Internship Report on Askari Bank 2012
I offer my humblest thank to Allah and Hazrat Muhammad (PBUH) from the deep of my heart that always provide me guidance and blessings which are uncountable. This task was assigned to me by MBA (Management) and I complete this task with my full concentration and devotion.
I have completed this repot with the help and support of many people who encourage and guide me in completion of my task. I most courteously acknowledge the great support and help Asif Mushtaq assistant Vice President Manger of MIS department, Asim sheikh Vice President, Abdul Qayyum Sukhera Assitant Vice President – ARBD. I also acknowledge M. Farooq Abid Tung Country Head, agriculture and Rural Business. I greatly thank full to all these people who guided me at every step and provide me help in completion of my task.
I am highly indebted to my course instructors who provided not only an opportunity to learn about practical work and its implementation but also guide me through email for its completion. I am very great full to my Teachers who always helped me.
I am also thankful to my beloved parents and all those people who support and guide me in the completion of my report.
My internship duration in Askari bank limited was 01.10.2010 to 31.12.2010. I did work in Agricultural and Rural Business Division Lahore. I had worked in MIS and Insurance department. In my report i describe my all information about my work in Askari Bank Limited. It was incorporated inPakistanonOctober 9, 1991, as public limited. Currently it has 226 branches and 4,393 employees. Askari bank deals with all kinds of banking like corporate and investment banking, consumer banking services and Islamic banking etc.
During working in MIS & Insurance department of Askari Bank Limited I performed many task and assignments which include maintenance of record related to insurance of crops, assets financed and life assurance of borrowers availing agriculture loans etc. and assist in insurance proposals. I also consolidate and compile various statement / periodical reports for the review of Management and State Bank ofPakistan. I also learn about the statements of farm and non farm sectors and consolidation of data regarding these statements.
I also discuss in my report products and service, business volume, competitors, ratio analysis and future aspects of Askari Bank.
I have learned many things during my internship program which enable me to mange my work properly and gave me confidence in decision making.
In my opinion Askari bank limited perform its task very well and satisfy there employees and customers with full responsibility.
OVERVIEW OF THE ORGANIZATION
Askari Bank Limited was incorporated inPakistanon October 9, 1991 as a public limited company, and is listed on theKarachistock exchanges. The registered office of the bank is situated at AWT plaza, The Mall Rawalpindi.
The bank obtains its business commencement certificate on February 26, 1992. And started operations from April 01, 1992. Army welfare trust directly and indirectly holds a significant portion of the banks equity at the year-end. The bank has 226 branches inPakistanand Azad Jammu andKashmirat the year-ended of 2009.The bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the banking companies’ ordinance, 1962. We are proud to say that Askari Bank Limited is now a leading market player in the Financial Sector inPakistan. Askari bank ltd has received an A1+ rating for the short term (which is the highest in the category) and an AA+ for the long term, from the Pakistan Credit Rating Agency (Pvt.) Ltd. (PACRA), an affiliate of IBCA Ltd.UK. ABL is the first Private Sector Pakistani Bank to voluntarily obtain a rating from PACRA.
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As soon as a person opens an account with the bank, the banker customer relationship is established. In such situation this is advisable the banker should not open new accounts of unknown persons unless references regarding the integrity and responsibility of the purposed persons are obtained from respectable parties. Failure to exercise this care may result in serious consequences not only for the banker concerned but also for the other bankers and general public. It is not sufficient to obtain the reference but its genuineness must also be verified.
Deposit is a life blood of a commercial bank. Main function of a commercial bank is to channelize the saving from the savers to the ultimate user of funds. The process of collecting saving is called Deposit mobilization.
The word clearing has been derived from the word “Clear” and is defined as “ a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House At specified time” in an efficient way.
Although the study of money is important for the understanding of the way in which our economic system operates, we must recall this point that most exchange transactions in this system are carried on today without the use of actual money,i.e, .Those are carried on by means of credit and credit instruments rather than money. While money still forms the basis of credit and deferred payments, it is necessary to examine the nature of credit operations, and the instruments and institutions trough which these operations are carried on, in considerable detail.
FOREIGN EXCHANGE DEPARTMENT
The term “foreign exchange” is used to denote either a foreign currency or the rate at which one currency is converted into another currency and methods by which one currency is exchanged for another. Thus foreign exchange is concerned with the settlement of international indebtedness, the methods of effecting the settlements and the instruments used in this connection, and the variation in the rate of exchange at which settlement of international indebtedness is made.
COMMENTS ON THE ORGANIZATION STRUCTRE
Askari bank has a good structure and it fulfill the requirements of the organization. It seeks to maintain high standards of services and ethics. Askari treats its employees equally and employee also carries out their responsibilities in a professional way. Bank achieve sustain growth and profitability in all area of the business. It also optimizes use of technology to strengthen the bank structure. It provides strategic solution to strength and weak areas.
Brief Introduction of branch:
I did my internship in Agriculture and Rural Business Division (ARBD).this department gain strength with improved and efficient delivery and control mechanism for meeting increase demand for credit by customer in easy, accessible and affordable manner. The innovative product for this segment is best rated in the market. This department also achieved further refinement in back office processing including credit initiation, operation, and risk management, in line with the business dynamic and regulatory framework. ARBD remains proactively engaged with its stockholders for aggregation of services and improving and improving life standards of farmers through its distribution network, currently extended to 89 branches in the country.
The Askari Bank showed good and marked performance during year 2009. During this year bank showed excellent improvement over the previous year although non-conductive business conditions prevalent most of 2009. The bank was able to wisely manage the risk and returns although credit demand and continued stress on banking margins. Also Askari bank is able to drive significant gains through active management of money market, equity and debt management portfolios. Key elements of strategies of Askari Bank are consolidation of business and operations. During 2009 greater focus on strengthening policies, workflows, process and controls. A technology transformation show that the bank has embarked upon is an advance and vast stage of implementation. In near future benefits are expected in the form of improvement in service quality, customer offering, internal controls that will further reinforce the bank capabilities and readiness for future challenges.
Financially operating profit of the bank is almost same level of the last year. Share holders funds and earning per share are increased during this year. The bank capital adequacy ratio stood at a comfortable level. Islamic banking operation of the banks are now become the top players and it is sure that Islamic Banking will continue to maintain its rate of growth. The agricultural and rural department gain great significance by facilitating farmers with finance.
Recommendations for improvement
Askari Bank is a very good bank on every point of view. But I have some suggestions, which can add some inputs and beneficial in solving problems.
During my internship I analyzed that there is need for the improvement of the working condition of branches, modern techniques of decentralization must be adopted. Software should be provides to the division to access and consolidate the data of borrowers. Government should provide subsidies to borrower regarding insurance. The rate of mark up is little bit high it should be reduce. Some of the authority must be delegated to the lower management and the staff, unto some extend. This will improve the confidence of the employees. According to financial point of view operating profit of the bank stood at the same level as of last year. Administrative expenses have increased. This rise is mainly due to the new branches opened during 2009 and 2008. Earning per share is increased. The increase is mainly due to growth in net interest income and decline in provisions. Banks debts are higher then equity so Bank should take further steps to improve the equity and reduce the debts. Askari Bank limited is currently adequately centralized. However, ensuring losses from declining asset quality and proposed acquisition could necessitate the need to inject the fresh capital into the bank.