Professional Documents
Culture Documents
Table of Contents.............................................................................................................................1
Executive Summary.........................................................................................................................8
Introduction......................................................................................................................................9
Evolution Of Bank...........................................................................................................................9
Formal Definition.............................................................................................................................9
COMMERCIAL BANKS..............................................................................................................10
Other Divisions......................................................................................................................19
HIERARCHY STRUCTURE.......................................................................................................21
Mission...........................................................................................................................................25
Core values.....................................................................................................................................25
Corporate Objectives.....................................................................................................................25
Strategic Planning..........................................................................................................................26
Corporate Philosophy.....................................................................................................................26
Corporate Customers.....................................................................................................................27
Corporate Employees.....................................................................................................................27
Technology Oriented.....................................................................................................................27
Sponsorships..............................................................................................................................28
Business Principles....................................................................................................................31
ORGANIZATIONAL CHART.....................................................................................................35
Board of Directors..........................................................................................................................35
Auditors .........................................................................................................................................36
Head Office....................................................................................................................................36
Departments..................................................................................................................................40
Individuals’ Account..............................................................................................................44
Proprietorship Account..........................................................................................................46
Partnership Account...............................................................................................................46
Minor Account.......................................................................................................................47
Stamping “Posting”................................................................................................................48
Cheque-Book Issuing ............................................................................................................49
Term deposit..........................................................................................................................52
Cash Department........................................................................................................................52
Cheque ..................................................................................................................................52
Types of Cheques...................................................................................................................52
Cash Management..................................................................................................................54
Liquidity Maintenance...........................................................................................................55
Clearing Department..................................................................................................................56
OBC ......................................................................................................................................56
Local Clearing........................................................................................................................59
Procedure of Inwards.............................................................................................................61
Remittances Department............................................................................................................65
Issuance Procedure.................................................................................................................65
Issuance Procedure.................................................................................................................66
Issuance..................................................................................................................................67
Issuance Procedure.................................................................................................................68
Lockers...................................................................................................................................70
ATM Card..............................................................................................................................70
Credit Department..................................................................................................................75
Types of Advances.................................................................................................................84
Foreign Exchange Department .................................................................................................88
Accounts Department...............................................................................................................102
Deposits....................................................................................................................................108
Products ...................................................................................................................................109
Smart Cash...........................................................................................................................109
Personal Finance..................................................................................................................110
Mortgage Finance................................................................................................................111
Business Finance..................................................................................................................112
ASKCARD..........................................................................................................................113
Investment Certificates........................................................................................................114
AskPower.............................................................................................................................116
Askari MasterCard...............................................................................................................116
Branch Network.......................................................................................................................126
SOUTH REGION................................................................................................................128
CENTRAL REGION...........................................................................................................128
NORTH REGION................................................................................................................128
Evolution Of Bank
Different opinions exist about the origin of the ‘Bank’. According to some authorities the
word “Bank” itself derived from the words “Bancus” or “Banque”, that is a bench. The early
bankers, the Jews in Lombrady, transacted their business of money exchange on benches in the
market place. When the business failed the “Banco” was broken by the people; and the word
“Bankrupt” has evolved from this practice. This etymology is however ridiculed by Macleod on
ground that “the Italian money changers as such were never called Banchieri in the Middle Ages.
There are the others who are of the opinion that word “Bank” is originally derived from the
German word “Back” meaning a joint stock fund, which was italianised into “Banco” when the
German the greater part of the Italy.
Banks are financial intermediaries. By endowing its obligations with attractive features, an
intermediary sells its obligations at a higher price than it has to pay for the obligations it buys.
The spread between the interest rate it pays on its own obligations of others constitutes the
margin from which the other expenses of doing business must be deducted. The next profit after
these deductions represents the return to the shareholders for their participation in the activity of
financial intermediary.
Formal Definition
“Bank is an institution transacting the business of accepting for the purpose of money from
public, repayable on demand or otherwise and withdrawal by cheque, draft, and order and
includes any post office saving bank.”
These are the following types of banks
• Central Bank
• Commercial Bank
• Industrial Bank
• Exchange Bank
• Saving Bank
• Mortgage Bank
COMMERCIAL BANKS
Commercial banks are companies “which transact business of banking in Pakistan Commercial
Banks have constituted the most important source of institutional credit in the economy of
Pakistan.
• AWT offers the “AWT Saving Scheme” to the army officials only.
o Listed Companies
o Other Companies
o Askari Projects
Askari CNG
Treasury Division
Treasury division prudently managed the liquidity and enabled the Bank to operate competitively
despite severe liquidity crisis. In addition, treasury operations increased turnover with a view to
developing a more comprehensive trade/treasury book due to increase in branch network and
effective utilization of corporate desk, established at the treasury. Furthermore, treasury
operations are structured in such way to measure, mitigate and manage the risks associated with
its activities. The efficiency and effectiveness of treasury operation are being enhanced by
relevant and appropriate training of the human resource available with the treasury and updating
of its system software to meet the new challenges and be more competitive in the market.
International Division
International Division primarily manages correspondent banking arrangements to facilitate
banking for our customers’ trade finance businesses. During the year, while maintaining focus on
the core trade finance business, the Division made concerted efforts to rationalize nostro
accounts and enhance the volume of workers’ inward remittances. Presently, Askari Bank enjoys
multi-faceted correspondent banking arrangements with229 banks at over 800 locations around
the globe. Effective management and optimum utilization of business reciprocity with
correspondent banks enables us to manage the returns and trade business flows.
• Credit division
Credit Division
Providing extensive support to branches for credit administration, control and monitoring, the
division has played a pivotal role in helping the bank achieve a remarkable loan. Most of the
loans are of short term trade financing on a secure and self-liquidating basis. The division has a
special asset management team, which s responsible for ensuring lower ratio of bad debts,
effective monitoring of delinquent advances and close fallow up of recoveries. Banks’ head
office credit committee reviews the credit quality and pricing on regular basis not only to ensure
healthy credit growth but also the management banks’ risk assets in almost prudent and
profitable manner.
Other Divisions
Some other divisions are:
A. President Secretariat
The president supervises all the working of the branches. He holds meeting with the branch
managers and make the policies in the coordination with Board of Directors.
B. Audit Division
The head of this department is called Audit Chief. This division audits the various branches and
certifies that their working is flawless. The audit reports directly to the board through the
executive committee which is also the audit committee. The audit division is completely
independent of the management and is responsible for checking and reporting on the
management compliances with the board policies and directives, as also the prudential
regulations and other directives of the SBP. However their role is not intended to just of fault
finding; but also guiding and assisting the branches in improving their operations.
This division in responsible for evaluating every aspect of the banks’ operation with the goal of
improving the effectiveness of the risk management and internal control. There is also a regional
audit office is attached to each area office; the nature of this business is of more quality
assurance rather than strictly audit. The regional auditor report to area manager, and assist them
in ensuring that there is proper compliance with all the relative directives, and also that consumer
service standards are maintained and improve, at the branches in the area.
A. Corporate and Planning Division
This division is responsible for the corporate affairs and the various planning schemes of Askari
Commercial Bank, Limited.
B. Finance Division
The financial division permeates into the aspects of the banks. It makes the financial statement
and look after monetary affairs of the bank. Responsible for bookkeeping and accounts, this
division at head office, prepare all financial retune and the MIS through its management
repotting wing. The division is actively involved in preparing market cooperative analysis,
consolidation of banks’ budgets; its monitoring and constant review various financial indicators.
The division directly report to the president and the chief executive of the bank has been
instrumental in the preparation of banks’ business plans and future strategies.
C. Business Development Division
This deals in marketing aspects, promotional and other areas of the business development like
expansion and enhancement.
D. Human Resources Division
The human resources division manages the personnel affairs and administers the personnel
policies. HR division is also responsible for the recruitment and promotion of the employees.
This division suggests the pays of the employees and allocates other funs and bonuses to the
employees. It also takes into account the daily leaves of the employees and the other monthly
and annual leaves.
E. Law Department
This is the department that coordination all the divisions. All the divisions are bridged together
through this department.
HIERARCHY STRUCTURE
PRESIDENT
VICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE 2
OFFICER GRADE 3
JUNIOR OFFICER
PABX OPERATOR
DRIVER
PEON
Present Status of Askari Bank Limited
Askari Commercial Bank was incorporated in 1992 but its performance was much better than
other small banks like Prime Bank, Mybank, etc., mainly because the bank has strong backing.
However, its performance promoted the bank as medium-sized bank with strong balance sheet.
The paid-up capital of Askari Bank for 2008 was just Rs4.059 billion and it improved to Rs5.07
billion by March 31, 2009. The State Bank’s revised target of paid-up capital for commercial
banks is Rs6 billion till end December 2009
The equity of Askari Bank in March 31st 2009 is 13.620 billion in 2008 was R12.971 billion,
advances Rs128.818 billion which was 100.780 billion in 2007, deposits Rs167.677 billion. The
bank was operating with 203 branches across the country with 18 Islamic Branches and 1 whole
sale branch in the Kingdom of Bahrain. The bank earned a profit after tax of Rs317 million in the
first quarter of 2009.
All of these facts show how effectively and efficiently Askari Bank works.
Revenues 17%
over last year
Askari Bank has expanded into a network of 200 branches / sub branches, including 20 dedicated
Advances 28%
Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 2,991
Deposits 17% over last year
online ATMs covering all major cities in Pakistan supports the delivery channels for customer
over last year
service. As at December 31, 2008 it has 816,629 banking customers, serviced by our 6,496
employees.
Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari
Bank engaged in managing mutual funds and shares brokerage, respectively.
All this show that due to the crises in economy Askari Bank Still working well as compare to the
other commercial banks in Pakistan. All this is due to the strong policy making and strategy
formulation of the management of the Askari Bank.
Now Askari Commercial Bank has announced its intention to acquire ‘Mybank’ once it gets
permission for due diligence from the State Bank of Pakistan.
The announcement did not create stir in the banking sector as it was viewed as a part of current
consolidation phase in the financial sector.
The Board of Directors of Askari Bank in its meeting held here on Tuesday, 23 June authorized
the management to sign a memorandum of understanding (MOU) for the merger and
amalgamation of Mybank Ltd into Askari Bank.
Mybank was incorporated in 1992 as commercial bank and is currently operating with 73
branches across the country. The recent global financial crisis that hit most of banking giants in
the developed economies also affected Pakistani banking sector especially small banks. The
State Bank has also been promoting mergers and acquisitions of small banks with the view that
large banks are less risky and stronger for a financial system. According to latest available
information, the paid-up capital of Mybank is Rs4.243 billion, equity Rs5.148 billion and the
total assets amounted to Rs41.344 billion.
The recently issued 3rd quarterly report of the State Bank showed that the bank’s profitability
was on decline while the small banks were facing more difficulty. The most shocking is failure
of all banks to improve on their deposit base that forms the bedrock for a bank to operate and
grow. In the outgoing fiscal year, banks could not raise deposits which certainly put more
pressure on small banks.
“If the recovery of the financial system begins next year as predicted by many economists,
the merger will benefit the Askari Bank” said an analyst.
Banks Earnings Per Share Total Assets Income after tax Share Capital
(In Rs.) (In Millions) (In Millions) (In Millions)
Askari Bank 0.95 206,191 386.225 4,058
Bank Alfalah 1.63 348,990 493.419 7,995
United Bank Ltd. 8.24 605,073 8,333 10,117
Mybank 0.79 3,9803 5,303.58 4,243
Al-Habib Bank 4.95 177,330 2,367 4,785
If we compare Askari Bank with bank incorporated in the same year as in Askari its performance
is better and its financial condition is better than those banks. If we compare it with banks
incorporated many years before than Askari then we see that they have much better condition. If
we see the growth of Askari Bank we see that it will be in the list of commercial banks in
Pakistan. Bank is growing with the high speed in little time in year 2008 its earning is less as
compare to the previous years it is due to the increase in expenses but not due to the earning.
If we see the customer loyalty we see that it’s less in Askari as in other banks. And the job
satisfaction is less in Askari than other banks. It has to change their strategies regarding the
customers and employees. Its current condition is comparable with the other good banks in
Pakistan and more respectable. It is technology oriented Askari use latest technology and IT
system in the banking. But it has less IT professionals, if we see in it; it has lot of ATM
complaints and online problems.
Vision
To be the bank of first choice in the region
Mission
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.
Core values
Integrity is the most valued standard in whatever we do. We understand that our commitment to
satisfy customers’ needs must be fulfilled within a professional and ethical framework. We
subscribe to a culture of high ethical standards, based on the development of right attitudes. The
intrinsic values, which are the corner stones of our corporate behavior, are:
• Commitment
• Integrity
• Fairness
• Teamwork
• Service
Corporate Objectives
Askari bank is looking ahead by moving through the number of years and its efforts are guided
by the broad set of objective that are:
• To build and sustain a high performance culture, with a continuous improvement focus.
• To effectively manage and mitigate all kinds of risks inherent in the banking business.
• To maximize use of technology to ensure cost–effective operations, efficient
management information system, enhanced delivery capability and high service
standards.
• To deliver timely solutions that best meets the customers’ financial needs.
Strategic Planning
• To comprehensively plan for the future to ensure sustained growth and profitability.
• To facilitate alignment of the Vision, Mission, Corporate Objectives and with the
business goals and objectives.
• To provide strategic initiatives and solutions for projects, products, policies and
procedures.
• To provide strategic solutions to mitigate weak areas and to counter threats to profits.
• To create and leverage strategic assets and capabilities for competitive advantage.
Corporate Philosophy
from knowing Askari customers’ requirements to understand employees need, from utilizing
modern technology to making responsible social contribution, from enhancing stake holders’
value to participating corporate ethics. Askari is continuously striving to address newer
challenges with single motivation “The power to inspire and be inspired”. Organizational goal
and strategy define the purpose and competitive techniques that set it apart from other
organizations. Goals are often written down as an enduring statement of company intent.
A strategy is plan of action that describes the resource allocation and activities for dealing with
environment and for reach the organizational goal. Goals and strategies define the scope of
operations and the relationship with employees, clients and competitors. With the experience of
foreign trade and an extensive international branch network, Askari commercial bank is
committed to help the customer succeed in every competitive environment. to keep pace with
changing needs Askari bank constantly review its comprehensive cash, trade and treasury
products and services, ensuring that a full range of flexible and innovation services are always
available for the customers wherever they trade.
Corporate Customers
Knowing our customers and their needs is the key to our business success. Our products and
services are as diverse as our market segments. Our client relationship managers are well
equipped and well trained to provide the most efficient and personalized service to the
customers. Askari Bank is proud of its pioneering role in providing the most modern and
technologically advanced services to its 816,629 relationships.
Corporate Employees
We strongly believe that the interests of the Bank and the employees are inseparable. At Askari
we try to create a ‘we’ culture where there is mutual trust and respect for each other. We
encourage ownership behavior so that everyone feels responsible for the performance and
reputation of the Bank. We are committed to develop and enhance each employee’s skills and
capabilities through extensive in–house and external training programs and job rotations.
Technology Oriented
Our strength in the area of information technology (IT) based services have always been an edge
in the competition and have been a source of considerable strength in the expansion and
management of the customer base of the Bank. In line with our policy of providing the most
modern and convenient banking services, Askari Bank acquired Oracle Financial Software
System (OFSS) (previously I-flex)in 2007, along with other support software including Oracle
Financial (finance and MIS software), PeopleSoft (human resource management software),
Revele us (risk management software) and Siebel (customer relationship management
software).Implementation of these software is a colossal task which commenced during
2008,after detailed planning process involving all business and operational units. Also, to
achieve smooth transformation to the new software, dedicated teams have been formed in
execution and advisory capacities, comprising of senior management. These teams are diligently
working to complete the task within the shortest possible time. Given the scope and implications,
this project is assigned the highest priority and commitment at all levels.
Corporate Social Responsibilities
Askari Bank strongly believes that the success of an entity is directly connected with the well
being of a society in which it operates as business could not exist or prosper in isolation. It is
thus giving something back to the society in recognition of the benefits and advantages drawn
from it. Therefore it is our belief that it’s a privilege, not a right, which the Bank ought to pay
back as a responsible corporate citizen.
The business ethics of the Bank are built on the philosophy of care of both the customers and the
society, of which we are all part of. Our core values for doing business circle round the five
pillars of commitment, integrity, fairness, teamwork and service towards our customers,
employees and communities.
We believe in encouraging sports at every level as nurturing the physical spirit gives rise to
healthy, spiritual and moral values. During 2008,
Askari Bank sponsored various sporting events to promote healthy activities, which include
Badminton, Swimming, Squash, Tennis, Golf, Polo, Volleyball, Shooting and Squash across the
country. During the year, Askari Bank has contributed to charities and community projects, not
only to bring about a better quality of life to the less privileged in the community, but also to
enrich the lives of Pakistani citizens. Major contributions to the society include the financing for
development of parks, roundabouts, gymnasiums, industrial exhibitions, fundraisers and tourism
festivals. Health issues have been a particular concern to us. During 2008, Askari Bank
sponsored various programs related to health. As a caring corporate citizen, Askari Bank has also
been actively making regular donations to charitable institutions working for social welfare.
Askari Bank, in its quest for the equal rights and empowerment of women, continued to support
Non Governmental Organizations (NGOs), which are working on issues related to the welfare of
women.
Sponsorships
Askari Bank has demonstrated a leading role in supporting a large number of important activities
and significant events. Major activities during 2008 were:
Sports
• Sponsorship of 4th TCF Golf Tournament2008
• Sponsorship of Askari Bank Polo Team representing Askari Bank in the Pakistan Cup
and Punjab Polo Cup 2008
• Sponsorship of 6th Chief of the Army Staff International Squash Championship 2008.
(March 31 to April 5th, 2008)
• Sponsorship of Army Polo Cup and Show Jumping Championship 2008 (April 7 to 12,
2008)
• Sponsorship of the President Cup Golf Championship 2008 held on April 25-27, 2008
• Sponsorship of Golf & Polo matches organized by 106 Air Defence & Officer 29 Cavalry
Kharian Cantt
• Sponsorship of ITF Pakistan International Junior U-18 (Boys & Girls) Aug 11-30, 2008
Islamabad
• Sponsorship of Pakistan Army Hockey Team for Donghae Mayor Cup 2008, South
Korea
• Sponsorship of Punjab Open Golf Tournament 2008 played at Rawalpindi Golf Club
• Sponsorship of 4th South Asian Shooting Championships 2008 at Gun Club Islamabad
Social
• Sponsorship of Special Program for Mentally ill Patients organized by The Agha Khan
University Hospital, Karachi
Education
• Sponsorship of 1st International Conference on Business and Technology” at Margalla
Hotel, Islamabad
• Sponsorship of three days exhibition i.e. “Mega Industrial & Trade Fair” at Convention
Centre Islamabad
• Sponsorship for 3rd South Asian Capital Markets Conference 2008 held in Mumbai,
India
• Sponsorship of Annual Sports Festival 2008 arranged by Multan Public School &
College, Multan
Environment
• Sponsorship of special campaign “Telephone a Tree”, Lahore
• Sponsorship of 150 annual spring flower show, Bara Dari, Bagh-e-Jinnah, Lahore 2008
• Focused objectives
• Winning as a team
• Excellence in delivery
• Relentless quality
Business Principles
Askari code of business is to;
• Build and manage the Banks’ portfolio of businesses to achieve strong and sustainable
shareholder returns.
• Create and leverage strategic assets and capabilities for competitive advantages.
The Askari Bank has been declared “The Best Bank in Pakistan" by the Global Finance an
international financial magazine of high reputes a result of their latest study of Banks in the
Emerging Markets. That was the second consecutive year the magazine has elected their Bank
for that award.
The award was presented to the Bank on the occasion of the World Bank IMF meeting in
Washington in 2002. While the magazine formally announced the names of the award winning
Banks including Askari Bank in the May 2002, they have already issued press information for
the international media.
List of awards win by Askari Bank over the years for the quality of banking services to
individuals and corporate.
• Best Commercial Bank Consumers’ Choice award 2005 by the Consumers Association
of Pakistan
• Best Retail Bank in Pakistan award 2004 & 2005 by the Asian Banker.
• Best Corporate Report 1st prize award 2000 to 2004 by ICAP and ICMAP.
• Corporate Excellence awards for 2002 & 2003 the Management Association of
Pakistan.
• Best Corporate / Institutional Internet in Pakistan award for 2004 by Global Finance
Magazine.
• The Best Bank in Pakistan award for 2001 & 2002 by Global Finance Magazine.
• Best Presented Accounts awarded from 1997 to 2002 by South Asian Federation of
Accountants (SAFA).
• Commercial Bank of the Year award for 1994 & 1996 by Asia Money Magazine.
• Best Domestic Bank in Pakistan award for 1995 by Euro Money.
ORGANIZATIONAL CHART
Board of Directors
President Chief
Executive
Corporate Banking
Operation & Credit Retail Banking Corporate &
& Financial Inst. Regions
Group Group Planning Division
Group
Business Dvlp.
Corporate & Credit Cards System & Operation Division
Merchant Division Division Division South
HR Division
International Investment Electronic Technology
Law Department
Division Product Unit division Central
Finance Division
Asset Product
Treasury Division Credit Division North Audit Division
Unit
Board of Directors
Lt. Gen. Javed Zia (HIM) Chairman
Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee
Maj Gen (R) Saeed Ahmed Khan Director
Mr. Zafar Alam Khan Sumbal Director
Dr. Bashir Ahmad Khan Director
Mr. Shahid Mahmud Director
Mr. Muhammad Riyazul Haque Director
Mr. Ali Noormahomed Rattansey Director
Mr. Tariq lqbal Khan Director (NIT Nominee)
Mr. Muhammad Rafiquddin Mehkari President & Chief Executive
Audit Committee
Dr. Bashir Ahmad Khan Chairman
Mr. Ali Noormahomed Rattansey Member
Mr. Zafar Alam Khan Sumbal Member
Auditors
A.F.Ferguson & Co. Chartered Accountants
Legal Advisors
Rizvi, Isa, Afridi & Angell
Head Office
M. R. Mehkari President & Chief Executive
Agha Ali Imam, SEVP Group Head, Consumer Banking Services
Tahir Aziz , SEVP Group Head, Corporate & Investment Banking
Muhammad Arif Mian Chief Risk Officer
S. Suhail Rizvi , EVP Group Head, Operations
Javed Iqbal Chief Information Officer
Moghis Bokhari, EVP Country Head, Human Resource
Rehan Mir , EVP Acting Group Head, Treasury & International
Saleem Anwar , EVP Banking
Country Head, Strategic Planning & Corporate
Khalid Mohammad Khan, EVP Affairs Head, Compliance & Data
Country
M. Farooq Abid Tung, EVP Country Head, Agriculture & Rural Business
Rana Shahid Habib, EVP Country Head, Audit & Inspection
Hashim Khan Hoti, EVP Country Head, Islamic Banking Services
Tariq Maqbool, EVP Country Head, Risk Management
Mian Shaukat Ali Arif Sirhindi, EVP Country Head, Consumer Banking Services
Mohammad Munir Ahmed, EVP Country Head, Electronic Technology
Muhammad Ahmed Khan, SVP Country Head, International
Lubna Azam, SVP Chief Credit Officer
Adil Zaidi , SVP Country Head, Centralized Foreign Trade Unit
Masood Qadir , SVP Country Head, Credit Administration
Brig. (R) Muhammad Ifzal Country Head, Establishment
Hassan Aziz Rana, SVP Country Head, Legal Affairs
Syed Hasan Sajjad Country Head, Operations
Bilal Bin Zaheer Special Asset Management
Mahmood Ahmad Nasir, VP Acting Chief Financial Officer
Iftikhar Baloch, VP Acting Chief Information Security Officer
Regions / Areas / Off-shore Branch
Central Region
Ejaz Ahmed Khan, SEVP Regional General Manager, Central
Sajjad Ahmed Qureshi Area Manager, Lahore – I
Khawaja Shaukat Iqbal, EVP Area Manager, Lahore – II
Tahir Yaqoob Bhatti, EVP Area Manager, Faisalabad
Saulat Hameed , SVP Area Manager, Lahore – III
Sajjad Ali Sheikh, SVP Area Manager, Multan
Mushtaq Ahmed , SVP Area Manager, Gujranwala
North Region
Haseeb Saulat , EVP Regional General Manager, North
Tariq Mahmud Khan, EVP Regional General Manager, North
Syed Tauqir Haider Rizvi, SVP Area Manager, Rawalpindi – II
Inamullah Khan Niazi, SVP Area Manager, Azad Kashmir
Tanveer Afzal Khan, SVP Area Manager, Peshawar
Qaiser Iqbal Khan Area Manager, Islamabad
South Region
Muhammad Jaffer Khanani, EVP Regional General Manager, South
Saif-ur Rehman Khan, EVP Area Manager, Karachi – II
Nehal Ahmed, EVP Area Manager, Karachi – III
Mirajuddin Aziz, SVP, Area Manager, Karachi – I
Qazi A.M. Khalid, SVP Area Manager, Karachi - IV
Niaz Mohammad, SVP Area Manager, Hyderabad
Hafeez Ur Rahman Quraishy Area Manager, Quetta
Wholesale bank branch, Bahrain
Muhammad Naim Ilyas Wholesale Bank Branch, Bahrain
Departments
Banking procedures are divided between various departments. Different departments do their
jobs in the occurrence with the bank policies. In Askari Bank each branch is divided into various
departments. Head of department manages each department and officials of the branch follow the
procedures. There are two basic departments in each branch of the Askari Bank: General
Banking Department and Credit Department, and the third department that’s Foreign Exchange
Department exist in those branches who are allowed by the SBP.
Credit Department
Cash Department
Clearing Department
Remittances Department
Lockers
ATM Cards
Credit Cards
Current Account.
Saving Account.
Unique Account.
Notice Deposit.
Term Deposit.
Call 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 extent 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. In current account unlimited transactions are done. The
minimum deposit for opening current account is Rs. 5,000.
Saving Account
The purpose of this account is to induce the habit of saving individuals in the neighborhood.
PLS account is normally opening for individual, charitable institution, provident and other
benevolent funds. The profit is PLS saving and ASDA Accounts in ASKARI BANK are
chequing accounts paid on the basis of profit and loss sharing at the rate of 8.5% six monthly.
The minimum deposit for opening the account is Rs.5, 000/- (as obvious in the Annexure).
Though individuals open such accounts for saving purpose persons belonging to Armed Forces,
and different military institutions open this account. If the balance in the saving account is
decrease from the limit i-e 5,300 in any day of the month then Rs. 50 will be deducted from it.
Askari Special Deposit Accountant (ASDA Account)
ASDA account is an interest bearing current account interest is paid on it at the rate of 8.00% it
is open with the minimum balance of Rs.5, 000. The payment of return is monthly, where as the
rate of return with aspect to the amount of minimum deposit clear from deposit schedules in
annexure. It is also chequing account because cheques can be drawn on it. It is necessary for this
account that the client must maintain a minimum balance of Rs. 5,300 million at the end of the
month, no interest is paid. That’s why it is similar to current account. It has the function of
current as well as the saving account.
It is mostly opened by business but individuals to open this account.
Unique Account
This type of account is mostly opened by the individuals with the minimum opening balance of
Rs. 5,000. There is restriction in it of maximum two debits and two credit transactions in a
month. There is no profit and deduction on it.
Notice Deposits
Notice deposits are kind of fixed deposits. The minimum balance requirement for opening the
account is Rs.5000/- and payment is drawn on maturity of the specific period. Notice deposit is
of the two kinds:
One for which a prior notice of 30 days and above is required from the customer before
withdrawing deposited amount and for which rate of return is 8%.
Second for which a prior notice of 30 days and above is required from the customer
before withdrawing the deposited amount and for which rate of return is 10%.
Term Deposits
A term deposit is a deposit that is made for a certain periods of time. At the end of the specific
period, the customer is allowed to with draw the principle amount.
After the maturity of the term deposit the profit is given to the customer. The rate of return on
this account is 12.0% for 4 years.
The term deposit account varies from one month to 5 years, and the minimum balance
requirement is Rs.5000/- for all other accounts (as clear from deposit scheme in the annexure).
Call Deposit
Call deposit is different from the term deposit. This is basically use for tenders. If a tender is
made, a certificate is given to the person who got the tender. When the work is completed the
issuer of the tender stamped the certificate that the tender is realized. After that the person come
to the back and gets the amount. No profit or loss is given on it.
On Maturity basis
Profit = (Principal amount * Rate of return) * (no of days or no of the months from the
date account opening).
The amount is credited in any one of the checking accounts of the depositor.
Individuals’ Account
When a single man or woman opens an account in his/her own name and has the right to operate
it is called individual account. It may be of salaried person’s account current or saving accounts.
Documentation
National Identity Card.
Employee certificate/ appointment letter along with recent salary slip for salaried person.
In case of the Doctor an application on the letter head of the Doctor and certificate of
him/her this type of account is called Self Employed Account.
Operation
The person place a “Check Mark” in the type of account and type of operation required.
He/she fills in part-1 of the form, a fix his/her either two or four similar signature (or
thumb expression in the signature space and get it introduced and signed by a person who
already has an account with the bank and write his account no in the specific rows in a
specific space.
The person fills in “next of kin” position where he/she father, mother, husband/wife or
any other relative’s name, his/her address, phone no and affix his/her signature to certify
this requirement. This requirement is needed because in his/her absence bank can have
correspondence with the specific person.
The person put her/his signature (or thumb expression) on the signature specimen card
(SS CARD) similar in the area on the form. One the back of SS card mailing address,
telephone no, person to contact and introducer space is filled in. These entire
requirements are necessary for future. SS card is scanned by the bank and check it when
they want to verify the signature of the customer.
The person deposits the initial amount for opening account on to the cash counter. The
person put his signature on form-A (check book requisition) on two places in “authorized
signature” and fills in the “Title of Account” space by writing his name.
If the person put his signature in Urdu or any language other than English, or thumb
impression he/she signed a “Vernacular Form” where he undertakes that affixed signature
is original and his own signature.
If the signature of the depositor on the A/C opening form is different from the signature
on the CNIC then he has to fill an undertaking of it.
After the opening the account the bank sends a letter of thanks (LOT) to the customer. On
the basis of LOT the first cheque book is issued.
Joint Account
When two or more persons, neither partners, nor trustees, open an account in their name is called
joint account. Joint account can be opened by husband and wife or two persons of same sex.
Documentation
For joint account copy of N-I-C Card of all the persons is obtained other things remaining same
as in individuals account.
Operation
The person checks the type of amount and type of operation required in the respective
box on the form.
Accounts holder specified in the form that they will operate the form singly or jointly.
Proprietorship Account
When the owner of the firm operating singly, opens an account in his firm name of when an
owner of a firm operating singly, opens an account in his firm name, this account is called a
proprietorship account proper himself liable for all his acts.
Documentation
For this kind of account, an application for opening the account on the firm letter – pad (having
the firm name) is required along with the NIC copy of proprietor, Rubber stamp and NTN.
Operation
All operation remains the same except that the firm name is written in the “Title of the Account”
area and signature of the proprietor are affixed in the SS Card and the area specified for
signatures on the form.
Partnership Account
The account is opened in the firm name and all partners designate one or two persons to act on
behalf of the partnership firm 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 in a firm has an implied
authority bind his co. partners by drawing and enclosed cheques.
Documentation
Copy of N.I.C. Card of all partners.
NTN
Letter showing the implied authority of one or more partners to act on behalf of the firm.
In case of non-registered partnership firm, understanding on behalf of the firm to remain
liable for all acts of the firm.
Operation
All other requirement remain same except that the form is dully signed by all partners SS card is
signed by all those partners who will act on behalf of the firm and along filling Part-I, Part-IV is
also filled.
Articles of Association
Operation
The person authorized in the resolution of the Board of Directors put their signature on SS Cards.
Next of Kin requirement is not need in case of a limited company.
After completing all these formalities, introducer’s signature is verified customer signatures are
admitted by stamping “Admitted” near signatures and again signatures on SS card are admitted
in the same way. The same process of verification and admission of signature is repeated on the
form-A and signature on next of Kin area.
After completing each and every formalities, are signed by all those partners who will act on
behalf of the firm and along filling part-I, part-IV is also filled.
Minor Account
Guardian can be natural /parent/legal. They can operate he account
Account must be title as “Minor account”.
Date of Birth of Minor and the date of maturity should be mentioned on the SS card and
on account opening form (AOF).
Entire credit will be transfer to new account of the minor at the time of maturity if minor
want.
In case of legal Guardian the appointment letter issued by the court should be examined
and its copy should be retained with AOF.
Formal account opening request dated by the company along with copies of CNIC of
company’s nominees
Stamping “Posting”
After completing all this process, the forms are signed from manager of the branch after which
forms are stamped across as “POSTED” on one corner of the front side of the form. Then they
are posted in the respective. “Account opening file” very next day cheque book is issued to the
customer when customer brings the Letter of Thanks (LOT). The official person checks the LOT
and fills a slip with account holder signature along with the verification of the sign. The account
opening form is attached in the Annexure.
Cheque-Book Issuing
Check books are issued only for chequing account such as current account, saving account and
ASDA account. They are not issued for other fixed and term deposits because of their long term
accounts “nature”.
When an account is opened, cheque-book is usually issued the next week; cheque-books are
issued whenever customer needs cheque-books.
Cheque-books leaves vary with the nature of the account. For example, 25 to 100 leaves cheque
book are issued for current and ASDA accounts. Whereas 10 to 25 leaves cheque book are for
saving accounts. Usually 25 leaves cheque-books are given only army fund accounts, and 10
leaves cheque-books are handed over to “easily individual’s account, holder”.
In Askari Bank, the fact behind issuing current and ASDA and 50 leaves for and 10 leaves and
25 leaves for saving accounts is the SBP requirement which is of the view that, because current
and ASDA accounts are for business transactions purposes, therefore they need more leaves
cheque-book. There is Rs.2/- excise duty and 50-paisa provincial tax carried on cheque book
leave.
If you want to get loose cheques then you have to pay Rs. 320/-.
Reissuance of the cheque book against Form B charges are Rs. 550/- plus Rs. 6/- per leaf.
Issuing procedure
Firstly, signatures on cheque book requisition are verified by matching with signatures on SS
Cards.
Secondly, cheque book leaves number, account number, account holders’ name are mentioned in
the cheque book is made by mentioning and the total of sum of excise duty and provincial tax.
Thirdly, the name of A/c holder and date of cheque book issuance is written on cheque book
requisition the account opening officer puts his initials on requisition leave.
Fourthly, A/c number is stamped over the leaves of cheque book and finally authorized person
affix his signature over the debit voucher and he voucher is attached from the cheque book and is
handed over to the customer.
Account closing
Account is closed on the written request of the customer Askari Bank debits Rs. Nil as charges
for closing the customer account from that account. The account holder withdraws the amount by
writing a cheque and just leaves Rs.100/- in his account. But to surrender the cheque book yet if
some leaves are yet to be write to the bank as a necessary requirements for closing the account.
Procedure
1. The customer for individuals account write an application to the manager of the bank a
simple paper about the closing of his account with the bank (In case of proprietor ship
partnership and limited company account the application should be written on firm or
company letter-head).
2. The individual or in case of other type-proprietor firm and company surrender the cheque
book to the bank.
3. The cheque book is then torn from one side and is attached with the application.
4. In case of Ltd. Company Account resolution of the board of directors is also obtained to
attach it with the application.
5. The account opening form of the account holder is taken from the account-opening file,
and the application, cheque book, and resolution of board of directors in case of limited
company account are attached with the form.
6. Lastly, it is written in “Red Ink on the form that account closed” and “Date of account
closing”.
Everyday posting
At the end of each day, posting of cheque books is performed, the account opening department
OG3 makes credit vouchers of excise duty and provincial tax on cheque book leafs, and posts it
in the company and at the end of the day all the leafs with the vouchers send to the Accounts
department.
Procedure of Opening Other Accounts
Askari Bachat certificate
The ABC application form is filed and signed. All the requirements are properly fulfilled. The
detail is written.
The credit voucher is made against the cash that the customer deposits to the
bank.
Notice deposit
The procedure for issuing notice deposit in ASKARI BANK is as follows:
The customer comes to the bank and specifies the number of days for which he
wants to deposit hid money in notice deposit.
The credit voucher is made for the amount of cash to be deposited the presence of
account is not necessary.
The notice/deposit form is then filled by the officer. The date of opening, the
period the name of the customer, the signature etc. is all written on the form.
The notice deposit receipt is filled according. All the requirements are carried out
the signature of the customer and the authorized officer, the stamp of the bank etc.
The number of the notice deposit form and notice deposit is noted receipt is then
given to the customer.
The number of the notice deposit form and notice deposit receipt is noted in the
notice deposit register.
A 0.2% tax on the principal amount is taken while issuing the receipt.
A credit voucher made and the amount is credited to the tax on ND.
Term deposit
Any person can open a term deposit. He needs not have an account in the bank. The procedure is
the same as that of the notice deposit.
Cash Department
Cash department is very sensitive and risky part of the bank. Very cautious and competent
personnel are needed for this job. ASKARI BANK has really such a diligent staff with
appreciable competencies and will to do work. No internee is allowed to go in the cash
department. Main function of Cash department is to deal with cash payment and cash receipts.
Cheque
Cheque is bill of exchange drawn on specified banker and not expressed to be payable otherwise
than on demand.
The drawer must not put any condition for the payment of the Cheque.
Payable on demand.
Types of Cheques
There are two types of cheques.
In the cash department the record in maintained in different types of books and these are:
1. Receiving Cashier's Book (FCY)
The cash in hand is counted. It contains the cash at the counter and the cash in the strong
room.
Then opening balance is taken, i.e., the ending balance of the previous day.
This daily cash position is written down on the daily cash position book.
If the cash is increased from the minimum cash requirement i-e three hundred million,
then the exceeding cash is sent to the SBP and SBP pay interest on it.
Cash Management
Cash management is a technique of managing cash according to the requirements of the
bank on daily basis. The operation manager manages this aspect of cash. Every Branch has an
accountant at the State bank Of Pakistan. A 5% of the total deposits has to be maintains so there
are two main sources of the cash.
If Branches borrows cash from Head Office it has to pay an interest of 13%. On other hand, if the
cash is remitted to head Office, The branch gets a profit at 12.75%.
Liquidity Maintenance
Askari Bank has to maintain 35% liquidity at SBP. Every branch maintains 5% of its deposits at
the local SBP. But this 30% is kept in the form of Approved securities, e.g. Foreign Investment
Bills and Treasury Bills.
Clearing Department
It is the department where all bills from outward and inward are cleared. In it there are two sub
departments
OBC
Local clearing
OBC
It is the department where the funds are collected from outwards and pay to bank’s own
customers and collect funds from bank’s customers and pay it to other banks out of city. Under it
there are two processes
Procedure of IBC
• Askari cheques received by the other banks in other city, they processed it and send to
NIFT.
• Next day NIFT send these cheques to Askari after keeping record with a detail sheet
of those cheques. That detail sheet contains the detail of the other IBC of the other
branches of the Lahore.
• Main branch clears all its cheques and which accounts have low balance or any other
reason their cheques are rejected.
• These rejected cheques send back to NIFT and they send it to corresponding bank.
• Inter the data of the Outwards and Inwards Bills System and generate a report of it.
• These IBCAs contain the amount which has been cleared in these branches.
• Askari main inter these amount in the Excel sheet and find the net IBC funds.
• At the Askari make a debit voucher and a credit voucher and send it to Accounts
Department.
Procedure of OBC
Collect the cheques from our customers of other bank from other cities.
Customer fills the slip of the same amount as on cheque.
Officer receives the cheque and deposit slip
Signed the slip and give receipt to customer
Three stamps are pasted on the cheque
Cross stamp of Askari bank
Payees account will be credited
OBC No.
Then inter the data in the Outwards and Inwards Bills System it generate an OBC
number, this OBC number is write in the stamp of OBC.
Then these cheques send to the NIFT
Then after two day the bank send returns to NIFT and Funds to Their Head Office
Then Askari’s officer download the copy of OBC and returns and printout them.
After that he deduct the returns from the OBC of the each bank of each city
The final amounts are interred in the IBCA System which contains amount, date, bank
name, and branch.
In this system presenting date of the cheque is interred.
Generate a report of the data interred.
Compare the total amount of each city and then compare the final amount if equal then
ok, if not then check it and correct it
Then generate two copies of IBCA of each branch of Askari from which this amount is
collected.
Sign by two attorney holders and stamp on it of the bank.
One copy is kept in record and the other one is stamped with Intercity Clearing and send
to each branch of Lahore.
The advices of Islamic Banking and Main Branches are not made because Main branch
has their accounts.
At the end of the day one advice is made by debiting the account of the main branch and
credited by the same amount on one credit slip.
And the IBCA is send to Karachi Head Office.
Local Clearing
There is no legal obligation on a banker to collect cheques drawn upon other banks for a
customer. However it is function of almost every modern bank of the collection of cheques and
bills on behalf of the customer.
Clearing department services are provided in order to make arrangements for the economic
collection of the cheques, DD’s pay and other negotiable instruments. A large part of this work is
carried on through the clearinghouse.
Clearinghouse
Clearinghouse is a place where all the representation of different banks and exchange all means
of transaction other than cash and then settlement procedure carried out for the balancing of the
SBP accounts.
The clearance house is in the new Davis road, Abulmalik Plaza, 3rd Floor Lahore. All the clearing
members of each bank go to the clearinghouse for the first clearing at 9:30 am and for the second
clearing at 1 to 2 pm.
First clearing
NIFT is the clearing member of Askari. Rider of the NIFT takes the outward cheques and goes to
the clearinghouse. The outward cheques are given to the respective branch members and inward
cheques received. A summary is prepared and given to the supervisor of the clearinghouse. He
balances the accounts of all the banks.
Second clearing
After the outward cheques, they are checked and the ones to return are to be attached with a
memo. Then at 1 to 2 pm, clearing members goes for the second clearing. At this returned
cheques are received. Once again, the summery is prepared and given to the supervisor for
balancing. The supervisor balances the accounts of nearly 25 banks. The SBP gives ending
position to each member.
Book Keeping
There are three registers in this department:
Returned register
Clearing Summary Register
In this register the clearing summary balance is made. The received cheques and the delivered
cheques are written in the respective columns.
Return Register
This register contains all the data of the cheques which are returned due to number of reasons. In
this register officer write the cheque number, amount and reason for what is returned.
Different instruction is dealt in the clearing department. All negotiable instruments e.g.
Cheques
Pay slips
Pay orders
Term deposits
In order to make arrangements for the speedy and economic collection of cheques, bills and other
documents payable or deliverable at or through offices of members of clearing house clearing
services are provided in all the big cities by NIFT.
Procedure of Inwards
The following procedure is adopted by the branch for clearing items.
In the morning rider gives the cheques to the bank.
Then the account of the customer who issues the cheque is debited and returned the
cheques which are not fulfill the requirement of the clearing.
Then all the cleared cheques are U. V Scand.
Then canceled the cheques and send for the supervision to the head of the clearing
department and to the operation manager.
After the supervision some cheques may be returned.
Then funds of all the cleared cheques are sent to the head office in the form of advice.
Head office collect funds from all the branches and send to SBP.
Cheques send to the accounts department they keep these cheques as a record.
Charges of Bills
Collection Clean
i) 0.19% min Rs. 65/- (Upto Rs.100,000/-)
ii) 0.15% min Rs.275/- (Rs. 100,001-1,000,000)
iii) 0.80% min Rs.1300/- (over Rs.1,000,000)
Demand Draft
Pay order
Pay Slip
Demand Draft
A demand draft is an instrument, which is drawn by one bank upon another bank for a specific
sum of money payable on demand. It is made by the bank and given to the purchaser against
cash or cheque.
If two banks are involved, then one bank sends a DD to another bank. But in customer case, the
customer sends his DD to the receiver.
Issuance Procedure
A demand draft application to given to the customer, he fills in a relevant information and signs
it.
The charges such as commission, excise duty, postage are charged as per effective
schedule of Charges. Tax is exempted if he is taxpayer and knows his NTN.
In case of cash deposit the cashiers counts his amounts and sign the DD application and
enters it in the register.
The cash received equals the amount of remittance and the cheques there on.
Then the officer of the bills and remittance department signs it and operation manager
counter signs it.
The DD advises be printed at the computer and mailed to the respective branch.
Payment Procedure
On the country, when a DD is received i.e. a customer go to bank with the DD, the procedure is
as fallow.
The DD credit advice is received through mail. The numbers are checked and signatures
are verified.
The DD credit is attached with the vouchers and posted at the computer.
When DD is received, the test number is checked, and the payment is made.
The vouchers are given for posting. And the payment is made.
The vouchers are given for posting. And the entry that was made in register is closed.
i.e DD payable is nil.
Issuance Procedure
The request for maintenance through T.T is taken on the standard printed from.
The Head and remittance department checks it; the charges such as commission, tax and
telex as per effective schedule and sign it.
Then a neat T.T is made on the white slip. There are 3 copies. The original faxed to the
branch, one to the Head Office and one are kept as record.
The entry is made in the TT issuing register.
When commission bill is received, it is attached to the T.T office copy in the file.
Payments Procedure
When a T.T arrives, the test numbers are checked and the signatures are verified.
If there is no account then the T.T receipt needs revenue stamps and then the payment is
made.
Pay Order
It is a cheque drawn by a bank on itself. Pay order is an instrument in which three parties are
involved: purchaser, bank and receiver. It can be purchased by any customer. It is usually made
by Govt. Bodies. A single bank is included in this case.
Issuance
The standard form is given to the customer; he fills in the detail and signs it.
The concerned staff checks the form. Charges as per effective schedule are applied.
A cost memo is signed, stamped and handed over to the applicant as a receipt.
Then the authorized office after checking the pay order signs it.
The pay order is then handed over to the application after obtaining his signature on the
P.O form.
A voucher is also made and posted at the computer Cr. bills payable account P.O issued.
On presentation of the pay order receipt the receipt is signed by two authorized officers
of the branch.
The P.O entry is made in the P.O issued register.
Then the amount is credited to the account of the customer or paid in cash.
Pay Slip
It is an instrument used by the banks for its payment. The slips are issued to the employee of the
banks their bills and invoices. The bills are transferred to pay slips. In this case only one bank is
involved and that is the issuer as well as the payer.
Procedure prescribed for P.O for issuance and payment is followed for pay slips with the
following expectations.
Pay Slips are the issued by the bank for the settlements of this down payment
Issuance Procedure
A credit voucher is sent from the account department to the remittance department.
The Pay Slips books is taken out and filled according to the credit voucher.
If Askari branch is in that city, the OBC forwarding schedule in sent to that Askari
Branch. Otherwise it is addressed to the particular Branch to whom the cheque belongs.
Charges of Remittances
Issuance of DD and TT 0.13% or Rs. 135/- Minimum (Upto Rs. 100,000)
Charges
Withdrawal Upto Rs. 1 million Rs.120/- (Flat)
Lockers
Askari Bank offers facility of lockers to its customers. There are five types of lockers: Small,
Medium, Large. Extra large (16*16), and Extra extra large XXL (16 * 31 inches)
Charges
Small Rs. 1,300/- p.a
Breaking Charges Rs. 2650/- per locker plus actual charges of supplier
ATM Card
Askari Bank offers ATM Cards (ASKCARD) for its customers’ convenience. Automated Teller
Machine is a hi-tech. invention in the field of the banking, it facilitate that a depositor can
withdraw money at any time without the need of banking personnel. We can also deposit money
with the help of this machine. But it is not so much practiced here because of some drawbacks.
ATM Charges
Issuance of ATM Card Rs.425/- per card
Awami Card
Classic Card
Gold Card
Plantinum Card
These are the four types of Credit Cards issued by the Askari Bank to its customers. These have
the different credit limits and securities, and also offers advance loans on those cards. But the
advance money leads more charges than the limit. These are further discussed in the product and
services section.
Charges of Credit Cards
Credit Department
The earnings of a commercial bank are chiefly derived from interest charge on loans and
discounts it is there necessary to consider the position of a banker with regard to loan advances.
The profitable uses which banker with regard and advances. The profitable uses which bankers
in the country make of their funds may be classified as follows. Head of credit department in the
main branch Lahore is Mr. Nadeem.
Credit principles
Credit Review
Credit approval
Credit administration
Credit monitoring
Credit Principle
The following principles are to be adopted for lending authority, approval, monitoring and
control on a basis consistent with ABCL’s operational objectives and business stages.
1. Objectives
Transactions, which don’t apparently exhibit adequate commercial consideration, will not be
undertaken accept when authorized by the credit committee/president.
2. Structure
The authority structure should enable effective adoption to changes in the economical,
technological regulatory and competitive environment.
3. Performance
The education and admission of the loan portfolio should contribute with in defined and
acceptable risk limitation toward attaining satisfactory return on the bank’s capital. Credit
advancement shall focus on the development and enhancement of customer relationship and are
measured on the basis of the net yield for each customer relationship where individual
transaction should also be profitable.
4. Administration
The administration of the loan process should insure compliance with all laws and regulations of
regulatory authorities and the credit policy of the Askari Bank. Lending where repayment and
performance on mark up or profit servicing deteriorates are identified at early stage and closely
monitored by the branches to avoid loan losses. Loan facilities and related security are closely
and regularly monitored by separate unit unconnected with the credit approval process regularly
in order to access the collectability of the loan portfolio and effectiveness of the security.
Credit Review
All limits are subject to at least an annual review and where necessary branch managers will
forward half- yearly reviews. This review function is the responsibility of the branches that will
submit periodic reports to the credit division immediately notifying any change in environmental
factors. The changes are assessed on expiry of limits or reassessed before the scheduled periodic
review whenever necessary.
Credit Approval
The primary individual factor determining the quality of the bank’s credit portfolio is the ability
of each individual, counter party to honor, on a timely basis, all credit commitments made to the
bank. This must be accurately determined by the authorizing credit personal prior to credit
approval.
The credit approval process must be as follows:
1. Authority
Credit are extended in accordance with the authority levels approved/ delegated by the Board of
Directors from time to time; provided credit approval is required at short notice rather than that
at normal span, the proposal may be referred directly to the credit division. The credit division
has authority with the agreement of a quorum of the members of with the appropriate credit
committee, to extend the loan.
2. Documentation
It is the essential that the proposal defines clearly the purpose of the facility, the source of
repayment, the agreed repayment schedule, the value of security and the customer relationship
consideration implicit in the credit division.
The security to be accepted as collateral for the facility and all documentation relating to the
security of the facilities must be in the approved form. All approval procedures and required
documentation must be completed and security is perfected, prior to the disbursement of the
facility.
3. Credit Risk Assessment
It is necessary to have a detail and complete credit risk assessment for each facility. Customer
relationship must not be over emphasized. It is the absolute responsibility of the proposing
officers and the branch managers to ensure that all necessary proposal documentation is collected
before the facility request is sent to the credit division or committee.
4. Prevention of Criminal Use of Banking Channels
The branch manager shall ensure that all credit facilities being proposed, every efforts has been
made to determine the true identity of a customer and in case of each transaction the source of
funds is established. The relevant Prudential Regulations applicable must be compiled with
before forwarding credit applications to the approved authority.
Credit Administration
The principle elements of credit administration are as follows:
1) Credit approval
2) Credit maintenance
3) Facility evidence maintenance
4) Credit monitoring and review
Objectives of Lending
In the modem economics, more than 90% business concern raises their funds from various
financial institutions to meet their multifold transaction. Actually it is very difficult for the
modem businessman to run his business on a huge scale solely. He has to float his shares to the
public or knock the doors of financial institutions, for example Bank. The most easy way to
make fund available to seek assistance by such agencies including Banks which have got surplus
funds and will to come to the assistance of producing units, and distributing units, and
exchanging units. This is the primary factor which toads towards lending of money by Banks. No
doubt, we cannot neglect the second factor profit orientation while running the credit business,
the single way for the bank to earn profit lies in lending money to the customer on comparatively
higher rate to mark-up that it gives to the depositors.
Principles of Lending
Apart from the instructions and directives sent by the state Bank of Pakistan, Muslim
commercial Bank, Ltd. Guided by three basic principles of profitability, safety, and dispersal.
1. Profitability
The management of Askari Bank is very careful to seek advances where advances can generate a
higher return. Bank has to spend huge amounts on establishment, payment of profit to depositors,
salaries of the staff, other variable expenditure and to provide a fair return to the share holders, it
must therefore, earn profit.
2. Safety
Safety principle is very important. No one will take a risk of losing the principle in order to earn
profit. So bank will prefer to lend at lower rates than to risk his money for higher rates. For
making his advances safe, a bank selects his borrowers cautiously. Safety does not necessarily
mean the taking of security. It would be wise, not to lend however, good the security be if it is
clear that it will have to be realized for clearance the debt. Safety also employs the borrower's
ability to reply without difficulty. Another aspect of safety is the lenders legal right to claim
repayment from the borrower.
3. Liquidity and Disposal
In its simple definition liquidity means the easy convertibility of an asset into cash. But when we
speak of liquidity in relation to advances, it is rather different; it means the adjustment of
advances at a short notices. Bank advances are made in such a manner that they are repaid in
reasonable period so that the bank can make new advances. Dispersing the advances in
reasonable amount over a large number and types of borrower is necessary to avoid bid debt,
stick up by single or few borrowers. It is therefore, necessary to advance moderate sums to a
large number of customer engaged in different types of industries.
Selection of Borrowers
The selection of a reasonable and trustworthy borrower is complicated and at the same time very
sensitive task which requires decision-making power from the bank employees. In the words of
the manager of a branch of Muslim Commercial Bank, Ltd. "Good selection of borrowers does
the half task in the profit of the Bank.’Bank do not through money away but every application is
tested carefully before being sanctioned.
To assist the Branch manager in this test, bank provides a performed, outlining the manner in
which a proposal should be put forward for consideration. If any specific information that is
required is not mention, it affects the proposal as a whole, making it appear weak or
inconvenience, it is therefore, necessary for credit officers to see that all relevant questions
following are, as far as possible completely and exhaustively answered.
Following are 6'C, S and 3P's, which are considered before lending:
1. Character
The bank get to know the customer we!! And be able to judge his intentions, for the bank shall
be entering into a contract with him involving the financing of his business. It is, therefore,
common and business senses to make sure that the other party to this contract will live up to his
obligations, this factor, therefore, contributes significantly to the safety of the advances, as it
relates to the willingness to repay under all circumstances. Particularly adverse circumstances.
Are the partners or directors of the business unit, which is seeking finance, persons who can be
relied upon as regards details of their proposal as well as promise of repayment? What is their
reputation in the market place for meeting their commitments in respect to prices & delivers to
purchasers and timely payment to their trade creditors? Confidential and tactful inquiries from
wholesalers, suppliers and other bankers are necessary to obtain this essential information.
2. Capacity
This factor relates to the ability of the borrower to manage his business successfully. Do they
have the necessary management, accounting and technical skills? And the degree of experience,
in the particular line of business for which the finance is required, to utilize the advance
productively and profitably, so that repayment is possible, along with our share of the profits?
This ability can be judge from the trading results. A study of the company's audited financial
statements for the past few years would real whether sales have deep growing, stagnating or
declining or declining. Similarly, the trends of gross & net profit margins indicate the
profitability or other wise of the business. The efficiency of the management can be Judge from
the turn-over ratios, collection of receivable and management of accounts payable.
3. Capital
The proportion of the borrower's own resources to the amount of finance is requested, is the next
point to receive the branch manager's attention.
Is the amount required in proportion to the borrower's capital and contribution to the project? Is
it within the powers of the borrower? In the case of a corporate customer, a check on the
memorandum & articles of association is necessary to ensure it is within prescribed limits. If the
amount describe to be borrowed is too large. Under the circumstances, can it be sagely reduced
to an acceptable & practicable level? Past experience has taught bank that it is unwise to lend
more than is actually required, as it sometimes has led to speculative uses of the surplus.
4. Cash Flow
The source of repayment should be ascertained at the beginning. As commercial banks, bank
advances must, be largely confirmed to provide short" term finances to business customer. Hence
financing the current assets of traders and manufactures. Would ensure that repayment would
normally come from the sale of inventory and the realization of account receivable of our
customers. If we are confident of the customer's ability to buy the right materials, at right
markets and be able to produce finished goods which can be readily sold, at a satisfactory profit,
there should be no doubt about repayment. Therefore, cash flow statements and profit projections
need to be submitted by the borrower and carefully evaluated by the credit officers.
5. Conditions
From quantitative and qualitative information the bank need, to examine the conditions which
the firm is operating. This requires identification of the factors that have up to now contributed to
the success of .the business, and to Examine factors change has recently occurred or is likely to
occur in the near future which will adversely affect the profitability and prospects of the customs.
Accordingly to nature and prospects of the customers' business need to examine will it continue
to prosper, or will additional competitors or new competitors with the latest technology result in
reduced profit margins? Is the product essentially required, in a wide market with continued
demand? The industry conditions and the firm's place in industry and its market share need to be
examined demand? The industry conditions and the firm's place in the industry and its market
share need to be examined. An important quality here is the management's tendency to look and
think ahead to anticipate and adapt to change by diversification or otherwise, which will instill
confidence in the banker. For this purpose, it is necessary to maintain & update at the time of
renewing the advances.
6. Collateral
Since the bank is lending money, which it has, received form depositors, the bank must ensure
that there is a second way out. Security is, therefore, taken as a form of insurance. In case the
business plans of the borrower, do not work out, due to circumstances or developments beyond
his control.
It is the final safe and credit officer should be able to identify appropriate assets, which would
most suitably serve as security, in the given circumstances. The qualities which constitutes a
good banking security are transferability i.e. whether a valid charge should be created by the
borrower over his asset in favor of the bank should be such that the bank can obtain a good title
with minimum formality and expense. Its value should be easily ascertainable and stable. It
should be easily realized, in case of nee. Finally security be obtained & formalities completed
before the finances is disbursed.
7. Purpose
Credit resources are scarce but have alternate uses- The unity's needs demand that banks put
them to the best possible for which the finance will be used, within the credit policy the bank? In
conformity with the country's laws, credit control and exchange control requirements. Is it a
desirable one from the economic and banking viewpoint? Is it for productive of emulate
purpose?
In short, they're in need to ensure mat the purpose is conductive & within the borrower's normal
sphere of business activities and scale operations.
8. Period
Short-term advances are favored that is for not more than a year, renewable each year, if still
justified. Accordingly the most usual purpose is to assist manufacturing and trading customers in
their need to purchase current assets in line with their production or trading cycle, and seasonal
loans for agricultural purposes.
Being a developing country, EBI do grant medium-term loans but to a limited extent, for the
fixed- asset financing need industrial customers.
Urgent Approval
In exceptional circumstances if an approval is required at short notice, outside of the normal time
scales for approval, the proposal is referred directly to the Credit Division at Head Office.
All such referrals are accompanied by a priority decision request. The Credit Division with the
agreement of a quorum of the members appropriate Credit Committee, will advise approval for
the proposed facility. All such approvals, together with appropriate supporting documents, are
submitted to Credit Committee or Board for Information and post factor approval at their next
regular meeting.
Renewals / Review
The reviews/renewals of Credit line Proposals would be on half yearly basis or as per the original
sanction advice, and shall pass through the same process and levels as for the original proposal.
Types of Advances
i) Funded advances
ii) Non funded advances
1) Funded Advances
Funded advances are those advances in which funds of banks are involved.
Funded Advances
Term Finance
Clean Secured
i. Secured Finance
Financing against Govt. securities i.e. price bonds, defense saving certificate.
Documents Required
L/C, Demand promissory note, L/G
ii. Clean Finance
These funds are extended against personal guarantee for salaries people.
Documents Required
LC of Govt. salaries personal, letter of guarantee
2. Revolving Facilities
i) Running finance
ii) Cash finance.
i. Running Finance
Non funded advances in which bank funds are not involved e.g. L/C, L/G.
Preparation of Spread Sheet
The spreadsheet are prepared for a series of financial statements (say 3-4 years) since it provides
useful comparisons and sets out trends over the period which are of immense importance in
evaluating the financial strength and repayment capacity of the business enterprise. Notes to
audit accounts must also be studied and incorporated in the spreadsheet.
According to prudential Regulations every bank shall as a matter of rule, obtain copy of account
relating to the business of the borrower for analysis record in the following manners:
1. Where the bank's exposure does not exceed Rs.2.00 million the borrowers duly sign
Accounts.
2. Where the exposure exceeds 2 million but does not exceed Rs. 10 million, the Accounts
are duly signed by the borrowers and counter signed by the Internal Auditors of the
Branch or Chartered Accountants.
3. Where the exposure exceeds Rs.l0 million, the Accounts are duly signed by the practicing
Chartered Accountants.
Spread Sheet Main Features
The main feature of spreadsheet and the guidelines to prepare the same are given bellow:
1. Name
2. Location
3. The principal place of Business.
4. Amounts in
5. Use figure in thousands to permit recording of all significant amounts.
6. currency
7. Insert the currency of the amounts Pak Rs.
8. Auditor
9. If audit account, the name of the auditor
10. Audited or unaudited
11. Unqualified or Qualified
12. Date
13. Credit Report
A credit report is the report about a party at branch level consisting of necessary information to
assess net worth of the party. It is concise but comprehensive and contains he following
information
Date of Establishment.
Nature of Business.
Import Section
In case of import, first a L/C is opened in the bank on behalf of importer. Importer submits a
request for opening a L/C and prepares an application form. The importer seeking to open a L/C,
must be registered with Export Promotion Bureau, it is the basic requirement.
A documentary letter of credit can be defined as:
A conditional guarantee given by a bank to named beneficiary (seller of goods), to make
payment for the goods dispatched by him to the buyer, against presentation of the called for
documents and compliance with all other terms and conditions of the credit”.
Types of Documentary Credit
1. Revocable credits
A revocable credit may be amended or cancelled by the issuing bank at any moment and without
any prior notice to the beneficiary. The revocable credit is completely ended in Askari now days.
2. Irrevocable credits
An irrevocable credit is one, which neither can be cancelled nor can be amended without the
issuing the bank, the confirming bank if any, and the beneficiary.
3. Confirmed credits
All credits, whether revocable or irrevocable, are advised to the beneficiary without any
engagement on the part of the advising bank, although they do include an undertaking of the
issuing bank to cover the negotiation of correct documents, if they are presented. However, such
an undertaking of the issuing bank does not bind the advising bank at all that it will also
definitely take such action for the simple reason that the undertaking to beneficiary is solely of
the issuing bank. The advising bank may refuse to pay, accept or negotiate the documents,
though correctly tended by the beneficiary, for any commercial, economic or political reason,
prevailing at that time, under which the bank feels that it would not be possible to obtain
reimbursement from the issuing bank, for the money paid to the beneficiary.
Therefore, to avoid this risk, the beneficiary may ask the importer to provide him a
guarantee from a bank operating in his country, preferably his own bank, to the effect that
against presentation of correct documents by the beneficiary, the payment shall be made to him
immediately “Without Recourse”. In such cases, the issuing bank requests the advising bank to
provide the desired undertaking/guarantee to the beneficiary. This guarantee is in addition to, and
not in substitution for, the undertaking already given by the issuing bank.
After that negotiating bank contact with the importer, ask the importer to accept the
discrepancies until such time they are held on risk and responsibility of negotiating bank.
If the issuing bank refuses to accept the documents it must give reply to, by any fastest
means of communications (usually fax machine is used) to the negotiating bank or
remitting bank (or to the beneficiary if it received documents directly from him), the
issuing bank shall then be entitled to claim from the remitting bank refund of any
reimbursement which have been made to that bank.
The documents are lodged in PAD register when all documents are in order and running
PAD number is marked on all documents under bank’s stamp.
An advice is sent to importer along with I-Form to be signed and then returned.
TT/OD selling rate prevailing on the date of lodgment to be maintained on the covering
schedule along with date.
If forward exchange has been booked and documents are received within the validity
period then the bill amount is to be converted into Pak Rupees on booked rate and
forward contract is set off. However F.C. charges are converted on TT/OD selling rates.
The vouchers are prepared and are posted. Vouchers are passed at the time of lodgment
of documents.
LC Usance
If the issuing bank refuses to accept the documents it must give reply to, by any
fastest means of communications (usually fax machines is used) to the negotiating
bank or remitting bank (or to the beneficiary if it received documents directly from
him), the issuing bank shall then be entitled to claim from the remitting bank refund
of any reimbursement which have been made to that bank.
An advice is sent to importer and bill of exchange and I-Form is presented to importer
for signing and then returning.
Acceptance numbers are allotted and the details are entered in register duly marking
the maturity dates.
The documents are lodged in PAD register when all documents are in order and
running PAD number is marked on all documents under bank’s stamp.
The client is advised three days prior maturity to keep sufficient funds in his account
on maturity.
Requirement of E-Form
Every exporter is required to furnish a declaration to customs authorities for the good being
exported. The declaration is submitted on a prescribed Form-E in quadruplicate, which is
certified by the authorized dealers.
Issuance of E-Form
1. E-Form in quadruplicate is issued to the exporter having an account with the bank
against written request. In case the exporter maintains an account at a branch other
than the exchange dealing branch, the request is routed through the branch, which has
the account within it.
2. Before issuing E-Form, it is ensured that the exporter has given the attested
photocopies of required documents such as Valid Export Registration Form, NIC, and
Challan copy of Renewal Fee Paid to the bank.
3. Credit Report of the exporter is also obtained to ensure the Credit Worthiness of the
exporter.
4. The set of E-Form after completion is then entered in the E-Form Issuance Register
and acknowledgment is obtained from the exporter or any authorized person of the
exporter.
5. Utmost Care is taken while issuing E-Form because it is the security document. Blank
E-Form is never issued.
6. If full details of consignment are not available, at least exporter’s name, address,
goods to be exported etc., must be filled in the E-Form.
Certification of E-Form
Before lodgment of E-Form to customs authorities, it is required to be certified by the
Authorized Dealers. When the quadruplicate set of E-Form is presented for certification that set
is very minutely scrutinized and following details are checked:
Signatures of the exporter or his authorized signatory are duly verified at the counters.
All blank space in E-Form is correctly, legibly and properly filled in without any
overwriting.
After certifying the correctness of the E-Form, it is then entered in E-Form certification register
in the folio allotted to each exporter separately. Bank/Branch stamp is then affixed beneath the
certificate available and signed by the authorized officer. All the four copies of the E-Form duly
certified are delivered to the exporter or his authorized person.
Submission of E-Form
After certification of E-Form, all the four copies are submitted to the customs authorities for
clearance of consignment. Three copies of E-Form are returned by the customs’ authorities
retaining the original after endorsement of shipment on the relative portion on E-Form. The
quadruplicate copy is retained by the exporter while the duplicate and triplicate copies are
submitted to the authorized dealers along with other documents for negotiation within 14 days
from the date of shipment. The bank retains the duplicate copy for its record while the triplicate
copy is surrendered to SBP on realization of proceeds.
Utilization of E-Form
E-Form is invariably utilized and received within 21 days from the date of certification or 14
days from the date of shipment failing which the exporter is persuaded to submit the form
without further delay. In case the exporter does not respond to the requests, the matter is reported
to SBP.
Cancellation of E-Form
E-Form is cancelled in two ways:
If goods are not exported and E-Form is not presented to the customs’ authorities, the
same is surrendered to the bank for cancellation, which is recorded in separate file, duly
marked “Cancelled”.
If E-Form has been in the hands of customs authorities but the goods could not be
shipped due to non-availability of space in ship or due to any other reason, the exporter is
required to submit three copies of E-Form along with original “Shutout Notice” duly
stamped and certified by customers to the bank. The bank submits all the three copies
along with “Shut out Notice” to SBP under a covering letter for cancellation and record at
their end.
Negotiation
Negotiation is giving the value to the beneficiary for drafts and/or documents as distinct from
merely examining and forwarding them to the issuing bank.
Documents are submitted at the counters of negotiating bank along with the covering letter of
exporter after completion of shipment formalities. Documents contain, besides other documents
as per LC terms, the original LC along with all relevant amendments duly authenticated by the
Advising Bank. All documents are carefully scrutinized and are comply with the terms and
conditions of the LC. No documents should be inconsistent with each other or with terms and
conditions of LC.
DP Note
Undertaking (as per Annexure A of the said scheme) on non-judicial stamp paper
Post-shipment
DP Note
Undertaking (as per Annexure A of the said scheme) on non-judicial stamp paper
Invoices
Procedure
The scrutiny sheet is prepared, the case is stamped with ACBL stamp and authorized
persons affix their signatures.
On the 180th day SBP debits his balance and the bank’s account.
DP Note
Undertaking (as per Annexure of the said scheme) on non-judicial stamp paper
Form ‘EE’
Customer’s invoices
Bill of lading
Indenting commission
Passage money
Miscellaneous earning
1. Indenting commission
The remittance is received in favor of indenting agent in Pakistan, who negotiated/corresponded
sale on behalf of foreign exporter.
2. Advance payment
A Pakistani exporter may negotiate with a buyer abroad on the condition that full or part of the
sale proceeds may be remitted before shipment.
3. Sale proceed of exports
Sale proceeds of a Pakistani exporter are received in part in full as per terms of the Documentary
Credit or Firm Contract.
4. Miscellaneous earnings
The remittance is received for rendering any service to foreign customer/clients viz. Cost of
advertisement, fee of legal service etc.
Inward Remittances
Accounts Department
Accounts department is a department, which deals and checks all the activity of the entire
department. It also deals in expression of finance of the bank. Salary payment is also one
function of the bank.
Special Technical Allowances are Rs.230 (to at computer, typing and cash).
Annual increments.
Performance Bounces.
vi) Deductions
Provident Fund is deducted once from each person’s basic salary in one year. It is
also deducted from the employer’s account by the same ratio.
Gratuity is 8.3370 of basic salary.
Tax deduction if salaries are more than Rs. 200,000/ for men (Rs. 260,000/ for
women).
Statements of Liabilities.
Statements of Expenditure.
Salary statement.
Statement No 4, 5, 8 and 9 manually prepared. The rest are computerized statements. The
monthly statements that are sent to the personal and administration division or HR Division at
Head Office are as follows:
Salary Statements.
7. Classification of Advances
This statement provides the details of the advances. The advances are classified into various
categories:
Nature
Borrower
Purpose
No of account
Security
Managing Retained
Rate of interest
Amount
Nature
Category of bills
Amount
Nature
Amount
Type of securities
All the elements actually provide clear pictures of the port of advances, deposits and bills
purchased. The accounts also deal in the express of the bank. The different bills are dealt with in
this department.
10. Depreciation Calculation
The depreciation of assets is calculated through “straight line method”. The depreciation is
calculated both manually and on the computer. All the accounting functions are organized by the
in charge of Account Department calculated the manually checks it with computer data.
Rates of Depreciation
Computer Register
Renovation register
Product and Services
Product and services are the major attribute of any company, which are developed according to
the needs of the customers of the company. Similarly the product and services of the Askari
Bank are developed the customer needs and wants and the expectation that customer attaches
with financial institutions. A product of Askari Bank includes all those services which customer
normally required for effective managing his business.
Askari Bank offers the following financial services:
• Deposits
• Advances
• Products
Deposits
One of the basic functions of the bank is to receive deposits. Askari Bank accepts deposits in
both local and foreign currency.
Term Deposits
Notice Deposits
Askari Advantages
Advances
Advances are major source of earning income for commercial banks. Banks attract surplus
balance from customers at low interest rates and make advantage at high interest rates to the
individuals or businesses. Askari Bank provided these two facilities:
Funded Facilities
Non-Funded Facilities
Products
Smart Cash
It is product of the Askari Bank in which is offer to the personal letter of credit and its has two
maximum limits: 500,000 for clean credit and 1000, 000 for secure credit.
Product Featuring:
Personal Finance
One can avail unlimited opportunities through Askari Bank’s Personal Finance. With unmatched
financing features in terms of loan amount, payback period and most affordable monthly
installments, Askari Bank’s Personal Finance makes sure that you get the most out of your loan.
No matter what your need is Askari Bank has more ways to serve you than ever before.
Product Featuring:
Mortgage Finance
Askari “Mortgage Finance” offers the convenience of owning a house of choice, while living in
it at its rental value. Ever since the inceptions of life, shelter has been rated among the primary
needs of mankind. Owning a home for oneself still remains an exclusive dream for many. Askari
Bank has made the realization of your dream to have a house of your very own possible.
Whether you plan to build a house, tailor made to your requirements or buy a constructed house,
Askari mortgage finance enables you to pursue your goal without any problems.
Product Featuring:
Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Business Requirements: Maximum up to Rs. 500,000/. (Clean)
Minimum one year's business or professional experience in
Employment:
the present business
Charge/Fees: As per current Schedule of charges
ASKCARD
Askari Bank is committed to provide you innovative and competitive solutions to your banking
needs in a more efficient and personalized manner. Your Bank enjoys a strategic competitive
advantage over all domestic players by virtue of its leadership, large network and technological
advancement. In line with our tradition of innovation, Askari Bank takes pride in announcing
launch of Askari Bank's Debit Card.
Askari Debit Card means freedom, comfort, convenience and security, so that you can have retail
transactions with complete peace of mind. Askari Debit Card is your new shopping companion
which enhances your quality of life by letting you do shopping, dine at restaurants, pay your
utility bills, transfer funds, withdraw and deposit cash through ATM anywhere, anytime.
"Convenience at its best"
Why ASKCARD?
• Free of Cost (24) hours Global Accidental Life Insurance upto Rs. 500,000/- for every
cardholder irrespective of balance in the account
• Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit of the cardholder
against snatching, armed hold-up or forced deprivation of money
• Free issuance of Debit Card for new Value Plus Accountholders
• Umrah Tickets for 2 lucky cardholders (Each year)
• Home insurance of 10 lucky cardholders (Each year)
• No hidden charges
• Free from carrying cash or cheque books
• Free Funds Transfer Facility
• Free Utility Bills Payments through ATM’s
• Shopping Facility at POS terminals
• Maximum daily cash withdrawal limit
• Balance Inquiry, Mini Statement
• Supplementary Cards
• Un-matched Online Real-time Services
Askari Rupee Traveler Cheques
Askari Bank Limited has always remained at forefront in introducing innovative and unique
products in banking sector. Our financial instruments provide greater financial freedom and
security in an unmatched way to our valued customers.
Askari Bank offers you its "Rupee Traveler Cheques" eliminating all financial risks while
traveling which was launched in March 2002. So avoid risk of carrying cash through Askari
Bank's Rupee Traveler Cheques.
"Your Best Travelling Companion"
Why Askari Bank's Rupee Traveler Cheques?
Why Askari Banks’ Rupees Traveler Cheques?
1. Free issuance
2. Free encashment
3. Profit will be offered at the time of encashment*
4. Nationwide acceptability
5. Facility of encashment in cash to the purchaser
6. Facility of encashment through clearing
7. No purchasing limit
8. Valid until encashed
9. Easily transferable
10. Account relationship not mandatory
11. Fastest refund procedure in case of loss / theft
12. Safe & secure mode of funds transfer
13. Available in Rs. 10,000 Denomination at all branches of Askari Bank
14. Perfect substitute of your cash
Investment Certificates
Askari Bank's Investment Certificates not only provide the added security, investment and
monthly return to the customers. These certificates are negotiable and can be transferred to third
party. Investment Certificates can be issued for a period of 3 months and profit is payable on
monthly basis through pre-printed tear-off coupons.
Product Features
1. Free issuance and free encashment
2. Account relationship with Askari Bank is not mandatory
3. No penalty on pre-mature encashment
4. Negotiable and payable in Pakistan in Pak rupees only
5. No purchasing limit
6. Valid until enchased
7. Encashable at all Askari Bank Branches
8. Profit is payable on monthly basis through pre-printed coupons
9. In case of loss / theft or damage, there is replacement / refund to the original purchaser
10. Encashment by third party
11. There is no penalty on pre-mature redemption, except that profit coupon shall be valid
only for completed month
AskPower
AskPower represent a useful tool with which to make secure payments without the need of the
any account, a debit or credit card. This card comes with a number of unique features and
diversified usage capabilities like cash withdrawal from ATM, payment of utility bills through
ATM and internet banking, transfer of balance to another card or refill option. The prepaid card
is enjoying a great success all over the world.
Askari MasterCard
Askari Bank leads the way, yet again with the introduction of Askari MasterCard, which promise
greater financial freedom and security, in an un-matched way.
Product Features:
• You can use Askari MasterCard at thousand of locations in Pakistan as well as at over 23
millions establishments worldwide.
• With Askari MasterCard you are always a phone distance away from the assistant you
need. You can call any time of the day in Customer Service Center in Karachi, Lahore,
and Islamabad.
• In case of any loss or theft of your Askari MasterCard immediately inform Customer
Service Center and get replacement card within 24 hrs.
• You can get a supplementary card for your beloved ones at the time of the receiving your
own card. This card is available for person whose age is more than 18 years.
• You can get advance cash on Askari MasterCard p to the 80% of your sanctioned credit
limit in Pakistan or anywhere in the world and from some ATMs.
• You can avail Balance Transfer facility with Askari MasterCard at rate of 1.5% per
month.
• If you purchase your travel ticket on Askari MasterCard , you are automatically covered
under our Travel Insurance Plan(in case of personal accident resulting in death or
permanent disability) for up to Rs.8,000,000/- on a Gold Card and Rs.4,000,000/- on a
Silver Card.
• When you purchase your airline ticket on Askari MasterCard you get:
So, no matter where you are going, you are always assured of red carpet welcome.
• Your Askari MasterCard entitles you to the following *discounts at Avari Hotel in
Karachi, Lahore and Dubai:
10% on restaurants
15% on Hall rentals
Karachi I 10
Karachi II 10
Karachi III 10
Karachi IV 10
Hyderabad 13
Quetta 9
Corporate 1
Islamic Banking 7
Total Branches 70
CENTRAL REGION
Lahore I 10
Lahore II 10
Lahore III 9
Faisalabad 11
Gujranwala 10
Multan 10
Corporate 1
Islamic Banking 8
Total Branches 69
NORTH REGION
Islamabad 15
Rawalpindi I 12
Rawalpindi II 10
Peshawar 12
Azad Kashmir 6
Islamic Banking 5
Total Branches 60
Wholesale Bank Branch is 1 in Bahrain