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  • 7/31/2019 Askari Internship


    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


    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


    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


    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


    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


    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.


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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.


    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.


    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


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



    2.Chief Executive


    4.NIT Nominees


    Askari Commercial Bank Limited Multan was inaugurated on December


    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


    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



    The bank has following department:

    Account Opening department

    ATM Department

    Credit Card Department

    Account Department

    Credit Department

    Remittance Department

    Foreign Trade Department

    Cash 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).


    In ACBL, there are the following types of accounts:

    Current account.

    Saving Account.

    Askari Special Deposit Account.

    Askari Bachat Certificate.

    Term Deposit.


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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.


    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


    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.


    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


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    Amount in Rs. Interest Rate

    50,000 499,999 8%

    500,000 4.99



    5 million 20 million 10%


    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.


    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



    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


    and "Club society or Association " as explained below.

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    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.


    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.


    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


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


    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


    The next day is the opening of 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.


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

    obtained other things remaining same as in individuals account.


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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.


    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.


    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



    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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    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.


    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.


    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.


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

    with outside parties, bank provides many facilities.


    Memorandum of Association.

    Articles of the Association

    Resolution of the Board of Director.

    Certificate of Incorporation.

    Certificate of commencement of business



    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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    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.



    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.


    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.


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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.


    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


    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.


    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


    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


    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


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

    Bachat Certificate. Mr. Kamran deals this department.


    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.



    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


    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


    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.


    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.


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



    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


    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 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.


    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.


    Preparation of daily bank positions statement

    Payment of salaries

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    Preparation of the statements

    Depreciation calculation


    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.



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

    Demand Draft.

    Telegraphic transfer.

    Mail transfer.

    Pay order.

    Pay slip.




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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.


    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


    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



    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


    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


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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.


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

    message is fixed.


    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


    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.


    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.


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


    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.


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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


    The P.O is posted at the computer.

    Dr bills payable A/C P.O issued.


    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


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


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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


    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.


    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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    The cheques that are banks in other cities are separated.

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


    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


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

    called inward bill for collection.


    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



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

    Foreign currency account




    Mainly this account deals in individual, personal and companies 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.


    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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    This account provides following facilities:

    1)Traveling quota

    2)Out ward remittances

    3)In ward remittances receiving

    4)To make remittances procedure flexible


    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.


    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-


    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.


    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


    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


    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


    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.



    Sales Contract



    Credit to exporters a/c



    Bill paid/ acceptance and paid

    Bill Presented


    Proceeds Remitted


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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



    Opening the letter of credit

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


    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


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


    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


    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



    Secured Finance.

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


    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


    Provision of suitable credit services and products

    extension of credit is out compromising the rules and regulations


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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.


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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.


    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


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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


    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.


    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.


    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.


    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.


    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.


    Credit card is issued to three types of parties.

    Professional (Govt & private officers)

    Business man



    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

  • 7/31/2019 Askari Internship


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



    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


    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



    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

  • 7/31/2019 Askari Internship


    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.



    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


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