Executive Summery It is actually the analysis of organization currently running its business
It is actually the analysis of organization currently running its business, having its competitors. The study of the functions of the marketing & accounts departments as well as better customer service is the main purpose in the organization. It is also meant for finding the flaws and shortcomings and then giving the recommendations for improvement.
As per the requirements for the degree of BBA at Preston University Kohat, I got an opportunity to do six weeks internship in Askari Bank Limited, Range Road,Gul Plaza,Qasim Market Range Road,Shallay Valley,Rawalpindi.
I went through the all functions and processes of the department. Account opening department, locker department and clearing department and also I got the information about the marketing strategies of Askari Bank Limited to provide better customer services.
During first day of internship I met operation manager Miss.Sarah Abid who gave me little introduction about bank and introduced me to the employees of bank. Then I moved to different departments of bank as all internees rotated. The purpose of rotation is to get knowledge about different policies and departments of bank. During my internship I am able to learn real aspect of business and get worthy working practices.
My theoretical knowledge regarding marketing subjects became more clear and strong with help of practical application in AKBL. I have taken in numerous things throughout my internship program which empower me to manage my work effectively and provided me trust in decision making. In my opinion Askari bank limited performs its task very well and satisfy their customers with full responsibility.
CHAPTER # 01
1.1 Purpose of the Study
The motivation behind this internship report is to characterize and represent the various options and administrations offered by the Aaskari Bank with the specific aim of making a difference between some deficiencies identified with the Bank, to review the execution of the Bank and, finally, to provide some basic suggestions in the form of recommendations.
1.2 Nature of the Study
1.3 Scope of the Study
This report covers all areas of banking activities of Bank Askari. In the section Rawalpindi which includes customer services, cash, accounts, investments. The report only implies the activities of different departments instead of conducting a thorough analysis of all banking activities operated by Askari Bank. It was beyond the scope of this report to study the whole process of each department for consideration of sustainability and time.
1.4 History of Askari Bank
Askari bank is a unit of Army Welfare Trust and was established for the welfare of army officers. The office of AWT is located in Rawalpindi at AWT plaza The Mall. Army Welfare Trust has seven units and Askari bank is one of it.
• Askari associates
• Askari leasing
• Askari general
• Textile mills
• Askari commercial bank
• Private businesses
• Cement industry
On October 9, 1991, Askari Bank was incorporated as a public limited company. It’s started its operations on April 1, 1992 and is principally engaged in banking business, as defined in the banking ordinance 1962. The bank was then acquired by Fauji Group on June 2013.The bank is listed on Lahore, Karachi and Islamabad stock exchanges. Askari bank consists of 12 boards of directors under its corporate body and also includes chairman.
The operational head office of Askari bank is located in twin cities of Rawalpindi-Islamabad and this is the only bank which headquarter is in twin cities. This created more challenges and opportunities for the bank. Askari bank has 261 branches including Islamic banking branches (31), sub branches (22) and wholesale branch in Bahrain. Askari bank has two subsidiaries Askari Investment Management Limited and Askari Securities Limited that are engaged in managing mutual funds and shares respectively.
Askari bank provide different services like depository, lending and financial services. It also focuses on credit risk management, treasury, foreign trade, retail banking, corporate and merchant banking, credits cards and electronic banking.
The bank trades on the Pakistan Stock Exchange (PSX), and is also traded on the stock exchanges of Karachi, Lahore and Islamabad before joining the formation of a unique stock exchange (PSX). The bank acquired a license (number of license BL-7) in accordance with the 27 laws of banking, 1962 of the State Bank of Pakistan on 13 February 1992. The license was issued by Mr. Saeed Haider Bhatti.
1.5 Information about the Organization
Askari Bank Limited joined Pakistan on October 9, 1991 as public limited company and was registered at the Karachi, Lahore and Islamabad stock exchanges. The Bank’s headquarters are organized at AWT Plaza, Rawalpindi Shopping Center. The Bank acquired its business after its adoption on February 26, 1992, and began its work on April 1, 1992. Armed forces of the Armed Forces, especially on a circular route Maintains a large part of the bank’s capital in the last period. Bank.
It has 227 offices (December 31, 2009: 226 offices); 226 in Pakistan and the Azad Jammu and Kashmir, including 31 Islamic branches, 22 branches and a wholesale branch in the Kingdom of Bahrain. The bank is a reserved commercial bank and basically deals with account management, as detailed in the Banking Regulations of 1962.
1.5.1 Vision Statement
Vision statement defined as:
“To be the bank of first choice in the region”.
1.5.2 Mission Statement
Mission statement defined as:
“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”.
1.6 Main Objectives
The intrinsic main objectives that are corner stones of our corporate behavior are as follows. Commitment, Integrity, Fairness, Teamwork
AKBL key success factor is to know their customer and their needs. Askari bank has diverse products and services according to market segment in order to satisfy their customers. Askari bank has provided high value to shareholder because they know the way to success is creating shareholder value and its market share is also very high as compared to new private banks.
AKBL knows that interest of bank and employees cannot be separable so they create “we” culture to create respect and mutual trust for each other and each employee is able to understand his/her responsibility towards the performance and reputation of bank. It is a leading bank in banking sector because of its modern and dynamic banking in country and its superior customer based services. Askari bank is aimed to increase the quality of life in country so it contributes in social sector also and fulfill its social responsibility. Askari bank is a first mover in offering different services like online real time banking, nationwide ATM network, internet banking services and e-commerce solutions. Askari bank achieved several awards because of its tremendous performance:
• The Best Bank in Pakistan by Global Finance, 2000 ; 2001
• Best Consumer Internet Bank by Global Finance, 2001
• Best presented annual accounts by Institute of Chartered Accountants of Pakistan, 2001
• Euro and Asian Money awards, 1994,1997 and 2000
The credit rating of AKBL is AA and A1+ given by PACRA because of its very high credit quality and timely payment of financial commitments
1.7 Services/Products of Askari Bank
There are some services and product of Askari Bank.
1.7.1 Products of Askari Bank
Askari Bank provides two types of products one is deposited product and another is consumer product.
22.214.171.124 Deposit Product
Value plus Current Account
Paishgi Munafa Account
Askari Bachat Account
Askari Asaan Account (AAA)
Little Champs Account
Askari Waqaar Account
Others Deposit Products
Rupee Traveler Cheque (RTC)
Online Account Opening
126.96.36.199 Consumer Products
Askari World MasterCard Credit Card
Consumer Customer Services
Four types of locker are available which are following:
• Small size locker
• Medium size locker
• Large size locker
• Extra-large size locker
Small Size Locker
If small size locker is on rent then customer have to pay monthly rent of Rs 2,320 and if this locker is on security then customer have to pay Rs 25,000 at time of opening locker.
Medium Size Locker
If medium size locker is on rent then customer have to pay monthly rent of Rs 2900 and if this locker is on security then customer have to pay Rs 30,000 at time of opening locker.
Large Size Locker
If large size locker is on rent then customer have to pay monthly rent of Rs 4,640 and if this locker is on security then customer have to pay Rs 45,000 at time of opening locker.
Extra Large Size Locker
If small size locker is on rent then customer have to pay monthly rent of Rs 6,960 and if this locker is on security then customer have to pay Rs 55,000 at time of opening locker.
1.7.3 Services of Askari Bank
188.8.131.52 Digital Banking
Askari Visa Debit Card
PayPak Debit Card
UnionPay Debit Card
SMS Alert Facility
Real-Time Gross Settlement (RTGS)
Online Payment of Government Taxes ; Duties
Askari Education and Marriage Plan
Askari Savings and Life Protection Plan
Askari Retirement Plan
184.108.40.206 IBAN Account
220.127.116.11 Home Remittance
Aasaan Money Transfer
Become our Agent
CHAPTER # 02
2.1 SWOT Analysis
Few years back, the organizations only focus was their own performance and outputs, they were limited to what they get and what they lose. Due to the globalization, it is difficult for the organization to survive it they don’t compete with their surroundings. There are some standards for each organization to understand what is happening around. Today there is an intense competition in each market for each organization. It has become important for each organization to guard them for the survival. So for the excellence SWOT analysis is a practice for future growth. It is a tool which is used to analyses the performance of organization.
The SWOT analysis of Askari Bank is as follow:
• AKBL is a one of the leading private sector bank in the whole network across the country with many online branches in the many cities of Pakistan.
• The operations of bank are highly automated that result in reliable, efficient and secure transactions.
• AKBL provides services to the customer till 5:00 pm to benefit those customers who cannot leave their offices in the morning.
• AKBL has largest ATM network with ASKCASH logo, so the customer is able to withdraw their funds at any time and at any place.
• AKBL focus in customer oriented banking rather than product oriented banking. Bank offers products and services that are according to the needs of the customers.
• AKBL is among those banks which get the benefit of electronic banking that provide efficient and quick services and save the time and cost of customers as well.
• AKBL provides the banking service through phone which saves the precious time of customers.
• AKBL’s management is showing their concern towards people, ethics and environment and due to this they are enjoying the good public reputation.
• Bank has offer comprehensive Islamic banking solution to the customers that are based on Islamic Shariah.
• AKBL achieved AA and A1+ rating from PACRA.
• AKBL offer numerous services like ATM, 24/7 call center, free online and internet banking to their customer that magnetically attract a large amount of customer.
• Bankers use accounting register to make entries even the bank has computerized banking system.
• The job satisfaction level of employees of ABL is very low and the bank is not focusing on this critical issue.
• The major problem of bank is the rotation of job of employees without any understanding. The employees are rotated form one job to another and employees even don’t know the character tics of job.
• Bank has a high degree of centralization. All the decisions are made by top management. This effective up to the certain level otherwise it becomes ineffective and expensive.
• There is no specific training program for the new employees. They learn only from their observation and past knowledge. To understand the operations becomes a bit difficult for them and causes huge amount of loss for the bank.
• AKBL needs grievance handling department so that internal problems of employee can be handled.
• There is a lack of computer specialists in bank and there is a dire need of more IT personnel in each branch.
• AKBL has no marketing and HR department at branch level.
• Speed of intra-net is too low.
• Work load on employees.
• Lack of expense management in branches.
• Less use of Television for advertising which is the more powerful media to attract customers.
• AKBL provides free of cost services and products with latest technology and maximum benefit so they will be able to get edger over other banks.
• AKBL needs to go multinational; it is currently a local bank. So it should open branches abroad.
• The location of branches needs proper parking area for the customer because customers face many difficulties regarding parking.
• Islamic Banking solutions need more innovation and comprehension because the trend of Islamic banking is on the way of popularity.
• AKBL can avail the maximum benefit from new technology because of the heavy competition in the market and only the fittest will survive.
• Bank can grasp more markets by offering new products to the business group.
• For illiterate group, AKBL can help their client by giving cards in Urdu and bearings in audio.
• AKBL needs to do aggressive marketing to attract more customers.
• As the job satisfaction level of employees is very low that results in high turnover, which is not good for the bank because a large amount of money is invested on each employee by the bank.
• Some of the fees charged by the bank on some services are quite high which results in the decrease in number of existing customers. On the other hand the competitors take the opportunity and grasped the customer by lowering its rates and the result will be the loss of market share and income.
• There is a stiff completion for the bank. Today there are many banks which are offering the same product to the customers.
• As the bank has high turnover, it has very few experienced and trained staff. Majority of the staff is inexperienced.
• Other banks have experienced staffs which is also a threat for AKBL because human resource is very valuable for organizations.
• Terrorists activities and floods in Pakistan has brought the economy to stand still which causes less investment and low financing demands in banking sector.
• Law and order situation is very bad in Pakistan. This will lower the investor’s confidence.
• World is going to be a free trade zone in near future. Due to this banks will face intense competition.
CHAPTER # 03
3.1 Concern Department, Duties ; Learning
The most important aim of every student is to express him correctly and effectively. With this aim in mind, I decided to go to Askari Bank to complete my internship program. I was on my internship to Askari Bank Satellite Town Branch in the morning 18th August 2013 with determination and confidence.
I performed many duties during my internship which were assigned to me. Duties were related to different departments. I worked in following departments:
• Account Opening department
• Clearing department
• Locker department
3.1.1 Duration of my internship
On 3rd July 2018, my internship was stared. I went to the branch and met Mr. Kashif Saleem. He is a coordinator of internship program. He told me about structure, policies and basics of banking. He introduced me to the staff of the branch. He told me about the whole plan of my internship where he told that the internees don’t perform duties in cash counter the accounts department because it is the most important part of the bank and act as a brain of the bank. He also told me about marketing plans of banking sectors the next day Mr. Kashif introduced me to Mr.Khurram the Customer Service Officer. Mr. Kashif told me that he would be my mentor for the whole week and I have to work and learn from him through whole week. He told me glossary of Askari Bank. He told me the policies related to the customer service. I learned to fill the deposit slip, remittance form, and online deposit slip from here. I made a lot of mistakes while filling them but he told me again and again that how to fill them. I learned how to interact with customers and how to deal with customers. My communication skills were enhanced very much. This whole week was very beneficial for me.
Second and Third Week
These two weeks were full of learning and working. The new internees had joined the bank .Then Mr.Khurram moved us to account opening department where I met Mr.Kashif he told me how accounts are opened and how profit was given to different accounts. He told me about the risk accounts and how to fill the account opening form. I also made many sets of account opening form. He also told me that how financing is done. Side by side he told me the different products and services of bank. I learned the types of accounts in detail and the requirements for each account. I also discussed the foreign currency account with him. I learned how accounts are declared and dormant, how to reopen the account and close the account. He also told me how to facilitate your customer by providing them efficient services and know their problems regarding to any product or services.
3.2 New Knowledge Acquired
CHAPTER # 04
4.1 Functions of the Marketing Department:
4.2 Marketing Strategy
4.3 Product Planning, development & management
4.4 Pricing Strategy (IV) Distribution Strategy.
4.5 Also draw channel of distribution (Producer, Wholesaler, Retailer, and Buyer)
CHAPTER # 05
CONCLUSION AND RECOMMENDATIONS
5.1 CONCULSIONS AND RECOMMENDATIONS
The role of banks in today’s economy has become very important because of the ups and downs in the economy and favorable policies of investment and their implementation. The banking industry is growing rapidly over the past few years because of the information clients received about banks and their services. As I told there will be a chance of mergers with the foreign investment in banking sector in near future.
For internship program, I have spent six weeks in Askari Bank Limited. It has been 23 years since the formation of Askari Bank. The bank provides the outstanding services to its customer because it has aimed to become the leading bank of Pakistan. By opening the more branches, increasing the deposit base, also increasing the assets and profits, Askari Bank has seen the remarkable growth in past few years. Due to the features of their services and products like profit and markup rates they charge, their services and products are succeeded to get the great market penetration. But there are some areas that need to be improve like rotation of staff, recruitment etc. overall the bank is good it has to cover long distance to become the leading one. Bank has a potential to become the leading bank in the industry. Bank has to benchmark its services to its major competitors in the industry and has to provide continuous mean of improvement in its existing products and services.
Askari Bank is making good progress in Qasim Market Range Road Branch. The problem I witnessed is shortage of devices like computer, and printer etc. There is a little number of printers in the branch. Most of them are not working which creates burden on employees as well as customers. Another problem is that there are a less number of employees in the branch. The distribution of work is not right because of the less number of employees. Some has fewer burdens and some has more. The work efficiency of branch is not good.
After doing six week internship in the bank, interacting with employees, getting their views, observing the structure I have come up with following suggestions which I think can add some input in efficiency and performance of Askari Bank in general and branch in particular.
Askari bank employees lack professionalism. They don’t have proper training to do the job efficiently and properly. Bank should initiate some program to provide training to their employees.
Allocation of Authority
Bank should give task and authority to the employees and they should ask for their responsibility.
The performance of every staff should be monitored by the manger. The employees should be awarded for their outstanding performance. Provide them bonuses for motivation and incentive so they work more efficiently.
Proper Distribution of Work
Proper distribution work is a key to success for every organization. The employees are prevented from over and under work situation because of this. There was no proper distribution of work in bank. Some employees work like rats and some sit like idle. So this created a burden of work for some employees.
Workshops and Counseling
There should be workshop programs in every city for employees. These programs should relate to all aspects of banking. It should also be conducted with other banks as a joint program. There should be counseling program for new entrants.
Placements of Employees
There are some branches in the bank that have less number of employees. This will create inefficiencies. Bank should hire more individuals in consultation with the heads of branch.
Conveniences in Branch
As many employees want to pray so there should be a proper prayer room in each branch. There should be a facility of separate room so that employees can relax when they have a break.