Chapter 1

1.1 Introduction

A bank1 has important role in the financial stability of a country. Most nations have
institutionalized a system known as fractional reserve banking under which bank hold liquid
assets equal to only a portion of their current liabilities.

1.1.1 Globalization of banking:

In modern time there has been huge reduction to the barriers of global competition in the banking
industry. Increases in telecommunications and other financial technologies, such as Bloomberg,
have allowed banks to extend their reach all over the world, since there no longer have to be bear
customers to manage both their finances and their risk. The growth in cross-border activities has
also increased the demand for banks that can provide various services across border to different
nationalities. However, despite these reductions in barriers and growth in cross-border activities,
the banking industry is nowhere near as globalized as some other industries. In the vast majority
of nations around the globe the market share for foreign owned banks is currency less than a
tenth of all market shares for banks in a particular nation. One reason the banking industry has
not been fully globalized is that it is more convenient to have local banks provide loans to small
business and individuals.

1.1.2 Banking in Pakistan

Banking in Pakistan first formally started in Pakistan during the period of British colonialism in
the South Asia. After independence from British Government in 1947 there was no source of
Pakistan could start their banking system in a very short period of time. Then at that time it was
decided that “reserve bank of bank’’ will control the banking operations in Pakistan. But this
was not good for the best interest of Pakistan because British government at that time distribute
the reserve of the reserve bank of India between India and Pakistan with the share

___________________________________

1
A financial institution that accepts deposits from the public and create credit. Lending activities can be performed
either directly or indirectly through capital markets.

1
1
UBL Founded; November 7, 1959.UBL is a private commercial bank and its head office is located in 1.1
Chundigarh Road, Karachi. Bank has over 1375 branches in Pakistan and 19 overseas branches.

of 70 % India and 30% Pakistan. it was great loss for Pakistan at that time as being a new nation
with new country having few resources for survival. After independence Muhammad Ali Jinnah
took actions establish a central bank in Pakistan which resulted in the new founding of the State
Bank of Pakistan, with its headquarters to be based in Karachi. Only 7% of the population uses
the banks, has tremendous potential, but this needs to be pushed a little further.

1.1.3 Nationalization Act

By June 30th 1948 the number of branches in Pakistan was only 81. However, with the
establishment of State Bank of Pakistan and efforts of the government, the number of schedule
bank increased to 14 with 3323 branches all over of Pakistan and also 74 branches in foreign
countries by Dec 31st, 1973. For the implementation of this objective Nationalization Act 1974
was promulgated. this nationalization was carried out with a view to achieve the following
objectives:

 Disbursement of funds to the desired channels to achieve the priorities set out by the
government for social welfare projects.
 Equitable distribution of credit to different classes, sector and regions.
1.1.4 Privatizations

In 1991, the nationalization act was ended and then again 23 banks were established. Muslim
commercial bank was privatized in 1991 and the management of Allied Bank of Pakistan took
most of ownership. After that many Bank established and by the end of 197 there were21
domestic bank and 27 foreign banks. ‘‘Privatization is the process of transferring an enterprise or
industry from the public sector’’. Privatization may involve either sale of government-held assets
or removal of restrictions preventing private individuals and business from participating in a
given industry. Privatization is an ongoing trend in many parts of the develop and developing
world. Before the formulation of Pakistan, there was nearly 3500 branches in subcontinent, out

2
of these 3500 branches were existing in Pakistan’s territory. Its was also agreed, at the time of
formulation of Pakistan, reserve bank of India should continue its function of India should
continue its functions in Pakistan territory until September 30, 1948 as the central bank of
Pakistan. It was also agreed that Indian currency notes would use as the currency of Pakistan.

History of United Bank Limited

The real momentum to banking system was given when the State Bank of Pakistan was
established on 1st July 1948. But a real turn took place in the banking section when a renowned
banker Agha Hassan Abdi took initiative of opening a bank, which he announced to the different
mode from the others. His dream became true when the first branch of United Bank Limited
(UBL) was opened at Macleod Road (Chandrigar Road Karachi) on 7th November 1959.

This achievement was recurred after passing through many problems and after completion of a
lot of legal formalities. UBL was established on 24th July 1959 as a public limited company with
registered office at Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000
issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs. 101 each. . The bank
currently operating through 1300, branches in all the major cities of the Pakistan and its
registered office are situated at state life insurance corp. Building # 1, 11. Chundrigar road,
Karachi.United bank limited is one of the most famous bank working in different area of
Pakistan, UBL is now officially the second largest private sector bank in Pakistan with its 25
percent growth in deposits to RS 237 billion in 2004. Progressive Banking was a vision that
came true in 1959 with the birth of UBL. It brought in an era of modern banking and customer
care beyond the ordinary.

UBL is one of the largest commercial banks in Pakistan with assets of over RS. 190 billion, Net
Assets of over RS. 13 billion and a solid track record of 47 years. UBL offers its services through
a nationwide network of over 1300, branches spread all over Pakistan and 15 overseas branches.
The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59 percent increase over the
previousThe year, and announced a dividend of 22.5 per cent. This remarkable performance was
based on a record growth of 38 percent in advances, which grew from RS 72.8 billion in 2002 to
RS 100.2 billion in 2003 driven by growth in deposits from RS 158.3 billion in 2002 to RS 185.1
billion in 2003. The Bank was privatized in 2002, through the sale of 51 percent stake to a
3
consortium of the Abu Dhabi Group led by His Highness Shaikh Nahayan Mabarak al Nahayan
and the Bestway Group led by Sir Mohammed Anwr Pervez,. The issue is unsecured and
subordinated to payment of principal and profit to all other indebtedness of the Bank including
deposits. The United Bank Limited is one of the largest commercial banks in the country. With
almost 47 years of good standing to its valued clients, it has stood the test of time, producing
assets of over RS. 282 billion. It offers its services through a wide network of over 1300,
domestic branches all over Pakistan and 25 overseas branches as part of global network.

1.2 Business Philosophy

United Bank Limited is a leading commercial bank, established on November, 1959 under the
United Bank of Pakistan Ordinance, 1959. It is entrusted to act as an agent to the State Bank of
Pakistan, over the years, it has redefined its role its role into a modern growth -oriented
commercial bank by expanding its business network across continents and by capturing sizable
market share in the capital & equity markets, corporate investment banking, retail and consumer
banking, agriculture financing and treasury services in Pakistan. UBL has an international
presence through our branches and subsidiaries in the Far East and Middle East. It provides
commercial banking services including corporate loans, investment banking advisory, forex,
global remittances, underwriting, asset management agency services, brokerage, leasing,
Modaraba and such other banking & financial service. It strives in promoting financial inclusion

4
of the unbanked masses in the country, creating equal employment opportunities and delivering
our responsibility as a good corporate citizen

1.3 Vision, Mission and Values of UBL

Vision

“To be a world class bank dedicated to excellence, and to surpass the highest expectations of our
customers and all other stakeholders”

Mission
Be the undisputed leader in financial services for our customers
Most innovative and fastest growing bank in targeted businesses
Continue to diversify across chosen geographies
Achieve operational excellence with the highest level of compliance
Consistently create leaders through inspired human capital

Values
Customer first
Honesty of purpose
Teamwork
Excellence
Meritocracy

5
Objectives of UBL
Objectives mean the end towards which an activity is aimed. An organization without objective
is like a person who is wandering with no purpose. All the activities of an organization are due to
its objectives and goals. And for the attainment of those objectives, various types of financial
products and plans are developed. UBL has also some objectives, which are as under.

 To ensure growth and development of the bank.

 To use resources of the bank efficiently.

 To get more deposits.

 To participate in development of the country.

 Paying special attention to the areas, which are under developed.

 To develop SME’S.

 To increase industrialization in the country.

 To provide financial help to the farmers.

 To provide employment opportunities.

 To make people more of mind to have saving habit

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1.4 Market Standing

Market standing is about the total shares, total sales of the product and about profit in present
days and their achievements.
 Market shares
 Competitor analysis
 Profits
 Achievements
 BCG matrix

1.5.1 Free floating of share:

What is the impact of this variable ??
Total number of shares held in 2018
=1224.18 mn
Current status of share
Authorized capital 20,000.00 mn
Total No. Shares: 1,224.18 mn
Free Float: 489.67 mn
Beta: 1.07
Face value: 10

Earnings
Latest EPS Upto 2019 3Q RS. 11.77
EPS Last Quarter 2019 3Q Rs. 3.97
Last Annual EPS Upto 2018 4Q Rs.12.44
Price to Earning P/E Upto 2018 4Q 11.69 x
Exp Price to Earning P/E Upto 2019 3Q 9.26 x
Exp Earning Growth Upto 2019 3Q 26.15%
Price Earning Growth Upto 2019 3Q 0.35 x

7
 GRAPH 1
Comparison with the same sector of industry

Competitors:

 Habib Bank Limited

 Allied Bank Limited
 Meezan Bank Limited
 National Bank Limited
 Askari Commercial Bank Limited
 Muslim Commercial Bank
 Bank Alfalah Limited
 Faysal Bank Limited
 Standard Chartered Bank
 Bank AL-Habib Limited
 MCB Bank
 Soneri Bank

Competitive positioning of UBL

UBL has a competitive position in the banking industry due to having reputation for high
customer banking services which has made UBL the second largest Bank of Pakistan, having
professional & skilled management and Excellent promotional and marketing campaigns. For
example, the introduction of UBL Omni has made funds transfer much easier and very much
convenient to approach, UBL Mukammal Current account is design for low income group which
will facilities them through many incentives like ATM Cards, Cheque books, E-Statement, Free
online funds transfer & much more. Moreover, its net banking, its VISA cards in fact all of its
entire product line has left a mark on public which makes UBL really a world class bank.

8
1.5.3 Profits

UBL profits grew by an impressive 49% during January to March 2012. Bank has posted net
profit of Rs 4.87 billion in the first quarter of 2012 against Rs 3.27 billion posted in the same
period last. Net interest income core area of earnings grew marginally by 5% of Rs 9.6 billion
despite contracting margins. The Bank support of directors in its meeting held in Abu Dhabi and
UAE also declared an interim cash dividend of per ordinary shares Rs 10. Gross advances have
increased by 9% over December reaches to Rs 400 billion. Return on assets improved by 2.1%
for the full year 2011 and return on equity increased from 23.7%for 2011 and 25.7% for the nine
months of 2012. BOD Declared the 22% dividend profit to the shareholders.

1.5.4 Achievements
 “Best Bank 2016”at the first Banking Awards conducted by institute of Bankers
Pakistan in May 2016.
 Entity Ratings upgraded to AAA/A-1+ by JCR-VIS in June 2016.
 “Innovation Award” at the Mastercard innovation Forum in Budapest in October
2016.
 “Top 25 Companies of the Year Award-2015” by Pakistan Stock Exchange
(PSX) in September 2016.

 Bank of the Year 2013 Pakistan Award, awarded by the “The Banker”, a
prestigious publication owned by the Financial Time Ltd.
 UBL Omni -GSMA Global Mobile Award 2012 for “Best Use of Mobile in
Emergency or Humanitarian Situations” Feb 2012
 UBL Omni- Financial Insights Innovation Award (FIA) for “Innovation in Cash
Disbursement(G2P) Feb 2012
 Best Credit Card Provider- Consumers Choice Awards 2011- February 22,2012
by the Consumer Association of Pakistan.
 Best Corporate Report Award 2010- Joint Committee of ICAP &ICMAP.
 Top BANK Partner in 2011-EFU life.

1.5.5 BCG Matrix

 Stars
 Question Mark
 Cash Cows
 Dogs

Star
UBL is now in a position of high market share in high growth market. UBL as a star generate
large amounts of cash because it has strong relative market share, but also consume large
amount of cash because of high growth etc.
Question Marks:

9
Some new products having low market share in high growth market because buyers have yet to
discover them. UBL uses marketing strategy to get markets to adopt these products. UBL goal
must be to grow the business to become a star.
Cash Cows:
UBL, nearly will get high market share in a mature market. Soon UBL, will achieve competitive
advantages, when it becomes cash cows then it has high profits margins and generate a lot of
cash flow.
Dogs:
Dogs are with low market share in low growth market. UBL should maintain its market shares
And make more investment to prevent to become dogs.

Chapter 2

MANAGEMENT SYSTEM

10
  ORGANIZATIONAL CHART
 CORPORATE PROFILE
 POLICY FORMULATION PROCESS
 MANAGERIAL POLICIES
 CREDIT RATING

Management System

A management system is the framework of policies, processes and procedures used by an

organization to ensure that it can fulfil all the tasks required to achieve its objectives.

11
Management System

The management has two types:

Paragraph mei
likho
1. Centralization
2. Decentralization

Centralization Management tends to concentrate decision making at the top organization.

Decentralization Management disperse decision making and authority throughout and further
down the organization hierarchy.

Centralization/ Decentralization

UBL is a centralization organization.

Formalization

One of the never concept in the organizational design in the team base structure which is made
up of works-groups or teams that performs the organization’s work. UBL has high
departmentalization and more formalization.

Work Specialization

Work Specialization is the degree to which the work necessary to achieve organizational goals is
fragmented into various jobs. These jobs are performed parallel to each other and their combined
result is counted as the organizational goals. Another term for this is division of labor. UBL is
emphasizing on work specialization and job specification.

12
2.1 Organizational Chart

An organizational chart is a graphic representation of the structure of an organization

showing the relationships of the positions or jobs within it

Board of Directors

Executive Committee

President/CEO

Group Executive

Global Sales Head

Head Secured Financing

Head Un-secured
Financing
National Sales Manager

Senior Sales Manager

Regional Sales Manager

Relationship
13
Manager
Organization Upper Management team

Sima Kamil President & CEO

Aameer M. Karachiwalla Chief Financial Officer

Aqeel Ahmed Nasir Chief Legal Counsel & Company

Secretary
Sadia Saeed Group Executive-Human Resource

Aslam Sadruddin Group Executive-Operations

Zia Ijaz Group Executive -Head of International

Sharjeel Shahid Group Executive-Digital Banking

Sajid Hussain Group Executive-Compliance

Imran Sarwar Group Executive-Risk & Credit Policy

Tauqeer Mazhar Group Head-Branch Banking

Furrukh Zaeem Global Head Treasury & Capital Markets

Farooq Ahmed khan Head-Corporate & Investment Banking

Irfan Farooq Momen Group Head-Audit & Risk Review

14
 Shahid Mahmood Khan Group Head-Special Assets Management

Muhammad Faisal Anwar Chief Information Officer

Tanveer Farhan Mahmood Head-Islamic Banking

Table 1

2.2 Corporate Profile:

Name of Bank UNITED BANK LIMITED

Year of Foundation 07 November, 1959.

15
 Authorized Capital Rs. 20,000,000,000.

National Tax Number 0801164-8

Business Nature Subsidiary Company/Any other

Organization/Company Type Company Limited by Shares.

Principal Activity Services

Major Products/Services Commercial & Retail Banking

Bi Products/Services UBL Omni, UBL Credit Card etc

Mailing Address State Life Building No.1, 1.1 Chandigarh

Road, Karachi, Pakistan
Phone No. 111-825-888

E-Mail Company.Secretary@ubl.com.pk

Website www.ubldirect.com

hhh

Board of Directors

Name Designation
Sir Muhammad Anwar Pervez, OBE, HPk Chairman/Non-Executive

Mr. Zameer Muhammad Choudrey, CBE Non -Executive Director

Mr. Haider Zameer Choudrey Non-Executive Director

Mr. Rizwan Pervez Non-Executive Director

Mr. Arshad Ahmed Mir Non-Executive Director

Mr. Khalid A. Sherwani Independent Director

Mr. Amar Zafar Khan Independent Director

Mr. Tariq Rashid Independent Director

16
Ms. Sima Kamil President & CEO

Audit Committee

Mr. Amar Zafar Khan Chairman

Mr. Haider Zameer Choudrey Member
Mr. Khalid A. Sherwani Member
Mr. Rizwan Parvez Member
Mr. Aqeel Ahmed Nasir Secretary

Human Resource & Compensation Committee

Mr. Arshad Amir Mir Chairman

Mr Khalid A. Sherwani Member
Mr. Amar Zafar Khan Member
Mr. Syed Zulfiqar Hussain Secretary

Risk & Compliance Committee

Mr. Zameer Muhammad Choudrey Chairman

Mr. Arshad Ahmad Mir Member
Ms Sima Kamil Member
Mr. Imran Sarwar Secretary

IT Committee

Mr. Tariq Rashid Chairman

Mr. Haider Zameer Choudrey Member
Ms. Sima Kamil Member
Mr. Muhammad Faisal Anwar Secretary

Chief Financial Officer

Mr. Aameer Karachiwalla

Company Secretary & Chief Legal Counsel

Mr. Aqeel Ahmed Nasir

Registered Office

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13 Floor, UBL Building, Jinnah Avenue, Blue Area, Islamabad

Registered NTN Number

0801164-8

Head Office

1.1 Chandigarh Road,

Karachi-74000, Pakistan.

Share Registrar

THK Associates (Pvt) Limited 1st Floor,40-C, Block -6 P.E.C.H.S, Karachi -Pakistan.
Phone No. 021-34168270
UAN No. 021-111-000-322
Fax No. 021-34168271

Auditors

M/s. KPMG Taseer Hadi & Co., Chartered Accountants

M/s. A.F. Ferguson & Co. Chartered Accountants

Legal Advisor

M/s. Mehmood Abdul Ghani & Co Advocates

2.2.1 Corporate Social Responsibility

At the core of UBL’s Sustainability philosophy is the desire help the less fortunate by supporting
causes that makes a meaningful impact and empower communities. In 2018, UBL donated a
record amount to projects that further strengthened and diversified its sustainability

effort, supporting healthcare projects through infrastructural development of medical institutions

and provision of life-saving equipment and ambulances were the core areas where the bank
focused as sustainability efforts. Other areas the bank contributed towards included education
and water conservation projects. In line with our commitment to create a positive impact on the
environment, in 2018, we also launched on organisation wide ‘Go-Green’ drive encouraging
minimal use of paper.

UBL considers it a responsibility to make a meaningful contribution to the welfare of the society
and strive to support deserving causes, Particularly in education, healthcare and community
welfare and development. Projects supported by the Bank are those which benefit the society at
large and also where instant relief efforts are necessary. The Bank ensure that it give back to the

18
society it operates in and does so in the transparent manner. In 2013, UBL more than doubled its
CSR contribution to Rs. 77 million and remain committed to its role as an active and responsible
Corporate citizen.

As always UBL’s commitment to the education sector remains strong. The Bank beliefs the
affordable quality education should be available to all segments of the society, and in support of
this conviction, made aggregate contributions and commitments of over Rs. 50 million toward
this sector in 2013. Contributions this year included support to the Citizen Foundation’s school
adopting program where the bank adopted a school in the rural area of Gharo in Sindh. UBL has
provide initial funds to lay the foundation of the school and begin construction, once complete,
the school will provide free primary and secondary school will provide free primary and
secondary school education to the children of the village.
UBL also contributed to the Lahore University of Management Sciences as support for its ED
International Outreach Program that provides scholarships to deserving under privileged
students. As part of a continuing arrangement, the bank continues to support the institute of
Business Administration in Karachi for development of its infrastructure. Support was also given
to Forman Christian College in Lahore for its scholarship program and to the Sir Syed and
Islamabad

The Provision of quality healthcare of the underprivileged is an area where the bank has
continued to devote attention. In the current year, over Rs. 21 million was disbursed to various
deserving hospitals and NGO’s, such as the Gulab Devi Chest Hospital, Friends of Burns center,
Al-Mehrab Tibbi Imdaad and to specialized health providers such as the kidney center, and the
Shaukat Khanum Memorial Trust. UBL also reached out to the promote area of Bagh Bani
Passari in Azad Kashmir, where the bank donated to the Marie Adelaide Leprosy center for their
Triple Merger Center, which will render health related services to nearly 500,000 people

UBL donate to several causes for community welfare and development, including providing food
sustainability solution via kitchen gardening through the Hisaar Foundation, lighting a village
through solar power in Sahiwal in partnership with the Buksh Foundation and helping Bazm-e-
Kiran in their work on rehabilitation of juvenile offenders

UBL CSR agenda is driven by its vision of a developed and thriving Pakistan. The Bank feel
strongly that all segments of society should have equal opportunity to receive the best education,
nutrition and healthcare, while being part of a progressive and benevolent community. UBL will
continue to work towards making this goal a reality in the coming years.

2.3 Management Hierarchy

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Branch Manager Muhammad Shazif

Operation In-charge Muneeb Butt

Credit Muhammad Zaffar

General Administration Asifa Batool

Remittance Shahbaz

Cash Shafique Kashif

CSD Farhat

MSD Muhammad Shan

MIS Muhammad Omer

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2.4 Policy Formulation Process

Regular meetings are organized each level of the organization to keep the company moving in a
systematic manner. The main objective behind these meeting is to bring forth the employees at a
forum, where they san discuss their problems, give suggestion for improvement and
development. Also, they can share their experience with each other. At the UBL, Policies as
mentioned earlier, are been formulated at the Executive level of the Organization. Policies for
any organization constitute a major part in the overall long-term functioning of the bank. In short
UBL can say that policies and the objectives are the lifeblood of the organization in long run.
Though policy formulation is in prescribed hand yet the policies formulated by the top level have
been very successful as indicated by the success pattern of the bank so far. Then these policies
are transformed into the hands of the top-level management. The top management is been
suggested to make the policies implemented keeping in view the long-term objectives of the
organization. Also, the views from the middle managers and employees are encouraged as well
for the purpose of removing flaws from the system. For these very purpose meetings are held
almost weekly at the branches level and also in case of nay contingent dispute resolving the
meeting scan be called at any time during the branch timings

2.5 Managerial Policies

Policies overview at bank:

Since the inception of United Bank Limited, the bank has moved rapidly in lexpanding its branch
network and deposit base, along with making profitable advances and increasing its range of
products and services. It has made a break-through in providing premier services as an affordable
cost to our customers. Managerial policies followed by the bank have a direct contribution in its
success. The Board and Management of the Bank have implementing strategies and policies to
curve a distinct position for the Bank in the market place. In a bid to satisfy United Bank Limited
shareholders and valued clients the management initiated the process of realization of the bank’s
vision by consolidating its financial position and creating a large and diversified business base.
UBL has made notable progress in business volume, efficiency and profitability following its
increased involvement in trade finance, commercial lending and foreign exchange and money
market operation. Major policies had been made and implemented at United Bank Limited etc.

Consumer Banking Policy

UBL policy regarding consumer-banking policies includes the development through the
electronic consumer banking operations. Likewise, UBL has created a niche for itself in the
marketplace. It is planning to introduce new consumer products like credit cards, e-banking etc.

Leading Policy

UBL pursues a conservative yet dynamic credit policy. This strategy has enabled the bank to
have a high-quality risk portfolio. Bank prefers to finance exporters because of less risk

21
involved. UBL managers the credit risk, liquidity risk, market risk and other operational risks
very efficiently. For this very purpose UBL has got an effective credit line proposals system to
be sanctioned to the clients on demand.

Selection of Clients

Management is very selective of clients. All the references are carefully checked to learn about a
potential client before establishing a relationship. References are excellent sources of new
accounts as they give an opportunity to learn about a potential client before establishing a
relationship. This policy helps in protecting the integrity of the bank. It ensures good relationship
with the clients.

Services and Product Policies:

UBL provides a vast variety of services to its clients. Some of those policies are discussed
below:

Credit Facility

In this service the loans are provided to the customers by the bank to meet revenue shortfalls.

Stop payment instructions

It is one of the most important services provided by the bank to its clients, In Case the account
holder has lost his/her cheque be can issue the stop payment instructions to the bank. The bank
till further instructions will not honor the cheque.

Deposit

The Bank offers different types of Deposits to its account holders.

Drafts, Telephonic Transfers, Pay Orders

These are the facilities that the bank offers its customers and, at times, to the people who do and
maintain an account with the bank, that is, ordinary people. For offering these services the bank
charges commission besides the government taxes and duties.

Trade and Department Policy

UBL focus on Foreign Trade as its primary market of business. It maintains high emphasis on
enlarging its Correspondent Banking network besides aiming to enhance the scope and level of
cooperation with existing correspondent. The trade finance department has efficiently done
management of the changing trade policies by the central bank over there.

Marketing Policy

22
UBL inverts heavily for the marketing policies and orientation, for the publicity of its new
products/service
It uses various promotional schemes to attract customers. The Bank sponsors a number of
sporting and community development initiatives to play its part as a responsible corporate
citizen.

Accounting Policy

UBL has adopted almost the same accounting procedures that other financial institutions are
adopting at this time. These accounting procedures or Acounting policies are made according

to Generally Accepted Accounting Principles, the GAAP. The process flow and the usage of the
policies in the day wise routine are mandatory for all the employees working in the specified
departments at the branch.

HR Policies

United Bank Limited Follows Business-level/Competitive Strategy (competitive strategy

identifies how to build and strength the business’s long-term competitive position in the market
place) because of vast number of its competitor in the market place. UBL analyse its strength
with weakness and opportunities with threats to maintain its comparative advantage. The
competitive advantages of UBL is based on Differentiation. It provides different online and
offline services to win its customer and periodically analyse the competitive marketplace to
enhance its services at a high level.
Generating required Human Resource policy of UBL is that they attract the current employees by
offering them Promotion, Cash Award, Increment, Bonuses and Stock option so keep up and
generate external candidate by offering good salary packages, Career oriented Jobs,
Accommodations etc

 Recruitment:

In order to determine the future staff needs United Bank Limited uses Ratio Analysis
Technique (a Forecasting technique for determining future staff needs by using ratios between,
for example sales volume and number of employees needed) in which trend between two trends
is determined like volume of deposits, revenue, new branches etc and number of employees
needed to perform tasks.

 Internal Recruitment Sources

In forecasting the supply of inside candidates UBL use Qualification inventories (manual or
computerized records listing employee’s education career and development interests. Languages,
Special skills and so on to be used in selecting inside candidates for promotion) so in order to

23
replace a supervisor of a department a person below educated then the current supervisor will be
selected as a new supervisor.

 External Recruitment Sources (Short kren)

External source for hiring employees use by UBL is Succession Planning (the ongoing process
of systematically identifying, assessing and developing organizational leadership to enhance
performance) in which UBL do analysis on the important or key jobs in the organization., create
a list of competent employees who can fulfil the requirement of that job and then select the best
employee who can perform that job efficiently and affectedly. The internal sources used by the
United Bank Limited for hiring candidate are Advertisement, Head hunter and Word of
Mouth. In advertisement they use different mediums like Television, Newspaper, subscribing
the jobs on Job sites e.g.
www.rozee.pk,
www.monster.com
UBL has hired its own Retained Executive Recruiters/ Head hunter (Executive recruiters are
special employment agencies retained by employers to seek out top-management talent for their
clients) to find competent and qualified people for UBL.
Usually UBL don’t take Referrals but due to some reason they do sometime take referrals for
example referral from a high command person. Person on referral is qualified and competent etc

 Job Analysis:

Job Analysis is the procedure through which you determine the duties of the position and the
characteristics of the people to hire for them. Job Analysis produces information used for writing
job descriptions and job specification.

 Technique for Job Analysis

UBL only use qualitative techniques of analysing jobs. The techniques UBL uses are Interview
and Open-ended Questionnaires. They use interviews in which employees are ask what the job
entails and questionnaires in which employees are asked different question about what are the
activates they perform in job.

 Job Evaluation:

Job Evaluation is a systematic comparison done in order to determine the worth of one job
relative to another
Job Evaluation technique used by UBL is ranking method in whish each job relative to all other
jobs according to its difficulty level like for example job of supervisor is tougher than the
manager working under its supervision.

 Selection:

24
Selection process of UBL based on Qualification, Previous job experience, Age and health of
candidate

 The Application Form

For selection process the first step which candidate to be fulfilled is application form, this show
about the candidate’s education. Previous performance, prior work history, experience, hobbies
and health condition. As such, it is extremely critical for his/her continued participation in the
examination process. Before that candidate has to review thoroughly what the Job advertisement
specifies the requirements to qualify for the position. Candidate must meet all the criteria to be
considered for the position; ensure that, otherwise candidate will be wasting his effort in
completing the application.

 Written Test

Written exams are usually obtained from one of several will t construction firms available to
them. These tests are designed to determine level of technical and/or analytical abilities
associates with intelligence test. Test results are sent by mail, usually within 6 working days. If
receive a passing score candidate will be invited to continue in the examination process

 Performance Exams

To ability to accomplish specific job-related tasks by providing the opportunity to actually

perform them. These tests are scheduled through the Human Resource Department office, with
notification in writing of the date, time, location and duration of the test. Instructions will be
given on the tasks to be completed and then tasks to be completed and then asked to complete
them. Individuals with considerable relevant experience will conduct the evaluations. Safety,
quality of work, adaptability, performance under stress, etc. are evaluated Specialized Testing.

 Selection Interview

Once the list if the candidate who is capable enough. Is established it is sent to the Department
that is hiring to fill a current vacancy. The department head is responsible for setting up selection
interviews. He/she may interview anyone on the list; The Department Head will be looking for
the candidate with the best qualifications for their particular position.
The candidate who is selected, investigate his/ her background and a probationary period before
attaining permanent employment status. Additionally, in accordance with Federal Law, the
candidate is required to provide proof of identity and proof they may legally work.

 Training & Development

Training refers to the methods used to give new or present employees the skills they need to
perform their jobs. Development include employee, management, organizational and career

25
development which develop employees’ skills, management which enhance executive’s abilities,
organizational cultural development and career development of employees.
Training method used by United Bank Limited are Soft Skill Functional Training. On-The Job
Training and Class Room Lectures.
In soft skill functional training UBL give training to improve personality traits, social grace,
friendliness, personal habits and fluency of language. In On-the training UBL uses different
method like Coaching or understudy method in which supervisor act as a coach and teach the
trainee to the perform the task on the job and job rotation method is used by UBL for those
employees who need multi skills to perform the job.

 Performance Appraisal

In performance appraisal of employees UBL use Graphic Rating Scale Method (a scale that list
a number of traits and a range of performance for each. Employee is then rated by identifying the
score that best describes his or her level of performance for each trait) in which UBL measure
the characteristics and previous performance of employees and then rank them subsequently.

2.6 Credit Rating

JCR-VIS Credit Rating Company Limited (JCR-VIS) re-affirmed the entity ratings of UBL at
‘AAA/A-1+’ (Triple A/A-One Plus) in 2018. Outlook on the assigned Rating is ‘Stable’. The
ratings depict strong performance in key areas including asset quality, capital management and
profitability. These are reflective of UBL’s size and strength as a leading domestic.
Capital intelligence (CI) an international credit rating agency, has re-affirmed UBL’s long-term
and short-term. Foreign Currency ratings at B- and B respectively in line with CI’s sovereign
ratings for Pakistan. In addition, the Bank’s Financial Strength rating has been re-affirmed at
BB+, with the Outlook re-affirmed at ‘stable’ based on the Bank’s strong performance.

26
.

Chapter 3
Owner/Stockholder
MARKETING MIX
Shareholder

27
 PRODUCT
 PRICE
 PLACE
 PEOPLE
 PROMOTION
 PROCESS
 PLACE

28
 INTERNSHIP REPORT

ASKARI BANK LIMITED

ROHMA KHAN

YEAR OF SUBMISSION:2020

DEPARTMENT OF MANAGEMENT SCIENCES

LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE.

29
 Branch Manager

Operations Manager

Credit Department General Banking Foreign Trade

Manager Manager Department Manager

Assistant General Manager

Officers Grade I

Officers Grade II

Officers Grade III

30
 5.1 SWOT ANALYSIS:
SWOT Analysis is one of the most expedient technique or tool used in the strategic Management
process for conducting the situation analysis of an organization. The proper analysis of the firm
is given in the form of Strengths, Weaknesses, Opportunities and Threats (SWOT) the
company presently facing or can be forecasted for the future. It is a common approach to make
assessments in terms of internal and external environment of the organization, and to formulate
strategies analyzing its internal strengths and weakness, external opportunities and threats,
coming up is the SWOT analysis for the ABL. Such an analysis is very important for the
management in relating the strength, overcoming the weaknesses, capitalizing over the emerging
market opportunities, and craving ways to successfully tackle with the threats and ultimately
converting them in the strengths for the organization.
For the Environmental scanning of the organization is done. It is the analysis of Strength,
Weakness, Opportunities and different Threats an organization may face from the external
environment. ABL SWOT analysis is:
Strength
Weakness
31
Opportunities
Threats
STRENGTHS
First we analyze the strengths of ABL that are as follows:
COMPUTERIZATION
The main strength of ABL Limited is that all of its branches are fully computerized and they
have latest software’s available to keep the records of their customer account and other important
information up-to-date. It reduces manual work and provides good provides services.

WELL-KNITTED BRANCH NETWORK

ABL has a well-knitted and adequately equipped branch networking system that.
efficiently covers both the domestic and international markets. ABL has the largest.
branch networking in Pakistan comprising of 245 branches/ sub branches.

LARGEST PRIVATE BANK

ABL is one of the largest private banks with deposit base of Rs.167.68 billion/- showing constant
growth over the period 1999 till day and with many online branches in major cities of Pakistan.
CUSTOMER’S FEEDBACK
Customers are allowed to give suggestion regarding banking services. If there is any complaint by the
customer the bank authorities investigates the reason for complaint. Complaint monitoring
system is excellent at ABL that shows bank values more to its customers.
INFORMATION SYSTEM
ABL has also invested heavily in information technology resources, which has not allowed bank to
develop one of the most comprehensive and advanced system available. With the help of this
system ABL has now achieved an “online” status via real time facilities and features available
through nationwide network. With the team of highly qualified professionals, ABL is able to use
its real time system resources to provide customers with comprehensive account of their
transaction on a daily basis. ABL is one of those few banks who are reaping the benefit of
electronic transaction.
THE ABL ATM SWITCH-NET
I.T group of ABL has been able to create the largest network for secure electronic financial transaction
in Pakistan.
LEADERSHIP IN ATM’S
With over 5319 online ATMS network ABL is again an undoubted industry leader with connectivity
extended to above than twenty five cities of Pakistan. ABL ATMs not only serve 24 hours cash
convenience and also improve on the counter services and turnaround time at cash counters.
STRONG REPUTE
ABL is subsidiary of ARMY WELFARE TRUST (AWT) so it has a strong army background and it
definitely adds to its prestige and provides it an edge over the competitors.
World WIDE MASTER CARD
The ABL Atm Mastet Card has become a global service furthering the convenience to
the customers. Traveling customers can access their accounts for a large number of
internationally deployed ATMs and point of sale unit.
PHONE BANKING SERVICE
32
 In order to save their customer's time ABL provides the good phone banking service
that is very attractive especially for those customers who don't have time to personally
visit to the bank.
SOCIAL RESPONSIBILITY
The organization showing concern for the people, ethics and environment enjoy good
public reputation and are able to reap the benefits in the long run. ABL management is
quite sensitive to this issue.
INTERNET BANKING
ABL is the first bank to introduce i-banking which provides convenience to our
customers by enabling them to gain access to their account and carry out any
transaction sitting at home.
MOBILE ATM BUS SERVICE
ABL has launched its mobile atm bus service which is the Pakistan First Mobile ATM Bus
Service. No other bank has taken initiative of mobile ATM Bus yet.

WEAKNESSES
The weaknesses of ABL are listed as:
IRREVOCABLE DEBTS
Due to risk such as political economy and legal the bank has suffered losses the main
reason was piling up to of large number of irrevocable debts.
TRADITIONAL WAYS OF RECOVERING TRANSACTIONS
The bank has still some of the traditional ways of operations in this advanced
technological environment. ABL has use computerized accounting system but, still the
bankers use to make their enteries in thr accounting register also.
For Example, Accounts opening registers, manual checking of vouchers.
INDIVIDUAL DIFFERENCES
In Askari Bank the individual difference has strong impact on the organization's
performance due to wrong criteria of selection of employees. So with the passage of
time individual differences start increasing which undermine the goodwill of the
organization.
LACK OF PROPER EQUIPMENT AND PROCEDURES
No availability of sophisticated equipment's in branches lengthy credit processing and
documentation procedures.
POOR MARKETING CAMPAIGN
Bank's marketing department is not very strong. Accumulated losses pushed the bank
to cut down its promotional activities in order to reduce expense for last few years. The
Advertising media used by Askari Bank for publicity include mostly newspaper and
journals. But the most powerful and effective media is of television through which
people in Pakistan as well as outside Pakistan can have instant information about new
products and developments of ABL.
JOB ROTATION

33
 The employeea of ABL are constantly subjected to job rotation. It keeps back from
gaining complete know- how about a particular department.
CENTRALIZED MANAGEMENT PRACTICES
The Management system in ABL is quite centralized leaving all the decision-making
activities to the upper management only. Employee empowerment is also over looked
due to such management policy. I personally observed that delay occured in the
operations of the employees only due to the fact that they had not got any instructions
from the Head Office.
LOW JOB SATISFACTION
Understanding and the effective management of the human resources is the most
difficult challenge faced not only by the bank but by all the organizations. Even though
the people have been sacrificed in the new organizationals development, it is becoming
clear that the true lasting competitive advantage comes through human resources and
how they are managed. ABL seems to not focusing on its highly critical issue at the job
satisfaction level of the employees working at ABL, was quite low.

OPPORTUNITIES
These are positive external enviromental factors affecting the ABL:
EXPANSION OPPORTUNITIES
ABL growing business requires further expansion of branch network which would, in
return, open great opportunities for ABL for the expansion of its business. ABL can also
extend its network in other countries. Increasing the product range to fulfill customer
requirement and ATM networks. ABL can expand its 24 hours cash facilities to other
cities of the country in order to meet growing market demand.
NEW MODES OF BANKING SERVICES
Askari Bank is now looking into new ways of providing banking services to its customers.
New concept of mobile banking has been introduced by the bank, which will prove to
be remarkable success in the field of consumer banking.
INCREASING CUSTOMER DEPOSIT
It is opportunity for Askari Bank to steady increase customer deposit by adopting new
marketing and promotion scheme and launch new scheme for their customer.
TARGETTING ILLITERATE SEGMENT
Illiterate people are also an opportunity for ABL in regarding this service. ABL can serve
these people by giving instruction in Audio and in Urdu. They can also have instructions
written in Urdu on card or even they can have a display in Urdu. This way they can
increase their target market, market share and profitability.
FOREIGN REMITTANCE AND TRADE
Foreign remittance are another area as present worldwide control system over transfer
of currencies through illegal channels has facilitated the area of the bank.
Foreign Trade is the focus of quite alot bank. It has become an ideal bank for the
importers and exporters but still a lot of opportunities and yet to be discovered.
E-Banking

34
 ABL should emphasize on E-banking in which bank can design a universal account like
their foreign bank, to enhance online facilities.

THREATS
POLITICAL INSTABILITY
Political instability is also threat for the bank because instability leads to lower business.
The same situation is prevailing in Pakistan.
INFLATION
In our country the rate of inflation is increasing along with the umemployment. So due
to increase in price of the products, the saving of the nation is decreasing with passage
of time. So it is threat for the banking sector. In the future the deposit of the bank will
decrease.
CHANGING TRENDS IN IT
Growing global technological advancements and adaptation of modern style of
management in banking sector.
COMPETITION BY OTHERS BANKS
Askari Bank leading in the domestic commercial banking sector in Pakistan, as such there are no close
competitors of ABL but every commercial bank is the competitor for each other. But mainly
these are HBL, UBL ,Meezan Bank Limited etc they are threats for ABL. At any time they can
capture the clients of ABL by providing any benefit more than that.
HIGH CHARGES
The charges of the service that the bank receives from the customer are higher than
their competitor. So it loses many customer for this reason. The schedule of charges
indicate that the fees charged by the bank on the various services it provides are
extremely high. It may result in decrease in the number of its existing customers.

35
36
ASKARI BANK LIMITED

37
 Submitted By : Rohma khan

Roll No : 091631040

Session : 2016-2020

Supervisor : MAM Shumaila

DEPARTMENT OF MANAGEMENT SCIENCES

LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE

ASKARI BANK LIMITED

38
ASKARI BANK LIMITED

39
 DECLARATION

An Internship Report is submitted to the department of public administration of,

Lahore College for Women University (LCWU) in partial fullfilment requirement
for the Degree of B.com (hons)

40
 DEDICATION

I dedicate this report to my ALMIGHTY ALLAH. All the praises and Thanks to
Allah, the Lord of ‘Alamin. The Most Beneficent The Most Mericiful and to my
Beloved Parents for their endless love , support and encouragement.

41
 ACKNOWLEDGEMENT

Thanks to almighty ALLAH for enabling me to fulfil all the requirements for the completion of
my internship report.

It is most appropriate to mention the ingenuity of my respected teacher and Institute who
provided me an opportunity to enhance my management skills and to learn a lot form this
practical work experience in this well-established organization
It is my privilege to express my deep gratitude and in calculating thanks to the management of
ASKARI BANK LIMITED . During my internship at Bank of Karim Block branch Lahore, I
got a chance to observe all departments of banking. I learned lot of experience here.

My special thanks to Mr. Nouman Gulzar (Branch manager and vice president head of Karim
Block Branch) for his kind and cooperative way of guidance, cooperation and make me feel as a
part of the branch in real sense which taught me the importance of word “Team Work” And to
Ms. Uzma (Remittance Officer) for his unmatchable style and by best possible training method.
Ayaan Masood (Branch System Administrator) Ms. Beenish Rana (Account opening officer)
Ms. Sana (In charge cheque book), for their friendly nature of teaching who bestowed me with
the courage, the commitment and the awareness to follow the best possible routes.

I would also like to thanks, Mr. Uzma (Incharge of clearing and collection), Mr. Naeem (AVP
and in charge advances, foreign currency and credits) Mr. Ibad (Manager Operation), and for
their support and Cooperation

42
 PREFACE

Passion and innovations drag me from yesterday and drive to tomorrow the era of change. In
fact, we are rapidly shifting into the new era of human history on this planet having gone from
gatherers and hunters to agriculture producers to industrial manufacturers to the current gatherers
and users of information. Theories remain Black & White if supported by the colors of
practicality. To quench the thirst of practical exposure, I joined the Askari Bank Limited Lahore
and gathered all necessary information by which the dream of the esteemed internship report
could come true. Efforts have been made to compile this report in such a way that activates its
salient features not only for students but also for the layman.

Here I ROHMA KHAN being the student of B.COM (Hons.) in Lahore University of women’s
during Session 2016-2020, completed my Internship at Askari Bank Limited Lahore. At the end
of my practical training I have prepared an internship report elaborating the details about the
bank and its work done thereto.

At the end of this remarkable session I would like to thanks all of them who encouraged me a lot
during my study course.

ROHMA KHAN

43
 EXECUTIVE SUMMARY

Askari bank limited was established in 1991 and was given the status scheduled in 1994. Askari
Bank is working as a scheduled commercial bank with network of almost 251 branches at all
over major location in Punjab. The Bank provides all type of banking services such as Deposit in
Local Currency and Foreign Currency, remittances and advances to business, trade, industry and
agriculture. Askari Bank has indeed entered a new era of science to the nation under
experience and professional hands of its management. Askari Bank plays a vital role in the
national economy through mobilization of hitherto untapped local resources, promoting
savings and providing funds for investments. The Bank Offers attractive rates of profit on all
deposit, opening of foreign currency accounts and handling of foreign exchange business. For
Example imports, exports and remittances , financing, trade and industry for working capital
requirements and money market operations. The leading policy of bank is not only cautions and
constructive but also based on principles of prudent leading with maximum emphasis on
security.

44
Table of Contents

Chapter#1: INTRODUCTION

1.1-Introduction ……………………………………………………………………………. 02

1.2-History and background…………………………………………………………………03

1.3BusinessPhilosophy………………………………………………………………………04

1.4-Vision and Mission Statement…………………………………………………………..05

1.5Market Standing………………………………………………………………………….07

Chapter#2: MANAGEMENT SYSTEM

2.1-Organizational chart……………………………………………………………………...10

2.2-Corporate Profile…………………………………………………………………………11

2.3-Management Hierarchy…………………………………………………………………..14

2.4-Policy formulation process……………………………………………………………….16

2.5-Managerial Policies………………………………………………………………………16

2.6-Credit Rating……………………………………………………………………………..18

Chapter#3: MARKETING MIX

3.1-Product……………………………………………………………………………………20

3.2-Price……………………………………………………………………………………....28

45
3.3-Place………………………………………………………………………………………30

3.4-Promotions………………………………………………………………………………..31

Chapter#4 FINACIAL STATEMENT ANALYSIS

4.1-Horizontal/Trend Analysis………………………………………………………………..42

4.2-Vertical Analysis………………………………………………………………………….49

4.3-Financial Ratio Analysis………………………………………………………………….56

Chapter#5 SWOT ANALYSIS

5.1-Strengths……………………………………………………………………………….67

5.2-Weakness……………………………………………………………………………....70

5.3-Oppourtunities…………………………………………………………………………71

5.4-Threats…………………………………………………………………………………73

Chapter#6 TRANING PROGRAM

6.1-Divisional or Department Detail……………………………………………………….76

6.2-Activities of intern……………………………………………………………………...84

Chapter#7 PROBLEM AND RECOMMENDATIONS

7.1-Problems………………………………………………………………………………95

7.2-Recommendations…………………………………………………………………….96

7.3-Conclusion…………………………………………………………………………….97

Chapter#8 LIST OF ANNEXTURE

46
8.1-Refernces……………………………………………………………………………...99

CHAPTER # 1

INTRODUCTION

1.1- History and Background

1.2- Business Philosophy

1.3- Vision and Mission Statement

1.4- Marketing Standing

47
INTRODUCTION

Askari Bank was incorporated in Pakistan on October 9, 1991 as a public limited company. It
commenced operation on April 1, 1992 and is personally principally in the business of banking,
as defined in the Banking Companies Ordinance 1962. The Bank is listed on Pakistan Stock
Exchange (earlier it was listed on Karachi, Lahore and Islamabad Stock Exchanges).

Since inception, the bank has concentrated on growth through improving since quality,
investment in technology and people, utilizing its extensive branch network which includes
Islamic and agricultural Banking.

Corporate Social Responsibility is an integral part of the way we do business. In order to fulfill
our CSR objectives, we attempt to promote public interest by encouraging community growth
and development through sponsoring social service events, supporting education, support and
environment and also contribute in socio-cultural activities.

Listed on Stock Exchange:

Askari Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges.

Commencement of Business:
The Bank obtained its business commencement certificate on Feburary 26, 1992
and started operation from April 1, 1992.

Branches Network of Askari Bank Ltd.

48
 The Bank has successfully penetrated key markets through branch expansion
and business diversification. Just 7 branches at the start of 1992 were working, but now in
whole Pakistan more than 700 branches of Askari Bank Limited are functioning. The Branch
network is connected on line-real-time. The branch network is isolated Region/Area wise.

The system of regional and area office has been introduced 1999 for effective supervision and
control of branches. The scope of the system also spans the development and management if
bank's business and activities on regional basis.

1.1 Background of Study:

In the Lahore College for Women University required for the students to do
an internship for at least six weeks period of time in any business organization. So, for my
internship reports I choose the ASKARI BANK LTD Karim Block Branch in my district. Askari Bank
is very emerging bank in our city and it will be good for me to gain some practical knowledge in
that kind of field of life.

1.2 Purpose:
The purpose of an internship is to provide real-world experience that enables you to
put everything you've learned into action. An internship can help you gain skills that can be
applied to future jobs.When you are doing internship in an organization, you will learn different
kind of skills like accounting, reporting ,communication and managerial skills. So, on six weeks
time period the purpose will be to enhance the level of learning in business organization.

1.3 Organization:
Askari Bank is becoming one of the most emerging bank. Askari Bank
introducng new policies for our customers. They also have different schemes for customers.It
focused on spurring an economic portfolio encompasses all facts of banking.

1.4 Summary:
I am a Student of LCWUand doing B.COM(HONS).As our university required doing
internship in any organization for the pratical knowledge, I Choose the Askari Bank Ltd Karim
Block branch of the internship for six weeks. The Objective of my internship is to enhance my
knowledge or professional managerial skills in that field and then enter in practical field.

49
1.1 History and Background of Organization
An important player in Pakistan's financial services industry, Askari Bank is now leading the way
to the most modern and dynamic banking in the country.

ASKARI BANK is the leading private sector bank in Pakistan, delivering quality service through
innovative technology. In the success story of ASKARI BANK, one of the most important factors,
apart from its dynamic management and prudent approach, is the QUALITY of its SERVICES,
which gives it a great edge over its competitors. ASKARI BANK has always strived to facilitate its
customers by introducing various high quality hi-tech services for the first time in Pakistan.

We are proud of our pioneering role in providing the most modern and technologically
advanced services to our 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. Technology
has played a pivotal role in meeting customer expectations, particularly with respect to the
speed and quality of services.

We have fully automated transaction-processing systems for back-office support. Our branch
network is connected on-line real-time and our customers have access to off-site as well as on-
site ATMs, all over Pakistan. This includes not just establishing and maintaining technology
infrastructure for providing operational support to all units of the Bank, but also encompasses
introducing latest state-of-the-art technology-driven products and service delivery systems,
such as ATM networking, Internet Banking, Mobile ATM, Credit Cards, Debit Card, Prepaid Card,
utility bills payment through ATMs & Internet which have brought about cost-effectiveness,
timesaving and safety.

Askari bank has also achieved another milestone with the launch of Askari Bank Zari Credit
Card. This is the first ever credit card offered to the farmers in Pakistan with complete product
features and service benefits. It aims to meet farmer's production and development needs and
to supplement cash flows, whenever required.

50
It is also a matter of satisfaction that ASKARI BANK has been the first bank to introduce PTCL
and WAPDA utility bills payment electronically through ATM and Internet on an Online-Real-
Time Basis. For the first time in Pakistan, we have introduced Mobile ATMs to provide banking
facilities at the doorsteps of our customers. Askari bank's mobile ATMs first in the banking
history of Pakistan, now four in number, continue to serve customer needs.

1.2 Business Philosophy

The Bank selects and appoints staff with appropriate academic qualifications, talent, skills and
experience through a methodical selection process, free from discriminatory biad and based
soundly on the principle of EOE ( Equal Opportunity Employment).

Career development programs are designed to prepare employees to meet the challenges of
the workplace. All employees have an opportunity to take benefit from such programs which
are offered at all levels to meet the specific needs of the staff & organization.

The Bank has well defined Human Resource policies to ensure staff career progression and
growththrough staff evaluation, job rotation, job enrichment, promotions and succession
planning.

The Bank also pursues a compensation philosophy of establishing and maintaining consistency
and equity within the organization as well as aligning its overall remuneration packages with
the marketplace.

51
1.3 Vision And Mission Statement

Vision

"To be the Bank of first Choice in the Region

&

To be a customer focused bank with service excellence"

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

52
modern and progressive organisational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stakeholders, and
contributing to society."

CORE VALUES

The intrinsic values, which are corner stones of Askaricorporate behavior, are:

Commitment

Integrity

Fairness

Team-work

Service

53
1.4-Market Standing:

Core values:

Commitment:
Passionate about our customers success and delighting them with quality of our service.

Integrity:
A distinctive investment, delivering outstanding performance, return and value.

Fairness:
Exemplary compliance, governess and business ethics.

Teamwork:
Caring for our people and helping them to grow.

Service:
Dedication towards social development and improvement in quality of life.

54
 Chapter#2

MANAGEMENT SYSTEM

2.1- Organizational Chart

2.2- Corporate Profile

2.3- Management Hierarchy

2.4- Policy Formulation

2.5- Managerial Policies

2.6- Credit Rating

55
2.1- Organizational Chart:

56
 2.2- Corporate Profile:

BOARD OF DIRECTORS

Head of HR

President & CEO

Company section Head of
compliance &
internal control

Board Board Risk CEO secretariat

audit management Head of risk & credit policy
committee committee

Business
manager Chief financial
officer

Head of Audit &

RAR Head of operations &
IT

DCEO

Head of
Head of treasury Head of retail Head of Agri-Head Head of Special Assets Head of
corporate &
& Equity capital Banking commercial strategic Management Islamic
investment
market banking development Banking &
banking
Modarba

BOARD OF DIRECTORS

57
 Lt Gen Syed Tariq Nadeem Gilani, HI (M) (Retd)
Lt Gen Syed Tariq Nadeem Gilani was commissioned in Pakistan Army on October 26, 1979 with
the coveted President’s Gold Medal. The General Officer has served on various command, staff
and instructional assignments.

In recognition of his meritorious services, he was awarded Hilal-e-lmtiaz (Military).

Lt Gen Gilani retired from Pakistan Army in October 2015 and has taken over as MD Fauji
Foundation on January 10, 2018 and Chairman of the Boards of Directors of following
companies:

 Fauji Fertilizer Bin Qasim Limited

 Fauji Fertilizer Company Limited
 Mari Petroleum Company Limited
 Fauji Cement Company Limited
 Askari Cement Limited
 Askari Bank Limited
 Fauji Kabirwala Power Company Limited
 Fauji Oil Terminal & Distribution Company Limited

Mr. Rehan Laiq

Mr. Rehan Laiq joined the Board of Directors on December 01, 2018. He is member of the
Board Audit Committee of Askari Bank Ltd.

Besides being Director Finance Fauji Foundation, he is also on the Board of Fauji Fertilizer
Company Ltd, Fauji Fertilizer Bin Qasim Ltd, Mari Petroleum Company Ltd, Dharaki Power
Holdings Ltd, Foundation Power Company Dharaki Ltd, Foundation Wind Energy I Ltd,
Foundation Wind Energy II (Pvt.) Ltd, Fauji Kabirwala Power Company Ltd, Fauji Cement

Lt Gen Tariq Khan, HI(M) (Retd)

He is Chief Executive & Managing Director of Fauji Fertilizer Company Limited, FFC Energy
Limited and Fauji Fresh n Freeze Limited and also holds directorship on the Boards of following:

 Fauji Fertilizer Bin Qasim Limited

 Askari Bank Limited
 Fauji Foods Limited
 Philip Morris (Pakistan) Limited
 Fauji Meat Limited

58
  FFBL Foods Limited
 FFBL Power Company Limited
 Thar Energy Limited
 Pakistan Maroc Phosphore S.A

Dr. Nadeem Inayat

Dr. Nadeem Inayat joined the Board of Directors on June 20, 2013.

As Director Investment he is managing the investment portfolio of Fauji Foundation Group. He

is also on the Board of Fauji Fertilizer Company Limited, Fauji Fertilizer Bin Qasim Limited, Fauji
Cement Company Limited, Fauji Oil Terminal & Distribution Company Limited, Fauji Akbar
Portia Marine Terminal Limited.

Brig Saleem Ahmed Moeen, SI (Retd)

Brig Saleem Ahmed Moeen, SI (Retd) served in the Pakistan Army for thirty years and attended
post graduate training courses in Telecommunications, Electro- Medical Equipment,
Automobiles, Armaments, Radar, IT and Missile Technology. He holds a Bachelor’s degree in
Electrical Engineering and a Master’s Degree in Strategic Studies.

Brig.(R) Moeen started his civilian career as CEO of Fuji Cards wherein he set up the ID card
production facility which was later on bought over by National Database & Registration
Authority (NADRA). He served as the Chairman of NADRA, Pakistan, from August 2001 to
August 2008. During his tenure, he designed and implemented the National ID Card system
including Interactive Multi-Biometric Data-Acquisition methodology, procured and integrated
the Automatic Fingerprint Identification System (AFIS) and Facial Recognition software in the
Identity Management System.

2.3- Management Hierarchy:

Total number of employees in Karim Block are 7. The branch was handled by
Branch Manager “SIR NAUMAN GULZAR”. The flow chart of responsibilities and
designation are shown in the management hierarchy.
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 Organogram

Clearing &
Account
Remittances
Opening
Collection

Account Advances &

Lockers
Departments Loans

Career Ladder:
Career ladder is a metaphor for job promotion. In business and human resources management ,
the ladder typically describes the progression from entry level positions to higher levels of pay,
skills, responsibility, or authority. During my internship, I asked branch operational manager
about the career ladder in their bank and branch operation manager told me career ladder
shown as below:

 Branch Manager
 Operational Manager

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  Officer Grade III
 Officer Grade II
 Officer Grade I
 Assistant Vice President
 Vice President
 Senior Vice President
 Senior Executive Vice President

Branch Manager:
A branch manager is responsible for all of the functions of a branch location, Such as hiring
employees, overseeing the approval of loans and lines of credit, marketing, building a rapport
with the community to attract business and assisting with customer relations.

Operational manager:

The operations manager likely oversees that a high degree of accuracy is maintained by the
bank. They also work to ensure that procedures related to cash on hand totals, armored car
pickups, facility maintenance, and other subjects are handled properly.

Credit:

Bank credit is an agreement between banks and borrowers where banks trust a borrower to
repay funds plus interest for either a loan, credit card or line of credit at a later date. It is money
banks lend or have already lent to customers. Bank credit is the total borrowing capacity banks
provide to borrowers.

Remittances:

A remittance is a transfer of money by a foreign worker to an individual in their home country.

Money sent home by migrants competes with international aid as one of the largest financial
inflows to developing countries.

Foreign Trade:

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Trade finance signifies financing for trade, and it concerns both domestic and international
trade transactions. A trade transaction requires a seller of good and services as well as a buyer.

Personal Finance:
Personal Finance is a parameter driven product for catering to the needs of the general public
belonging to different segments. One can avail unlimited opportunities through Askari Bank's
Personal Finance. With unmatched finance features in terms of loan amount, payback period
and most affordable monthly instalments, Askari Bank's Personal Finance makes sure that one
gets the most out of his/her loan. Once a good credit history is established, the door to
opportunity opens much wider.

Mortgage Finance:
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in it
at its rental value. The instalment plan has carefully designed to suit both the budget &
accommodation requirements. It has been designed for enhancing financing facility initially for
employees of corporate companies for purchase/ construction/ renovation of house.

Smart Cash:
This personal line of credit would be set up with a specified credit limit upto Rs. 500,000/-.

Askari Card:
ASKCARD means freedom, comfort, convenience and security, so that you can have retail
transactions with complete peace of mind. ASKCARD 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.

Type of Credit Card:

There are three types of credit cards issued. i. Silver card ii. Gold card iii. Local card

* Silver card has limit upto 2 lac.

* Gold card has limit upto 5-lac.

* Local card has limit upto 2-lac.

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Silver and Gold card can be used internationally for shopping and also can be used for internet
shopping. Local card can be used in Pakistan.

Travellers Cheques:
The range of our products and value added services enhances with introduction of Rupee
Travelers Cheques (RTCs) launched in March 2002. In spite of our constraint on issuing higher
denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have
been striving to attain our shares with sizeable.

2.4- Policy Formulation:

Regular meetings are organized at each level of the organization to keep the company moving
in a systematic manner. The main objective behind these meetings is to bring forth the
employees at a forum, where they can discuss their problems, give suggestions for
improvement and development. Also, they can share their experiences with each other.
At Askari Bank, policies as mentioned earlier, are been formulated at the executive level of
the organization. Policies for any organization constitute a major part in the overall long-term
functioning of the bank. In short, we can say that policies and the objectives are the lifeblood of
the organization in long run. Though policy formulation is in the prescribed hands yet the
policies formulated by the top level have been very successful as indicated by the success
pattern of the bank so far. Then these policies are transformed into the hands of the top-level
management. The top management is been suggested to make the policies implemented
keeping in view the long-term objectives of the organization. Also, the views from the middle
managers and employees are encouraged as well for the purpose of removing flaws form the

63
system. For these very purpose meetings are held almost weekly at the branches level and also
in case of any contingent dispute resolving the meeting scan be called at any time during
the branch timings.

2.5- Managerial Policies:

POLICIES OVERVIEW AT BANK:

Since the inception of Bank of Punjab, by the grace of almighty, the bank has moved rapidly in
expanding its branch network and deposit base, along with making profitable advances and
increasing its range of products and services. It has made a break-through in providing premier
services at an affordable cost to our customers. Managerial policies followed by the bank have
a direct contribution in its success. The Board and Management of the Bank have implemented
strategies and policies to carve a distinct position for the Bank in the market place.
In a bid to satisfy Bank of Punjab shareholders and valued clients the management initiated the
process of realization of the banks vision by consolidating its financial position and creating a
large and diversified business base. Bank of Punjab has made notable progress in business
volume, efficiency and profitability following its increased involvement in trade finance,
commercial lending and foreign exchange and money market operation.
Major policies have been made and implemented at Bank of Punjab are:

Consumer Banking Policy:

Bank of Punjab policy regarding consumer-banking policies includes the development through
the electronic consumer banking operations. Likewise, Bank of Punjab has created a niche for
itself in the marketplace. It is planning to introduce new consumer products like credit cards, e-
banking etc.

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Lending Policy:
Bank of Punjab pursues a conservative yet dynamic credit policy. This strategy has enabled the
bank to have a high-quality risk portfolio. Bank prefers to finance exporters because of less risk
involved. Bank of Punjab manages the credit risk, liquidity risk, market risk and other
operational risks very efficiently. For this very purpose Bank of Punjab has got an effective
credit line proposals system to be sanctioned to the clients on demand.

Selection of Clients:
Management is very selective of clients. All of the references are carefully checked to learn
about a potential client before establishing a relationship. References are excellent sources of
new accounts as they give an opportunity to learn about a potential client before establishing a
relationship. This policy helps in protecting the integrity of the bank. It ensures good
relationship with the clients.

Trade Department Policy:

Bank of Punjab focus is on “Foreign Trade” as its primary market of business. It maintains high
emphasis on enlarging its Correspondent Banking network besides aiming to enhance the scope
and level of cooperation with existing correspondents. The Trade finance department has
efficiently done management of the changing trade policies by the central bank over there.

Marketing Policy:

Bank of Punjab inverts heavily for the marketing policies and orientation, for the publicity of its
new products/services. It uses newspaper as well as various promotional schemes to attract
customer. The Bank sponsors a number of sporting and community development initiatives to
play its part as a responsible corporate citizen.

Accounting Policy:
Bank of Punjab has adopted almost the same accounting procedures that other financial
institutions are adopting at this time. These accounting procedures or Accounting policies are

65
made according to Generally Accepted Accounting Principles, the GAAP. The process flow and
the usage of the policies in the day wise routine are mandatory for all the employees working in
the specified departments at the branch.

2.5-CREDIT RATINGS

While acknowledging the improved risk profile of the bank , M/s Pakistan Credit Rating Agency
(PACRA) has maintained the long term entity rating of “AA”, while the short term rating has
been maintained at “A1+”.

Entity ratings by PACRA:

Long Term: AA-

Short Term: A1+

Long Term Rating:

AA: Very High Credit Quality. AA Ratings denote a very low expectation of credit risk.
They indicate very strong capacity for timely payment of financial commitments. This capacity is
not significantly vulnerable for foreseeable events.

Short Term Rating:

A1+: Obligations supported by the highest capacity for timely repayment.

Chapter # 3

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 MARKETING MIX

3.1- Product

3.2- Price

3.3- Place

3.4- Promotions

MARKETING MIX OF ASKARI BANK LAHORE

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Marketing mix is a set of tools you need for establishing your detailed marketing plans and
forecasting your sales to pursue the marketing objectives in the target markets. Thus, marketing
mix of any organization is very much important in order to ascertain the overall functioning of
the organization. Bank of Punjab has a strong marketing mix structure for its branch’s growth.
Marketing mix of Bank of Punjab will be focusing the following major aspects:

 Product
 Price
 Place
 Promotion

3.1-PRODUCT

There are two types of Products:

 Consumer Products

 Finance Products.
CONSUMER PRODUCT

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1.) Current Accounts

2.) Saving Accounts

3.) Fixed Accounts

1.Current Account
Current bank account is opened by businessmen who have a higher number of
regular transactions with the bank. It includes deposits, withdrawals, and contra
transactions. It is also known as Demand Deposit Account. Current account can be
opened in co-operative bank and commercial bank. In current account, amount can be
deposited and withdrawn at any time without giving any notice. It is also suitable for
making payments to creditors by using cheques. Cheques received from customers can
be deposited in this account for collection.

 Features of Current Account

The main features of current account are as follows: -

 Current bank accounts are operated to run a business.

 It is a non-interest-bearing bank account.

 It needs a higher minimum balance to be maintained as compared to the savings

account.

 Penalty is charged if minimum balance is not maintained in the current account.

 It charges interest on the short-term funds borrowed from the bank.

 It is of a continuing nature as there is no fixed period to hold a current account.

 It does not promote saving habits with its account holders.

 Banker requires KYC (Know your Customers) norms to be completed before

opening a current account.

2.) Saving Account

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 These types of accounts are designed to encourage the saving habit of the customer
and lead to long term or invest relationship. Bank saving account are in the nature of
deposit accounts and are not normally available for drawings. Rates of interest are
typically ahead, by a small margin. Savings accounts with the banking sector represent a
very small proportion of total deposits. Customer can make withdrawals from this type
of account. The cash reserve ratio is typically low then the current account because the
withdrawals against this account are very low.

 Features of Saving Account

These are some features of saving account.

 Interest Rates - Savings accounts are desirable because the money that is
placed into these accounts receives an interest rate, earning you from your
savings. Sometimes the interest rates are increased, depending on how much
money is in the account. The more money in the savings account, the higher the
interest rate may be.

 Minimum Monthly Balances - Some banks charge a fee for clients who
do not have enough money in their bank accounts. If you do not have the
monthly minimum balance, then you will be charged. Some banks do not charge
this fee, so it may be rather advantageous to find one that does not charge this
fee in case you are not able to keep the minimum amount in your account.

 Unlimited Transactions - Banking transactions normally refer to deposits

and withdrawals from the account. Some banks put a limit on these transactions
while others do not. If you make many deposits and withdrawals per month you
may opt to look for an unlimited amount for your account, but if you do not,
then the number of transactions may not be an important feature for you.

 ATM Access - Being able to withdraw your money at any time of the day
can be very beneficial. ATM cards are normally provided upon creating a savings
account.

 Cheque Book Options - Cheques are a great way to pay when you don't
carry cash and you cannot pay with your credit card.

 Online Banking Services - With these services, you can log into your
account and check your transactions, pay bills or transfer money to other
accounts. No longer do you need to wait for your bank statement to arrive in the
mail, as you can have 24-hour access to your online savings account.

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  Opening Deposits and Balances - When you open your account,
some banks may require you to make a minimum opening deposit or balance. If
you do not have a lot, do not be discouraged, as some banks do not require an
opening balance or deposit.

3.) Fixed Account:

Fixed accounts are those which are deposited for a fixed period of time and
repayable after the expiry of stipulated time to the customer. Those people who have
surplus funds and want to have save investment deposit the amount in the fixed
account. The rate of interest given to depositor varies with the length of deposit, i-e. It is
higher for longer period and lower for shorter period. The rate of this type of deposits is
higher the saving bank accounts. The cash reserve against this deposit are very low
because there no fear of with draw of a month before the stipulated of time.

Features of Term Account

There are some features of term account.

 Eligibility
Individuals, partnership firms, private and public limited companies, HUFs/
specified associations, societies, trusts etc.

 Requirements
The requirements for opening of accounts by individuals are the same as
mentioned under Savings Bank Accounts.

 Minimum amount
Rs. 1,000/-. (may vary from bank to bank)

 Maximum amount
No maximum limit

 Maturity period
15 days to 10 years.

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 Interest
The Interest Rate is related to the Maturity period of the deposit.

Usually deposits for longer periods attract higher interest rates.

The Interest Rate varies from bank to bank.

Interest can be received at monthly (discounted rate) or quarterly rests or the

interest can be reinvested to be received with the principal on maturity.

In case of reinvestment of interest, it is compounded at quarterly rests.

 Nomination facility
Available

 Transferability
Transferable from one branch of the bank to another.

 Tax benefits
Not Available

 Interest Taxability
Interest earned is taxable.

 Overdraft / Loan facility

Overdraft/loan facility is available against security of the term / fixed deposit.

 Premature payment
Premature payment is allowed subject to penalty of lower interest.

 Other features
 A Receipt or advice or pass book is issued.

 The re-investment type fixed deposit also called Special Term Deposit is issued
for a minimum period of 6 months.

 Banks offer flexibility of changing the mode/periodicity of payment of interest

from re-investment to periodical payment or vice-versa.

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  In case of matured deposits, banks permit renewal with retrospective effect i.e.
from the date of maturity of the matured deposit subject to certain conditions.

Finance Products
1. Agriculture Schemes

2. Business Promotion Finance Scheme

Agriculture Schemes
There are many agriculture promotion schemes provided by BOP.

 Kissan Dost Agricultural Finance Scheme

 Kissan Dost Tractor Finance scheme

 Kissan Dost Aabiari Scheme

 Kissan Dost Mechanization Support Scheme

 Kissan Dost Farm Transport Scheme

 Kissan Dost Eslah-E-Arazi Scheme

Kissan Dost Live Stock Scheme Such type of schemes provides farmers a real plate
form to accelerate. Some facilities given by Kissan Dost Agricultural finance scheme are:

 Purpose
Provision of financial facility to farmers for purchase of inputs (Seed, fertilizer,
pesticides, fungicides etc.).

 Amount
Maximum of Rs.500000 according to per acre limit of the crop.

 Security
Charge on Agriculture Land through Agriculture Pass Book.

 Insurance
The borrower will have to arrange life assurance under the Bank’s charge.

 Mark-up
9% mark-up per Annum.

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Business Promotion Finance Schemes
 ASKARI Quick Cash

 ASKARI Car Loan

 ASKARI House Loan

 ASKARI SME Loan

 ASKARI Assaish Loan

 ASKARI Car Loan

ASK car loan is a demand financing facility to purchase brand new locally
manufactured/Assembled cars for personal use. This facility can be availed by
salaried person of different nature and by the business persons. All must have
the holdings of NIC.

BOP Aasaish Loan

BOP Aasaish loan is demand finance facility for purchase of consumer durable
goods like TV, Refrigerators, Mobiles, Microwave Oven, Fans, Audio/Video
system etc. with no down payment, in addition with the free home delivery. The
financing tenure of this product is max 36 months. The nature of employment
should be salaried or the business man.

Services
These are the services provided by the BOP.

 ATM Facility

 Letter of Credit

 Pay Order

 On-Line Banking

 E-Banking

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 Debit Card

 Consumer Financing

 Agriculture Financing

 Corporate Financing

 Commission free Remittance

 Demand Drafts

 Collection of Utility

 Lockers Facility

 Automated Teller Machine (ATM)

Through the ATM’s Customers have access to the various services such as
withdrawal, balance enquiry and mini statement? Complete security is ensured
because access to the account is only possible by entering a four-digit personal
identification number (PIN) known only to the account holder. Cash withdrawal
limit is up to Rs.20, 000 per day. Annual charges of ATM are Rs.250/- per card.

 Online Banking
BOP is currently offering window-based online banking to its customers, which
gives access to information on their accounts and the liability to act on the latest
information received over the net.

 Lockers
It is one of the utility services that BOP provides to their customers for keeping
jewellery, important documents and other valuables.

 Demand Drafts
BOP provides safe, speedy and reliable way to transfer money at vary reasonable
rates. Any person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch.

 Letters of Credit

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 BOP is offering its business customers the widest range of option in the area of
money transfer. BOP’s letter of credit service is with competitive rates, security,
and ease of transaction, BOP Letter of credit is the best way to do the business
transactions.

 Pay Order
BOP provides transfer of money using different facilities. Its pay orders are a
secure and easy way to move the money from one place to another. The charges
for this service are extremely competitive.

 Mail Transfer
Moves money safely and quickly from BOP Mail Transfer service. The rates for
this service is quite impressive as compare to the market.

 Short Term Investment

BOP offers excellent rates of profit on all its short-term investment accounts. The
packages are starting from 3 months. BOP’s rates of profit are extremely
attractive, along with the security and service only BOP can provide.

 Agricultural Finance
It helps farmers utilize funds efficiently to further develop and achieve better
production. Provides farmers an integrated package of credit with supplies of
essential inputs, technical knowledge, and supervision of farming.

Major Customers of ASKARI

Some of the major customers of Askari Bank are:
 Army staff

 Educational Institutes

 Agriculturist

 Pakistan Telecommunication Private Limited

 WAPDA

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  Pharmaceutical Companies

 WASA

3.2-PRICE

The term pricing refers to:

“The key to pricing is to Build value into the product and price it accordingly.”

Bank of Punjab face the ever-increasing competition. As the number of competitors increasing
day by day but still the bank of Punjab enjoys the reasonable market share with the fact of
providing excellent services amongst the competitors. Pricing of products means the commission
to be paid by the customer in return of services provided by the bank. The price paid for the
services mainly include:

Mark up , Bank charges & Fees and bank commission etc.

These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that keeps on
changing time-to-time, and issued by the bank periodically (generally after six months).

The Bank of Punjab has to face the ever-increasing competition. As the number of competitors
are increasing day by day but still bank of Punjab enjoys a reasonable market share with the
facts of providing excellent services amongst the competitor. BOP charge some markup on their
products and services, it gave some relaxation to students for deposited. In case letter of credit
bank liabilities are increase due to exchange rate fluctuate. Bank charge 0.50% per quarter at
minimum rupees 3000/-.

If the documents are sent to other banks for negotiation under restricted LC then they charge
Rs.500/-

 On ATM card BOP charge 500/- per annum.

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  Platinum debit card it charges 1225/- per annum.
 ASKARI Mobile banking services charges 300\- per annum.
 SMS Alert Service Charges per month 50\-.
 ASKARI give locker facilities to customer, and charges depend on locker size.

Locker Size Annual Fee

Small Rs. 1200
Medium Rs. 1800
Large Rs. 3000
Extra large Rs. 6500

 Bank receives advance money for issuance of cheque book.

25 leaf Rs. 250

50 leaf Rs. 500

100 leaf Rs. 100

3.3-PLACE

Pricing refers to the following methodologies taken by an organization:

“Various activities the company undertakes to make the product accessible and available to
the target customers”

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Also

“It’s can be viewed as set of interdependent organization involved in the process of making a
product or service available for use or consumption” Place refers to the means by which our
customer acquires your product. This includes the actual place it is purchased (the shop, the
telephone, the web page, the warehouse) as well as the actual route of distribution. Simply
place refers how you will sell your product to your customers. Today they established 251
Branches all over the country as:

CITIES NO. OF BRANCHES

Province in Punjab 237
Islamabad 3
Quetta 3
Karachi 3
A.J. Kashmir 3
Peshawar 3
Total Branches 251

The objective of Bank of Punjab has always been to expand its branch network to meet clients’
needs as has been mentioned clearly in the mission statement of the bank.
Bank is well positioned and geographically poised, to cater for increased business demands,
from its existing potential clientele. Bank of Punjab has almost 272 branches, spread all over
Punjab covering major business centers and principle cities. Bank plans to add more branches
to his growing network in the ensuing years. At present, Bank of Punjab has opened all its
branches at commercial and business areas or near to commercial areas so that the customers
or clients face no problem in reaching the bank.

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 3.4-PROMOTION

Promotion is a term that refers to the following statement:

“Steps taken by the company to enhance its sales by focusing the target markets”

Thus, we can say that promotion can be categorized into different categories based on the
above-mentioned marketing perspective definition of promotion. So advertisement, sales force,
billboards etc. are major sources through which the promotion scheme can be implemented.
This is an age of competition. Numerous organizations are providing financial services to the
customer. These days everyone is facing pressure of competitors. In this world of growing
competition, the only way to survive and grow, for an organization, in the market place is
the proper marketing and promotion of its products. Same is the case with banking companies.
There is large number of foreign and local banks working in the country and it has been noticed
that they are emphasizing much on their marketing strategies.

 Sales Promotion
 Advertisement
 Direct Marketing
 Public Relations

The most prominent and important way to attract a large number of customers is the
advertisement of bank and its products/services. Bank of Punjab has adopted different
approaches for the accomplishment of this purpose.

MEDIA: - Promotional means used by bank of Pakistan includes:

 Newspapers
 Internet
 Magazines

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 Posters
 Economic Bulletin
 Brochures
 Sponsorship

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