
Foreign telegraphic transfer (FTT)
Daily Reporting
Foreign Demand Draft (FDD)
Basic Requirements for Foreign currency account
A person must have his account in foreign currency
Account balance must equal to $500 or equivalent to $500
Types of currency in Askari bank deal Dollar (25% Interest p.a.) ,Pound sterling(2% Interest p.a),Euro( 1% Interest p.a.)
Credit department
The officer that work in credit department are following
Muhammad Ali Junjua (Branch manger)
Karman Ali khan (Manager Operation)
All transactions that relative to the credit deal by credit departments most of the businesses transactions are down with out involved of money. Those down on credit money still in the form of credit and deferred payment. A credit transaction appears to be of many kinds, but they all have some basic similarity. In credit transactions, one party creditor, and other is debtor and both party are agree on certain amount of money, commodities or services at the present time and relies on the debtor to repay an equivalent amount, usually money in future plus interest.
Some basic type of Credit and credit instruments of following
Type of credit
Commercial credit:
Consumer's credit and producers' credit:
Band Credit:
Investment Credit.
Public and Private Credit:
Instruments that used as credit
Bills of exchange:
Cheque
Bearer Cheque
Open Cheque
Marked Cheque
Order Cheque
Crossed Cheque
Promissory note
Letter of credit
Deposit Department:
Following are the officer of Askari bank branch reasonable for working of this department
Muhammad Ali Junjua (Branch manger)
Karman Ali khan (Manager Operation)
Mudassar Siddique (OGI)
Umer Inam (OGII)
It is the departments that are more necessary to run banking operations of any bank it is backbone of any banking organization. Individual save extra income in bank and these deposit money used in various way to run bank operation and bank uses it as source of income and provided to other individual, companies as in the form of credit. Money that deposit in bank it is the liability of bank as the police of stat bank of Pakistan the any bank that receive money from individual can contain only 25% and lend 75% individual or business organization. And the money deposit in the bank the bank has pays some profit rates on Term Deposits. Askari Commercial Bank Limited is offering following types of Term Deposits to its customers:
PLS Notice Deposits
Askari Bachat Certificates
Askari Advantage
PLS Term Deposits
ATM Department:
ATM stands For Auto Teller Machine Askari Bank's reach have set up a retail-banking group in July 2000, the mobile ATM's facility is first time started by Askari commercial bank in 2005 dedicated to serving the urban consumer market. Askari bank offer 24/7 cash payment thought global system of NCR ATM machine worldwide. ATM inter-bank connectivity platforms i.e., MNET and1-link. Through this shared network of online 4,401ATMs including Askari Bank's 233 dedicated There are two types of Visa ATM card one is sever and other id Gold. One difference between the gold and sever cash withdraw limited gold card has cash withdraw limited is 100, 000, and sever has 50,000 thousand charges on the uses of card are 500, on sever and 750 on gold card per annual. Personal Identification Number (Pin) is a 4-Digit confidential number, which is know only by the card holder person and the person can easily change PIN no.
Followers are the officers that are hand the working of ATM department
Madassar Siddique (OGI- Incharge Department)
Umer Inam (OGII-Account opening Officer).
Mohammad Ameen (OG- II In charge of IT department)
Abdul Shakoor (cashier)
Management Functions of the organization
Planning
Planning is the process of defining the organization's goals, establishing an overall strategy organizational work. In Askari bank Ltd goals and strategies made by top management lower level management is responsible for achieve the goals and objective set by top management
Organizations planning strategies
Organization planning strategies Maintain growth, continue to build the branch network and invest in technologies, focus on increasing service quality through continuous provided training to staff member and increasing employees satisfaction and reduce turn out and increasing customer loyalty.
To comprehensively plan for the future to ensure sustained growth and profitability.
To facilitate alignment of the Vision, Mission, Corporate Objectives with the business goals and objectives.
To provide strategic initiatives and solutions for projects, products, policies and procedures.
To provide strategic solutions to strengthen weak areas and to counter threats to profits.
To identify strategic initiatives and opportunities for profit.
To create and leverage strategic assets and capabilities for competitive advantage.
Decision making process
The decision making process involves identifying a problem, generating solutions and selecting the best solution to solve the problem so sometimes this makes the decision making process slow
Organizing
Organizing is the process of creating an organization's structure
Organizational design
Organizational design is the process of developing or changing an organization's structure. Following are the function that involve in organization design.
Departmentalization
Departmentalization is the process in which organizations its function or task are divided into department. Askari management divides its function in to following department.
Human resource department
Credit Division
System and operation division
Electronic technologies Division
IT and Computer Department
Corporate and investment banking Division
Procurement Department
Audit Division
Marketing Department
Finance Department
International Division
Treasury
Legal Department
Risk Management Department
Span of control
Span of control is the process in which the number of subordinates who report directly manager. In Askari Bank Ltd Span of control are divided in following way.
Branch employee report to branch manager and operation Branch manager report to Area report to region And region report to the head office
Chain of command (organizational hierarch Chart)
Board of Directors
Audit
Committee
Executive
Committee
President &
Chief Executive
Company
Secretary
Chief Credit
Officer
Country Head Risk Management
Country Head
Special Asset
Management
Executive
Incharge
President Support
Country Head
Compliance &
Data
Group Head
Marketing &
Strategic Planning
Strategic Planning
& Economic
Research
Marketing &
Media
Service Quality
Complaint
Management
Chief Financial
Officer
Country Head
International
Banking
3 Regional
Foreign Trade
Units
Country Head
Human Resource
Training &
Development
Chief Information
Officer
Country Head
Electronic
Technology
Country Head
Credit
Administration
Head
Legal Affairs
Chief Information
Security Officer
Country Head
Establishment
Global Treasurer
Wholesale
Bank Branch
- Bahrain
Country Head Islamic Banking
Services
Islamic Banking
Branches
Country HeadConsumer Banking
Services
Secured Assets
Products
Unsecured
Assets
Products
Group Head
Commercial
Banking
Regional General
Manager
Central
Regional General
Manager
South
Country Head Agri. & Rural
Business
Group Head
Corporate &
Investment
Banking
Corporate Head
North
Corporate Head
Central
Investment
Banking
Capital Market
Operations
Group Head
Operations
Country Head
Audit & Inspection
Risk management
Committee
Regional General
Manager
North
Corporate Head
South
Board Members
Direct Reports to the president
Business Functions
Support Functions
Branch Hierarchy Chart:
Branch Manager
Operational Manager
IT/SQC
Officer
Cashier
Clearing
Collection
Business
Development
Officer
Business
Development
Officer
Business
Development
Officer
Area Side
Centralization/Decentralization
Askari bank limited is a centralize organization because its all decision are made by top management.
Formalization
Formalization is the process in which organization makes its rules, polices and working procedures. In Askari Bank limited for inner organization formalization is down by top management and the whole organization flow the rules, police and procedures set by company act 1962.
Work specialization
The work specialization is the process in which organization divide its work in to various part accounting to their function specification. The Askari Bank Ltd divided its work into various jobs so that it can achieve organizational goals easily just as the Operations department which is further divided into various jobs like customer services, remittance etc. to their job.
Managing change and innovation
Managing changing is the way forward to fully capitalize upon this great opportunity Askari bank try to adapting new system, procedures and processes holds the key towards achieving desired results and installing new system and adapting change with change in environment.
Managing IT and communication
The main objective of this department to ensure that Askari Bank remains abreast of latest developments in technology and enable IT to be more customer-focused and customer-friendly
Leading
Leading is the way in which organizational and its member influence to other to achieve the organizational goal and objective with I time frame. In Askari bank leading process is down though hierarchy lowers level management answerable to middle level management and middle level management answerable to top management.
Leadership style
Authoritative leadership style in Askari bank limited
Power & politics
In Askari bank limited power & politics remain in the top management and low level management just enjoying working in friendly environment.
Motivation
A motivation is sets of force that are used to encourage employee to achieve specify goal and objective more effectively. Askari bank used following motivational technique
Medical Facility to staff member and their dependence
Best Performance Certificates
Performance Based Promotions and Increments
Training Programs for Fresher and Other Staff
Low Interest rate Loan
Controlling
Controlling is the process to checkout the organization actual performance and compare its to organizational goal and objective.
Controlling Approach
Inner branch that is held by manager and operation manger
Internal Audit that is held by audit committee of Askari bank
External Audit that held by audit committee of state bank of Pakistan
Controlling of operations
Askari bank controls its operation through operation department in each level in organization.
Controlling of performance
Askari bank controls its employee's performance through performance appraisal systems that are held every year at all level in organization and give rating to each employee and on that rating employees are promote and get performance awards.
Controlling of information / knowledge
Askari bank controlling information though the used of highly secure system and trained staff in each level Head office, Region, Area, and branch level. Following are set are taken by bank to secure its customer personal and finance information to unauthorized access.
Take a letter of undertaking to each person that join Askari bank limited
Highly secure software, hardware, firewalls and security system used
Internet and USB access are not allow in bank
Critical analysis of ACBL
Askari bank is well structured and well formatted and the most importance well organized organization. It is centralized organization that means its all decision made by top management and process by middle and lower management which is good for bank because top management is more experienced and batter knows what right or wrong for organization and decision making are fast. Askari bank flow the rule and procedures that lay down by state bank of Pakistan and Advisory Board that are set according to the company act 1962. Askari bank used performance appraisal system to measure and evaluating the performance to its employees and there is a department of controlling and monitoring performance of its all branch and there is audit committee which is responsible of controlling of operations. Askari bank divide it function with different department Askari Bank Ltd leadership style is authoritative and all the power is in the hands of top management that responsible to made rules, police, goal and objective for overall organization that flow by lower level organization employees.
Future prospects
Askari bank will enhance its focus on growth through operational efficiency, creating strategic alliance developing well structure networking system innovating new product
Enhancing marketing and sales effort improving customer services, achieving greater employee motivation and providing the best value to us stakeholder will make it a leader in the corporate world. Askari bank set comprehensively plan for the future to ensure sustained growth and profitability. Prospects for 2010 With Pakistan's opting IMF stabilization program, some early signs of improvement in economic fundamentals such as inflation, foreign exchange reserves, reduction in imports, decline in GOP borrowings from the SBP, have started emerging. Bank will keep standing and by and develop, its human capital base. It is planning to provide all the required training to its staff towards achieving high level of professionalism.
Askari will continue striving to build a strong, motivated and dedicated work force where total commitment will be towards the customer satisfaction and wealthy growth of organization.
Askari will endure to provide return t its shareholder and will strive to maximize its share value. The enhancement in its capital and return will be continuing process.
Askari bank is interested in being one of the most financially viable institutions. So it laid great emphasis on gradual building up to a healthy deposit mix. Askari plan to develop different and new product to create to the customer demand. Askari bank they strength to be a market leader
SWOT analysis
SWOT analysis consist on for part two related to internal aspects of organization and two relates to external aspects. IT means SWOT analysis is the process in which a company categorizes the internal aspects of the corporation as strengths or weaknesses and the external aspect as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it and opportunities can explorer business and threats can demonstrate the business.
Strength
Strength is a strong point of business that builds foundation for organization and can easily achieve the competitive advantage. Flowing are the Strengths of Askari bank limited
ACBL was organized by Army Welfare Trust (AWT) so it has strong army background due to this people give more trust as compare to other bank in region.
The Askari Bank has stable growth since its establishment and leading private sector bank in Pakistan.
24/7 Banking through the used of ATM
Visa Debit card used worldwide
Good equity rating (bank has very high credit rating a long-term entity rating of A+, and a short-term entity rating of A1)
Service stander according to the customers oriented
Electronic banking
I .NET banking
Strong IT backbone
Brand loyal is very good
Islamic and Commercial Banking Branch.
Large Banking branch network
Ability to change with changing environment
Ethical concern and public image.
Worldwide banking
Well -educated loyal staff
Weakness
Weaknesses create resistance to change with changing environment. Some of the weakness of Askari commercial bank
Centralization
Decision Implementation is very slow due to centralization
Dual entry system online and offline
Lack of training for employee
No job security is there for the employees, and no union exits to secure them
Employees turn over ratio is very high
Lack of specialization
A good number of facilities are only for the army personnel, not for the general public (high rate of return only for army personal)
Cash Withdraw Limited through ATM
Low Number of facilities for general public
Low rate of return on deposit
Due to lack of computer specialist at branch level it has to take assistance from the head office so in case they waste their lot of time
Opportunities:
Opportunities is the positive aspects of external environment that help to explorer business to innovative ways
ACBL is a Pakistani bank with the most extensive and comprehensive global network that open up opportunities in the near future
Its deal in bulk Businesses
Strong potential growth and Large amount foreign investment is attracted
Increase number of branch in Ruler and remote area
Increase customers satisfaction that increase deposit ratio
Increase rate of return
Increase number Islamic banking branch
Technological improvement enhances the business performance.
Provide international standard banking facility to the customer at their doorstep
Merging and acquisition is the best opportunities for ACBL to increase its return of investment
Open branch worldwide
ACBL can increase its operations by proper promotional campaigns of its new innovative services
Threats:
Threats are the external environment elements that can create trouble for organization. ACBL has following Threats.
Low employee security
High employees turn over ratio
Lack of employee training facility
Less experience staff at low level
Low job promotion rate in ACBL
Low rate of return due to this customer migration rate is high
Askari bank can lose market share due to insufficient brand promotional activities
Less innovative product
Increase in competition due to global banking system
Political and legal environment of Pakistan and the third world countries
Economic environment of the Pakistan and rest of the world
Instability in political system of Pakistan
World is going to be free trade zone
Conclusion
Askari bank established since 19 years a ago in October 9, 1991.Its maintain growth rate and now become a leading private commercial bank in Pakistan due to grow rapidly nowadays it stands in the "A" class banks category .It provided outstanding service quality to their customer and also provides Islamic banking service It has strong internal audit department as it is the second bank in Asia who has strong check and balance / audit department. It is to be approved by the zero percent charges written off. It has been contributed towards the growth of economy especially in the agriculture sector. It has been won the 1st prize of Pakistan banker from the "Asian banker" magazine. ACBL invest in people because people is the asset that more different earn.
Overall bank's progressive remained well. Banking is growing rapidly. Just in 19 years of banking, it has been spread in various sectors like as investment, Islamic Banking. It has the lack of Islamic bank branches. It has been contributed towards the economic growth but litter slow due to challenges face from the competitors
Recommendations
Askari bank is well organize, well structured and well know bank in banking sector around the world due to strong army background but it has some week point that should have to improve.
Invest in employees and decrease turn over ratio because people is the asset that take organization into new high
Increase mark up rate on investment
Decentralization
Lower level employee should involve in decision making process.
Bank should develop healthy and long loss relationship with their customers and treat its customers with great respect.
Management should distribute work equally among different employees at all level.
Launch proper training for employees
If possible bank should arrange externship for some employees in other reputable banks to bring up new ideas and more accuracy in Askari bank.
Reference & Sources used
First of all I want to mention different helping books for this report. I have taken a lot of material from virtual university hands out which are mentioned below.
MGT503 =Principle of management
MGMT623 = Leadership & Team Management
MGMT 628 = Organizational development
MGMT 625 = Change Management
MGMT 630 = Knowledge Management
Some data from Askari bank Ltd Gujar Khan branch Staff members
Web sites of Askari bank ltd. http://askaribank.com.pk/
History of banking http://en.wikipedia.org/wiki/History_of_banking
http://www.askaribank.com.pk/Reports/Askari%20AR2010%20(Final%20Version).pdf
Annexes:
