askari internship

7/31/2019 Askari Internship

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Growth of Banking in Pakistan.

The entire banking business was controlled buy the non-Muslims before

the partition of the sub-continent. When Hindues became sure about the

divisions of the sub continent, they secretly began to transfer their capital to

the safe places in India. The funds and other valuables were transferred to

India.

Time of Independence.

Hindues migration from Pakistan to India also caused drain on the bank

deposits. In order to ruin the economy of Pakistan. Hindues closed down

most of the head offices and branches of the scheduled and non scheduled

banks in Pakistan.

At the time of independence there were only two Pakistani banks, that is

Habib Bank and Australasia Bank. At the time, Pakistan had 631 branches

of scheduled banks and 411 of no-scheduled banks. The total deposits of

Pakistan banks were Rs. 800 million and advances were 198 million, the

non-scheduled banks number reduced from 411 to 106 over the same

period.

The mass scale withdrawal of deposits closure of branches and migration

caused a deadlock in the banking business in Pakistan.

Keeping in view the above situation government, of Pakistan took various

steps to provide all kinds of facilities to they non-Muslim bankers for

restoring normal banking facilities but response was not encouraging.


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Establishment of State Bank.

After independence it was not possible Sc-r Pakistan to set up theCentral

Bank immediately. The Reserve Bank of India acted as a Central Bank of

Pakistan till 30thSeptember. 1948 But it could not protect the interests of

Pakistan.

To remove the financial difficulties and to establish sound banking system

Govt. established the State Bank on 1st Julv 1948. In the development, to

banking system it played very important role as a Central bank of the

country.

Development of Commercial Bank

New branches were opened in the country with the development of banking

system. These banks also extended their branches to foreign countries.

Specialized Financial Institutions.

Government of Pakistan established the specialized financial institutions

like ADBP. IDBP. NDFC, PICIC, HBFC. These financial institutions

financed the particular sectors like agriculture, industry and housing.

Nationalization of Commercial Banks

In 1974 Government of Pakistan nationalized all the banks. The

weaker banks were merged with the strong banks.


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It was argued that these were nationalized So provide fair distribution of

Credit to all the classes of people and remove the monopoly of few

Capitalists over the banking industry.

Privatization of Commercial Banks.

Now government has decided to privatize the Commercial Banks. The

banks are in the process of privatization like other units of the economy

since 1990. This step is taken to provide better banking facilities lo the

public. It was also argued that loans were used as a political bribe and it

destroyed our banking system. People are not willing to repay the loansdespite of all Govt. efforts. So after privatization private banks will not

accept the political pressure and loans will be issued on merit.

In January. 1991, a privatization Commission was set up and two

Commercial banks namely MCB and ABL were transferred to private

sector. While other banks like HBL and UBL are under the process of

privatization.

In August 1991 government has also allowed the establishment of new

private banks. Now new like Askari Bank, Platinum Bank, Indus Bank.,

Mehran Bank, Soneri Bank, Union Bank and Al-Habib Bank are

established. These banks have established their branches in all the

important cities of the country.

COMMERCIAL BANKS


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Commercial banks are companies which transact business of banking in

Pakistan Commercial banks have constituted the most important source of

institutional credit in the economy of Pakistan.

COMMERCIAL BANKING SCENARIO IN PAKISTAN

At the time of independence in 1947, there were 38 scheduled banks with

195 offices in "Pakistan. But by December 31, 1973 there were 14

scheduled Pakistani Commercial Banks with 3,233 offices all over Pakistan

and 74 offices in the foreign countries.

Nationalization of Banks was not done 1st January, 1974 under the

Nationalization Act 1974 due to certain objectives. But it had negative

effects on the efficiency of the banking sector. The commission transferred

many banks to the private sector i.e. MCB and ABL.

ASKARI COMMERCIAL BANK

The government approved and the established private scheduled bank in

1990. It is a branch of Army Welfare Organization. (AWT).in 1992. It has

total 30 Branches and spread all over the Pakistan. Now it is no. 1 private

commercial bank. It is so successful only due to its safe portfolio of lending.

It provides a lot of facilities to its honorable customers. The main cause of

its success is its main concern on quality of services not quantity of service.

Its registered office or head office is at AWT Plaza. The Mall, Rawalpindi

Pakistan.


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CORPORATE FLOW

It the corporate body consists of 12 Board of director including one

chairman

1.President

2.Chief Executive

3.Secretary

4.NIT Nominees

ASKARI COMMERCIAL BANK LIMITED MULTAN

Askari Commercial Bank Limited Multan was inaugurated on December

28,1994.

It is located on Abdali Road Opposite to PIA Office. The location is

connected to all the main trade centers in Multan. It is a prosperous branchstreaming towards great achievements.

At the time of its establishment the factored who were considered are as

follows

Multan is zone covering a large population.

Multan City is linked to many big cities.

Agro based area constituting growers and gainers

Army Offices & Fort Colony


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Educational Institution

The total strength of staff in ACBL Multan is 35. They are dedicated their

work. The branch is progressing rapidly. Under the dynamic leadership of

Vice President Mr. Tariq Mahmood and Operational Manager Mr. Zubair

Sheikh

DEPARTMENTS

The bank has following department:

Account Opening department

ATM Department

Credit Card Department

Account Department

Credit Department

Remittance Department

Foreign Trade Department

Cash Department

ACCOUNT OPENING DEPARTMENT


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Borrowing funds from different sources has become an essential feature of

today's business enterprises. But in the case of a bank borrowing funds

from outside parties is al l the more vital because the entire banking system

is based on it . The borrowed capital of a bank is much greater their own

capital. Banks borrowing is mostly in the form of deposits. These deposits

are lent out to different parties. Such deposit creation is done through

opening an account in the Bank.

In ACBL Multan Mr. Asif Awan is operating the account opening

department along with performing some auxiliary functions of Cheque Book

Issuing and receiving IBCs (inward Bills for Collection).

TYPES OF ACCOUNTS

In ACBL, there are the following types of accounts:

Current account.

Saving Account.

Askari Special Deposit Account.

Askari Bachat Certificate.

Term Deposit.

CURRENT ACCOUNT


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In current account there is no interest on it. It is for only transaction

purposes. They are paid on demand. When a banker accepts a demand

deposit, he incurs the obligation of the paying all cheques drawn against

him to the extended of the balance in the account. As there is no profit paid

on this account it is also called chequing account because cheques can be

drawn on it. Current account is mostly opened for business.

SAVING ACCOUNT

The purpose of this account is to induce the habit of saving individuals in

the neighborhood. The profit is on the basis of 8.5% per 6 month. Theminimum deposit for opening the account is Rs.100/- (as obvious in the

Annexure).

Though individuals open such accounts for saving purpose, persons

belonging to Armed forces and different military institutions are free to use

this account on current basis.

ASKARI SPECIAL DEPOSIT ACCOUNTANT

ASDA account is an interest bearing current account interest is paid. The

payment of return is monthly, where as the rate of return with aspect to the

amount of minimum deposit clear from deposit schedules in following

table). It is also checking account because cheques can be drawn on it. It is

necessary for this account that the client must maintain a minimum balanceof Rs. 50,000 at the end of the month. Thats why it is similar to current

account. It is mostly opened by Business but individuals too open this

account.


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Amount in Rs. Interest Rate

50,000 499,999 8%

500,000 4.99

million

9%

5 million 20 million 10%

ASKARI BACHAT ACCOUNT

ABCs are long term fixed deposit for 3 and 5 years. Theses are not term

deposits because payment of return is on monthly basis rather than on

maturity of deposits. The minimum balance requirement is Rs. 25000/- and

maximum balance requirement is Rs. 1.0 Million. If ABC is for 3-years, the

rate of return for 3-years is 12% if ABCs is for 5-years the rate of return is

13%. Because in such account the balance is kept for either '3' or '5' years

within the bank no cheque is drawn on it. That is why it is not a checking

account. Return is made monthly.

TERM DEPOSITS

A term deposit is a deposit that is made for a certain periods of time at the

end of the specific period. The customer is allowed to with draw the

principle amount .

ACBL Term deposits are of types clear in the deposit scheme in the table).

One of them is "Askari" Advantage one month. The rate of return on this

account is 9.75%. The term deposit account vary one month to 5 years and

the min balance requirement is Rs.5000/- for all following accounts (as

clear from Deposit Scheme in the table ).


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Period Interest Rate

One month 9.5%

2nd 9.75%

3rd 10%

6t month 10.5%

One year 11%

2 year 11.5%

3 year 13%

The amount of profit is given to depositors in three ways:

By cash

By sending a bank Draft to depositors Home address or Officers or

whichever is specified as mailing Address.

The amount is credited in any one of the checking Accounts of the

depositor.

ACCOUNT OPENING PROCEDURE

For the checking accounts (C/A, ASDA, SAVING), there are different types

of account holders are required for all these types of account holders. The

operation /procedure requirement that is needed for " Individual Account "

differ greatly from " Joint account " proprietorship "Partner ship , "Limited

Company"

and "Club society or Association " as explained below.


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INDIVIDUAL'S ACCOUNT

When a single man or women opens an account in his/her own name and

has the right to operate it is called individual Account.

DOCUMENTATION REQUIREMENT

For literate person copy of National Identity Card is required as a primary

requirement. For illiterate person and Veiled Women, along with the copy of

National Identity Card requirement he or she must come in person for

opening the account.

OPERATION

The person place a "Check Mark " in the type of account and type of

operation required

He/She fills in part-I of the form , a fix his /her either two or four similar

signature (or thumb expression in the signature space and get it

introduced and signed by a person who already has an account with the

bank and write his account no in the specific rows in a specific space.

The person fills in "next of Kin " position where he/she father, mother,

husband/wife or any other relative's name, his /her address, phone no

and affix his/her signature to certify this requirement. This requirement is

needed because in his/her absence bank can have correspondence withthe specific person.

The person put her /his signature (" or thumb expression) on the signature

Specimen Card (SS CARD) similar in the area on the form. One the


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back of S.S card mailing address, telephone no, Person to contact and

introducer space is filled in. All these requirement are necessary for

future

The person deposits the initial amount for opening account on to the cash

counter.

The person put his signature on form -A (check book requisition) on two

places in "authorized signature" and fills in the "Title of Account space

by writing his name.

If the person put his signature in Urdu or any language other than English,

he signed a "Vernacular form" where under take that affixed signature

are original and his own signature and two postal size photos are

needed.

The next day is the opening of account.

JOINT ACCOUNT

When two or more persons, neither partners, nor trustees, open an in their

name is called joint Account. Husband and wife or two persons of same

sex can open joint account.

DOCUMENTATION

For joint account copy of National Identity Card of all the persons is

obtained other things remaining same as in individuals account.

OPERATION


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The person checks the type of account and type of operation required in

the respective box on the form.

The persons fill in the Part-I and part-II in the form.

Signatures of both persons are obtained on the form in the area specified

for signature and S.S. Card.

In the title of account space names of all the persons are mentioned.

Accounts holder specified in the form that they will operate the form singly

or jointly.

PROPRIETORSHIP ACCOUNT

When an owner of a firm operating singly, opens an account in his firm

name, this account is called a proprietorship Account the proper himself

liable for all his acts.

DOCUMENTATION REQUIRED

For this kind of account, an application for opening the account on the firm

letter -pad (having the firm name) is required along with the N-I-C- Card of

proprietor.

OPERATION

Al l operation remains the same except that the firm name is written in the

"Title of the Account" area and signature of the proprietor are affixed in the

S.S. Card and the area specified for signatures on the form.


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PARTNER SHIP ACCOUNT

The account is opened in the firm name and all partner designate one two

persons to act on behalf of the partner ship firmer all acts on behalf of firm.

The partners in the partnership firm are liable for the acts of the firm jointly

and severely. Every partner has in a firm has an implied authority bind his

co. partners by drawing and enclosed cheques.

DOCUMENTATIONS

Copy of N.I. card of all partners

Application to open the account on the firm letter pad.

Partner ship deed in case registered partnership firm.

Letter showing the implied Authority of one or more partners to act on

behalf of the firm.

In case of non -registered partnership firm, understanding on behalf of the

firm to remain liable for all acts of the firm.

Name, address of all partners is written on the pad.

OPERATION

All other requirement remain same except that the form is dully signed by

all partners cards are signed by all those partners who will act on behalf of

the firm and along filling part-I , Part-Iv is also filled.

LIMITED COMPANY ACCOUNT


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This account is for limited companies. In order to facilitate their transaction

with outside parties, bank provides many facilities.

DOCUMENTATION REQUIRED

Memorandum of Association.

Articles of the Association

Resolution of the Board of Director.

Certificate of Incorporation.

Certificate of commencement of business

N-I-C

OPERATION

The persons authorized in the Resolution of the Board of Directors put their

signatures on S.S Cards. Next of kin "requirement "is not need in case of a

Limited Company. After completing each and every formality, introducer

signature is verified by S.S card and is stamped "Verified" customer

signatures are admitted by stamping "Admitting" near signature and again

signatures on S.S card are admitted in the same way. The same process of

verification and admission of the signatures is repeated on Form-A and

next of Kin area.

After completing each and every formality, Accountant is open in the

computer by writing name, address, A/C Number etc.


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LETTER OF THE THANKS

At the start of the letter 2nd day, ACBL issues letter of thanks to "Account

Opener" and "Account Introducer" for the trust they have on ACBL.

OTHER RESPONSIBILITIES

CHEQUE BOOK ISSUING

Check books are issued only for checking account such as current

Account, saving Account and ASDA Account. They are not issued for other

fixed and term deposits because of their Long term Accounts nature.

ISSUING PROCEDURE

Signatures on cheque book requisition are verified by matching with

signatures on SS.

Cheque book leaves number, account number, account holders

name are mentioned in the cheque- book is made by mentioning the

and the total of sum of excise duty and provincial tax.

The name of A/c holder and date of cheque book issuance is written

on cheque book requisition the account-opening officer puts his

initials on requisition leave.

A/c number is stamped over the leaves of cheque book and finally

authorized person affix his signature over the debit voucher and

cheque book is handed over to the customer.

RECEIVING INWARD CHEQUES


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Another responsibility and function of account Opening Department is to

receive Inward cheques for collection of other Banks as well as of ACBL.

Then these cheques are sent to clearing official who clears these checks at

SBP from other banks. Inward bills from collection opposite are IBC

number, their OBC number. Lodge in clearing cheques pending onrealization. Cleared cheques are credited in the bank account.

ENCASHMENT OF CHEQUE

Issuance of Token

After scrutinizing the apparent tenor of cheque a token is issued to the

account holder.

Verification of Signature

After affixing the two stamps i.e. paid stamp and branch stamp, a cheque Is

sent to the accountant for the verification of signature from signature

specimen card. After authentication a cheque is sent to cash department

Encashment of Cheque

Cashier pays the amount to token holder after getting back the token from

him.

Deduction of Zakat

Form the profitable accounts zakat is deducted at the rate of Rs. 2.5 %

.annually on the outstanding balance of accounts on the first day of every

valuation dale i.e. first day of Ramzan. The Central zakat Authority (CZA)

fixes minimum balance for the deduction of zakat before the valuation date


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Exemption from Zakat

The accounts of foreigners (including Muslims of other nations) and

Pakistani non-Muslims arc exempted from (lie compulsory deduction ofZakat. The accounts of the followers of Fiqah-e-Jafria sect are also

exempted from the deduction of Zakat after the submission of affidavit on a

legal stamped paper.

Withholding Tax

Whenever a profit is paid on any deposit it is subjected to the withholdingtax @ 10% annually.

Closing of Accounts.

There are many reasons for closing of account. Some of the more common

reasons are as follows: -

1 - Account holder's own request

2- Death of account holder

3- Bankruptcy of account holder

4- Closing of account due to bad demeanor of account holder etc.

An account is .closed at the request of an account holder or as a result of

improper conduct of the account holder or because of nil balance of the

account. In first case account holders request the manager of the Bank to

close his account in black and white.


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Account is closed on the written request of the customer ACBL debits Rs.

100/- as charges for closing the customer account from that account. The

account holder with draws the amount by writing a cheque and just leaves

Rs. 100/- in his account. But to surrender the cheque book yet if some

leaves are yet to be write to the bank as a necessary requirements for

closing the account.

PROCEDURE

1.The customer for individuals account write an application to the manager

of the bank an a simple paper about the closing of his account with the

bank (In case of proprietor ship partnership and limited company

account the application should be written an firm or company letter

head)

2. The individual or in case of other type- proprietor firm and company

surrender the cheque book to the bank.

3.The cheque book is then torn from one side and is attached with the

application.

4.In case of Ltd. Company account resolution of the board of directors is

also obtained to attach it with the application.

5. The account opening form of the account holder is taken from the

account-opening file, and the application, cheque book, and resolution of

board of directors in case of limited company account are attached with

the form.


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6.Lastly, it is written in Red Ink on the form that account closed and Date

of account closing.

EVERYDAY POSTINGFollowing transaction of cheque book is posted:-

Dr_____________ party A/c 25(for 10 leaves)

Cr______________ excises duty on cheque book 20

Cr______________ provincial tax on cheque book 5

ATM- CARDS DEPARTMENT

This department deals in issuing ATM-Card, term deposits and Askari

Bachat Certificate. Mr. Kamran deals this department.

ATM CARD

ATM Cards are only issued to Account Holder. Any account holder of

ACBL (current Saving Value plus Saving Account) can obtain ATM card

from ACBL with in 15 days. Maximum limit of daily cash withdrawal is Rs.

10000.

ISSUING PROCEDURE

1.The person, first open the account within the blank.

2.Then he fills the ATM application form in which name of account holder,

account number, address, phone number are mentioned.


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3. Then on the same application form bank officer guides branch code,

application number and signatures are verified by the bank. Bank

manager puts his signatures.

4. After completing this process, the application package is sent to card

centre.

5. Card along with pin code is sent to the branch from the head office.

ACBL head office takes a period of 3-4 weeks for preparing and

processing of ATM cards. First, list of card holder is issued and then

after 15 days cards are sent to ACBL issuing branch. The card and listare not sent simultaneously in order to avoid any mishandling.

6.ACBL takes Rs. 200/per year or Rs. 100/semi annual as charges for a

card.

You can deposit money withdraw get balance inquiry transfer the fund

24 hours a day at any branch of ACBL which has ATM facility. ACBL ha

shared ATM network with ABN AMRO and HBL.

ASKARI BACHAT CERTIFICATE

The ABC application form is filed and signed. All the requirements are

properly fulfilled. The details are written. The credit voucher is made

against the cash that the customer deposits to the bank. The certificate is

filled according to the specification. The certificate is then handed over the

customer. The entry is made in the ABC register. The application is then

posted in the file.

TERM DEPOSIT


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Any person can open a term deposit. He needs not have an account in the

bank.

PROCEDURE

The customer comes to the bank and specifies the number of days for

which he wants to Deposit hid money in term deposit.

The credit voucher is made for the amount of cash to be deposited. The

presence of account is not necessary.

The term deposit form is then filled by the officer. The date of opening, the

period, the name of the customer, the signature etc is all written on the

form.

The term deposit Receipt is filed according. All the requirements are

carried out, the signature of the customer and the authorized officer, the

stamp of the bank etc.

The term deposit Receipt is then given to the customer.

The number of the term deposit form and term deposit is noted receipt is

then given to the customer.

The number of the term deposit form and term deposit receipt is noted in

the term deposit Register.

After completion of the form, it is posted in the term deposit file.

A 0.2% tax on the provincial amount is taken while issuing the receipt.


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A credit voucher made and the amount is credited to the tax on TD.

ACCOUNTS DEPARTMENT

Accounts department is a department which deals and checks all the

activity of all the department .It also deals in expression of finance of the

bank. Salary payment is also one function of the bank. Mr. Kamran and

Miss. Shagufta deal this department.

CHECKING BANKS DAILY ACTIVITY

Accounts department deals and checks the entire working of the Branch; all

the vouchers that have been posted at the computer are scrutinized in

accounts department. The End of Day i.e. computer print is also received

from the computer. The next day the activity is separated some statements

from the End of Day. Then next day activity separated some statements

from the End of Day. The vouchers are sorted out head wise. Thevouchers are matched with the entries in the statements.

Any abnormality if occurs, is immediately dealt with. All the vouchers and

instruction are checked individually are checked individually against the

computer printouts. After checking they are signed by Mr. Kamran and the

internal auditor Mr. Shafiq.

OTHER ACTIVITIES

Preparation of daily bank positions statement

Payment of salaries


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Preparation of the statements

Depreciation calculation

REMITTANCES DEPARTMENT

Remittance department provides services to the customer of the bank. The

main function of this department is transfer of funds. Incharge of the

department is Mr. Ahmad Feroz.

INSTRUMENTS OF BILLS & REMITTANCE

DEPARTMENT

The instruments that are handled in the B & R department are as follows:

Demand Draft.

Telegraphic transfer.

Mail transfer.

Pay order.

Pay slip.

OBC.

IBC.

DEMAND DRAFT


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A demand draft is an instrument, which is drawn by one bank upon another

bank for a specific sum of money payable on demand. It is made by the

bank and given to the purchaser against cash or cheque. If two banks are

involved, then one banks sends a DD to another bank. But in customer -

Bank case the customer sends his DD to the receiver.

ISSUANCE PROCEDURE

A demand draft application (Annexure--) to given to the customer, he fills in

a relevant information and signs it.

The Officer in charge then checks the information form.

The charges such as commission, excise duty, postage is charged as

per effective schedule of charges. Tax is exempted if he is taxpayer &

knows his No.

In case of cash deposit the cashier counts he amounts & signs the DD

application and enters it in the register.

The cash received equals the amount of remittance & the cheques there

on.

Then the officer of the bills & remittance department signs it and

operation manager counter signs it.

The entry is made in the DD issuing register.

It is given to the customer.


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Vouchers are passed.

Commission charges Cr

Excise duty Cr

The vouchers and the DD form given for posting at the computer.

The DD advises are printed at the computer and mailed to the respective

branch.

NOTE

On the contra, when a DD is received i.e. a customer comes to us with the

DD, the procedure is as follows.

The DD credit advice is received through mail. The Nos are checked &

signatures are verified.

An entry is made on the DD payable register, and the vouchers are

made.

The Branch Dr

DD payable Cr

The DD credit is attached with the vouchers and given for the posting at

the computer.

When DD is received, the test Nos are checked, and the payment is

made.


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The vouchers are given for posting. And the entry that was made in

register is closed. i.e. DD payable is Nil.

TELEGRAPHIC TRANSFER

A telegraphic transfer is a fastest & safest way to transfer money. The

message is fixed.

ISSUANCE

The request for maintenance through T.T is taken on the standard

printed form.

The customer fills it & signs it.

The Head & remittance department checks it, the charges such as

commission, tax, telex as per effective schedule and signs it.

If he fills the tax exemption from then no tax is levied.

Then a neat T.T is made on the white slip. There are 3 copies. The

original faxed to the Branch, one to the Head Office and one is kept as

record.

The entry is made in the TT issuing register.

The following vouchers are posted.

Commission Charges Cr

Fax charges Cr


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W.H. Tax. Cr

When commission bill is received, it is attached to the T.T office copy in

the file.

PAYMENTS

When a T.T arrives, the test numbers are checked and the signatures

are verified.

The entry is done in the T.T pay able register.

The following vouchers are prepared & given for posting.

Head Office Dr

T.T Pay able Cr

T.T Payable. Dr

Party A./C. Cr

If there is no a/c then the T.T receipt needs revenue stamps and then the

payment is made. The T.T receipt is strictly non negotiable.

PAYORDER

It is a cheque drawn by a bank on itself. Pay order is an instrument in

which the parties are involved the purchase, the bank and the receiver. It

can he purchased by any customer. It is usually made by govt. Bodies. A

single bank is included in this case.


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ISSUANCE

The standard form is given to the customer; he fills in the detail and signs

it.

The concerned staff checks the form.

Charges as per effective schedule are applied.

The cash of the pay order is received.

A cost memo is signed, stamped and handed over to the applicant as areceipt.

Then the pay order receipt is filled accordingly.

Counter foil is also filled.

An entry is made in the pay order issued register.

Then the authorized office after checking the pay order signs it.

The pay order is then handed over to the application after obtaining his

signature on the P.O form.

A voucher is also made and posted at the computer Cr bills payable

account P.O issued.

PAYMENT


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On representation of the pay two authorized officers of the branch sign

order receipt the receipt.

The P.O entry is made in the P.O issued register.

Then the amount is credited to the account of the customer or paid in

cash.

The P.O is posted at the computer.

Dr bills payable A/C P.O issued.

PAY SLIP

It is an instrument used by the bank s for its payment. The slips are issued

to the employees of the banks their bills & invoices. The bills are

transferred payments. In this case only one bank is involved. He is the

issuer as well as the payer.

Procedure prescribed for P.O for issuance and payment is followed for

payment is followed for pay slips with the following expectations.

1. Pay slips are the issued by the bank for the settlements of this own

payment.

2.No excise duty is applicable on P.S.

ISSUANCE


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A credit voucher is sent from the accounts dept. to the b debt. According

to the b debt.

The P.S books is taken out & filled according to the credit voucher.

It is entered in the P.S. /P.O register.

It is signed by, an authorized officer, Operational Manager Mr. Zubair

Sheikh.

The pay slips is handed to the customer.

A voucher made and posted payment.

The P.S. is received on the counter, clearing or transfer.

On receiving the P.S. if it is transferred in the P.S. register.

The payment is made and the P.O. is posted at the computer.

Dr. Bills payable P.S. issued.

If Askari branch is in that city, the OBC forwarding schedule in sent to that

Askari Branch. Otherwise it is addressed to the particular Branch to whom

the cheque belongs.

OUTWARD BILLS FOR COLLECTION

The bills, which are sent to their cities banks for the local clearing in that

city, are called outward bills for collection.


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PROCEDURE

The cheques that are banks in other cities are separated.

They are entered in the OBC register, the number is written on the

stamps.

The OBC forwarding schedules / (Annexure) are prepared for the

different branches.

The respective cheques are attached with the schedule.

Two authorized officers sign the schedule.

The office copy is filled and the original schedule is mailed.

On clearance the respective banks send back the OBCS along with

IBCA. Inter branch credit advice.

The OBC no are checked for the OBC register and the received any

entry is made.

Charges i.e. commission charges and postages charges are deducted

from the A/C.

Vouchers of following entries are made.

Party A/C Dr

Commission Charges Cr

Postage charges Cr


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At the end of the day the contra vouchers are.

OBC collection Dr

OBC lodged Cr

OBC collection Dr

OBC lodged Cr

INWARD BILLS FOR COLLECTION

The bills are received from other banks out of city for the local clearing are

called inward bill for collection.

PROCEDURE

The OBC of the other branches will be the IBCs of this branch. So an

OBC forwarding schedule is received by mail.

The cheques are entered in the IBC register. The IBC numbers are

allotted to them.

The cheques are lodged for clearing.

After realization, an IBCA is prepared and mailed to the branch.

At the end of the day two contra vouchers are made & posted.

IBC collection Dr

IBC logged Cr


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IBC Collection Dr.

IBC lodged Cr

OTHER FUNCTIONS

BALANCING THE REGISTER

At the end of the day, all the registers are balanced with the computer

balances. The heads and checked are as follows.

DD payable

IBC collection.

MT payable.

OBC lodged.

OBC Collection.

TT payable.

IBC lodged.

Bills payable. P.S. issued.

Bills payable P.O. issued.

If the payables are not cleared for a lot of days, a reminder is sent to the

respective branches.


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FOREIGN TRADE DEPARTMENT

Incharge of the department is Mr. Noor. Foreign trade department deals in:

Foreign currency account

Exports

Imports

FOREIGN CURRENCY ACCOUNT

Mainly this account deals in individual, personal and companies account

CRITERIA FOR OPENING FOREIGN CURRENCY

ACCOUNT

There are not hard and fast rules for becoming the Foreign Currency

Account holder. Bank wants only introduction of the Client and very little

about the background. I.D card is also not necessary, if someone has; well

and good, otherwise no restriction will be there for him.

FEATURES OF FOREIGN CURRENCY ACCOUNTS

There will be legal protection for the account holders.

According to foreign exchange rules and regulation every citizen of

Pakistan, either within the Pakistan or outside the Pakistan, can open the

foreign currency account.


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Resident firms and Resident Companies including investment Banks can

open Foreign Currency Accounts.

All foreign nationals and foreign Companies in Pakistan or abroad can

open Foreign Currency Accounts.

Opening of Foreign Currency Accounts in the joint names of residents/non-

residents is permissible. Foreign Currency can be deposited by:

Remittance received from abroad

Foreign Currency Notes

There will be no restriction and questioning to him about the currency,

which he wants to deposit that from where he got that money.

No Zakat will be deducted on these accounts; no Income Tax deduction, no

Wealth Tax deduction will be there.

These incentives reinforce and motivated the people to invest in foreign

currency accounts rather to keep the foreign currency idle.

Foreign currency accounts can easily be transferred from one person to

another, one place to another, with in the ACBL Branches or in other Bank.

The account holder can transfer the funds freely, in any currency to any

part of the world.

Foreign currency Accounts can be used for payment of purchases at Duty

Free shops.


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FACILITIES

This account provides following facilities:

1)Traveling quota

2)Out ward remittances

3)In ward remittances receiving

4)To make remittances procedure flexible

EXPORT

Mainly export deals in:

Negotiation of documents

Sending the documents for collection

Pre-shipment financing

Post-shipment financing

Remittance against agent commission

Forward covered booking

Handling the documents for negotiation according to the UCP 500(uniform custom and practices)

Handling the documents for collection according to URR (uniform

rules for collection)


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As an evidence of dispatch of goods the shipping documentary bill are

indispensable part of documents. It is essential for the shipping documents

to clearly sale the parties. The name and address of the shipper, the name

of consignee. Shipping documents must be drawn out in prescribed from by

valid shipping or airlines.

The quantity, description, weight and packing of the goods should agree

with the invoices documents must also clearly sale the route that the vessel

or airline shall take. The route must be signed and initials should be

appears on it.

Sometimes the buyer through the documentary credit requests the sellers

to certificate of origin and packing list.

After submission of the documents to the negotiating bank seller is bound

to receive his payment. The bank on its part to also duly bound to make the

payment however it is only reasonable to allow the bank sufficient time to

scrutinize the documents that exporter has submitted.

If the bank finds the documents correct then the bank will make payment to

the exporter after confirming with the buyers bank. The necessary

documents includes the L/C form normally directly comes to the exporter

and not to the bank. The exporter brings all these documents comes from

foreign banks either through telex or courier service then the documents

are sorted and test is applied and if it is correct, then stamp of test

corrected without engagement on our part is affixed. After examining the

documents, the advising bank made a scrutiny sheet to check the amount

of L/C as well as amount of bill of exchange etc.


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The advising bank certifies From-E after checking the invoices, L/C and the

contract attached with From E. after certification from the bank the

exporter then goes to the custom authorities and makes certify form there

and finally goes to the port for shipment.

E-Form.

Every exporter is required 10 furnish a declaration to customs authorities

for goods exported. This deceleration is submitted on a prescribed Form-E

in quadruplicate which is certified by the authorized Dealers.

1.Maintenance of Record of E-Form:

The Stock of E form is provided by the authorized dealers Head Office to

the Exchange dealing branches and the proper record is maintained in the

E-form Stock Register the dealing branches maintained two registers one

for the purpose of issuance of 'E' form and the other for certification of E-

Form.

2.Issuance of E-Form:

Blank 'E' form in quadruplicate is issued to the exporter having an account

with the branch against little request. In case the exporter maintains his

account at a branch other than the exchange dealing branch, the request is

routed through his branch. Before issue E-Form it is ensured that the

exporter has tendered the attested photocopies of required documents e.g.

valid export registration corticated, N.I.C., NTN, Challan Copy of renewal

few paid. Credit report of the exporter is also obtained to ensure the credit

worthiness of the exporter. The set of E-Form after completion of all


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formalities is then entered in the E-Form issuance register and

acknowledgement is obtained from the exporter or any authorized person

of the exporter.

3.Certification of E-Form

Before lodgment of E-Form to custom authorities is requested to be

certified by the authorized dealers. When the quadruplicate set of E-Form

is presented for certification the same is very minutely scrutinized and

following details are checked

1.Export registration number is correctly mentioned on the E-Form

2. Signatures of the exporters or his authorized signatory are duly

verified at the counters.

3. E-Form should be correctly and properly filled in withiest any

overwriting unauthentic corrections etc.

The following columns should be properly filled

a) NTR NUMBER, Income Tax Circle, and CCI & E Register

number and date.

NICnumber with dale and place of issue.

I) Name and complete address of the exporter along with

Telephone number.

II) Item of export showing quantity and that it is not a banned item.

III) Value of the: invoice mentioning the currency.


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IV) Terms of payment e.g. C+F, C1F orFOB.

V) Country of export (destination) to ensure that the country where

export is made isnot a restricted one e.g. Israel.

VI) Term of sale e.g. against Letter of Credit, firm contract or

consignment safe. Whether on sight basis or on usance basis. It

terms is of usance are beyond i20 days, .Stale Bank of Pakistan

permission is also required to be obtained.

i) Mode of transportation.

j) Name and address of the foreign buyer (Importer).

Advance Payment

Sometimes the exporter may receive the payment for the item to be

exported in advance without waiting for documents in such a case the

advance payment received for this purpose is required to be declared by

the exporter on the prescribed form. Advance payment voucher. A proceed

certificate is issued to the exporter. For such payments which is required to

be produced at the time of presentation of documents for negotiation.

Advance payment is certified on the reverse side of E from under the seal

and signatures of the authorized dealer which is required for reporting to

the state bank of Pakistan.

CERTIFICATION

After certifying the correctness of the E-' Form certification register in the

folio allocated to each exporter separately. Bank / branch stamp is filled


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beneath the duly certified are delivered to the exporter or his authorized

person.

Submission of 'E* Form:

After certification of 'E' form all the four copies are submitted by the

exporter along with shipping bill to (he customs authorities for clearance

(^'consignment. Three copies of E' form are returned by the custom

authorities retaining the original after endorsement of shipment on relative

portion on 'E' form. The duplicate copies retained by the exporter while the

duplicate and triplicate copies are submitted to the authorized dealersalong with other documents for negotiation within 14 days from the date of

shipment. The bank retains the quadruplicate copy for its record while the

duplicate coy is surrendered to State Bank of Pakistan or realization

proceeds.

Utilization of E Form

E form should invariably be utilized and received within 21 days from the

date of certification for 14 days from the date of shipment failing which the

exporter is persuaded to submit without further delay. In case the exporter

does not respond to the requests, the matter is reported to State Bank of

Pakistan.

Cancellation of form E

E form is canceled is 2 ways.

1.If goods are not exported and E form is not presented to the customs

the authorities, the same is surrendered to the cancellation which


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is recorded in the separate file duly marked canceled.

2.If E form has been tendered to customers authorities but the goods

could not be shipped due to non availability of space in shop or

due to any other reason, the exporter is required to submit three

copes of E form along with original.

Shut out notice duly stamped and certified by customs to the bank. The

bank submits all the three copies along with shut out notice to the state

bank of Pakistan under a covering letter for cancellation and record at

their end.

Collection mechanism explained diagrammatically.

COLLECTION MECHANISM

EXPORTER

Sales Contract

Goods

IMPORTERProceeds

Credit to exporters a/c

REMITTING BANK

Documents

Bill paid/ acceptance and paid

Bill Presented

Documents

Proceeds Remitted

COLLECTIONG BANK


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Collection Mechanism Step by Step

Step 1. Exporter and importer conclude sales contract.

Step 2. The exporter ships goods to the importers country.

Step 3. The exporter through a covering letter and lodgment form

forwards his bill of exchange along with the supporting

commercial and transport documents to the remitting bank.

Step 4. The remitting bank forwards the documents to its branch or

correspondent bank in the importers country calledCOLLECTING BANK, under cover of its collection schedule

called the COLLECTION BANK.


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Step 5. The collecting bank if it is not the importers bank will forward

the documents to the importers bank for presenting them to the

importer of payment or acceptance of the bill of exchange, as

the case may be.

Step 6. The importer pays the sight bill o9r accepts if it is a usance bill.

Step 7. The collecting bank (or the presenting bank if it is other than the

collecting bank) presents the accepted bill to the drawee

(importer) on the maturity of the bill for making payment.

Step 8. The collecting bank remits proceeds to the remitting bank.

Step 9. The remitting bank credits the proceeds to the exporters

account.

IMPORT

Opening the letter of credit

For issuing the L/C bank requires sufficient funds in the account of

importer.

Scrutinize the documents receive from flowing bank under letter of

credit. Account to UCP 500 and extending the credit facility to the

importer informs FIM (finance against imported merchandise) FATR

(finance against trust receipt).

Arrange forward cover booking regarding import payments


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Also arrange forward cover booking for letter of credit open other then

ACBL

Submission of monthly returns to SBP regarding the import on form I

CREDIT DEPARTMENT

Credit department deals with the extension of advances to individuals,

companies etc. basic function of credit department is to extend advances

by checking carefully all the documents, securities necessary for fulfilling

the requirements which are necessary, for extending advances. Incharge ofthe department is Mr. Shaukat Babar.

Types of Advances.

i)funded advances

ii)non funded advances

Funded Advances

Funded Advances

Term Finance

Revolving Facility


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Funded advances are those advances in which funds of banks are

involved.

Term Finance.

Main features of term finance are

i)It is for proper time period. May be of one year, two year, and three

year. House building finance is including in term finance.

ii)Account will be debited only once adjustments are possible further but

account will be debited only once.

Term Finance

Clean

Secured

Secured Finance.


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Financing against Govt. securities i.e. price bonds, defense saving

certificate.

Documents Required.

L/C, demand promissory note, L/G.

Clean Finance.

These funds are extended against personal guarantee for salaries people.

Documents Required.

LC of Govt. salaries personal, letter of guarantee.

Revolving Facilities.

Proper limit is facility is called summing.

Types of Revolving Facility.

i)Running finance

ii)Cash finance.

Running Finance.

It is extended the business community and Govt. enterprises.

Cash Finance.


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Cash finance against tangible securities.

Non Funded Advances.

Non funded advances in which bank funds are not involved e.g. L/C, L/G.

Credits policies & contract guidelines

Directors determine the commercial credit activity of ACBL

Delegation of authority to credit committee

Policies are as follows

Credit principles

Credit portfolio limits

Credit approval

Credit administration

Credit monitoring

Objectives

Provision of suitable credit services and products

extension of credit is out compromising the rules and regulations

Performance


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The advancement shall focus on the development enhancement of

customer relationship

AdministrationAdministration should insure compliance that is all laws and regulations ofregulatory authorities loans / facilities and related security shall be closely

and regularly monitored and reviewed at the branch level. By a separate

unit unconnected it credit approval.

Total facilities

They must confirm it to the regulatory requirements.

Term facilities

Aggregate term facilities in excess of one year should not exceed 30%

of the total credit portfolio

Exposure to customer group

Credit facilities extended any one or group must not exceed the guidelines

currently inforce by the regulatory authorities.

Unsecured facilities

Similarly the aggregate of all advances to a single person should not

exceed the guideline. Exposure against none funds based facilities. The

aggregate of contingent or non-funds based facilities should not exceed ten

times paid up capital and open all resources.

Financing against shares

Unsecured credit facilities will not be extended towards floatation of share

capital listed companies.

Conditions


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Borrowers liquidity ratio. The current ratio of the borrowers must be equal

to or less then one. The debt to equity ratio should not exceed 60:40.

Credit reviews

All limits shall be subject to at least an annual review.

Credit Approval.

The primary individual factor determining the quality of the banks credit

portfolio is the ability of each individual authority. Credit will be extended in

accordance to the authority levels. Approved by the BOD from time to time.

Credit risk assessment

Prevention of criminal use of banking channels. Efforts should be made to

determine the true identity of a customer and in case of cash transactions

the source of funds is established.

Credit administrations

The principle amount of credit add are as follows

Credit approval

Credit file maintenance

Facilities evidence

Credit monitoring and review

Bank ACBL

Capital funds

Credit facilities / extensions


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It means granting of financial accommodation or considerations to a

customer, which incur the back in monitory loss in the case of non payment

or non performance by the customer.

Secured Advances

Pledges, hypothecation, charges or mortgages on tangible readily

realizable assets.

Security is often an additional security over & above the assets. For

example advance allowed against stock in trade.

Unsecured / clean

Which are not covered by any tangible security.

Credit committee

Head office credit committee only

Objectives of Lending

In the modem economics, more than 90% business concern raises theirfunds from various financial institutions to meet their multifold transaction.

Actually it is very difficult for the modem businessman to run his business

on a huge scale solely. He has to float his shares to the public or knock the

doors of financial institutions, for example Bank. The most easy way to

make fund available to seek assistance by such agencies including Banks

which have got surplus funds and will to come to the assistance of

producing units, and distributing units, and exchanging units. This is the

primary factor which toads towards lending of money by Banks. No doubt,

we cannot neglect the second factor profit orientation while running the

credit business, the single way for the bank to earn profit lies in lending


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money to the customer on comparatively higher rate to mark-up that it

gives to the depositors.

Principles of Lending

Apart from the instructions and directives sent by the state Bank of

Pakistan, Muslim commercial Bank, Ltd. Guided by three basic principles of

profitability, safety, and dispersal.

1.Profitability

The management of Muslim Commercial Bank, ltd. Is very careful to seek

advances where advances can generate a higher return. Bank has to

spend huge amounts on establishment, payment of profit to depositors,

salaries of the staff, other variable expenditure and to provide a fair return

to the share holders, it must therefore, earn profit.

2. Safety

Safety principle is very important. No one will take a risk of losing the

principle in order to earn profit. So bank will prefer to lend at lower rates

than to risk his money for higher rates. For making his advances safe, a

bank select his borrowers cautiously. Safety does not necessarily means

the taking of security. It would be wise, not to lend however, good the

security be if it is clear that it will have to be realized for clearance the debt.

Safety also employs the borrower's ability to reply without difficulty. Another

aspect of safety is the lenders legal right to claim repayment from the

borrower.


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3. Liquidity and Disposal

In its simple definition liquidity means the easy convertibility of an asset into

cash. But when we speak of liquidity in relation to advances, it is ratherdifferent, It means the adjustment of advances at a short notices. Bank

advances are made in such a manner that they are repaid in reasonable

period so that the bank can make new advances. Dispersing the advances

in reasonable amount over a large number and types of borrower is

necessary to avoid bid debt, stick up by single or few borrowers. It is

therefore, necessary to advance moderate sums to a large number of

customer engaged in different types of industries.

Selection of Borrowers

The selection of a reasonable and trustworthy borrower is complicated and

at the same time very sensitive task which requires decision-making power

from the bank employees. In the words of the manager of a branch of

Muslim Commercial Bank, Ltd. "Good selection of borrowers does the half

task in the profit of the Bank. 'Bank do not through money away but every

application is tested carefully before being sanctioned.

To assist the Branch manager in this test, bank provides a performed,

outlining the manner in which a proposal should be put forward for

consideration. If any specific information that is required is not mention, itaffects the proposal as a whole, making it appear weak or inconvenience, it

is therefore, necessary for credit officers to see that all relevant questions

following are, as far as possible completely and exhaustively answered.


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Following are 6'C, S and 3P's, which are considered before lending:

1. Character

The bank get to know the customer we!! and be able to judge his

intentions, for the bank shall be entering into a contract with him involving

the financing of his business. It is, therefore, common and business senses

to make sure that the other party to this contract will live up to his

obligations, this factor, therefore, contributes significantly to the safety of

the advances, as it relates to the willingness to repay under all

circumstances. Particularly adverse circumstances. Are the partners or

directors of the business unit, which is seeking finance, persons who can

be relied upon as regards details of their proposal as will as promise of

repayment? What is their reputation in the market place for meeting their

commitments in respect to prices & delivers to purchasers and timely

payment to their trade creditors? Confidential and tactful inquiries from

wholesalers, suppliers and other bankers are necessary to obtain thisessential information.

2. Capacity

This factor relates to the ability of the borrower to manage his business

successfully. Do they have the necessary management, accounting and

technical skills? And the degree of experience, in the particular line ofbusiness for which the finance is required, to utilize the advance

productively and profitably, so that repayment is possible, along with our

share of the profits? This ability can be judge from the trading results. A

study of the company's audited financial statements for the past few years


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would real whether sales have deep growing, stagnating or declining or

declining. Similarly, the trends of gross & net profit margins indicate the

profitability or other wise of the business. The efficiency of the management

can be Judge from the turn-over ratios, collection of receivable and

management of accounts payable.

3. Capital

The proportion of the borrower's own resources to the amount of finance is

requested, is the next point to receive the branch manager's attention.

Is the amount required in proportion to the borrower's capital and

contribution to the project? Is it within the powers of the borrower? In the

case of a corporate customer, a check on the memorandum & articles of

association is necessary to ensure it is within prescribed limits. If the

amount describe to be borrowed is too large. Under the circumstances,

can it be sagely reduced to an acceptable & practicable level? Past

experience has taught bank that it is unwise to lend more than is actually

required, as it sometimes has led to speculative uses of the surplus.

4. Cash Flow

The source of repayment should be ascertained at the beginning. As

commercial banks, bank advances must, be largely confirmed to provide

short" term finances to business customer. Hence financing the current

assets of traders and manufactures. Would ensure that repayment would

normally come from the sale of inventory and the realization of account

receivable of our customers. If we are confident of the customer's ability to


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buy the right materials, at right markets and be able to produce finished

goods which can be readily sold, at a satisfactory profit, there should be no

doubt about repayment. Therefore, cash flow statements and profit

projections need to be submitted by the borrower and carefully evaluated

by the credit officers.

5. Conditions

From quantitative and qualitative information the bank need, to examine

the conditions which the firm is operating. This requires identification of the

factors that have up to now contributed to the success of .the business,

and to

Examine factors change has recently occurred or is likely to occur in the

near future which will adversely affect the profitability and prospects of the

customs. Accordingly to nature and prospects of the customers' business

need to examine will it continue to prosper, or will additional competitors or

new competitors with the latest technology result in reduced profit margins?

Is the product essentially required, in a wide market with continued

demand? The industry conditions and the firm's place in industry and its

market share need to be examined demand? The industry conditions and

the firm's place in the industry and its market share need to be examined.

An important quality here is the management's tendency to look and think

ahead to anticipate and adapt to change by diversification or otherwise,

which will instill confidence in the banker. For this purpose, it is necessary

to maintain & update at the time of renewing the advances.

6. Collateral


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Since the bank is lending money, which it has, received form depositors,

the bank must ensure that there is a second way out. Security is, therefore,

taken as a form of insurance. In case the business plans of the borrower,

do not work out, due to circumstances or developments beyond his control.

It is the final safe and credit officer should be able to identify appropriate

assets, which would most suitably serve as security, in the given

circumstances. The qualities which constitutes a good banking security are

transferability i.e. whether a valid charge should be created by the borrower

over his asset in favor of the bank should be such that the bank can obtain

a good title with minimum formality and expense. Its value should be easily

ascertainable and stable. It should be easily realized, in case of nee. Finally

security be obtained & formalities completed before the finances is

disbursed.

7. Purpose

Credit resources are scarce but have alternate uses- The unity's needs

demand that banks put them to the best possible for which the finance will

be used, within the credit policy the bank? In conformity with the country's

laws, credit control and exchange control requirements. Is it a desirable

one from the economic and banking viewpoint? Is it for productive of

emulate purpose?

In short, they're in need to ensure mat the purpose is conductive & within

the borrower's normal sphere of business activities and scale operations.

8. Period


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Short-term advances are favored that is for not more than a year,

renewable each year, if still justified. Accordingly the most usual purpose is

to assist manufacturing and trading customers in their need to purchase

current assets in line with their production or trading cycle, and seasonal

loans for agricultural purposes.

Being a developing country, EBI do grant medium-term loans but to a

limited extent, for the fixed- asset financing need industrial customers.

CREDIT CARD DEPARTMENT

Mr. Ali Gardezi deals this department. Credit card is also called Plastic

Money. In modern world it is modern mode of money transaction because it

is easy to carry. There are two procedures for issuing credit cards. One for

the existing customers and other for new customers.

PROCEDURE FOR ISSUANCE OF CREDIT CARD.

1. Essential documents are obtained from the customer which are:

a. National ID Card

b. Statement of Accounts of last 3 months.

c. Three Photographs

d. Hypothecation agreement

e. Prove of income.

f. Letter of Lien.


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g. Letter of set off.

h. Direct Debt Authority

i. Latest Financials of the Company.

j. Customer Guarantee.

2. American companies are Visa Card and Master Card. ACBL has the

facility of master card only. They have to sent their credit cards, they

have given the authority of master cards to two banks. First is City

Bank and second is Bank of America. ACBL has the agreement with

City Bank. ACBL takes master card from city bank and then issue to

the customer.

3. ACBL takes the yearly fee, interest fee, late payment fee, credit sale

fee for issuance of the card. ACBL also pays certain percentage to

City Bank.

4. City Bank has the authority for the master cards for applying credit

cards, master cards certain limit is mentioned.

ASKARI MASTER CARDS.

1. ACBL is incorporated under the companies ordinance 1984. Card

means applicable master card, visa card issue by the bank to the

account holder. But ACBL is issuing only master cards.

2. Card center means credit division which is in Rawalpindi.

3. Card holder means primary card applicant.


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4. Card account means master card and visa card accounts opened by

the bank for the purpose entering debt.

5. Credit advances means an include any amount sanctioned and

advance by the bank. On the request of card holder the determination

of such cash advance shall however be at the discretion of the bank.

6. Credit limit means the maximum limit permitted by the bank on the

card account for the applicable card. In ACBL limit is for 40 days and

after 40 days the card holder must have to pay 10% of the total

expenditures. 5 days are grace period.

He told me that the bank is authorized to issue the credit card of two

companies, which are under bank of America.

Master Card

Visa Card

But due unavailability of visa card machine in Multan, ACBL Multan branch

deals n only Master Card.

There are following types of master card.

Silver card

Gold card

These are different due to their credit amount limit. For example for

silver card, cardholder can take the maximum amount ranging between


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Rs. 30,000 to Rs, 200,000. For gold cardholder this limit has been

extended to Rs. 300,000.

ISSUING CHARGES

When the card is given to cardholder, there are certain fee charges to by

the bank, which is different for different cards.

Local cardholder is charged Rs. 1200 but if the cardholder is Army

officer there is special discount for him. And he is special charged

Rs. 750.

Silver cardholder is charged Rs. 2500.

Gold cardholder is charged Rs. 3500.

ISSUING PROCEDURE

Credit card is issued to three types of parties.

Professional (Govt & private officers)

Business man

Landlord.

PROFESSIONALS

For professionals bank require

Authorized letter from the concerned organization in which he works.

This letter shows all particulars about the person, on the basis of


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these particulars; bank open on account and some feasible amount is

required.

BUSINESS MAN

In the case of businessman bank need

Balance sheet of businessman.

Type of business.

Turnover of 5 years.

And then when it is sured that the business has the ability to cover the

expenses of credit card and to pay it at any time, the bank issues the credit

card.

Land Lord

In the case, the person is totally new, and the bank doesnt know anything

about him. For this bank need an account having the amount over and

above the credit card limit of that credit card. Usually, there is more chance

of default in this case; so, the bank avoids issuing credit card to that

person.

PAYMENT PROCEDURE

The cardholder should have to pay all the amounts what he has consumed.

But in order to facilitate the cardholder, 5% is the minimum limit that the

bank requires and that should be paid monthly. If you paid only 5% then


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2% interests will be charged on remaining amount and it is added into the

next month payments.

If that 5% is not paid then Rs. 100 are the additional charges charged to

the next month payment apart form the 2% interest.

TODAYS POSITION OF BANK

RECOMMENDATION

During my internship, what I feel should be there are:

Human Resources Department should be there in order to motivate

and trained the employees. I have noted some dissatisfaction among

the employees, due to in efficient promoting system. So the bank

should provide clean and on the merit basis promotion system.

The bank is now over staff. The building under operation is inadequate for such a large staff. So the building should be extended

LATTER

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