Professional Documents
Culture Documents
History of Banking:
EVILUTION OF BANKING:
It has not so far been decided as to how the word Bank originated. The explanation of this origin is attributed to the fact that Jews in Lombardy transacted the business of money exchange on branches in the market place and when the business failed. The people destroyed the Bank. Incidentally the word Bankrupt is said to have been evolved from the Italian Money changers were never called Banchierei in the Middle Ages. Other authorities hold the opinion that the word Bank is derived from the German work back which means joined stock fund. Than Back was Italianize into Bank.
EARLY GROWTH :
Banking in fact Is as primitive as human society for ever since man came to realize the importance of money as a medium of exchange. Perhaps it was the Babylonians the development banking system as early as 2006 B.C It is evident that the temples of Babylon were used as Banks because of the prevalent respect and confidence in the clergy. King Haurabi (1686---1728 B.C) the founder of the Babylonian empire, drew up accede where in he laid down standard rules of procedure for banking operation by temples and great Landlords. He got his code inscribed on the block of diorite about 8 feet tall containing about 150 paragraphs which deals with nearly all aspects of loans. Interest pledges , guarantees natural accident, loss, theft etc. later on Sumerians Babylonians, hitties and Assyrians standardized the value of the goods in silver copper and bronze. It is not certain as to whom invented money but history recess that king of Lydia castled electrum ingots of identical shapes and of uniform weight with a triple emblem engraved on it as an official guarantee of value in 687 B.C in 1401 a German public bank was framed comprising the operations discounting and transferring of money . by the 16th century some more public Banks were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In order to streamline Banking organizations and techniques conferences were held in Nuremburg from 1548 to1551 and it was agreed that the commercial interest of the time needed a bank with facilities of growth and transfer but it should not be run by private individuals . Ultimately in
1587 a Stat Bank under the name of Banco DI rialto was formed in Genoa. Later the Bank of Amsterdam was also formed in 1609. This Bank had guarantee by the state and rendered valuable service to the Netherlands trade up to the year 1795. Similarly in1690 the Bank of Hamburg came into existence in Hamburg with the similarly in 1690. The bank of Hamburg came into existence on Hamburg with the business of accepting deposits of fine silver or foreign money and to run account on these deposits. This Bank rendered great service to the merchants as well as countries it dealt with until with 1873 when it was merged with the Reich Bank. By the year 1700. The Bank of England was not only issuing notes butt also conducting account for customers. Its directors were conducting the business like that of limited companies. The Bank had the monopoly of issuing banking notes. Up to 1813 to there about England the main profit of bank was derived from the circulation of notes.
Banking in Pakistan:
At the time of independence there were 631 offices of scheduled banks in Pakistan of which 487 were located in West Pakistan alone, as new country without resources it was very difficult to run its own banking system immediately. Therefore the expert committee recommended that reverse bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability coinage currencies, exchange etc. Be settled between India and Pakistan. The non Muslims started transferring their funds and accounts to India. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small branch officers that were engaged solely in export of crops from Pakistan, while there were only two Pakistani instructions, Habib bank of Pakistan, and Australia Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of govt. of Pakistan decided to establish a full fledge central Bank. Consequently the Governor of Pakistan Quaid -I- Azam inaugurated the stat Bank of Pakistan assumed full control of banking and currency in Pakistan.
The Banking structure in Pakistan comprises the following types. State Banks Commercial Bank of Pakistan Saving Banks. Co-operative Banks. Specialized credit institution.
Up to December 31, 1973. There were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. All these commercial banks were nationalized in January 1, 1974. And were recognized and merged into the following five banks. 1. 2. 3. 4. 5. National Bank of Pakistan. Muslim Commercial Bank Limited. Habib Bank Limited. Allied Bank Limited. United Bank Limited.
The State Bank of Pakistan is the central bank of the country and was established on July 1. 1948. The separation of East Pakistan and its repercussion in the form of economics depression has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers cover a very large segment of national economy. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. There is done reasonable growth in deposit from the establishment of Pakistan. Besides this growth specialized credit and financial institution have also developed over the years. The government of Pakistan in the late 90s introducing the need for the privatization of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privatizing today. The state bank of Pakistan issues the shares of these periodically. Bank employees and other common can also purchase these shares and earn profit.
strategy is to maximize the synergies of branch network through an optimal allocation of financial resources in the face of dynamic challenges of present financial environment. NIB is now the second most highly capitalized bank in the country with paid up capital exceeding Rs.27.5 billion. Apart from commercial banking, NIB through its subsidiaries and affiliates is now also a significant player in the asset management and insurance businesses, thereby providing a wide range of services to their customers.
wide range of financial services through an extensive branch network. The asset management arms and insurance affiliate are also expected to perform well and provide an attractive dividend stream.
commitment. The board and management of the bank have implemented strategies and policies to carve a distinct position for the Bank in the market place. A paragon of strength has played a pivotal role in helping the Bank cross major milestones as a single source financial service provider of Corporate and Retail banking solution.The growing client base is a manifestation of its recognition in the market place. It made a significant progress despite the keen and challenging business environment. It made notable progress in business volume, efficiency and profitability following its increased involvement in trade finance, commercial lending, and foreign exchange and money market operations. By the year 2004 NIB has been successful on further mobilization of resources by attracting low cost and stable deposits.
3. 4. 5. 6. 8.
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 banking, as defined in the Banking Companies Ordinance, 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 network of 226 branches, including 31 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,173 online
ATMs covering all major cities in Pakistan supports the delivery channels for customer service. Askari Bank achieved planned growth in business and operations during 2009. The total assets of the Bank amounted to Rs.254 billion as at December 31, 2009, registering an increase of 23 percent over December 31, 2008.Customer deposits reached Rs.206 billion by December 31, 2009, an increase of 23 percent over December 31, 2008. Profit after taxation showed an increase of 187% at Rs.1.11 billion, when compared with last years Rs.386 million. The banking spread registered slight improvement over last year, despite absorbing the adverse impact on net mark-up income due to increased nonperforming advances. The Banks NPLs stood at Rs.17.73 billion as of December 31, 2009 compared to Rs.11.69 billion at the end of previous year, an increase of 52 percent.
Industry
Founded
Gen.
Waseem &
Ahmed
Ashraf, CEO
Chairman M. R. Mehkari
Products
Banking
Revenue
Net income
Total assets
Employees
7,279 (2009)[1]
Askari Bank is the only bank with its operational Head Office in the twin cities of RawalpindiIslamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced us to evolve an outward-looking strategy in terms of our market emphasis. As a result, we developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major centers of Karachi and Lahore, where most other banks have their operational Head Offices. Model town Lahore Branch is the new born branch of Askari bank in this residential area. In a short span of time of one year this branch increase their business remark
Askari Bank Limited Today Askari Commercial Bank limited continues to scale new heights in all areas of its operations. The safety and security of depositors funds, high productivity and optimum use of technology are the hallmarks of its corporate strength. While capturing the largest market share amongst the new banks, Askari has provided good value to its shareholders. Share price of ACBL has remained approximately 12% higher than the average share price of quoted banks during the last four years. Awards & Achievements
Best Retail Bank in Pakistan by The Asian Banker 1st Consumer Choice Award" by the Consumer Association of Pakistan. 2005
Corporate Excellence Award" by the Management Association of Pakistan (MAP). 2002, 2003 & 2005 The Best Bank in Pakistan by Global Finance magazine. 2001 and 2002 Best Consumer Internet Bank Global Finance magazine. 2002 and 2003. Euro money and Asia money Awards" 1994, 1996 and 1997. Best Presented Annual Accounts by (ICAP) and (ICAMP). 2000, 2001and 2002. The Best Presented Annual Accounts by South Asian Federation of Accountants (SAFA), in the SAARC region The Best Consumer Banking Award 2006 by the Consumer Association of Pakistan. 2007 The Best Retail Banking Award 2009 by Pakistan Guarantee Export Corporation Ltd. 2009
"Best Corporate Report Award for the year 2009" by ICAP & ICMAP. 2009. Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistani banking. I. First Pakistani Bank to offer on-line real time banking on a countrywide basis. II. First Bank with a nation-wide ATM network III. First Bank to offer Internet Banking services IV. First Bank to offer E-Commerce solutions
Our Mission:
To improve the quality of life for millions
Our Values:
Passion
Respect
I appreciate different viewpoints I am receptive to the diversity of ideas I treat others as I would want to be treated I look after the community in which we live and work I contribute to the care and comfort of those around me
Integrity
I do what I say I am honest and forthright I never compromise my values I am open and honest in all my dealings I have the courage to stand up for what I believe to be true
Excellence
I strive for better I exceed expectations I am constantly improving I always try to get it right the first time I produce error free, superior quality work
Fairness
I am impartial I judge on merit I dont expect favours I listen to both sides I reward what you do not who you are
Our Mission:
To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to all our stakeholders, and contributing to society.
MANAGERIAL CHART:
NIB is equipped with very strong and experienced human resource structure consisting of financial/ investment analysts, marketing experts/economists, engineers, chartered accountants, cost accountants, financial accountants and legal experts. NIB has traditionally been hiring individuals from renowned educational institutions and professionals with rich work experience so as to have a superior blend of experts and strategists to manage the affairs of the Corporation. Nibs staff turnover is comparatively low which shows the compatibility of its compensation policies for holding competent work force according to their professional caliber.
NIB continues to pay special emphasis on the training of its professional staff and avails to the maximum possible extent the training opportunities offered by the World Bank, ADB, ADFIAP, ADFIMI, etc. along with training programs available within Pakistan.
ORGANIZATIONAL CHART
Organizational chart is a diagram that represents the positions & relationship within an organization that reveals the companys organizational structure...
President / CEO
Group Leader
Cluster Manager
Manager
Relationship Manager
Operation Manager
Audit Committee
1) Dr. Bashir Ahmad Khan(Chairman) 2) Mr. Ali Noormahomed Rattansey, FCA 3) Mr. Tariq Iqbal Khan, FCA
Company Secretary
1)
Auditors
1) F. Ferguson & Company Chartered Accountants Legal Advisors 1) Rizvi, Isa, Afridi & Angell Shariah Advisor
1) Dr. Muhammad Tahir Mansoori
Executive committee
Corporate
Investment Group
Consumer Banking
H.R.M
IT Dept
NIB Bank Limited provides various financial products and services in Pakistan. The company operates through four segments: Corporate and Investment Banking, Consumer and Small Enterprises, Small and Medium Enterprises and Commercial, and treasury. The Corporate and Investment Banking segment provides finance, export finance, trade finance, leasing, lending, guarantees, and bills of exchange relating to its corporate and commercial customers, as well as engages in advisory, underwriting, and initial public offering related activities. Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years.
Offerings to Customers
The Consumer and Small Enterprises segment offers various banking services, such as lending, deposits, and distribution of insurance products to individual and small businesses through retail banking and alternate distribution network. The Small and Medium Enterprises, and Commercial segment provide funded and non-funded credit facilities, deposit products and transaction services to manufacturing, trade, wholesale, and service sectors. This segment also offers trade finance; export and import finance, such as letter of credit, shipping guarantees, finance against trust receipt, and finance against imported merchandise; and guarantees. The Treasury segment offers foreign exchange services. The companys also provides capital market services, including
money market services, and treasury marketing services. It has 223 branches. NIB Bank Limited was incorporated in 2003 and is based in Karachi, Pakistan. NIB Bank Limited is a subsidiary of Bugis Investments (Mauritius) Pte. Limited.
(A)Personal Banking:
Personal Banking offers you a wide array of NIB products and services made available in your local community. At NIB we believe that people who live and work in proximity with you understand your needs better. Being embedded within your local community, we are aware of your daily challenges and are prepared to provide you financial solutions. So come bank at NIB Personal Banking because we know that nobody understands you better than your Personal Banker.
(2)Savings Accounts:
NIB Gold Premier Account for your golden years
At NIB Bank, we value respect for elders. We believe that you have lived your life working hard and toiling for the future. Now it is time for you to sit back and reap profits on your hard work. NIB Gold Premier savings account will take away your financial worries. We will keep your money safe and give you a healthy profit of 10.00% .
Account Features
Minimum Balance Requirement Maximum Balance Cap Profit Calculation basis Profit Payment Profit Rate (Up to Rs 10 Mln)
Rs. 50,000 Rs. 10,000,000 Profit earned in daily balance and paid on monthly Monthly (Annualized expected rate of profit) 10% p.a. (*On the incremental amount)
A single customer will be allowed to open only one account which can be either individual or in joint category (without the condition of secondary applicant to be a senior citizen) Eligibility Criteria Male/Female: above 55 years of age OR Female: widow (undertaking required)
(3)Term Deposit
Our wide range of term deposits is a perfect combination of liquidity and returns. You have the freedom to choose from the desired period from one month to one year & choose your profit frequency. Flexibility that is made to Order! Choose your tenure & Profit Frequency & Enjoy the certainty of your returns. Features & Benefits
Deposit Period from One Month to One Year Choice of Monthly, Quarterly, Semi-Annual or Annual Profit Payments Automatic renewal of deposit Checking account facilities with linked current account ATM Card, SMS Banking and 24 Hr Phone Banking services available Access your funds through a network of 179 online branches in 59 cities and 128 NIB ATMs across Pakistan 9AM 5PM Non stop Banking
Benefit you never knew existed! Avail Overdraft/Cash Secured Financing facility against TD! For further details, call 021-111-642-111 or visit your nearest NIB Branch
For deposits of PKR 3M & above , Treasury & Business to provide rates
In case of premature encashment, the principal amount will be subject to profit adjustment Terms & Conditions Apply
(B)Commercial Banking
Commercial Banking Group began its operations in June 2006. Within a short span of time, it has developed business solution expertise in many areas. These include and are not limited to necessary infrastructure, management information systems and a competent human resource capability of 1000 plus employees. Through these resources, we offer a diverse range of products catering to private sector enterprises having an annual sales turnover between PKR 30 Million to PKR 1 Billion. We aim to become a dominant player in Pakistan with an aggressive growth trajectory fortified with teamwork and full inculcation of sales and credit programs. We know that delivering your everyday banking needs in the right way is critical to your success. We can do this and much more for you, with people who understand your business needs and ambitions. They also provide you with award-winning service and solutions. We are committed to helping your business succeed today and in the future. Once your business is established and growing, you need to work with people who understand your business banking needs and can help you achieve your ambitions. Talk to us, well support you every step of the way. In recent years Commercial Banking has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network of 179 branches across Pakistan. We at NIB offer you the safest option to place your deposit (CA, SA & TD) at our branches, as we proudly claim to be the strongest bank of Pakistan with the highest paid up capital of 40 Billion. We offer you Chain Management Facility where you can speed up your business transactions with your buyers and suppliers via our counter and online transactional features coupled with superior service through any NIB branch across Pakistan. We at NIB provide you one window solution, where you can not just avail loans to cater your regular business or trade requirements but you can also enjoy chain management benefits through our extensive branch distribution footprints.
(1)Chain Management
In todays competitive market place, effectively managing cash flow can make a difference between success and failure. NIB offers a wide range of collection and payment services to meet your complex chain management needs through effective utilization of our wide-span distribution footprint. We help you manage payments received from your buyers and made to your suppliers by efficiently processing them to optimize your cash flow position and to ensure the effective management of your business operating funds. The flow of receivables and payables can also be seen through our customized and tailored solutions. Above all, our quick adaptation of the latest technology differentiates us from the other competing banks. At NIB, we offer you a complete range of chain management solutions. Our chain management solutions are there to support you through: Online Real-Time Funds Transfer NIB has deployed a new online real-time funds transfer system which enables an instantaneous transfer of funds, speeding up the flow of money, and enabling more efficient utilization of your financial resources with businesses and individuals. Its an online, real time and a secure system that is now being used by all the customers for electronic payments made on accounts of their customers or on their own account. The processing and settlement of such transactions takes place in real-time, online mode, with final and irrevocable intra-day settlement. This means that anyone, whether an individual, a business organization or a bank itself, can make electronic payments to whomsoever they like, with the value of such payments received almost instantaneously, as against two to four days previously. A Wide network of Branches Our wide network of branches enables us to collect, maintain, and disburse your funds in a way that minimizes the risk of misuse, maximizes profitable cash flow, and supports your operations and mission.It helps us to deliver you better services but also to reach remote customers.Through an extensive branch network in todays scenario, chain management results in:
Less paper work & greater accounting accuracy. Quick business transactions with no hassle Creates more control over time & funds. Provides timely access to information. Results in faster reconciliation. Earns interest income or reduces interest expenses. Allows Corporations with subsidiaries worldwide to pool everything internationally so that the company can offset the debts with the surplus from various subsidiaries. The end result will transform treasury function as a profit centre by optimizing cash and putting it to good use.
Running Finance
At NIB we have got a great flexible business loan for your general business needs. You can use it for short-term finance, such as settling a bill or purchasing inventory, or for working capital growth. Under this type of financial accommodation the borrower is allowed withdrawal in the current account to the extent of the limit sanctioned. The facility is generally provided against pledge or hypothecation of goods or any other tangible security acceptable under the credit program. You would be required to adjust the advance periodically or within a specific period. The loan may be renewable annually depending upon the agreed terms.
Tenor not more than 5 years from the date of disbursement to the date of final maturity, including the grace period. Has a clear purpose, strong financials, resourceful management, viable cash flow, properly perfected tangible security. Repayments: Principal equally distributed, divided by the number of months, will determine the installments, preferably quarterly stating from the final take down. A grace period of up to two years may be allowed before beginning repayment; depending upon the terms of the loan transaction.
(3)Transaction Solutions
Commercial Banking is focused on providing you with financial solutions and takes into account the parameters to provide exclusive and tailored product and services.
We excel at
(4)Trade Finance
To support your global business needs, Commercial Banking offers you a full suite of trade finance solutions to facilitate as well as finance your trade transactions, be it international or domestic. Our years of experience in supporting businesses of similar nature mean we have the expertise and speed to handle your transactions. You will find our services fast, reliable and friendly. As business horizons expand internationally, life becomes more complicated. Our teams work hard to keep life simple. We are dedicated to:
Providing professional guidance and excellent delivery. Working together to achieve your trade and treasury objectives. Supporting you every step of the way.
Trade Products & Services In a fast moving, uncertain global marketplace, companies face significant risks in managing their trade activities. NIB assists clients with their importing and exporting activities and finds the right solutions to realize their trading ambitions. We deliver a complete range of products &
services for import and export trading activity. From straightforward, traditional trade products and techniques to modified and structured trade finance solutions, whatever your import or export needs, whether you want to improve your liquidity through supply chain financing, manage counterparty or country risk, or structure complex trade finance contracts, NIB Banks team works with you to provide the best solutions for your business.
(a)Export
Export Negotiation At NIB we negotiate your export bills drawn under the Letter of credit, if the documents are found to be strictly in terms with LC conditions and without any discrepancy.Alternatively, we negotiate under reserve, by cabling the LC to LC issuing bank for authorization to negotiate despite the discrepancies, and also send the documents to the LC issuing bank for approval and payment.All these facilities come to you at competitive rates and unmatchable turnaround time Documentation Concentrating your Documentary Collection activities with Commercial Banking, you can eliminate many of your exporting hassles.Not only will your international banking become much more uniform, you can experience fewer delays in receiving payment, effortlessly access collection information details, gain increased control over export receivables and efficient cash flow management.To help speed up your cash flows, NIB can purchase/discount your export receivables tied to your export bill collections subject to availability of credit
limits.Documentary collections offer a simple, cost-effective and secure means of trading internationally.If your buyer does not issue DCs, collections offer the next safest alternative to open account trade.During a collection, banks act as intermediaries, ensuring that documents are only released against payment or acceptance.Collections offer the seller comfort that they will not lose control of the goods without payment or the promise to pay.Meanwhile from your buyers perspective, collections offer a simple and cheaper alternative to the DC and hence may enable you to negotiate better terms.NIB offers a choice of documentary collection methods, each offering you peace of mind while helping you to reduce costs by
Documents against payment (D/P) documents are released to importers upon payment. Documents against acceptance (D/A) documents are released to importers against their promise to pay.
LC Advising
You can always insist that your Letter of credit is advised through NIB Bank. At NIB you can assure that your export LC will always reach you on time. This will help you in better logistics management and enhanced accuracy in the preparation of documents. On request, we can pre-advise LCs by telephone and fax so that you can start arranging your shipment immediately without even having to collect the LC. With our expertise, we can explain complex LC terms to you and your staff. This will help you to prepare your documents easily and error free. LC Confirmation When you are not comfortable with the credit standing of an LC opening bank or if you are worried about the political climate or credit risk of the buyers country, we are there to assist you with our LC confirmation services. Once we add our confirmation to the LC, you are assured of payment, subject to non-discrepant documents, irrespective of non-payment by LC opening bank. Even when LC does not provide for confirmation, we can assure you payment (silent confirmation) subject to certain conditions. So what are you waiting for? Ask your buyers for Freely Negotiable LCs so that you have the control and flexibility to select your favorite bank for managing your export receivables.
With NIB Banks confirmation services, you can eliminate the foreign bank and country risks from your export collections. Bills Purchased Do not worry when your exports are not covered under Letter of Credit. Against sanctioned credit limits, NIB Bank can purchase and pay you the discounted value of your invoice, immediately on shipment. The proceeds will be credited to your account if the export documents are presented before cut off time at your NIB Banks branch. Foreign bills purchased (on account) are a post shipment finance facility. In order to avail this facility a limit is approved at the request of the party. NIB Bank at an agreed rate of return extends this facility, which is allowed against export documents under collection. For these finances, NIB Bank preferably holds collateral securities. If the foreign bills are purchased against LC, we may extend financial accommodation through negotiation/discounting at prevailing exchange rate, of foreign documentary bill accompanied by the relevant documents of title to goods. For financing of export bills drawn under LC the branch shall ensure that.
The document has been drawn strictly as per the terms of the LC. All direct bank expenses, i.e. foreign correspondents charges; claimed by the opening bank/reimbursing bank, if any, shall be recoverable from the exporters unless it is expressed in the LC that the charges are on an openers account. Due care and necessary precautions are exercised before negotiating/discounting of documents. Reimbursement instructions in LCs shall be carefully studied before negotiating/discounting of documents.
Inland bills (documentary/clean) purchased facility will be allowed to customers against Inland documentary bills, checks, draft etc. In case of dishonor of any such instrument, the related partys account shall be debited and simultaneously the drawer shall immediately be asked to arrange for sufficient funds in the account for adjustment thereof.
(b)Import
We offer a comprehensive range of import services. As a valued client of NIB Bank, you will be partnering with a trusted banking institution that is highly respected in the world of international finance and cross border transactions. Through our expertise and experience, we can structure and customize solutions suited to your specific business requirements. Letter of Credit Commercial Banking issues Import Letters of Credit on your behalf that gives you the advantage with your suppliers. We extend Sight Letter of Credit (DP) and Usance Letter of Credit (DA) facilities to your clients for undertaking transaction for the import of goods. Letter of Credit is widely used to give protection to the exporter against the buyers and the countrys risk. At NIB the LC is a payment undertaking given to the exporter by the importers bank. In effect, NIB backs the transaction with its own credit standing and reputation. We offer our customers a binding payment undertaking to pay the seller, provided that the seller can present documents representing the goods supplied. Documentary Collection Import documents received under Usance Letter of Credit (DA) are lodged in a funded account and are released against:
Acceptance of bill of exchange and execution of Trust Receipt. Pledge of imported goods.
In case goods are pledged with NIB Bank, goods will be cleared through approved clearing & forwarding agent and delivery orders issued against cash receipts. Collateral security against mortgage of property, pledge of Government Bonds, Postal Deposit Certificates, Banks own Deposit Certificates etc. For relaxation in obtaining collateral security, approval of Branch Credit Committee will be required.
(C)Corporate Banking
Corporate & Investment Banking Group Corporate Banking offers a full spectrum of banking products, from vanilla debt to more structured and solution-driven transactions, to meet the operational, financial and capital-raising needs of top-tier corporations and institutions. Investment Banking Investment Banking includes: Advisory services on transactions such as mergers and acquisitions, divestment, privatisation, corporate restructuring, debt rescheduling, business modeling etc. Raising money by issuing and selling securities, in the capital markets. Financial Institution Financial Institutions and Correspondent banking department coordinates the transactions between NIB and the other Financial Institutions (FIs) locally, regionally and internationally. The FIs department ensures that NIB maintains a competitive and profitable relationship with other financial institutions.
(1)Investment Banking
In July 2008, the Investment Banking business & team of Global Securities Pakistan Limited (Global) became a part of NIBs Corporate & Investment Banking Group. Global had been the leading investment banking player having successfully structured and executed some of the largest and most complex advisory and fundraising transactions in Pakistan. At NIB, Investment Banking is structured along two separate product lines which allow for product specialization and customized approach.
Advisory
The leading player in the domestic privatization, M&A, restructuring markets. Commands a significant market share of all privatization transactions in Pakistan including both strategic sale as well as capital markets transactions. Domestic Financial Advisor to the Privatization Commission for the privatization of PTCL which is the largest privatization transaction in the history of Pakistan. Executed two of the largest banking sector privatizations. Extensively worked with the PC on developing new transaction structures for strategic sales.
The leading capital markets player in Pakistan having structured some of the largest and most innovative issues in Pakistan. Lead managed offer for sale of 7.5% GOP owned shares of HBL the largest IPO in the history of the country worth PKR 12,161 million. Lead managed the public offer for sale of up to 20% GoP owned shares of KAPCO the most successful equity offering in the country. Pioneered the development of the subordinated TFCs by banks. Executed two of the largest banking sector privatizations
Deal Credentials Our team includes seasoned professionals with an incomparable level of industry and product expertise. The extent of our expertise can be gauged from the deals we have structured and executed in sectors ranging from telecom, commercial and investment banking, refining, power, textiles, fertilizers, autos, petrochemicals, information technology and media. We ensure swift execution of transactions through the commitment of highly experienced senior resources and close working relationships with key regulators.
(D)Financial Institutions
The FI and Correspondent Banking dept facilitates NIBs different business segments involved in international trade and advises them on the competitive rates for their different options.
This advice is culled from the research undertaken by the FI and Correspondent Banking Department in order to ensure the profitability of the positions taken by NIB in the NostroVostro accounts market. This research takes into consideration variable market trends and the major events occurring at the time. The FI and Correspondent Banking dept also arranges for large ticket credit facilities for the bank. Depending on the financial requirements of the client, FI and Correspondent Banking will offer a variety of services ranging from structured financing to syndicate financing. The FI and Correspondent banking dept also acts as a consultant to the various departments within the bank and clients who are in the process of market study or setting up a business plan.
You want to give your lifestyle a boost or pay off your liabilities? Want to go on that dream vacation or buy something special for your home? start your marital life or invest in your childs education. All this and more, NIB Personal Loan is a reliable financing solution for planned & unplanned events!
All loan applications are subject to final credit approval and terms and conditions, including certain income source criteria. (a)Shipping Guarantees At the request of the importer, NIB issues a shipping guarantee in favor of the concerned shipping company to enable the importer to obtain delivery of goods without submission of the relevant bill of lading. The shipping guarantee will be issued after obtaining the following
Upfront proper documentation of the client. Standard indemnity from client stating irrevocably and unequivocally to accept the documents with or without discrepancies. An undertaking from the client to bear any exchange fluctuation difference in addition to all other charges.
(b)Finance Against Trust Receipt (FATR) NIB Bank may at the request of the customer, at the time of opening of the LC or at a later stage, release the import documents of related goods received under the LC against bills under collection either inland or foreign. This may be done to enable the party to obtain delivery of the goods and arrange to retire the documents out of the sale proceeds of goods or from other sources. The documents of title are delivered against the customers signature on the prescribed Trust Receipt form/related security documents covering hypothecation of goods. (c)Finance Against Imported Merchandise (FIM) Wherever necessary at partys request, the facility for financing imported goods against import LC established through NIB Bank will be made available for a short period (not exceeding
ninety or (120) days). The financing may be repaid within the validity period either in installments or in a lump sum amount. (d)Guarantees To protect you against currency fluctuation, Commercial Banking provides services to hedge against foreign exchange risks for foreign currency payments expected to be made or received by you. In the normal course of business we issue the following guarantees (e)Performance Guarantee At the request of the customer, NIB Bank issues a performance guarantee, guaranteeing completion of work or supplies, as per terms of contract. (f)Bid Bond NIB Banks issues bid bond in lieu of deposit of earnest money against bids for tenders. (g)Letter of Credit Stand-by letter of credit is used as a substitute for the commonly used performance bond. This type of letter of credit may be issued to cover non-trade transactions and to guarantee performance of a contractor as supplier. (h)Advance Payment Guarantee At your request we will guarantee you the amount of advance payment for satisfactory performance of a contract or other work as specified in the guarantee. It ensures that
Instrument obligates NIB Bank to pay the guaranteed amount or the adjusted part thereof, without any dispute regarding improper use of the advance funds. Guarantee shall become operative only upon receipt of the advance money by NIB Bank for credit to your account. (This clause is incorporated in the guarantee).
(i)Security Deposit Guarantee At your request NIB Bank will issue you a guarantee in lieu of security deposit, generally to utility service organizations.
(j)Retention Bond NIB Bank also provides Retention Bond facilities to its customers.
(F)Banking Network
An inter-bank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. While inter-bank networks provide capabilities for all ATM cards within the same network to use other banks' ATMs that belong to the same network, the services vary. For instance, when a person uses their ATM card at an ATM that does not belong to their bank, the basic services, such as balance inquiries and withdrawals are usually available. However, special services, such as the purchase of mobile phone airtime, may not accessible to ATM cardholders of banks other than the ATM cardholders of the acquirer (the bank that owns the ATM). Furthermore, banks may charge a fee to users of cards that do not come that are members of the network when their own bank's ATM is unavailable. from their own bank (in addition to any fees imposed by the bank of the card the person is using). Inter-bank networks are convenient because people can access the ATMs of other banks. NIB Bank, operating with the countrywide network of 240 branches plus an offshore until at end at 2009, commenced its operations in 2003. NIB Bank (Salam Segment) has a business interest spread across a wide range of economic and industrial sectors. NIB Bank offers a full range of services to the corporate, middle market and retail segments. The bank has established an image of efficiency and professionalism, attributable in part to its policy of maximum technology utilization offering facilities such as online real time banking, ATMs, telephone and Internet banking and cash management services. Off shore banking unit in Ukraine, established with the primary objective of capacity building of the bank, has started generating profits though the contribution is modest. The asset base of the bank has grown steadily over the years and the NIB Bank has emerged as one of the four local banks with assets
base of over one billion rupees. While the bank continues to rely on organic growth, the management continues to explore the options of an acquisition that would lead to a quantum leap in the banks size. The new President subsequent to the completion of term of the previous one assumed the office. However except this change the senior management comprising experienced and distinguished bankers remains the same. While the new banking president has extensive banking services including two years at NIB Bank, he faces the daunting task of preserving the banks relative position in the fast changing sector dynamics. NIB Bank expanded its network mainly in the last quarter of 2007. The bank at the same time maintained the consistent growth during the year, which helped it in improving its system share. Although increasing concentration on consumer financing entails high risk, the continuing focus on personal loans to corporate employees and increasing focus on mortgage loans has enabled the bank to keep delinquencies in consumer portfolio at relatively lower risks. The banks in terms of both ROA and ROE, declined during 2007 primarily in the absence of one off sizeable capital gains realized during the year. However the performance based on core business showed the marginal improvement. Investment portfolio comprises 33% of total assets. The portfolio is predominantly concentrated in government securities (79%) with higher proportion of treasury bills, implying low interest rate risks.
Product lines
(A)CONSUMER BANKING
1. 2. 3. 4. 5. Ask 4 Car Personal Finance Mortgage Finance Credit Card Master Card
(B)BRANCH BANKING
1) 2) 3) 4) 5) 6) 7) 8) Askari Deposit Multiplier Account Askari Mahana Bachat Account: Askari Paishgi Munafa Account Value Plus Deposit Account Investment Certificates Askari Rupee Traveler Cheques Askari Roshan Mustaqbil Deposit Askari Paishgi Munafa
(C)AGRICULTURE BANKING
KISSAN EVER GREEN FINANCE
KISSAN TRACTOR FINANCE KISSAN LIVESTOCK DEVELOPMENT FINANCE KISSAN FARM MECHANIZATION FINANCE KISSAN AABPASHI FINANCE
( D)ISLAMIC
BANKING
(E)CORPORATE BANKING
Working Capital Facilities Term Loans Structured Trade Finance Facilities Letters of Guarantee Letters of Credit Fund Transfers / Remittances Bill Discounting Export Financing Receivable Discounting
(A)CONSUMER BANKING
Alternative term for retail banking.( Savings accounts, consumer loans, credit cards, etc., and other such services provided to individuals. Also called consumer. See also corporate banking and wholesale. Our consumer finance is focused on expanding target market and enhancing our portfolio through new and improved initiatives and products. Special attention is being given to business opportunities involving strategic alliances to earn sustainable returns, with greater emphasis on secured form of consumer lending and an aim to increase product offerings while improving and maintaining a quality of its risk asset portfolio..
(1)ASK 4 CAR:
The Askari bank also provided the service of Ask 4 car
Features Product Type: Mark-up: Down Payment: Charges: Insurance: Mark-up: Down Payment: Charges: Insurance:
Makes:
Details Financing for New & Used Vehicles 18% p.a for 3 Year, 19% p.a for 4 Year & 20% p.a for 5 Year Minimum 15% & Maximum 60% As Per "Schedule of Bank Charges" Built in Insurance 20% p.a for 3 Year, 21% p.a for 4 Year Minimum 30% & Maximum 60% As Per "Schedule of Bank Charges" Built in Insurance
Suzuki, Honda, Toyota & Hyundai (Please note 800 CC used vehicles are not allowed) Vehicle Age: Year of manufacturing not older than 5 years at the time of loan
Ownership Status:
Third Registration in the name of AKBL (Registration in the cities where Askari Branches are located)
(2)PERSONAL FINANCE:
One can avail unlimited opportunities through Askari Banks Personal Finance. With unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Banks Personal Finance makes sure that you get the most out of your loan. No matter what your need is, Askari Bank has more ways to serve you than ever before.
Features Detail
Pakistani Resident (SEB/SEP cases are not entertained currently) Salaried: 21-61 years (maturity of loan at 61 yrs.) Rs. 30,000/-per month
Employment Status:
1 Year
Debt Burden: Credit Limit: Tenor: Mark up : Secured Mark up : Unsecured Reference: Processing / Others Charges:
Maximum 50% of the net disposable income Upto Maximum of Rs. 500,000/- (Subject to maximum of 50% DBR & Industry benchmark is maximum Rs. 1.000 M) 1 - 5 years Salaried: 19% p.a Salaried: 21% p.a & Contract Employees 24.2% p.a Two (2) references with complete details (one should be relative) As per "Schedule of Bank Charges"
(3)MORTGAGE FINANCE
Ever since the inception of life, shelter has been rated among the primary needs of mankind. Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of your very own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal without any problems. Mortgage is a premium home financing product for customers aged between 23 65 years belonging to the upper, upper middle and middle income groups, residing in the urban areas of Pakistan
Feature Age Detail Primary Borrowers age Salaried Minimum age: 23 Years Maximum age: 60 Years at maturity SEB/P Co-borrower Minimum age: 23 Years
Maximum age: 65 Years at maturity Only Son and Spouse are allowed as Co-borrower. However, a blood relative is allowed in case of joint ownership in property:
Minimum age: 18 Years Maximum age: 65 years Income Rs. 35000/- per month
Surrogate
1. Rent Agreement has become a major source of additional income of our applicants. Therefore, to authenticate, all rent agreements will have to be supported by the title documents of that particular property.
a) Salaried Employees with a minimum service length of 2 years including present employer. )Self Employed Professionals Architects, Doctors/ Dentists, Engineers, Chartered Accountants and Consultants. Minimum 2 years in profession. c) Self Employed Business Individuals 1. Minimum 3 years in same line of business 2. In family businesses only, where a Director was engaged in the business prior to being elevated to Director, or was made Director at least a year ago due to educational responsibilities/ engaged in other family related business, the same will also be considered. The business in such case must be 3 year old at least, and the Director applying for loan must have been in the same post for minimum of 1 year.
Length of Employment
RODUCT CATEGORY Build a Home (Tranche Loans) Buy a Home Buy a plot + Construction Renovation
Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower.
Product Type: Debit Card Distinctive Features: Classic Cash withdrawal Limit is 50,000, Shopping Limit 200,000 & Funds Transfer Limit 250,000. Gold Cash withdrawal Limit is 100,000, Shopping Limit 250,000 & Funds Transfer Limit 300,000.
(5)MASTER CARD
.
Card Account" means the Askari MasterCard Account opened by the bank for the purpose of entering debits incurred by or for the amount of, and credits received by or for, the Cardholder and Supplementary Cardholder, if any, under these terms and conditions and includes, without limitation, all debits incurred resulting from any Charges and/or Liabilities arising out of or in connection with any Card Transaction or otherwise. "Card Transaction" means any Cash Advance or the amount charged by the Bank or any Merchant for any goods, services. benefits or reservations obtained by the use of the Card or the card numbers or in any other manner by the Cardholder and/or Supplementary Cardholder, including without limitation, mail, telephone or facsimile orders or reservations authorized or purported to have been authorized or made by the Cardholder and/or Supplementary Cardholder, regardless of whether a sale or other voucher or form is signed by the Cardholder or Supplementary Cardholder
CREDIT CARD Features Eligibility: Details Resident Pakistanis Basic Supplementary Min 18 Yrs.- No Max Age limit Salaried: 21-61 years Min 18 Yrs.- No Max Age limit Age: SEB/SEP: 21- 65 years Approved Cat. A B C NAC Silver Perm. 30,000/30,000/35,000/40,000/Cont. 35,000/35,000/38,000/45,000/Gold Perm. 50,000/50,000/55,000/60,000/Cont. 60,000/60,000/70,000/80,500/-
SEB/SEP Platinum Card Salary/ Income per Month: Employment Status: References: Debt Burden: Charges: Salaried 150,000/-
Avg. Bal. Rs. 120,000/- 400,000/- (For last 6 months bank statement)
Businessman 200,000/-
Salaried: 1 year & SEB: 1 year 1 relative + 1 associate not working in the same organization Maximum 50% of the net disposable income. (Including all facilities appearing in ECIB) As per schedule of charges Salaried Basic/Suppl y Balance Transfer 3.2% per month 2.15% per month SEB/SEP 3.45% per month 2.15% per month
Mark-up Rates:
(B)BRANCH BANKING
Engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's home office. Branch banking has gone through significant changes since the 1980s in response to a more competitive nationwide financial services market. Financial innovation such as internet banking will greatly influence the future of branch banking by potentially reducing the need to maintain extensive branch networks to service consumers
Askari Mahana Bachat Account is a Term Deposit designed for individual customer with a short to medium term investment appetite. It offers customers the option of investing for 1 or 3 Year tenures and has been designed keeping in view savings needs of customers who want profit on a monthly basis. With competitive rates of return paid monthly on the 1st of every month and the option of getting a financing facility up to 90% the Askari Mahana Bachat Account caters to your saving needs without blocking your funds for a longer duration. Some of the salient features of the account are mentioned below tures
Product Type: Eligibility: Balance Requirement: Tenure: Profit Amount: Profit payment: Profit Rates: Servicing: Financing Limits:
Details
Term Deposit Pakistani Resident (Individuals Only) Minimum Rs. 50,000/- & Maximum Up to Rs.10,000,000/- (In multiples of Rs. 25,000/-) 1+3 Years Earn Rs. 842/- per month on investment of every Rs. 100,000/- for one year!" Earn Rs. 917/- per month on investment of every Rs. 100,000/- for three years! Monthly - 1st of every month Competitive Available at all Askari Bank branches Up to 90% of the principal amount
*/7/(3)ASKARI PAISHGI MUNAFA ACCOUNT Askari Paishgi Munafa Account is a unique term deposit designed to meet the immediate financial needs of Individual investors who want to invest funds for a medium term. Now you dont have to wait the entire term to receive your profit. The most significant feature of this product is that the customer receives the entire profit upfront at the time of placement. So you can fulfill your financial needs today without depleting your savings. Salient features of the account are mentioned below:
Details Term Deposit Pakistani Resident (Individuals) Rs. 100,000/- or in multiples of Rs. 100,000/Rs. 12,000/- on a deposit amount of Rs.100,000/15 Months 1. Financing Facility up to 80% of Principal amount.
4. 2 Free Pay Orders in a month. (Withholding Tax and other Government charges will be applicable as per Law) Bene/fits: 5. No maximum limit for investment.
(4)VALUE PLUS DEPOSIT ACCOUNT Askari Bank leads the way, yet again with the introduction of Askari Value Plus Rupee Deposit Accounts, which promise greater financial freedom and security, in an un-matched way.Now you can open a "Value Plus Account" while enjoying the flexibility of a normal checking account
Details
Value Plus Current, Saving & Time Deposits 1. Free issuance of Debit Card 2. Free global accidental insurance coverage against debit card irrespective of balance in the account or age of the cardholder
3. Free ATM Cash Withdrawal insurance 4. Free online funds transfer facility 5. Free internet banking services
6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2 million 7. Facility of Supplementary Debit Cards 8. Monthly returns on saving deposits 9. Partial encashment facility for time deposits Why Askari Value Plus Account? 10. Automatic roll over facility for time deposits 11. Our un-matched service quality
(5)INVESTMENT CERTIFICATES Askari Bank's Investment Certificates not only provide the added security, investment and monthly return to the customers. These certificates are negotiable and can be transferred to third party. Investment Certificates can be issued for a period of 3 months and profit is payable on monthly basis through pre-printed tear-off coupons
Features Facility: Details Investment Certificates 1. Free issuance and free encashment 2. Account relationship with Askari Bank is not mandatory 3. No penalty on pre-mature encashment 4. Negotiable and payable in Pakistan in Pak rupees only 5. No purchasing limit 6. Valid until encashed 7. Encashable at all Askari Bank Branches 8. Profit is payable on monthly basis through pre-printed coupons 9. In case of loss / theft or damage, there is replacement / refund to the original purchaser Important Features: 10. Encashment by third party 11. There is no penalty on pre-mature redemption, except that profit coupon shall be valid only for completed month
(5)ASKARI RUPEE TRAVELER CHEQUES Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. Askari Bank offers you its "Rupee Traveler Cheques" eliminating all financial risks while traveling. So avoid risk of carrying cash through Askari Bank's Rupee Traveler Cheques
eatures Product Type Details
Any Literate individual customer (Account is not mandatory) Rs. 10,000/Until encashed Issuance Desirous customer will submit the Application Form (duly filled/ signed) in any branch of Askari Bank Limited. After verification, branch will forward the form to Investment Products Unit. IPU will keep the record of the customer and system will automatically update that customers transaction. Encashment Original purchaser will approach the nearest branch. Purchaser will sign RTC on the face and branch will verify his signatures with the signature mentioned on CNIC before encashment of the same.
Processing
Charges
Refund processing charges are Rs. 1,000/- and Issuance/Encashment are free.
(6)ASKARI ROSHAN MUSTAQBIL DEPOSIT The Askari Roshan Mustaqbil Deposit is a saving plan created for individual investors who wish to invest now for a regular return at a later stage while keeping their principal amount intact. Now you can invest a substantial amount without having to block your entire savings like a regular Term Deposits. With Askari Roshan Mustaqbil Deposit you can invest in the form of monthly deposits for a period of five years and get paid back the same monthly deposit amount every month for the next five years while receiving their principal amount in full at the end of the tenure. With Askari Roshan Mustaqbil Deposit you can double your investment in a time period of ten years. An ideal account for customers who wish to plan for their retirement.
Features Product Type: Eligibility: Balance Requirement: Tenure: Profit payment: Profit Rates: Profit Rates: Servicing: Details Term Deposit Pakistani Resident (Individuals Only) Minimum Rs. 5,000/- & Maximum Upto Rs. 50,000/- (In multiples of Rs. 5,000/-) 10 Years (5 + 5) Monthly on completion of first 5 years Monthly - 1st of every month Competitive Available at all Askari Bank branches
Financing Limits:
(C) AGRICULTURE
BANKING
The production of food through the raising of crops and/or animals. The development of agriculture approximately 9,000 years ago is considered to be one of the most important revolutions in human thinking, one that made civilization possible. The trade of agricultural products, such as wheat or coffee, gave rise to the first exchanges. Even now, agricultural products are among the most important commodities that are traded.
Benefits:
Product Profit Earning Account Type Eligibility Pakistani Resident (Owner as well as non-owner farmers.) : 5 Year. Tenure: The farmer will have privilege of availing non-funded facility at a reduced cost under this program on account of more equity participation. Good farmer bonus will be available to the borrower in case the loan is repaid as per terms of sanction. The farmers life & tractor will be insured against contingencies, which will provide comfort and piece of mind. Priority in delivery of tractor will be given by manufacturer as per arrangements with the bank. Benefits
Details To purchase Milch Animals, Goats, Sheep, Poultry and Fisheries without incurring extra expenditure because of availability at his farm Pakistani Resident (Owner Farmers) The program will provide regular day to day income to the farmer to meet his own consumption and surplus to be marketed. This will revive / accelerate and supplement the income generating capacity.
Benefits:
Benefits:
To finance installation of Tube-Wells (electric, diesel and solar energy units) water management equipments and water channel development etc., Pakistani Resident (owner of farmers) 1. Help farmers to make optimum use of limited water resources. 2. To facilitate the farmer, to overcome the scarcity of water. 3. To develop mechanical water resources, sprinkler and drip system etc. 4. To avoid traditional / inefficient modes of irrigation and waste of available water. 5. To manage natural / available resources through water management practices.
(D)ISLAMIC BANKING
Islamic Banking Services Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6 dedicated Islamic Banking branches in major cities of the country. Further expansion is planned with improved capabilities for offering products conforming to the Shariah principles. Askari Islamic Banking opens the doors for Halal banking solutions. Our objective is to put in place an efficient banking system suuportive to economic justice and welfare of society in line with Shariah standards. A comprehensive range of Islamic Banking products and services is bieng offered, in order to meet customer's demand of Shariah Compliant Banking, in the following areas:
Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking Islamic Consumer Banking
Islamic Banking products have been approved by the Bank's Shariah Advisor. As per Shariah requirements, funds and products of Islamic Banking are managed separately from the Conventional Banking side. All funds obtained, invested and shared in Halal modes & investments, under supervision of the Shariah Advisor. (1)Ijarah Bi Sayyarah((IJARAH CAR FINANCING) Ijarah is a rental agreement, under which the usufructs of an asset is transferred to the client on pre-agreed terms and conditions. It is a Shariah Compliant mode of finance, adopted by Askari Islamic Banking to meet the Car Financing needs of its valued customers. e are Shariah Compliant and market competitive. Askari Islamic Banking deals in all kinds of new, locally assembled, as well as imported vehicles. Terms and conditions we offer are most flexible, with prompt processing time. Moreover, in order to enhance, customers convenience, we offer family income evaluation plan, where our valued clients can also avail Ijarah Bis Sayyarah facility for more than one vehicle.
(2)Home Musharakah Everyone wants to live in the best place that is comfortably affordable. This means being able to cope with other financial commitment, while still having money left over for extras and unexpected expenses. Askari Islamic Banking is pleased to offer Shariah Compliant Home Financing. We facilitate you to Purchase, Construct, Improve and Transfer of the property through Diminishing Musharakah Deposit Schemes Askari Bank are also provided the deposit schemes .In Islamic country may of people are to take the definite for this deposit scheme.
(E)CORPORATE BANKING
CORPORATE & INVESTMENT BANKING GROUP At Askari Bank, we understand the unique business requirements of our corporate and institutional clients, and accordingly the Corporate and Investment Banking Group (CIBG) strives to meet their expectations through provision of customized and relationship based banking approach. CIBG approach to provision of Askari Banks comprehensive and integrated, multi-product services is based upon a client-centric and distribution-focused business model, supported by a culture that prioritizes client relationships and economic returns. CIBG is specifically structured to provide dedicated banking services and products to its corporate customers through two key divisions. CORPORATE BANKING DIVISION The Corporate Banking Division (CBD) works on a long-term relationship based business model to provide a single point within the bank for meeting all business requirements of its corporate and institutional customers, including public sector enterprises, with the primary objective of enhancing customer service. Askari Banks Corporate Banking Division, we remain committed to providing you with innovative and integrated financial solutions to all your day to day and one time financing needs, as well as offering various products and services to maximize returns on your investments..
SERVICES
1. 2. 3. 4. 5. 6. 7. 8. 9.
Working Capital Facilities Term Loans Structured Trade Finance Facilities Letters of Guarantee Letters of Credit Fund Transfers / Remittances Bill Discounting Export Financing Receivable Discounting
CALL CENTER
Services on real time information for its time-conscious customers, as it will be available anytime-day or night. askari Bank has been one of the leading banks in the country for over a number of years now and has constantly come up with new services for its valued customers; being one of the first to start ATM and Internet Banking services. Striving for further customer satisfaction Askari Bank launched its Call Centre which became an efficient and effective medium to put information at their customer's fingertips. The Call Center provides a single point of contact for all of its customers, yet offer unique and individualized
Following are the services available at Call Center: 1) Accounts or Cards that the customers choose themselves. 2) Balance Inquiries, Account Statements (read out and fax), and Complaint Handling for all sorts of complaints related to the bank. 3) Funds transfer from one account to the other. 4) Utility Bill payments for all utility companies listed with the Bank. 5) Cheque statuses and the facility to block or cancel a card (Debit or Pre-Paid) at any time; to name a few.
ATM Network:
Automatic teller machine askari bank are use the 233 total machines in all pakistan.with the help of this machine We are transfer the Money, Withdraw The Money and can Deposit the money.
Horizontal Analysis
Comparison of two or more year's financial data is known as horizontal analysis, or trend analysis. It is the division of every expense item in a specific year by an identical expense item derived from the base year. Calculation enables measurement of changes in the comparative importance of expense items over the years. Also evaluates how expense items influences changes in sales.
Horizontal Analysis
31-Dec Assets
Cash and balances with treasury
2007
2008
2009
2010
Lending to financial institutions Investments - net Advances - net Operating Fixed assets Other assets Total assets - net of provisions
Liabilities Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 110.70% 470.50% 143.00% 113.10% 119.10% 414.30% 1066.20% -97.30% 194.00% 90.30% 258.00% 141.30% 363.80% 138.10% 157.70% 146.50% 422.20% 1020.60% 42.10% 265.20% 182.80% 366.10% 180.40% 690.90% 128.50% 180.60% 192.90% 422.20% 1099.40% 86.40% 333.30% 163.00% 445.00%
Vertical Analysis
Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part.
Vertical Analysis
31-Dec Assets
Cash and balances with treasury
2007
2008
2009
2010
Lending to financial institutions Investments net Advances net Operating Fixed assets Other assets Total assets - net of provisions
8.00% 9.40% 9.80% 10.40% 3.00% 7.60% 37.00% 23.30% 18.60% 38.40% 57.70% 57.20% 1.60% 2.50% 2.60% 4.60% 4.10% 4.30% 100% 100% 1000%
Liabilities Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinate loans Total Liabilities Share capital Reserves Un appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity 97.20% 2.30% 1.50% 2.40% 103.40% 0.90% 7.30% -5.50% -4.10% 0.80% -3.40% 81.60% 83.80% 81.70% 8.10% 5.00% 7.30% 1.60% 1.30% 0.90% 2.10% 2.30% 2.00% 1.00% 93.40% 92.40% 93.00% 2.80% 2.30% 1.80% 3.00% 2.40% 1.90% -4.10% 1.40% 2.25% 6.10% 6.70% 6.40% 0.50% 0.80% 0.60% 6.60% 7.60% 7.00%
Ratio Analysis
A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.
Financial ratio analysis is used to find the success rates, disabilities, advancements and potentials of a business
RATIO ANALYSIS
Return on Shareholders Equity
Formulas
(100 x Net Profit After Tax) Shareholders Equity
2009
17.0962
2010
20.7706
PROFITABILITY MEASURES
69.3113
68.8620
Profit Margin
37.7878
38.8739
21.5089
24.0065
0.0582
0.0689
Current Ratio
1.1702
1.1875
Debt/Equity Ratio
0.2426
0.2209
Interest cover
3.2585
3.2115
100
100
ASSETS Cash and balance with teasury bank Balances with other banks lending to fianancial instituations Investment Advance Other assets Operating fixed assets Total assets
LIABILITIES Bills payable Borowing from financial instituation Deposits and other accounts Liabilities againt asset subject to fianance lease Other liabilties Deferred tax liabilities Total liabilities NET ASSETS 147 106 108 78 116 0 109 191 52 87 128 22 84 157 123 311 100 100 100 100 100 0 100 100
FINANCIAL ANALYSIS (Ratio analysis, Horizontal & Vertical analysis of the organization for the last five years)
Financial Analysis:
Financial analysis is a process which involves reclassification and summarization of informationn through the establishment of ratios and trend. Financial analysis involves the use of various financial statements. Financial Statements: Financial Analysis involves the use of various financial statements. These statements do several things. 1: Balance Sheet: A summary of a firms financial position in a given date that shows Total assets = Total liabilities + Owner equity It summarizes the assets, liabilities and owner equity of a business at a moment in time, usually the end of a year or a quarter. Income Statement: A summary of a firms revenues and expenses over a specified period ending with net income or loss for the period. Income statement (Profit & Loss Statement) depicts a summary of the firms profitability
RATIO ANALYSIS
Ratio analysis is changing amount comparisons to ratios and then comparing those ratios to a known standard.
The financial analyst checks various aspects of a firms financial health to evaluate a firms financial condition and performance. A tool frequently used during these checkups is a Financial Ratio which relates two pieces of financial data by dividing one quantity by the other. We calculate ratios because in this way we get a comparison that may prove more useful than the raw numbers by themselves.
The Ratio analysis of the Askari Bank for the five years from 2005 to 2009 years is given
below.
FINANCIAL RATIOS
2009 2008 2007 2006 2005 -----------------------------(Rupees in 000)---------------------------Ratio Type Formula
Gross spread ratio NMI/GMI 39.86 % 42.10% Income Expense ratio T.I/O.P 1.07% Return on Equity ratio (ROE) EAT/TSE 7.94% Return on Asset ratio (ROA) EAT/T.A .048% Loan/deposit ratio Loan/Deposits Profit before Tax ratio 7.25% Advance to Deposit (CDR) 65.56% Market Ratios Earning per share(EPS) EAT/TOS Dividend Yield ratio AD/MPS Dividend payout ratio DPS/DE Leverage Ratios Total Equity to Liability ratio TE/TL Capital adequacy ratio(CAR) Return on Assets ratio N.A.T/T.A 2.18% 5.85% 11.75% 0.435% 70.53%
Profitability Ratios
42.64% 1.02% 1.13% 3.06% 22.99% 0.20% 1.54% 1.768% 2.09% 2.51% 15.19% 76.83% 70.46%
0.95% -
6.211% 6.48% 9.22% 9.35% Financial Ratio, 0.183% 1.47% 65.51% 43.98% 38.36%
10.49%
8.48%
10.0%
10.3%
10.1%
30 25 20 15 10 5 0 2009 2008 2007 2006 2005 Return on equity ratio Return on assent ratio
8 7 6 5 4 3 2 1 0 2009 2008 2007 2006 2005 Profit after tax Lon/deposit ratio
Market Ratio
80 60 40 20 0 2009 2008 2007 2006 2005 Earning per share Dividend payout ratio
Leverage Ratio
14 12 10 8 Total equity 6 4 2 0 2009 2008 2007 2006 2005 CAR
Financial ratio
80 70 60 50 40 30 20 10 0 2009 2008 2007 2006 2005 Operating fixed assets Current ratio
Income expense ratio as shows the percentage of expenses so it should be lower Income expense ratio is increased in 2009 as compared to 2006.
ROE measure the return on owners total investment into the business. It should be maximum. ROE has increased from 2005 to 2007 due to increase in EAT while ROE has decreased in 2009 due to decrease in EAT. ROA measure the return of total investment of business. It should be maximum. ROA has similar increasing trend as the ROE because EAT of the bank has increased from 2008 to 2009
Loan deposit ratio are found of loan are divided by deposit we found the L.D.ratio Loan deposit ratio has been the increasing trend due to increase in the banks deposits and advances portfolio. Advance to Deposit are continue to change as camper to 20008 to 2009 this ratio Are decrease and changes are also affect the profitability of bank.
Profit before the taxs are continue change due to change the market and deposit position As we are comper2007 to 2008 this ratio are increase but 2008 to 2009 this ratio are decrease
Market Ratios
These ratios are calculated to analyze the market position of a business.
EPS means Rupees earned per share by the company. It should be maximum. EPS has an increasing trend from 2005 and2007 because of increasing trend in EAT Slight drop is observed in EPS in 2009 Dividend pay out ratio in which annual cash dividends divided by annual earning alternatively Dividend per share divided by earnings per share. The ratio indicates the percentage of a Company earning that is paid out to shareholder out to shareholder in cash Dividend payout ratio are depended by the EAT it the value of EAT are increase then
The dividend payout are ratio is increased in 2005 the because the value of EAT are So good in market value Dividend Yield is anticipated annual dividend divided by the market price of the stock The dividend yield in 2006 in decrease as compare 2005 but if we compare to 2007 they are Much batter,
Leverage Ratios
Leverage ratios used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations There are several different ratios, but the main factors looked at include debt, equity assets and interest expenses. Total Equity to Liability Ratio The total equity to liability ratio is computed by simply dividing the total Equity of the firm by its Total liability.T.E2L.R=Total equity/Total Liability The total equity to liability ratio in this case for the year 2006 is increased as compare 2005 and This ratio are also change from some different reason. but the total equities of the Askari Bank show the constant growth. Capital adequacy ratio(CAR) are increased time to time in 2005 to 2006 this value Is decreased but in2009 this value increased
Financial Ratio
Financial ration is an index that relates two accountanting number And is obtained by dividend one number by the other . Financial ratio needed to evaluate financial Condition and performance and various aspects of a firm financial health. Return on Assets ratio we find out net income after tax are divided by total assets for bank Then we know how much increased the bank assets this value or percentage are increased to2005 to 2007 But in 2008 this value are decreased if we compare 2009 this value are increased Operating fixed assets to average Shareholder fund are change time to time when we are see this value 2005to compare2006 decreased but if we see the this value last 3 year value are increased so we say The asset and share holder value are increased . Current Ratio in which if current assets divided by current liabilities we find out the Current ratio .it shows a firm ability to cover its current liabilities with its current assets .The value of Current ratio are 2005 to 2006 decreased but we see to 2007 to 2009 this value are increased. due to the Deposit and asset value increased.
HORIZONTAL ANALYSIS
HORIZONTAL ANALYSIS OF FIVE YEARS BALANCE SHEET
ASSETS
Cash and balances with treasury banks Balances with other banks Lendings to institutions Investments Advances Operating assets Other assets fixed financial
2009 Rupees in 19,386 8,364 4614 67,046 135,034 9,846 10,036 254,327
2008 millions 16030 3,955 4480 35678 128818 8266 8964 206191
2007
2006
2005
2009
2008
2007
2006
2005
14879 733
8393
28626 99179 3810 3813 166033
LIABILITIES
Bills payable Borrowings from financial institution Deposits and other accounts Sub-ordinated loans unsecured Deferred tax liability net Other liabilities NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit 5,073 7,183 886 13,143 Surplus on revaluation of assets net of deferred tax 1,806 14,949 4059 7667 309 12035 936 12971 3007 6948 2145 12100 166 12266 2004 5815 1800 9619 1434 11053 25% (6%) 187% 9% 93% 35% 10% (86%) (1%) 464% 50% 19% 19% 26% (88%) 33% 30% 11% 27% 18% 2,946 19,300 205,970 5,995 334 4,833 239,378 14,949 2585 15190 167677 2996 13 4759 193220 12971 2627 17553 143037 2997 472 3220 169906 12266 1839 14964 131839 2999 736 2603 154980 11053 14% 27% 23% 100% 2469% 2% 24% 15% (2%) (13%) 17% (97%) 48% 14% 6% 43% 17% 8% (36%) 24% 10% 11% 40% 42% 11% 30% 27% 14% 25%
2006
12597
2005
2009
2008
2007
2006
2005
22,662
18,393
15,143
23%
21%
20%
43%
13,629
10651
8686
6977
28%
23%
24%
63%
9,033
7743
6457
5620
17%
20%
15%
100%
2,324
3825
3920
1128
-39%
-2%
248%
77%
77
7600%
--
--
-103%
--
247
--
--
-100%
100%
--
--
4073
3921
1129
-28%
4%
247%
88%
6,118
3670
2536
4491
67%
45%
-44%
15%
Non Mark-up / Interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as 1,308 1258 1073
163
174
137
538
873
655
144
37
2361
(2)
22
404
343
337
322
18%
2%
5%
56%
2,555
2707
4565
2139
-6%
-41%
113%
38%
6377
7101
6630
36%
-10%
7%
22%
6,996
5904
4789
3277
18%
23%
46%
26%
Other charges Total non mark-up / interest expenses Profit before taxation Taxation Current Prior years Deferred Profit after taxation Basic /diluted earning per share--Rupees
34 7,030
12 5916
12 4801
HORIZONTAL ANALYSIS
BALANCE
Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets Total assets Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Net assets Share capital Reserves Unappropriated profit Surplus on revaluation of assets - net of tax -30 -20 -10 0 10 20 30 40
SHEET
50
Operating assets
fixed
9,846
8266
5129
3810
4%
4%
3%
2%
Other assets
10036 254,327
5535 182172 182172 17553 143037 2997 472 3220 169906 12266
3813 166033 . 166033 14964 131839 2999 736 2603 154980 11053
LIABILITIES
Bills payable Borrowings from financial institution Deposits and other accounts Sub-ordinated loans - unsecured Deferred tax liability net Other liabilities NET ASSETS 2,946 19,300 205,970 5,995 334 4,833 239,378 14,949
REPRESENTED BY: Share capital Reserves Unappropriated profit Surplus on revaluation of assets net of deferred tax 5,073 7,183 886 13,143 1,806 14,949 4059 7667 309 12035 936 12971 3007 6948 2145 12100 166 1226 2004 5815 1800 9619 1434 11053 34% 48% 6% 88% 12% 10% 2% 4% -6% -6% 2% 4% 1% 7% -7% 1% 4% 1% 6% 1% 7%
2009 Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against loans and advances - net Provision against lending to financial institutions
2008
2007
2006
12597
2005
2009
2008
2007
2006
2005
22,662
18394
15143
100%
100%
100%
100%
13,629
10651
8686
6977
60%
58%
57%
55%
9,033
7743
6457
5620
40%
42%
43%
45%
2,324
3825
3920
1128
10%
21%
26%
9%
77
--%
--
--
--
Bad debts written off directly Net mark-up / return / interest income after provisions
-2,915
247 4073
-3921
-1129
-13%
1% 22%
-26%
-9%
6,118
3670
2536
4491
27%
20%
17%
36%
Non Mark-up / Interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities 1,308 1258 1073
163
174
137
538
873
655
144
37
2361
Unrealized loss on revaluation of investments (2) classified as held for trading Other income Total non markup / return / interest income Non Mark-up / Interest Expenses Administrative expenses 404 2,555 8,672
22
(2)
--
0.1%
--
--
2% 15% 35%
2% 30% 47%
6,996
5904
4789
3277
31%
32%
32%
26%
34 Other charges Total non markup / interest expenses Profit before taxation Taxation Current Prior years Deferred 7,030 1,642 562 120 (147) 534 Profit after taxation 1,108 12 5916 461 17 (50) 108 75 386 12 4801 2300 99 (234) (246) (381) 2,681
0.2% 6 3283 3347 984 --113 1097 2250 31% 7% 2.5% 0.5% -0.7% 2.0% 4.9% --32% 3% ---1% 0% 25 -32% 15% 1% -2% -2% -3% 18% -26% 27% -1% 9% 18% 18%
120 Other assets 100 operating fixed assets 80 Advance investment Lending to financial institution Balance with other banks 20 Cash and balance with treasury banks 2009 2008 2007 2006 2005
60
40
120 surplus on revaluof assets unappropriated profit2 80 reserves share capital2 60 other liabilities deferred tax liabilities 40 sub-ordinated loans deposits and other accounts 20 borrowings bills payable 0 2009 2008 2007 2006 2005
100