INTERNSHIP REPORT

NAME: FARZANA QADEER

PROGRAM: ENGLISH

SEMESTER: IV

SESSION: 2007-09

SUBMITTIED TO: FATIMA JINNAH WOMEN

UNIVERSITY

SUPERVISOR NAME:

SIGNATURE:

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By the grace of almighty God, I have successfully completed my 6 weeks internship as per
requirement of my course. I was appointed at“Askari Bank” AWT Plaza Rawalpindi. I was lucky
to work in Main Branch of Askari Commercial Bank ltd, (AWT Plaza). I feel my self lucky to
have worked with such a cooperative, dedicated, result oriented team. They all helped me in
every possible way they can. The staff of the bank was very cooperative. They guided us in a
very good way. They knew the importance of the student’s internship. They gave us there
precious time and guide and train us. I was happened to work with seven departments’ i.e.

• Deposits,
• Foreign Currency,
• Foreign Trade,
• Clearing,
• Remittance,
• Credit,
• Human Resource/ Admin.

I spend six weeks in the bank and I learnt very much. I spend one by one week in each
branch. And last week I spend with the security of the manger because I am the student of
English and in bank it is the only relevant job for me.

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on October
9, 1991, as a Public Limited Company. It started its operations during April 1, 1992. The bank
principally deals with mainly banking, as defined in the Banking Companies Ordinance, 1962.
The Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges and its shares are
currently the highest quoted from among the new private sector banks in Pakistan.

Askari Bank has expanded into a nation wide presence of 149 branches, and an offshore
banking Unit in Bahrain. A shared network of over 2,670 online ATMs covering all major
cities in Pakistan supports the delivery channels for customer service. As on December

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31, 2007, the bank had equity of PKR 12.3 billion and total assets of PKR 182.2 billion,
with over 751,000 banking customers, serviced by our 5,896employees

FIRST WEEK

Deposits Department:

Deposit is the functional unit of a Commercial bank. No bank can run its operations
without deposits. Main function of a commercial bank is to channelize saving from the
savers to the ultimate users of funds. The process of collecting saving is called Deposit
Mobilization.
Two board categories of deposits with reference to time period are:

Demand Deposit:

These are payable on demand. They include current account, sundry deposit (e.g. margin
account) and call deposit receipt. No profit is given on demand deposits.

Time Deposit:

Payable on demand with certain maturity. Attracts profit with respect to time.

Importance of opening the bank account:

At the time of opening of accounts officer should tactfully obtain as much information as
possible about integrity and character of the person, his correct name address and
occupation. This infect will be only opportunity when they will be able to talk to the
prospective customers in friendly and frank atmosphere. This is the time when they have
a slight edge over the customers. He or she at this point of time is will to divulge as much
information about this personal status and business etc to the bank manger. It is therefore,

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necessary that due care and proper procedures be followed for opening different types of
account for various types of customers.

Account opening:

In deposits I work with Mr. Eathsam, Ms. Nazish and the head of the deposits Mr.
Kaleem. In account opening Mr. Eathsham guard me how to open the accounts. I learn
how to open a new account, what are the requirements of the bank for opening the
account. In three days I open almost nine accounts. I learn how to deal with the
customers. Askari bank deal with such type of currencies in the bank such as:

Pakistani Rupees 01
US Dollars 02
British Pounds 03
Euro 04

Type of Accounts:
• Individuals
• Sole Proprietorship
• Partnership
• Private and public limited companies

SECOND WEEK:

Clearing:

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Clearing is the transfer of funds from one bank to another through NIFT (National
Intuition Facilitation Technology), AND State Bank of Pakistan. Clearing is a vital
service provided by the commercial banks to their customers.

Meaning of Clearing:

The word clearing has been derived from the word “ clear” and is defined as “a system by
which banks exchange cheques and other negotiable instruments drawn on each other
within a specified area and thereby secure payment for their clients through the clearing
house at specified time” in an efficient way.

Types of Clearing:
There are two types of clearing.
• Inward clearing
• Outward clearing

Inward clearing
The customer account is debited in inward clearing.
Customer account_ Dr_ SBP_ Cr

Outward Clearing:
The customer account is credited in outward clearing.
Customer_ Cr_ SBP_ Dr
Working of Clearing House:

All the banks which are the members of clearing house maintain accounts wit State Bank
of Pakistan by debit and credit to which the clearing settlements are made. If on a
particular day, a bank delivers cheques and other negotiable instruments worth more than
the total amount of cheque received by it those bank accounts with State Bank of
Pakistan will be credited with the differential amount. If on the other hand the total

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amount of cheques and other negotiable instruments draw on a certain bank by other bank
is more than the total amount received by it from other banks, then this bank’s account
will be debited on that day.

The cheque delivered to the representatives of other banks for clearing are called
Outward Clearing, whereas cheques received from the representatives of other banks for
payment are called Inward Clearing.

• Firstly, all the cheques are sorted according to their location. The cheques that are
of the same city (Rawalpindi) came in outward clearing.
• The cheques that belong to outside Rawalpindi (Islamabad) go to intercity.
• Cheques other than Rawalpindi and Islamabad go to OBC (Outward Bills for
Collection).
• Crossing and clearing stamps are stamped on the front of all the cheque, and the
date on the stamp is one day advanced to the present day of stamping.

THIRD WEEK

Remittance Department:

The need of remittance is commonly felt is commercial life particularly and in everyday
life generally. The main function of the remittance department is to transmit money from
one place to another. By providing this service to the customer, bank earns a lot of
income. Also customer is able to meet its day to day financial requirements.

Demand Draft:

It is an instrument payable on demand for which value has been received, issued by the
branch of the bank drawn i.e. payable at some other place (branch) of the same bank. If

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two banks are involved then the DD is sent to other bank but in other case it is handed
over to the applicant.

Telegraphic Transfer: (TT)

It is the quickest way of transfer of funds from one place (Branch) to other place (Branch)
of the same bank. Generally, a mail transfer advice reaches the drawer branch the next
day through courier services. But sometimes, a customer demands that his funds should
be transferred through the quickest means. In such cases, transfer of funds message is
passed through telephone or telegram.

This mode of transfer was used before online. Online system is very effective for this
purpose now-a-days. In ACBL online system is used.

Pay Order:

It is an instrument issued for payment in same city. Pay order issued from on e branch can
only be payable from the same branch. It is normally referred to as banker’s cheque. It is
also called confirmed cheque, because bank issues this on it own guarantee.

Pay Slip:

It is an instrument issued by the bank for settlement of its own payment. It is used for
payment by the bank to anyone (may be employees) in this case only one bank is
involved. He is the issuer as well as the payer.

No Excise Duty
No Commission

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 FOURTH WEEK

Credit Department:

To give credit is to finance directly or indirectly the expenditures of others against future
payment. Lending or financing is one of the basic functions of banks of all categories,
through which they gain major part of their profits. A bank accepts deposits of money and
repays cash to its depositors on demand. But this is not to say that; bank gives this service
for nothing. Bank borrows money at a lesser rate of interest and lends to the borrower at
higher rate of interest. And the difference between these two is the profit of the bank.

Credit department deals with all the activities related to giving credit to customers.

Fund Based Loan:

In this type of loan, funds are directly involved.

Running Finance: (R/F)

It is popularly known as over draft. It is offered for working capital requirement of the
customer. It is created in current account adjustment from time to time finally on expiry
date. This facility is normally issued against hypothecation of immovable property. It is
allowed to the borrower under a pre-sanctioned limit. A current account is opened and the
conduct of this account is kept under review for a period of three to six months. The
borrower can draw cheque on his account maximally up to the amount of limit sanctioned
to him. The amount outstanding against the borrower is mark-up will be changed on the
basis of the amount outstanding. This facility is issued on revolving basis repayment
should be completed by the maturity date. Repayment in monthly installments is not
required.

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Cash Finance: (C/F)

It is also offered for the working capital requirement of the customer. It is the type of loan
in which the client is given cash in lump sum it is offered against the pledge of movable
property or stock of borrower. In majority of the cases this finance is allowed against
pledge of stock. The amount of finance is credited to borrowers CD account and he’/she
utilizes it for business purposes. Repayment is not made by monthly installments.
Adjustments are linked with delivery of goods kept under bank’s pledge. Goods are
pledge when the payment is done on delivery order of the bank. Goods released are
equivalent in value to the repayment amount and remaining goods are still kept in pledge
with the bank for further recovery. Goods are released on the Delivery Order (DO) by the
bank to the Go down Officer.

Term Finance: (T/F)

Term finance is offered to client for investment in any project or business. It is issued for
fixed time period. The amount of finance is credited to borrowers’ personal account by
debating the Term Finance Account. The amount off finance is credited to borrowers’
personal account by debiting the Term finance account. The amount of finance is
disbursed in lump sum. Partial transactions are not allowed in the Term finance account.
The repayment of the Term Finance is usually in installments and with other documents a
letter of installments is taken from the borrower at the time of disbursement. By that
letter, the borrower binds him to pay the installments at regular intervals. Monthly
repayment amount is calculated by dividing the principal amount by the time period plus
mark-up.

Non-Fund Based Facilities:

These are those types of facilities in which funds are not directly involved.

Letter of Credit:

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Letter of Credit issued by the bank can broadly be classified as under
Sight letter of credit
Usance latter of credit

The Sight L/C calls for the draft to be drawn ‘at sight’. Documents negotiated and
received against sight are held as security till their retirement. Drafts drawn under Usance
are for a tenure specified in the L/C and are payable by the customer on due date. Credit
line proposal must clearly state the type of letter of credit the branch is intended to issue.

Letter of Guarantee:

Guarantees issued by the bank can be classified under two broad categories.

Financial Guarantee:

Bank guarantees the fulfillment of a financial commitment on behalf of the customer.

Under these guarantees, the bank is called upon to pay in the event of a breach of terms
on the part of the customer.

Performance Guarantee:

The bank guarantees the due fulfillment of a contract or other work as specified in the
guarantee, by the customer. The amount of guarantee is usually up to the extent of the
value of the contract.

Shipping Guarantee:

Bank issues guarantee in favor of the shipping company to enable the importer to obtain
delivery of the goods without production of the Bill of Loading.

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 FIFTH WEEK

Foreign Currency:
In Foreign Currency Department the same process is used which is used for local
currency. But the difference is that they deal with the Foreign Currency. Usually they
deals with the Army units who are going to abroad for there services. Similarly they open
the account but the difference is that they use foreign currency. The main function of this
department is to transmit money from one country to another. They work with the
1. Demand Draft (DD)
2. Telegraphic Transfer (TT)

SIXTH WEEK

Human Resources/ Admin:

In admin I spend the most of the time of my internship. In this department, we have a
record of all the staff members of the branch e.g. Annual leaves, attendance. There are
three types of the leaves.
Causal leave
Privilege leave
Sick leave
Causal leaves are those leaves which the staffs members take in case of any emergency
and for there personal work. They have a 15 leaves of the year. They do not allow to there
staffing to more than this. The Privilege leaves are those leaves which are also called
annual leaves. It is a 15 days leaves and they must avail it within a specific time.
Usually they offer these leaves at the end of the year. The sick leaves are those leaves
which they can avail when they are sick or ill. After these leaves they must have the
medical certificate. Overall they have the almost 45 leaves in the year. In the duties of the
security is also includes to manage the mangers appointments. I think the most difficult is
to attend the calls.

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 Final Words:

This is a very good experience for me. It helped me in all the areas. I also learned how to

work in tough situations which would help me in a long way. And it wouldn’t be possible

without the assistance of the team with whom I had spent 6 weeks. I have learned how to

deal with customers. I learned how to deal with people from different backgrounds. I

have learned to adapt to a variety of tasks. I have gained persistence to complete tasks. I

have gained ability to plan with and work cooperatively with others. Further more, it is

different experience for me although it is not my field but I learn very much which help

me in future.

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