Monetary policy and banking system play an important role in
the development of all economic fields of the country because necessary finances for
completion of economic plans are provided by them. therefore an organize banking
system and the financial institutions plays an active role in this matter.
The stable an organize banking policy is much effective to improve the level of saving
and consequently the level of investment. The monitory policy is adopted and controlled
by the bank but its success depends upon the cooperation of commercial banks.
availability of the credit is a big problem for LDCs. The shortage of supply of capital
can be improved better and organized banking system because the banks can increasing
the saving through launching the various attractive schemes in various productive
sectors banks also produce credit money and through this way resources are supplied to
productive sectors of the country.
KINDS OF BANKS:
In Pakistan following types of banks are operating in the business circle
These banks are set up on commercial basis. Therefore, their primary
objective is to earn profit And maximize it is far as possible. For this they received cash
deposits from the people in different accounts. They give loans to different business
enterprises and thereby create credit money.
The State Bank of Pakistan is the central bank of Pakistan, Commercial Banks, financial
institutions and cooperative banks are the other components of the banking system.
These banks are provide long term and short term credit facilities to
landlords and tenant farmers.
These banks are medium and long term loans to industrialists to set up
new industries for the extension of industries already in operation.
These banks provides the loans to the people against their moveable and
These banks deal in foreign exchange. They provide credit to importers
and exporters by discounting foreign bills of exchange.
These banks are set up to induce the people to accumulate their small
saving in these banks.
Each country in the world has its own central bank. This bank does
not deal with public directly. This means that it neither receives cash deposits from the
people nor its give them loans. Therefore it is not a profit making institution.
Askari Bank was incorporated on October 09, 1991 as a Public
Limited Company and is listed on the Karachi, Lahore and Islamabad Stock Exchange.
It started its operations from April 01, 1992. The bank was declared as “Best Bank in
Pakistan” in 2001 in Global Finance. The bank’s registered office/Head Office is
situated in AWT Plaza, The Mall, P.O.Box No. 1084, Rawalpindi, (Pakistan).
Askari Bank Limited has expanded into a nation wide presence of over a 100
branches, comprising commercial and Islamic banking branches, connected online and
supported by a network of Automated Teller Machines (ATMs). It also enjoys an
offshore banking unit in Bahrain. Over the years, Askari Bank Limited has proven its
strength as a leading banking sector entity with ever increasing commitment to its
clients, through a strategic investment in electronic technology. It has A1+, the highest
possible credit rating, for short-term obligation, and AA+ for long-term rating. Beside
day-by-day banking solutions, Askari Bank Limited has a wide range of Corporate,
Consumer, and Islamic Banking products.
Askari Commercial Bank Limited was the first bank in Pakistan to offer Internet
banking Services and B2B e-commerce (Business to Business electronic Commerce)
solutions for merchants looking to purchase on credit. They believe that balanced
growth is the key to survive in the today’s global banking environment.
Mission Statement: -
The mission statement of the bank is
“To be the leading private sector bank in Pakistan with an
international presence, delivering quality services through
innovative technology and effective resource management in
a modern and progressive organization culture of
meritocracy, maintaining high ethical and professional
standards, while providing enhanced value to all their
stakeholders, and contributing to society”
We understand that our commitment to satisfy customers’ needs
must be fulfilled within a professional and ethical framework. We subscribe to a culture
of high ethical standards, based on the development of right attitudes. We believe in our
'core values' as the essential and enduring tenets of our organization - the very small set
of guiding principles that have a profound impact on how everyone in the organization
thinks and acts. They have an intrinsic value for us and bear significant importance to all
our employees. They are the few extremely powerful guiding principles; the soul of the
organization - the values that guide all our actions.
The intrinsic values, which are the corner stones of our corporate behavior, are:
“To be the Bank of first choice”
I n s p i r i n g R e l a t i o n s h i p sI n s p i r i n g R e l a t i o n s h i p s
From knowing our customers requirements to understanding employee needs, from
utilizing modern technology to making responsible social contributions, from enhancing
stake-holders value to practising corporate ethics.... We are continuously and
consistently striving to address newer challenges with a single motivation: “the power
to inspire and be inspired”
Ζ Deliver solutions that meet customer’ financial needs.
Ζ Build and sustain a high performance culture.
Ζ Build trusted relationships with all stakeholders.
Ζ Build and manage the Banks’ portfolio of business to achieve strong and
sustainable shareholder return.
Ζ Create and leverage strategic assets and capabilities for competitive advantage.
Ζ To facilitate the bank with modern banking technique.
Ζ To accelerate commercial activities and capture large market share.
Lt. Gen. Imtiaz Hussain
Lt. Gen. (R) Zarrar
Mr. Shaharyar Ahmad
Brig (R) Muhammad
Brig (R) Asmat Ullah
Khan Niazi Director
Brig (R) Muhammad
Bashir Baz Director
Brig (R) Shaukat
Mahmood Chaudhari Director
Mr. Zafar Alam Khan
Mr. Kashif Mateen
Mr. Muhammad Najam
Mr. Muhammad Afzal Munif Director
Mr. Tariq lqbal Khan Director
Brig (R) Asmat Ullah Khan Niazi Chairman
Brig (R) Muhammad Shiraz Baig Member
Mr. Kashif Mateen Ansari Member
A.F.Ferguson & Co.
Rizvi, Isa, Afridi & Angell
Registrar & Share Transfer Office
M/s THK Associates (Private) Limited,
Ground Floor, State Life Building # 3,
Dr. Ziauddin Ahmad Road, Karachi – 75530
P.O.Box No. 8533, Karachi.
Tel : (021) 5689021, 5686658, 5685681
Fax: (021) 5655595
• Mr. Agha Ali Imam- Senior Executive Vice President
• M.R Mehkari - Senior Executive Vice President
• Suhail Ahmad Rizvi- Executive Vice President
• Mr. Nazimuddin A. Chaturbhai, Senior Executive Vice President
• Malik Asad Ali Noon, Executive Vice President
• Mr. Tahir Aziz, Executive Vice President
• Mr. Israr Ahmed, Executive Vice President
• Mr. Riaz Khan Bangash, Senior Vice President
• Mr. Nauman Bashir Khan, Senior Vice President
• Mr. Muhammad Ahmed Khan-Senior Vice President
Product and services:
Personal Finance is a parameter driven product for
catering to the needs of the general public belonging to
different segments. One can avail unlimited
opportunities through Askari Bank's Personal Finance.
With unmatched finance features in terms of loan
amount, payback period and most affordable monthly
installments, Askari Bank's Personal Finance makes sure
that one gets the most out of his/her loan. Once a good
credit history is established, the door to opportunity
opens much wider.
Askari "Mortgage Finance" offers the convenience of
owning a house of choice, while living in it at its rental
value. The installment plan has carefully designed to suit
both the budget & accommodation requirements. It has
been designed for enhancing financing facility initially
for employees of corporate companies for purchase/
construction/ renovation of house.
In pursuance of the National objectives to revive the
economy of the country, ACBL is providing loans to
small and medium size business enterprises under Askari
Bank's Business Finance Scheme. Our goal is to offer a
loan, which enables business community to receive the
financing required by them based on their cash flows.
Our valued customers can enjoy the convenience of
getting financing on attractive terms with the minimum
processing turnaround time.
This personal line of credit would be set up with a
specified credit limit upto Rs. 500,000/-
ASKCARD means freedom, comfort, convenience and
security, so that you can have retail transactions with complete peace of mind.
ASKCARD is your new shopping companion which enhances your quality of life by
Yet another of our products, Askar offers the most
convenient and affordable vehicle- financing scheme,
which provides our valuable customers an opportunity to
own a brand new vehicle of their choice. With minimum
down payment, lowest insurance rates and widest range
of available car makes and models, Askcar offers the
best value to our esteemed customers
letting you do shopping, dine at restaurants, pay your utility bills, transfer funds,
withdraw and deposit cash through ATM anywhere, anytime.
TYPE OF CREDIT CARD.
There are three types of credit cards issued.
i. Silver card
ii. Gold card
iii. Local card
* Silver card has limit upto 2 lac.
* Gold card has limit upto 5-lac.
* Local card has limit upto 2 lac.
Silver and Gold card can be used internationally for shopping and also can be
used for internet shopping.
* Local card can be used in Pakistan.
The range of our products and value added services enhances with
introduction of Rupee Travelers Cheques (RTCs) launched in March 2002. In spite of
our constraint on issuing higher denomination of RTCs against restrictions imposed by
the Central Bank of Pakistan we have been striving to attain our shares with sizeable
Value Plus Deposits
The first liability product launched by this unit is showing a
remarkable acceptability in the market. The growth of this product is witnessed by its
share, which has presently reached at Rs. 1,079 Million even after lowering down the
profit rates due to sufficient liquidity in the market.
FUNCTIONS OF ASKARI COMMERCIAL BANKS
1. Accepting Deposits
Cash in the hand of the people is unsafe because it can be lost. moreover, because some
people lack entrepreneurial talents and therefore do not make investment in any
enterprise, but they want income on the amount of money they have. Bank promises to
solve these problems of people.
Banks receives three types of deposits from the people.
Every bank has learn experience that depositors do not draw whole of their deposits at a
time. They only draw a part of it for day to day transactions. Therefore, a bank keeps a
part of total deposits as “cash reserve” to meet the cash demand of depositors and
advances the remaining part of deposits to businessmen on interest.
A bank gives loans entrepreneurs/businessmen in the following ways:
By Opening a loan account.
By means of overdraft.
By discounting bills of exchange.
By purchasing bonds and securities.
Creation of the safest medium of exchange:
It is neither safe nor easy to make payment in the form of metallic coins or paper notes.
Therefore, payments are made by cheques these days.
A commercial bank performs many services as an agent of its clients
or depositors. It makes payments on order cheques issued by its depositors. It receives
the amount of money on crossed cheques issued in the favour of its clients and deposits
the amount in their accounts.
General Utility Services
A bank provides general utility services to its clients as well, for
example it keeps their precious documents, gold ornaments, bonds and shares etc. in
safe custody in its lockers.
Financing of Foreign Trade.
A commercial bank receives foreign exchange earned by exporters and
makes payment also in foreign exchange in foreign countries on behalf of importers. It
also advances loans.
Departments Of Askari Commerical Bank
DEPOSIT & ACCOUNT OPENING
DEFINITION OF BANKERS
As defined in section 3(b) of negotiable instrument act 1881,
‘”bankers” means the person transacting the business of accepting for the purpose of
lending on investment of deposits of money from the public, repayable on demand or
otherwise, and withdraw able by cheque, draft, or otherwise, and include the post office
savings the bank.
DEFINATION OF THE CUSTOMER:
A customer is the person who maintains a regular bank
accounts without taking in to consideration the duration and frequency of operation of
his accounts it means that the person becomes a customer of the bank as soon as he open
his accounts deposit money in the same and the bank accepts the said deposit.
QUALIFICATION OF CUSTOMER:
He should not be a minor because a minor is not competent to
contrect.according to section (3) of the majority act 1875 a person is deemed to have
attained the age of majority when he has completed the age of (18) years.
He should be a person of sound mind
Section (12) of the contract act says that “the person is said to be of sound mind for
entering into contract if at the time when he makes it he is capable of understanding it
and of forming a rational judgement as to its effects upon his interest.
He should have not been debarred from entering in to any contract under the law.
There is an offer by the customer and acceptance by the banker. The customer offer the
money to deposit and banker offers to accept it.
RIGHTS OF A CUSTOMER
A customer has the following universally accepted rights.
To draw cheques against his credit balance in the account.
To receive pass book or statement of his account.
To sue the bank for the cost, loss and damages, when his cheque is wrongfully
dishonoured by the banker.
To sue when the banker has not maintained the secrecy of his account, except when it is
done under compulsion of law in the interest of the bank or as the duty to public.
DUTIES OF THE CUSTOMER
Section (72) of negotiable instrument act 1881 lays down that the customer must present
the cheques for payment and collection with in the business hours of the bank.
To keep his cheque book under lock and key
To draw the cheques very carefully so that there is no room for any fraudulent additions
To see that the cheque issued by him presented to the bank for payment with in a
OPENING OF ACCOUNT
The banking history is replete with various instances of fraud largely due
to incorrect opening of accounts. These fraud could have been avoided in if the branch
managers and other designated officers had taken due care and exercised required
precautions at the time of opening of accounts.
At the time of opening of accounts, officers should tactfully obtain as much information
as possible about the integrate and character of the person, his correct name, address and
occupation. This infect will be the only opportunity when they will be able to talk to the
prospective customers in a friendly and frank atmosphere. This is the time when they
have a slight edge over the customer. He or she at this point of time is willing to divulge
as much information about his personal status and business etc to the bank manager. It is
therefore necessary that due care and proper procedure be followed for opening different
types of accounts for various types of customers.
Askari commercial bank limited has the following classifications of accounts,
A INDIVIDUALS ACCOUNTS
B PARTNERSHIP FIRM ACCOUNTS
C JOINT STOCK COMPANY ACCOUNTS
D AGENCY ACCOUNTS
E CLUBS, SOCIETIES & ASSOCIATIONS ACCOUNTS
F EXECUTORS AND ADMINISTRATORS ACCOUNTS
H LOCAL BODIES ETC.
J JOINT ACCOUNTS
K OTHER MISC ACCOUNTS
When a customer open an account under the law he enters into a contractual relationship
with the bank.
At the time of opening the account, intended customer must have the following
A He must have reached the age of majority
In term of section 3 of the Indian majority act 1875 (as adopted in Pakistan) a person is
a major if he attain the age of 18 years. However, the age of majority shall be 21 years
in case of European nationals and also where guardian is appointed under the guardians
and wards act.
A person who is under the age specified herein above is considered a minor. in term of
section 11 of the contract act, a minor is declared incompetent to enter into a contract.
As such, any contract with a minor is a void. However , the banks generally allows the
minor to open accounts with a view to inculcate in them the habits of saving. Such
account is opened jointly with their guardian and are allowed to be operated by the
guardian. The guardian for the purpose will sign the account opening from and the
specimen signature card.
B He must be of sane mind
A person is said to be of sane or sound mind it he understands the terms and the
conditions of the contract and is capable enough to form rational judgement as the
effects of the contract upon his interest.
C He must not be insolvent and bankrupt.
At the time of opening the account, he should not be adjudicated as insolvent. Generally
a person is considered as insolvent if his liabilities exceeds the assets he is possessing.
D He must not be debarred under any law from entering into any contract.
It is the duty of the banker to make sure that all above criteria is satisfied before he
allow the opening of the account.
For general guidance of the officers, given below are the essential points that must not
escape their attention while opening the accounts.
WHO DEAL WITH OPENING OF ACCOUNT:
As for as possible the account opening job should be handled by the branch manager
himself. Only in exceptional cases in main branches, the job may be assigned to other
As much relevant information as possible must be elicited from the prospective
customer relating to his means, line and place of business etc.
FORMS TO BE FILLED IN CAREFULLY:
Each and every column of the account opening form should be neatly and correctly
filled in with necessary details.
INTRODUCTION OF ACCOUNT:
Account must be properly introduced. In this concern, the following precautions are to
I As for as possible, the person introducing the account should attend the
personally with the prospective customer. This would serve the dual purpose.
A The branch manager shall have the opportunity of eliciting vital
information as to the standing, respectability and the means of the person he is
B The identity of the customer must be properly established beyond any
Iintroducing from person having doubtful dealing with the bank should be discretely
The staff member generally should not introduce the account. They will introduce
accounts only for those persons who are personally known to them and whose
credentials are absolutely clean.
As for possible, the account opening form should be completed by the prospective
customer in presence of the introducer who is then aware of the particulars furnished
and can corroborate the same.
Specific information concerning the profession should be recorded in the account
opening form. The description private Service’ or ‘Businessman’ is insufficient.
Signature on the account opening form must be put by the customer will attest them
properly in presence of introducer.
No cheque book should be issued to the new accounts are properly introduced.
Account may be opened with cash or cheque. Initial deposits, it is incumbent upon the
Branch Manager to satisfy themselves additionally that title of account holder is genuine
for the cheque deposited. Prudent bankers avoid opening new accounts with cheque.
Letter of thanks should be sent to the introducer the day the account is opened. This
precaution would accomplish the purpose of intimating the introducer that the account
has been opened on strength of his introduction thereby inviting disclaimer if untrue.
A letter of thanks should be sent to the new account holder, preferably through
registered mail, to verify his address.
In the evening, the officer of the branch should visit the customer’s area to establish that
the address given by the customer is correct and the commands respect and honour in
the neighbourhood/vicinity he is living.
Number of the customer’s national identity card should be correctly recorded in the
account opening form and copy of it should be kept on record.
No account should be opened in the name of an undischarged insolvent.
TYPES OF ACCOUNTS
Let us now turn to procedure to be followed in case of each type of accounts.
Such account may be classified as follows:
Accounts of literate ladies and gentlmen.
Accounts of parade observing ladies.
1. In order to open the account for literate people an account opening form, signature
card, form “A”, and an ID copy are required with Rs. 2500 for opening account and he
must fulfil all customer characteristics.
2. In case of illiterate ladies and gents, the following precautions are observed in
addition to those provided in the above guideline.
a) Two photographs are to be obtained one to be pasted on account opening form and
the other specimen signature card.
b) Instead of signature left hand thumbs impression to be obtained on the specimen
signature card from gents and right hand thumb impression from the ladies.
c) Each time such customers should attend the bank personally and will put their thumb
impressions on the cheque before the passing officer.
d) Such customers should be advised not to issue cheque payable to third parties.
e) Cheque should be marked payment in person to ensure even if the cheque is
presented through clearing that particular cheque can only be paid in person
3. When account is opened by more than one person but the relationship between them
is neither of trustees nor partners it would be termed as joint account. Whenever such
accounts are open-end, definite instruction regarding operations on the account and
payments of balance in cased of death of any one of them should be obtained.
4. A person who is under the age as specified above is considered as minor, a minor is
declared incompetent to enter into a contract. However, the banks generally allow the
minor to open accounts with a view to the condition of saving habits. Such account is
opened jointly with their guardian and is allowed to operate by the guardian.
ACCOUNTS OF PARTNERSHIP FIRMS
While opening accounts of the partnership firms, the partnership
deed from registered firms is required obtained in the addition to account opening form
and specimen signature card. The partnership letter is attached with the accounts
opening form, which must also be signed by all the partners of the firms whether
registered or unregistered.
In these accounts, the following points should be remembered.
1. All the partners must sign the account opening form.
2. The names of persons authorised to operate the account must be neatly and correctly
given in the account opening form.
3. For partnership concerns carrying on the business under impersonal name it is
generally described that the title of accounts should show name of the partners or
4. A cheque payable to the firm should not be accepted for credit to personal accounts
of the partners without the written authority of all the partners.
5. The maximum numbers of partners in general business 20 and the minimum is 2 for
the banking firms the maximum numbers of the partners is 10 in Pakistan however
bank can not be opened by the partnership concern
6. Since these are the business concern they will be allowed to open current accounts.
No saving s bank accounts be opened in partnership name.
Partnership account opening required following documents:
1) Account opening form (A.O.P)
2) A.O.P should be duly introduced
3) Copy of N.I.C Of all partners
4) Registration certificate (optional)
5) Partnership deed
6) Rubber-stamp on letterhead of the firm
7) Letter Head
8) Official capacity (It means that all the partners will sign and choose the singe for
operation of account with the bank. And in account opening form the name of the
official capacity is written in special instruction and recommended by all the partners).
ACCOUNTS JOINT STOCK COMPANIES
Joint stock companies include
Private limited companies and
Public limited companies
PRIVATE LIMITED COMPANIES
Private limited companies are those where the share capital is not offered
to the general public instead the offer is restricted to particular class of society or with in
the family members. Generally their share are not transferable. The minimum number of
shareholder is 2 and maximum, is 50 private limited company are not listed on stock
exchanges and therefore their shares are not publicly quoted.
PUBLIC LIMITED COMPANIES:
In this case, the promoters and general public contribute share
capital. Any Pakistani who is authorised to enter into contract can purchase share.
Shares of these
companies are transferable and brought and sold freely in stock exchanges. The
minimum number of shareholder is 10 whereas there is no upper limit.
The following documents are required for joint stock companies account opening.
a). Copy of resolution
While opening the company’s account, the manager must ensure that board of directors
of the company is properly constituted and request for opening the account comes
through resolution of the board of directors. The resolution for account opening should
bear company seal and signed by the chairman of the meeting where such resolution is
passed and counter-signed by the company’s secretary or authorised director must be
submitted to the bank before an account can be opened.
b) A.O.F. duly signed.
c) Memorandum of Association & Articles of Association.
d) Certificate of Incorporation.
e) Certificate of Commencement of Business (only required for public limited
f) National identity cards of directors.
g) List of director with their shareholding.
h) Specimen signature card duly signed
ACOUNT OF PROPRIETOR:
1. A.O.F should be duly introduced
2. Copy of N.I.C of proprietor
3. Specimen signature card duly signed
4. Proprietorship declaration concerns on firm’s letterhead.s
ACCOUNTS OF CLUBS, SOCIETIES AND ASSOCIATION:
Clubs, societies and associations are non-profit and non-trading in nature. They have
their own rules and regulations and committees mention their affairs, which is called
Documents that are required are:
i) Account opening form
ii) Specimen signature card
iii) Resolution to be passed by their governing bodies
iv) Certified copy of rules and regulations or Bye-law
v) Letter of registration
vi) Letter of undertaking to the effect that as and when change take place they will
inform the bank of such changes.
Deposit is the lifeblood of a commercial bank. Main function of a commercial bank
is to enhance the savings from the savers to the ultimate user of funds. The process of
collecting savings is called Deposit Moblization.
FORMS OF DEPOSITS:
Two broad forms of deposits with reference to time period are:
A)Demand deposit: These are payable on demand. They include current account,
sundry deposit (e.g. margin account) and deposit receipt. No profit is given on demand
i) CURRENT ACCOUNT:
ii) This type of account is usually opened for businessman or such persons who
needs deposits and withdrawals facility without any restriction. Introduction
is necessary when opening a current account, the procedure has already been
explained else were in this book and account number is allotted and for
withdrawals cheque book is issued and a statement of account is provided so
that customer can reconcile his account with his own record.
No interest return is paid on such account is Pakistan, This account can be
opened with Rs. 500. Banks usually recover service/incidental charges on current
the required minimum balance is not maintained. Or when the maintenance of the
account becomes expenses e.g. For example too many transactions take place on
summing a large number of chequebooks and other stationary not consistent with the
ii) CALL DEPOSIT RECEIPT:
It is a contract for a specific deposit transaction and is used as a security for bidding
etc. It is non-transferable and is payable only to beneficiary or purchaser.
iii) SUNDRY DEPOSIT -MARGIN ACCOUNT,
At the time of issuance of LG / LC or acceptance the party is supposed to deposit is
kept in an account called sundry deposit. Margin account Similarly, at the time of
allotment of locker the locker holder is supposed to deposit a certain sum as security,
which is kept in sundry deposit account.
FEATURES OF MARGIN/SUNDRY DEPOSIT ACCOUNT.
ϕ Reduces risk/exposure.
ϕ Free of cost deposit enhances profitability
ϕ Respective accounts are opened.
ϕ Non checking account- rather customer has no approach to this account. As far as
operations are concerned
ϕ It relates to the liability L/C, L/C acceptance and is adjusted when liability is
B)TIME DEPOSIT: Payable on demand with certain maturity. Attracts profit
with respect to time.
PLS Saving accounts
Return p.a. %
0.25% Monthly Daily
Return p.a. %
Rs 10,000 2.00% Monthly
maturates Askari FISDA (ASDA)
Special notice time deposits are of two types: i account
Askari Special Deposit Account.e. 7 & 30 days notice.
All TDRS (term deposit receipt) of different, maximum one year.
ϕ SAVING ACCOUNT (INTEREST BASED SYSTEM)
As the name denotes savings accounts are basically meant for mobilizing
saving of people. In the interest based system a saving account could be opened with
only Rs. 2500 for new persons but regular customer’s saving account can be opened
with Rs. 500 for single individual or for two or more individuals jointly, charitable
institution, provident or other funds of benevolent nature for local bodies, autonomous
corporation, companies, associations, educational institutions etc.
CLOSING OF ACCOUNTS.
It is the prerogative of either party to the contact i.e. the banker or the customer whether
to keep the account with a particular bank or close the same without assigning the any
reasons. A customer generally uses this discretion.
• When the particular branch becomes out of the way or too far from his place of
• The purpose for which the account was opened has been served.
• The bank branch is unable to give him certain credit facility that he requires.
In such a case the customer should surrender the unused chequebooks to the bank and
withdraw the balance lying to his credit after informing the bank formally.
Bank may also closed the account of the customer after notifying the banks intention
and giving him a reasonable time to make arrangement to have his cheques in
presented for payment before the notice period expires. Closing of customers account
warrants a proper Notice determining the contractual relationship. Following are the
reasons by which bank can close the account of customer.
a) By frequently drawing cheques much in excess of the balance in his account which
are return unpaid.
b) By introducing accounts of parties, which becomes undesirable in cause of time.
c) By frequently contravening the Rules for operation on the account.
d) By making himself aggravate during his visit to the banks branches and picking
quarrel with the staff unnecessarily.
ACBL also offers the facility of lockers of three type to it customer to offer
Types Size Annual rent (Rs) or Refundable
Small 6 inches x 2feet 1,000 15,000
Medium 12 inches x 2feet 1,500 20,000
Large 2 feet x 2feet 2,500 35,000
Key deposit is Rs 1,000 per locker.
In the case if customer lose the key of locker then breakage fee will be charged about
Rs. 2,000 per locker plus actual charge of supplier of locker.
DOCUMENTS REQUIRED FOR LOCKER OPENING:
⌠ Locker opening form
⌠ Specimen signature card
⌠ Copy of NIC
Applicant should be account holder in the bank.
Clearing is a system by which bank exchange cheques and other negotiable
instruments drawn one each other within specified area and securing the payment for
their clients through the clearing house. A clearinghouse is an organization where these
cheques are brought and the mutual claims of each bank on the other are offset ad
settlement is made by the payment of difference. The responsibility of operation for the
clearinghouse function lies with the state bank of Pakistan.
The function of clearing can be understood with the help of a simple example.
Every bank has its account with state bank of Pakistan. Suppose on of the account
holder of ACBL brings a cheques of habit bank of (Rs 7000/-). Now in state bank of
Pakistan the representatives of both banks will appear for clearing physical payment of
cash is not made, but our banks (ACBL) account would be reduced by RS. 7000 and
increased by Rs. 10,000 the reverse would be true for habit bank limited the clearing
may be “for” or “against” if our bank’s A/C in sbp contains a net debit balance then it
would be for and if credit balance then it would be “against” clearing.
COLLECTION OF CHEQUES;
These cheques may be drawn on UBL HBL, or MBPor other banks of
Pakistan. The clerk collects all the cheques of different banks and prepares schedule for
them. Representatives of all banks will receive the cheques related to their branch either
issued by its branch or other banks. If bank transfers funds in the same city, it is called
IBC “INWARD BILL OF COLLECTION” and if bank transfers funds to another city
when it is called OBC OUT WARD BILL OF COLLECTION. Bills are of 2 types
Clean and documentary clean bills include finance instruments and documentary
includes documents attached with goods.
ADVANTAGES OF CLEARING:
Systematic arrangement for collection and clearance of cheques.
Speedy and economic collection and clearance of cheques.
Clearance of cheques and other instruments of different branches of different
banks in a systematic manner without any flaw and mistake.
The collection and clearance of Govt. bills, instruments, and cheques.
The collection of Govt. revenue through cheques, pay order and drafts payable
through the State Bank of Pakistan and National Bank of Pakistan.
It avoids the difficulties and cumbrances to be faced by the branches if they
collect the instruments directly from branch to branch.
Confidence among the clearing members is produced.
When the customer deposits cheques and other instruments of other
banks for collection, we send the cheques in outward. Clearing.
cheques are received duly entered on pay-in-slip.
Counter foil is returned to customer after signatures.
Crossing stamp is fixed on the cheque.
Clearing stamp is fixed on the cheque and pay-in-slip.
Clearing stamp with next date is fixed on the cheque and pay-in-slip.
Endorsement stamp is fixed on the reverse of the instruments.
In the clearinghouse the representatives of all the banks gather and
exchange their instruments. They enter the total amount of cheques delivered and
received in their summary sheets. The total of schedule received tally with the total of
Clearing cheques received from other banks are sent to branches which will clear the
cheques and instruments to respective amounts. Some cheques are returned un paid with
the reasons mentioned in the cheques return memo.IBCA for net amount is sent to main
In the 2nd house clearing cheques are return and exchanged by the representative of the
banks. A summery is prepared for cheques received and delivered and net position is
ascertained. Amounts are settled through SBP accounts.
After cheques are returned, the main branch sends IBCAs for net amount to the
branches. Computer entries are made for (-) credits for returns and debits to main office
In clearing house the cheques received from other banks are collected & sent to
branches for their payment.
Crossing stamps, clearing stamps and endorsement are checked.
Crossing stamp other than collecting bank is cancelled.
Cheques & instruments are posted to the debit of respective accounts.
Any instruments returned un-paid shall be returned in the second session of the
clearinghouse i.e. 2nd clearing.
Cheques & instruments if un-paid are returned along with return memo.
IBCA,s for net amount is sent to the main branch.
FOR O/W CLEARING:
Dr. Suspense A/C clearing.
Cr. Customers A/Cs.
FOR I/W CLEARING:
Dr. customers/Cs clearing(for return)
Cr. suspense A/C clearing (1/W clg)
This is the arrangement by which instruments of the branches of the same bank with in
the city are collected and cleared.
OUTWARD TRANSFER DELIVERY:
The system is just like outward clearing.
In outward clearing branch wise schedule are prepared.
The clearing instruments are presented to the branches through main branch of the city.
This is more effective & speedy process as compared to LBC because fate is received
PROCEDURE OF O/W TRANSFER DELIVERY:
The customers deposits cheques & instruments of the branches of ACBL at Lahore
along with pay-in-slip duly filled in.
Crossing stamp is fixed on the instruments.
Transfer delivery stamp is fixed for next date.
Endorsement stamp is fixed on reverse of the instrument.
Payee’s A/C is credited
Askari Commercial Bank Ltd
Badami Bagh Lahore.
INWARD TRANSFER DELIVERY:
Cheques drawn on the branch are received with the schedule. The
entries are made in the I/W. TD register and balanced with the summery of T.D.
cheques are debited to respective account and cheques which are not passed returned
with the objection memo.
The IBCA is sent for the net amounts for cheques passed.
When the customer deposits the cheques in the branch drawn on the account in the same
branch. The cheques are received along with the pay-in-slip. The amount is transfer
from the account where the cheque is deposited and credited to the account where it is
SBP conducts special clearing when clearance of special Government revenues is
Government cheques. Pay order treasury cheques are cleared and paid.
Remittance department plays an important an important role in transfer of
funds; it includes DD, TT, MT, TC and pay order.
It is an instrument payable on demand for which value has been received issued by the
branch of the bank drawn i.e. the payable at some other place (Branch) of the same
TRAVELLERS CHEQUES (TC):
TC (traveller’s cheques) is for all branches with no charges. We give the
money in cash/cheque/direct debit instructions to the banker and he gives in return the
slips of Rs.10,000, Rs. 25,000, Rs.50,000, Rs.100,000, Rs.500,000 which is required.
Now government has made some restriction against TC because people have stared it to
use in place of money. There are no charges of any type such as postage, taxes,
TELEGRAPHIC/MAIL TRANSFER (TT/MT):
This is an instrument that is use to transfer the money from one branch to
other branch of same bank through bank. The person known as payee, for whom TT is
TT is only paid to him after seeing his ID card. TT has been made on following modes
1. On cash.
1. On cheques.
2. Through debiting account no.
After issuing TT it is get registered in issuing register. Which required TT/MT no. payee
name and address, amount, account no.(if through account payment has been made),
cheque no.. Along TT/MT an advice also be send to other branch from where money
be drawn, that advice is called telex message. On the basis of which the other branch
will pay the money after tallying serial no. and test no. of TT.
TT is made if the client has account in the bank if he has no account then he has to
fill the TTR (telegraphic transfer receipt) which is a voucher for the official record in
bank. Its form is of blue colour. In DD the person has to take care of DD which is issued
Demand Draft (DD):
The demand draft (DD) is issued to the person who want to
draw money from another branch in any other city, then by showing that draft he can
easily draw money if he has account there. Demand Draft is issued by one branch of
bank payable to other branch of the other bank e.g. DD is issued by ACBL payable by
The person who pays the value and on whose behalf draft is issued is called purchaser.
The Branch/Office which issues a draft on another branch or office is called the
The Branch /Office on which draft is drawn is called the drawee branch. The person
entitled to receive the payment is called the payee.
DD also has been made on three modes of payments.
1. On cash.
2. On cheques.
3. Through debiting account no.
ISSUANCE OF DD:
Request shall be on the standard DD application form.
Fill in all information such as name of beneficiary place where the DD is drawn,
amount, mode of payment cash/cheque /debit authority signature with name and
Check the application form.
Charge commission as per schedule of charges.
Get voucher from cash department. After the customer has made payment by cash
Prepare the demand draft (Security Stationery)
The issuance of DD is computerised and the amount is automatically protected
graphed during printing for avoidance of forgery.
Entry is then made in DD issued register, in the DD issued register separate folio is
allotted for each draw branch and a serial control number is applied.
After issuance of DD, an advice is send to the branch from where client wants the
money to be drawn, which confirms the DD. In this aspect cantra is another concept,
which is followed in the branch where money is transferred. Payment of DD takes place
in two ways:
1. If advice reach the other branch before the draft then that branch debit the H.O of
bank and credit client.
2. If draft reach first then bank open the temporary account called suspense account or
red account through which amount is debited for the satisfaction of client and credited
the H.O of bank when that branch receives the advice than it debit the H.O of bank and
credited the suspense account.
There are postage and commission charges.
CANCELLATION OF DD:
• Obtain application in writing along with original DD.
• Verify the signature of applicant. This signature should tally with signature on DD
• Mark cancellation in DD issued register.
• Payment from suspense account DD cancelled after recovery of cancellation
cheques as per current schedule of charges.
• Inform the drawee branch regarding cancellation and ask for IBCA.
• On receipt of IBCA adjust amount paid out of suspense account.
Lost/Stop Payment/Issuance Of Duplicate DD.
• Get application from purchaser and verify the signatures.
• Inform the drawee branch of the loss of DD and advise them to mark caution against
payment if presented.
• After necessary checking, the drawee branch will inform us about the status of DD-
whether it has been paid or is still outstanding.
• Write on the face of duplicate DD in red ink “Duplicate in lieu of original DD.
no.____ dated ____ reported lost”.
• The duplicate DD will have the same control number.
• The printed number and serial control number of DD issued shall be mentioned on
the application form.
• Signatures of two attorney holders with their attorney number should obtained on
the DD. The 2nd
signing officer must check all the particulars before signing.
The postage rate is fixed Rs.25and commission rates are as following:
Pay order is also called “banker’s cheque” drawn upon
the issuing branch/Office itself. It required account no. and other information
about client which mean cross payment is its restriction.
• Get the application form. Issues pay order after recovering charges.
• Do necessary vouchering. Make entry in PO issue register.
• All pay orders shall be crossed “payee’s account only”.
• It may be noted that IBCA is not involved because PO are payable in same
CANCELLATION OF PO:
• Application for cancellation. Surrender of original pay order. Recover cancellation
LOST AND DUPLICATE PAY ORDER.
Check the record to ensure that payment has not been effected. Get application for
issuing of duplicate PO. Recover charges. Issue duplicate pay order.
The banks for settlement of its own payment issue pay slips. There is no excise
duty and no commission.
“ C r e d i T D e p a r t m e n t ”
“The major source of bank’s income
Credit department is most important department of bank to earn her income by lending
money to other at different rates as compare to that deposit interest rate.
Normally, bank takes money from depositors at rate X and utilize those
funds by advancing them at X+1 rate, so X- (X+1)=1 this 1 is the income of
the bank. If we say that bank is body then credit is blood of that body. It
generates revenue for the bank so credit decisions are to be carefully
Different departments are working in SBP to monitor credit.
* BCD.................. Banking control Department.
* BSD.................... Banking supervision Department.
* BPRD ............... Banking policy and regulation department,
Commonly operations regulate credit size, sector and bank. Credit line is given to banks
finance the purchase of crops after every six months .
NATIONAL CREDIT PLAN:
Every year economic survey is made and with the help of this survey government
patronize certain sectors and also advise banks to give more loans in these sectors.
According to this year the agriculture sector is the target for financing.
CREDIT REGULATION 1992:
In 1992, certain regulation are made by SBP for credit advancement:
⌡ Bank cannot lend more than 10% of its reserves.
⌡ No bank can lend to its directors.
⌡ No bank can finance its own shareholders.
⌡ If bank finance to other bank’s shareholder than it has to take permission from SBP.
⌡ Bank has to handle its suspense liabilities within 30 days.
⌡ Advances ratio should not exceed 65%.
Bank should check the current ratio of the customer.
PROCEDURE FOR TAKING LOANS:
For taking loan first credit line proposal (CLP) is made. In a CLP there are different
types of documents:
ϕ Application form
ϕ Credit information
The customer requests the application form from the bank for the loan. Some documents
are also attached with the application, which are of two types:
• Permanent Information Memo
• Charge Document
• Permanent Information Memo:
These are the documents in which there are permanent information of customer and
Charge document is made for the security purpose. These document are sign by
borrower. Purpose for sign is that if the borrower does not pay the loan in a certain
specific period of maturity then these documents can be shown in a court against him.
For the satisfaction purpose bank also take credit information about the party.
Credit information is taken from the Credit Information Bureau (CIB). This type of
information is taken when loan of huge amount is taken, above 5 million. Clearance
report is checked.
All these documents are arranged in a file. This file is called credit line proposal. Every
loan is sanctioned after the preparation of CLP.
DISCRETIONARY POWERS OF ADVANCES:
Up to certain limit each level can give orders of advancing loan but for the bigger
amount branches have to take permission from upper level of authorities.
Credit sanction advice move through these levels.
B ra n c h c re d it
c o m m itte e
A re a o ffic e c re d it
c o m m itte e
H e a d o ffic e c re d it
c o m m itte e
E x e c u tiv e c re d it
c o m m itte e
B o a rd o f d ire c to rs
TYPES OF SECURITIES
Normally loans are of two kinds.
i. Clean loans.
ii. Documentary or secured loans.
In clean loan no tangible securities are taken from the customer. But in secured loans
tangible securities are
Different kinds of secure securities are
• Deposit with bank.
• Deposit with other banks.
• Government securities.
• Account receivable /notes receivable.
• Moveable /immovable property
Fixed assets are hypothecating, Pledging or mortgaging. In these three cases tittles
charge and control varies among bank and the borrower
Type Title Charge Control
Borrowers Bank Borrowers
Pledge Borrowers Bank Bank
Mortgage Joint Bank Bank
GOOD LENDING PRINCIPLES.
There are five good lending principles, which are kept in mind while considering a
Lending must be safe enough and given to one who already has the ability in the form
of cash flows to show and for this purpose some liquidity security should be pledge.
Lending must fit into the plan and loans are given to a business a growing industry.
Business cycle should be complete in one year. The credit will be refunded in liquid
form and for debt security bank consider most liquid security.
Loans should be given in diverse sector and should not be concentrated just to one
sector to maintenance balance growth of economy.
Lending must be remunerative and ultimate goal is to maximize the profit.
We know higher the risk higher the return but risk must be carefully evaluated.
There are five Cs, which should be considered.
Normal and social character of an individual or organization should be good. He should
not be involved in any illegal and unethical business like smuggling or black-
Borrower must have the capacity to take the loan and repay that loan.
There must be regular cash flows of business because liquidity is important for refund of
Transaction must be secured by collateral. The applicant should have such amount of
asset that can be used as security of credit he has taken from bank.
Different conditions are important to minimize the risk of lending mostly these
conditions are two kinds.
These conditions relate to industry and country environment.
• Positive condition: Bank does not restrict the applicant to do something but it
demand for some paper to be signed.
• Negative condition: Bank restrict the applicant to invest this credit in pre-specified
TYPES OF LENDING:
There are two types of advances:
A. Funded finance
B. Non-funded finance
A. FUNDED FINANCE
In a fund base loan cash are involved. In these loans cash transaction are made
directly. Fund based loans are further divided into five types:
1. Running finance
2. Cash finance
3. Term finance
4. Staff finance
5. Clean finance
6. Mortgage finance
7. Trade finance
1. RUNNING FINANCE
This is also known as current finance or hypothecation. Per day mark-up is a
charge but customer is flexible to draw within the drawing power. Hypothecation of
stock is the prime security. In running finance amount is mentioned clearly. Mark-up is
on the amount that is drawn not on full amount. Previously this is known as
“overdraft”, in which customer can withdrawal his credit account in excess of credit in
2. CASH FINANCE
This is just like in running finance the only distinction in this case security is
stock pledged form and the security margin is also charged. Chequebook is not issued.
Cash flow must be regular one.
Bank issues delivery order if the borrower wants to draw stock equal to money
deposited by customer.
3. TERM FINANCE
Its time period is fixed. Amount and mark-up rate is mentioned. Mark-up is
charged on the full amount of loan because amount is withdrawal at once. Term finance
is secured by security. Credit should be given according to the security. It is more
profitable than running and cash finance because mark-up is charged on whole amount.
There are some cases when long term finance is also provided, these are:
* Existing plant is in running and expansion in it is needed
* To running plant for replacement of machinery
* To running plant for modernization
4. STAFF FINCNE (PERSONNEL)
This facility is given to the staff of ACBL. The amount of loan depends upon the rank of
* OG iii to OG I the amount of loan is Rs,25,000
* Above OGI up to SVP Rs.50,000.
* And above SVP Rs.100, 000
Repayment period is 2 years and instalments are deducted from salary. Mark-up rate
is 5% no security is needed it is against GP fund. The eligibility is 2 years or more
5. CLEAN FINANCE:
These are the special types of finance is given without the security. In the ACBL
these type of finance are given to the Army officers mostly. The amount of this finance
is Rs 25000. The bank should not be given more than Rs. 25000.
6. MORTGAGE FINANCE
This I also transacted through Retail Banking Division. as a security simply the
mortgage of property is demanded by the bank. this is for three purposes;
* Purchase of house
* Construction of house
* Renovation of house
This facility is for individuals. Repayment period is 15 years for construction and
purchase of house and for renovation 7 years subject to remaining service. The mark-up
is SBP discounting rate 4% plus with a floor rate 15%. Total service of the applicant
should be 3 years and minimum 2 years with the existing employer. no complicated
procedure only the recommendation of the employer is needed.
8. TRADE FINANCE:
There are two kinds of the trade finance.
1. Import related finance
2. Export related finace
1). IMPORT RELATED FINANCE:
There are two types of import related finance:
⌡ Finance against trust receipt (FATR)
⌡ Finance against imported merchandise (FIM)
⌡ Payment against documents (PAD)
In this type of finance cash is involved between borrower and bank only. This type of
loan is given on the basis of trust only. This type of finance is very risky, so the bank
charges high interest rates. FATR finance is given to selective persons. The can put
signee behind the bars without going to court after 180 days purchase good from
Importer says that he has no money and wants to import goods. Bank then opens LC
and pledge all the imported goods. After arrival of goods bank allows him to take away
goods as he pays to the bank and charges mark-up to the remaining balance. It is like
If the importer does not pay with in 3 days of arrival of good then bank converts LC into
funding facility and charges mark-up .
2). EXPORT RELATED FINANCE:
There are two types of export finance.
1. FAFB (finance against foreign bills)
2. FAPC (finance against packing credit )
2a. Pre-shipment finance
2b. Post-shipment finance
This is provided in case of usance LC. The exporter discounts usance LC with bank and
bank after taking cushion (check) makes payment.
This type of finance is given for the packing purpose. It can be before shipment for
purchasing raw material and for packing of shipment and after shipment, for giving the
salary of labours and payment of raw material.
B. NON FUND BASED
It is the commitment and does not involve hard cash. It is normally an obligation of the
bank and in case of default of original borrower the bank stands responsible. In this type
of facility bank asks the applicant for cash margin and for mortgage of property.
Because even though no funds of bank involve but this facility is as risky as funded
finance. But it
is very lucrative for bank because no funds of bank are involved but bank charges and
interest on the cash margin by head office generates revenues for bank.
TYPES OF NON_FUNDED FINANCE:
There are two types of non-funded finance.
1. Letter of credit (LC)
2. Letter of guarantee (LG)
1. Letter of credit:
There are two types of LCs:
ϕ Usance LC
ϕ Sight LC
It is the LC in which the time period is involved. Time period is 60, 120, 160, days.
Bank makes the payment of LC when they received the documents, like transport
receipt and invoice.
It is the LC, opposite to usance LC, in which payment to the exporter is made on the
sight of documents.
LETTER OF GUARANTEE.
Banks issue guarantees when contract is made between two parties. It requires no
prime security and only collateral security is taken. The amount of guarantee to be given
is calculated after valuation of assets of applicant, which he/she wants to give as
collateral. 70% of total property is taken as FORCED SALE value of the assets and
after taking 25 %security margin on forced sale value the guarantee is given for
remaining value. Normally 25%cash margin is also taken for guarantee. This margin
may vary according to the credibility of the applicant. No mark-up is charged but
commission is taken. The rates for commissions are:
* Up to 5million . 4% or minimum Rs 500.
* 5m-10m . 3%
* 10m-200m . 25%
* over200m .2%
* .125% is charged to Govt. and semi-Govt. Organizations
This commission is charged quarterly.
TYPES OF GUARANTEE
Most of the guarantees are given in case of contracts. Guarantees are
allowed for the purchase of fertilizers and for travailing agencies to PIA.
Following are the major type of guarantees:
1. BID BOND
Banks give commitment for a bid. Normally 5 % contract amount is kept as bid security
to qualify bid. Now bank gives guarantee to beneficiary on behalf of applicant for this
amount. If bid is accepted then contractor asks the bank for ADP.
2. ADVANCE PAYMENT GUARANTEE (ADP)
Bank gives this guarantee to beneficiary to provide the contractor the advance payment
because he now has to start work.
3. PERFORMANCE BOND GUARANTEE
That the contractor will perform the task assigned with in the specified period of time.
4. SHIPPING GUARANTEE
This type of guarantee is very rare and given it at 100 % margin.
Foreign exchange is one of the important departments of ACBL. It deals with foreign
currency and foreign exchange. In a foreign exchange department ACBL deals with
Account opening, Withdrawal, deposits and remittance.
There is two type of account opening in foreign exchange.
1. Frozen or Old scheme accounts
2. Incremental or New scheme accounts.
FROZEN OR OLD SCHEME ACCOUNTS:
This type of accounts was frozen on 28, May 1998. In frozen accounts, account holders
can withdrawal their amounts only in Pakistani currency. Account holder cannot
withdrawal their amount in foreign currency.
INCREMENTAL OR NEW SCHEMEM ACCOUNTS:
A new scheme was introduced by SBP for foreign currency accounts. In this new
foreign currency account, account holder is allowed to open an account in foreign
currency. Deposit and its withdrawal both can be done in foreign currency. There will
restoration on foreign remittance. Deposits of foreign currency are easily transfers for
State bank of Pakistan does not charge forward coverage fee on new scheme
accounts. But the SBP charges forward coverage fee on the old account because
Pakistani government holds deposit in these accounts. In the ACBL foreign currency
account deposits are also reported in a local currency. Foreign currency deposits are also
revalued at the end of each month. Revaluation rate is announced at the end of each
TYPES OF SERVICES IN FOREIGN EXCHANGE:
ACBL provides two types of services in foreign exchange.
_ Trade Related services
_ Travel Related services
TRADE RELATED SERVICES:
ACBL provides two types of trade related services.
1. Export related
2. Import related
EXPORT RELATED TRADE SERVICES:
Export means transfer of goods and services from the home country to another country.
There are four methods of payment, that is used in a export trade services.
ϕ Cash against documents collection (CAD)
ϕ Foreign bill purchase
ϕ Consignment sale basis
ϕ Advance payment
CASH AGAINST DOCUMENTS COLLECTION (CAD):
In CAD there is no guarantee and liability of the bank. Bank of the exporter will send
shipping document to the advising bank. Then the importer’s bank transfers the
documents to the importer after the payment is received. After completing the assurance
that payment has been received than the exporter’s bank makes the payment to the
FOREIGN BILL PURCHASED:
In this mode of purchase importer will send LC to the advising (importer) bank.
After receiving the LC the advising bank will give it to the exporter. After the
shipping of goods, exporter will hand-over shipping documents to negotiating bank
and they will receive payment from the negotiating bank.
CONSIGNMENT SALE BASIS:
In this mode of payment, payment is received within 120 days. Importer will receive
the goods after paying the custom duty. The importer makes the payment when he
receives the sale proceeds and after the attestation of the sale proceeds receipt from
Advance payment means payment of the goods before they are delivered to importer. In
the advance payment inward remittances are transferred from the foreign bank to the
IMPORT RELATED TRADE SERVICES:
Import is receiving goods and services from the foreign country to home country.
Four modes of payment are used for imports:
1. Cash against documents (CAD)
2. Deferred payment
3. Advance payment
4. LC documentary credit
1. CASH AGAINST DOCUMENTS (CAD):
Bank of the exporter will send shipping document to the advising bank. Then the
importer’s bank transfers the documents to the importer after the payment is received.
After completing the assurance that payment has been received than the exporter’s bank
makes the payment to the exporter.
2. DEFERRED PAYMENT:
In this mode of payment, the important thing is the mutual concern of exporter and
importer. In this case the seller shipping the good and the buyer makes the payment with
a mutual understanding.
3. ADVANCE PAYMENT:
In this mode of payment the seller receives advance payment of his goods. The
buyer can also take discount benefit for his advance payment. The seller takes the
benefit through investing advance in the preparation of goods.
4. LC DOCUMENTARY CREDIT:
LC means letter of credit. The opening bank on the behalf of the applicant writes
letter of credit in the favor of beneficiary. This letter of credit is written for a
specified amount against the submission of shipping documents. Applicant requests
for the LC through bank, which is called LC opening, bank. In this case beneficiary
is exporter and applicant is importer. Other parties of LC are:
Advising bank is the bank of importer. Its duty is to transfer LC documents to the
Negotiating bank is the bank of exporter country bank. It makes the payment to the
exporter for his goods, which he exports to the importer.
Reimbursing bank is the foreign bank. This is a bank, which has the Nostro
Accounts of the ACBL. The duty of this bank is to make the payment to the negotiating
Askari Bank has a progressive and a dynamic human resource (HR) philosophy. The
Bank believes in transforming its human capital into a key source of competitive
advantage. The Bank believes that investment in human capital is critical for achieving
and sustaining growth.
Nature of Strategic Planning in Askari Bank
Askari Bank is trying to achieve Business Level Competitive Strategy, which will help
them in strengthening the business’s long-term competitive position in the market
place. The Bank is using Human Resource as a strategic weapon, which will help
them in achieving short term as well as long-term objectives.
Importance of Human Resource Division of Askari
“Our staff is our most valuable asset”
That’s why Staff is given on the job as well as site training in diverse areas of banking
and management. Fifty two in house courses were organized during 2001 in Askari
Bank for training the employees.
The HR manager says that we are committed to provide a healthy
environment, culture, job satisfaction, opportunity and compensation that attracts
and retains outstanding individuals.
Askari Bank value a work place where:
• People are promoted on their merit rather than on their tenure.
• People treat each other with mutual respect and dignity.
• People truly feel that no matter how large we grow, each one of us can make a
• No discrimination among the male and female employees.
HR Head’s Responsibilities;
Human Resource Division of Askari Bank was successful in implementing:
1. Staff Hospitalization Plan;
2. Staff Transport Finance Scheme;
3. Medical Leave of Absence Facility;
4. Privilege Leave of Absence Encashment;
5. Enhancement in Staff House Finance Limit;
6. Insurance of House Finance;
7. Increment in Salaries Up to 15%;
8. Rationalization of Pay Scales;
9. Performance Appraisal System;
10. House Rent Facility.
JOB ANALYSIS AND DESIGN:
Provide information about jobs currently being done and the knowledge, skills, and
abilities that individuals need to perform the job adequately
Steps In Job Analysis.
1. Understand the purpose of job analysis.
Managers do the job analysis and assign responsibilities according to the caliber
and skill of the employee.
2. Understand the role of the job in the organization.
3. Benchmark positions.
4. Determine how to collect job analysis information
Managers collect the information through Observation, technical conference.
5. Seek clarification.
6. Develop draft.
7. Review draft with supervisor
JOB DISCRIPTION, JOB SPECIFICATION
Service manager according to the skills capabilities personality communication skill
confidence level has designed Job description.
Statements indicating the minimal acceptable qualifications incumbents must
possess to successfully perform the essential elements of their jobs. In which
includes the knowledge, skills, education, experience, certification, and abilities
need to do the job effectively.
Askari Bank mainly focuses on the communication and confidence level of the
candidate as skill can be updated.
Recruitment is the process of searching for prospective employees and stimulating them
to apply for jobs in the organization.
Askari Bank believes that by bringing together our collective expertise, insight, and
professionalism, we will grow individually and succeed collectively.
if you want to work for us, and have the right capabilities and experience, our
process will ensure that all candidates are provided with equal opportunities to secure a
• Entry level fresh Induction:
At this level, fresh graduates are hired normally in officer cadre of the bank
ranging from OG–III to OG–I.
• Management Trainee Officers:
A special batch of qualified, energetic, high caliber and qualified young with
good academic records is also hired as Management Trainee Officers (MTOs) on
annual basis with an aim to nurture high-talented lot of future
executives/managers for the Bank.
• Hiring of experienced professionals:
At this level, experienced and skilled professionals are hired normally for Senior
ROLE OF HRD IN RECRUITMENT PROCESS:
HRD of Askari Bank is responsible for designing the selection system and
managing its everyday operation.
Recruitment of employees, in general the sources of recruitment can be
classified into two types.
i) Internal Job Posting:
Filling a job opening from within the firm has the advantages of stimulating
preparation for possible transfer, or promotion and increasing the general level of
ii) External Job Posting:
Askari Bank also goes to external sources for positions whose specification
cannot beam by present personnel. Askari Bank uses following outside sources.
• Employment Agencies:
• Casual Applications:
THE HIRING PROCEDURE FOR NEW/FRESH EMPLOYEES.
RECRUITMENT PROCESS (FRESH/ BATCH PROGRAMS):
Our selection processes differ from position-to-position, and are designed to
effectively match an individual’s knowledge, skills, interests, and experiences to those
needed for a particular position.
THE HIRING PROCESS:
In the hiring procedure, Askari Bank is following steps to discover significant
information about an applicant.
1) Call for application
2) Preliminary interview
3) Applications blank
4) Check of References
5) Psychological lest
6) Employment interview
7) Approval by the supervisor
8) Physical examinations
9) Induction or orientation
INTERVIEW ASSESSMENT FORM
Job Title: ___________ Trade:
_____________ Department: ___________
Name: ___________ Age/DOB ______________App.
Place of Domicile: ___________ Available to joining No:
Expected Salary Rs: ____________________________
Name of the Interview: 1. (HRD Executive)
2. (Concerned Executive)
3. Supporting Executive)
a) Appearance ABC a) Assignment
Knowledge ABC a)Potential ABC
b) Health ABC b)Experience Rating ABC b)
c) Education ABC c) Professionalism
ABC c) Observation ABC
d) Experience ABC d) Verbal/Written
e) Skill ABC
f) Confidence ABC
g) Intelligence ABC
Rating ABC Final Rating: Merit Rating:
1. Excellent: ________________
2. Good: ________________
3. Average: ________________
4. Below Average: ________________
_____________ _____________ _____________
HRD Executive Concerned Executive Supporting Executive
ORIENTATION AND PLACEMENT
Once employees are "on board" their personal growth and development overtime
become a major concern. Change is a fact of an organizational life and to cope it
The following are the objectives of orientation program of Askari Bank:
1) To make the employees comfortable
2) To get along with the workers
3) To learn them new culture of the organization
ORIENTATION OF NEW EMPLOYEES
After the selection of successful employees the first step in their introduction to
bank policies, practices and benefits is an orientation program.
The Orientation program in Askari Bank is completed in three phases.
The first phase is usually conducted by the staff personnel unit. Subjects
covered include products of the bank, employee benefits, salary schedules, safety,
period, timed recording and absence, holidays equal employment opportunity programs,
packing and the grievance procedure.
The second phase of most organized induction program is performed by the
immediate supervisor. The inductee is introduced to fellow employees, given a tour of
the department, and informed about such details as locker and rest rooms, supply
procedures, hours of work overtime, call in procedures, rest and lunch periods, and
The complete in action program will provide for phase three follow up some
week later. The interview, conducted by either the supervisor or a personnel specialist is
1) Employee satisfaction with the job and organization.
2) Supervisor satisfaction with the employees.
In Askari Bank Placement means
“Right person for a right job”
A lot of applicants’ abilities are matched with a specific job requirement and then
that person is placed on that position.
TRAINING AND DEVELOPMENT
After the employee has been received, selected and inducted, he or she must next
be developed to better fit the job and the organization.
INVESTMENT IN THEIR ASSETS:
Askari Bank is a multinational organization in which importance has been given
The management considers the training as an "Investment in their Asset".
The objectives of training and development programs are to enhance and
improve the capabilities, efficiency, and productivity of an employee up to the desired
standards for current and future assignments and responsibilities.
We have our own specialized in-house training facilities in the shape of Training
Academies at Rawalpindi and Lahore.
AREAS OF TRAINNING:
The Training Academies of the Bank are equipped with modern state of the art
facilities and are responsible for imparting multi-functional high quality trainings to all
staff members in the following areas:
The employees of Askari Bank are also sent to attend specialized courses by various
banking /non-banking training institutes.
TRAINING NEEDS ASSESSMENTS:
In Askari Bank there are three level of analysis for determining the needs
training can fulfill.
1. Organization analysis:
Focuses on identifying where within the organization training is needed.
2. Operation analysis:
» Customer Service
» Liabilities Management
» Asset Development
» Consumer Finance
» General Banking
» Foreign Trade
» Credit Management
» Effective Communication Skills
» Negotiation Skills
» Team Building
» Selling Skill
» Customer Care etc.
Attempts to identify the content of training - what an employee must do to
3. Individual Analysis:
Determines how well each employee is performing the tasks that make up his or
At this level, training needs may be defined in terms of a simple equation.
Desired performance - Actual Performance = Training need.
The development of operative calls for specific increased in skills and
knowledge to perform a particular job. In Askari Bank there is primarily two basic
methods in use.
1) On The Job Training:
Since most jobs in Askari Bank can be learned in a relatively short period of
time, this method is most widely used.
The type of on the job training implemented in Askari Bank is:
Apprenticeship program which include both classroom instructions as well
as on the job training. This type of training is given to the new inductees and usually
two years long.
2) Off the Job Training:
There are following methods used in Askari Bank for Off the Job training.
i) Staff Training Program:
ii) Special Courses:
iii) Selling and Technical skills training program:
iv) Opportunities For Improvement Of Educational And Technical Qualification:
EVALUATING TRAINING PROGRAMS:
To assess the utility or value of training, in Askari Bank management seek
ensures to four questions.
1. Did change occur?
2. Is the change due to training?
3. Is the change positively related to the achievement of organizational goals?
4. Will similar change occur with new participants in the same training programs?
MEASURES OF CHANGE:
In evaluating training programs, measures of change fall into four categories.
How do participants feel about the training program?
To what extent have trainees learned what was taught?
What on the job changes in behavior occur because of attendance at the training
Is what extent have cost related behavior outcomes or quality improvement, turn
over or accident reduction (productivity) resulted from the training.
We also focus on providing opportunities and facilitating our executives and officers for
developing their managerial and leadership skills through management development
programs for present and future responsibilities.
It is a formal process and structured process through which management
measures, evaluates and assesses job related attitudes behavior and out comes.
Importance of performance appraisal in Askari Bank:
• It identifies employees current job i.e. what is he doing?
• It will help in identifying in weak and strength points.
• It will help an employee to improve his or her performance.
• Organization compensation and rewards are all based on performance appraisal.
• It motivates the individual to face constructive criticism when there is negative
• It also helps in assessing in training and development needs.
• It helps in documenting the HR policies.
• It helps in decision making of retention and termination.
• It is important for promotion, transfer and termination.
Method used in Askari Bank for performance appraisal:
A special document is used for performance appraisal in Askari Bank, which is
known as GDD (grade development document)
Following are the main things, which are included in document.
• Job duties
• Audit objectives
These things are discussed in document with regard to performance of employee.
Performance appraisal is done on annually basis.
Some other methods of performance appraisal normally used in
• Written essay:
Here you write the employee weak and strong points, future potential and past
achievement and area for improvement.
• Critical incident method:
Here the appraisal based on those factors which are very effective and the events
where your performance was efficient
Problems with the appraisal:
There is no specific problem is faced in performance appraisal
It is a process by which the relative worth of various jobs is determined for pay purpose.
It checks the out the amount of employee’s pay or salary to the contribution made by
this job. The job is evaluated according to its importance.
The process of job evaluation involves assessing the relative dollar-worth of each
job to the organization to set up internally equitable pay structures. If pay structures
are not equitable, employees will be dissatisfied and quite, or they will not see the
benefits of striving for promotions. To put dollar values on jobs, it is necessary to
get information about different jobs to determine which jobs deserve higher pay than
Askari Bank do job evaluations with the help of
• Manager Analysis
• Mystery shopping
• Exit interviews
• Curiously calls
• Relations with Customer and Employee
Specifies the relative value of each job in the organization.
HEALTH, SAFETY & WELFARE
The employees are given a physical environment that is comfortable and healthy. In
summer there is adequate air-conditioning and in winter there is central heating.
Since Askari Bank is handling with services and there is no potential danger in the
nature of its business, hence the only thing that the HR management needs to ensure
a healthy environment.
HEALTH AND SAFETY:
A monthly health and safety meeting held at Askari Bank. Chief Manager
presides this meeting and discuss any accident if happen in preceding month.
Measures in future to avoid these types of accidents.
Working hours = 48 hours per week.
Sick leave = 8 days
Casual leave = 10 days
FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES:
* Fixed salary
* Overtime is paid according to Government rules and regulations i.e. double on
* Group Insurance scheme is practiced for the compensation of two objectives:
* Employees old age benefit scheme.
* Gratuity scheme.
* Bonus is awarded (Minimum one bonus in a year)
* Monthly Medical Allowance
* Social Security services are obtained for employees.
Following are included in the health services of Askari Bank:
• Adequate facilities for emergency
• Pre-employment medical examinations
• Reasonable first aid to employees for non-occupational illness while on the job.
• Information and education services for the personal health of employees
• Advice and supervision, where necessary, to maintain proper company
It is a process to determine the terms and conditions of employment and
regulating employment relationship, which utilizes the process of negotiation between
representative of management and employees intending to result in an agreement, which
may be applied across the group of employees.
Terms of Employment: -
The following are four categories of employment in Askari Bank Limited;
1. Regular Employment;
2. Probationer Employment;
3. Contractual Employment;
4. Temporary Employment; and
5. Casual Employment.
Regular Employment: -
These are the employees, which are after the final selection employed for a
regular period. These employees enjoy all the benefits such as annual gratuity fund,
Retirement benefit and after the retirement, pension etc. Usually managers and
supervisors fall in this category.
Probationer Employment: -
When an employee is selected for some post, he or she undergo for the probation
period of 6 months normally. However for the management cadre, it can be less than 6
months. When the probation period is completed, the employee signs a contract with
Contractual Terms: -
There are three major considerations;
Employment is temporary in nature.
The person should be of age 60 or above.
Duration of employment contract is one year and renewable.
When the bank management feels that the person retiring from the job have enough
capabilities and potential to work more in the benefit of the organization, then sign this
type of agreement with the retired employee. Employee form the top to bottom can be
included in this type of employment terms.
Temporary Workers: -
Employees of cadre of workers and supervisors are hired for a period of 6-9 months
according to government rules on temporary terms of employment.
Casual Workers: -
It is concerned with the daily wages workers. When the company requires the workers
urgently, they employ the casual worker to fill the vacancies.
Apprenticeship Training: -
According to government regulation, Banks have to hire the apprentices against the
Askari Bank is not bound to give regular jobs to the apprentice trainees.
Grievance is any dissatisfaction or feeling of injustice in connection with one’s
employment situation that is brought to the attention of management.
HANDLING CONFLICT SITUATION:
Obvious sources of conflict range from a difference of opinion, problematic working
conditions or unrealistic work expectations through discriminatory behavior, to poor
communication or non-compliance with organization norms or values.
Conflict can be covert and take the form of resentment or irritation. Such conflict is
much harder to detect and easier to ignore.
ADVANTAGES OF MANAGING CONFLICTS:
Advantages of managing conflict situations for the Askari Bank management are:
• Better motivated staff; staff energies are directed to work rather than emotions
• An organization or staff that presents a positive name to the outside world
• Improved team work
• Better personal development of individuals
DIFFERENT TYPES OF DISPUTES IN ORGANIZATION:
There are some signs of disaffection with organization such as strikes,
confrontation leading to lockouts and various forms of withdrawal of cooperation by
staff in furthermore of their claims. And other conflicts such as poor training, turnover,
absenteeism. To solve all disputes Askari Bank, management take action which are
very right and then all the employees are happy ad are more committed to their work.
ROLE OF HRD IN SOLVING PROBLEMS:
HRD performs following chief roles.
• Supportive behavior on manager's part.
• A work group problem solving.
• To design job techniques in such a way that gives satisfaction for individual and
opportunity for improving performance.
• Letting everyone to have his or her say.
Discipline is condition where employees know that what is expected from them
and what will be the consequences of violation.
Purpose of discipline in Askari Bank:
Following are the main purposes of discipline in Askari Bank:
• To enforce rules and regulations
• Smooth running of organization.
• To ensure efficiency of workers.
• To improve work relations.
Askari Bank values performances. We have introduced an objective system of
performance evaluation based on Management by Objectives and Behavioral
Competencies. The system allows for mid-year reviews and is 100% open to appraisees.
It entails matching an individual’s skills and aspirations with opportunities that are or
may become available in the organization. This matching process requires that those in
charge of career planning know the skill requirements of the various jobs. This allows
them to guide individuals into jobs in which they will succeed and be satisfied.
CAREER DEVELOPMENT IN ASKARI BANK:
Askari Bank Limited is one of the most progressive institutions in the country today.
- Currently, Askari Bank is pursuing an ambitious expansion strategy, which
envisions opening a large number of branches throughout the country.
Askari Bank, besides being the most rapidly expanding Bank in the market, is also
the choice of many career-focused individuals since it offers some of the following
• Stability of Career
• Tremendous Growth Opportunities
• Extensive Training & Development Program
• Motivating Work Environment
• Attractive Salary Packages
• Nurturing Culture
Askari Bank has a progressive and a dynamic human resource (HR) philosophy.
The Bank believes in transforming its human capital into a key source of competitive
advantage for that they believe in human resource planning.
In Askari Bank basic purpose for which HRD in relation to HRP serves are as
1. Balancing the cost between utilization of plant &
This theme involves comparing costs of these two resources in different
combinations and selecting the optimum.
2. Determining recruitment needs:
It is an essential prerequisite to the process of recruitment. It means that HRD
unexpected shortages, wastage, blockages of unexpected shortages, wastage, blockages
in promotion flow and needless redundancies.
3. Determining training needs:
HRD plans fundamental training programmes for which it is necessary to assess not
only quantity but also quality in terms of the skills required by Askari Bank.
4. Management Development:
HRD provides succession of trained and experienced manager that is essential to
the effectiveness of the organization and this depends on accurate information about
present and future requirements in all management level in Askari Bank.
A system of HRP in Askari Bank:
A system of HRP in Askari Bank has some specific points on which Banking
1. Defining or redefining organizational objectives.
2. Determining and implementing the basic requirement to sound planning.
3. Assessing future requirements to meet objectives.
4. Assessing current resources and availability of resources in the future.
5. Monitoring system and amending as indicated.
REASONS FOR HUMAN RESOURCE PLANNING
Following are specific reasons for which Askari Bank management is carrying on
systematic human resource planning.
1) Future Personnel Needs:
2) Coping with Change:
3) High-Talent Personnel:
4) Strategic Planning:
5) Equal Employment Opportunity:
6) Foundation for Personnel Functions:
THE PLANNING PROCESS:
Planning for human resources is tied in with overall Askari Bank long range
planning. The process of planning in itself forces management to think through
objectives of firm and people problem relating to achieving those objectives through
1) GOALS AND PLANS OF ORGANIZATION:
Human resource planning is a part of overall strategic planning for Askari Bank.
A personnel vice-president and his staff cannot make useful plans for period of one or
three or five years, unless they have data on possible corporate expansions new
products, new plants, new markets and so on.
Important steps involved in overall planning for Askari Bank are:
1. To analyze and evaluate environmental influence.
a) Political trends and legislation which will have impact upon the business.
b) Social trends in leisure time, consumer tastes, work values and
c) Technological advances affecting enterprise.
2. To identify the values and aspirations of Askari Bank's directors and executive.
3. To identify and evaluate the internal strengths and weaknesses of the enterprise.
4. To create specific enterprise objectives and plans for achieving these objectives.
5. To evaluate progress toward implementation of plans and take corrective action
Askari Bank's planning period is from 3 years to 5 years. Period for three year is
short range and of five years is long-range period.
2) CURRENT HUMAN RESOURCE SITUATION:
The second phase of the planning process for Askari Bank is the preparation of
an inventory of personnel presently within the organization. A skill inventory consists of
up-to date information regarding the qualifications of the selected categories of
IMPORTANT USES OF SKILL INVENTORY:
The skills inventory has several important uses.
1) After preparing human resource forecast, Askari Bank compare, the number,
types and skills specified by forecast with the present baseline or current position
given by skill inventories to ascertain what skills must be developed from
present personnel via training, up grading and special development efforts.
2. Other use is to identify talent within the organization for specific job opening.
3. An up to date skill inventory is valuable for the preparation of rosters of
qualified technical and managerial personnel.
Askari Bank along with manually prepared Human Resource Data cards also use
computerized system to handle data. The computer can readily provide a printout of the
age distribution of all mangers by level, job, and department.
TRANSFERS, PROMOTIONS AND SEPARATION
The Headquarters of all employees as mentioned in the letter of appointment is
subject to change at the discretion of the Management in which event an employee will
be required to work anywhere in Pakistan as Headquarters with no extra remuneration
and /or allowance or compensation whatsoever in the salary structure. In case of a
transfer, an employee will be entitled to the following transfer benefits:
I) Air-conditioned Coach train fare or air passage as per entitlement for himself
and his immediate family to the place of transfer will be provided.
II) 14 days upcountry allowance (Boarding & Lodging allowance) as per
entitlement in the traveling scheme will be provided.
For single employees, reimbursement is at a flat rate. The amount allowed will
be specified in the transfer letter served by the Management.
In cases where the Management has initiated the move, it can at its discretion,
allow a higher ceiling/additional benefits.
Transfers are also being done within the city and outside the city. The purpose is
to provide employees a better chance to excel in their area at different locations and in
different bank branches. Job rotation is also being done. Traveling and transfer
allowances are also given so that employees get settled as soon as they join the duty.
Promotions are an integral part of the job. Every employee is looking forward
towards its career path. In Askari Bank the promotions are given on the basis of superior
performances. The promotion occurs both in the ranks and in the salary structure.
SEPARATION OF SERVICE:
a) An employee's service can be terminated on three months notice in case of a
manager or level above that and one month's notice in case of a junior Officer,
Senior Officer and Assistant Manager or pay in lieu thereof
b) If in the course of an employee's service, the employee suffers from any serious
ailment or permanent disability of any kind which in the opinion of the
management may or is likely to interfere with the due performance of duties, the
employee's service may be terminated at the discretion of the management by
giving notice as mentioned above, or payment in lieu thereof as the bank may
SALARY AND INCENTIVES
Askari Bank tries it best to keep the staff fully satisfied and provide them with
perfect career paths. The employees are paid well so that they can maintain reasonably
decent living and are motivated to work as bank’s employees.
The employee compensation at Askari Bank caters both
“Direct financial payments”
“ Indirect financial payments”.
The pay scale is determined on the commendable factors and on the decision-making
ability for the managers and executives.
Which are given to employees other than the basic pay, are as follows:
House Rent Allowance.
Traveling Allowance and Daily allowance.
Fringe Benefits: -
In Askari Bank, following benefits are offered to the employees.
Facilities at residence.
Grants of incentives for improving qualification every year.
Increments (Annual increase in pay)
Indirect Compensations: -
Askari Bank offers three types of indirect compensation to its workers.
Employee insurance scheme
department shall initiate the case to P & A.
Pay Plans and Incentives at Askari: -
Establishing Pay Rates: -
For establishing the pay rates, first step is to conduct the salary surveys.
The Salary Surveys: -
For the purpose of conducting salary survey, Askari Bank is taking help of The
Ferguson firm, which conducts surveys and researches in the field of marketing and
finance. Moreover, the bank’s managers are well informed about the pay and salary
structure for the candidates to be hired in case of hiring. This external survey is
conducted once in two years. Complete documented information is being delivered to
the bank so that the pay scales do not vary from the market rates.
Job Evaluation: -
Evaluation of the job performance is done yearly. The purpose is to see and
identify the employees who have done their respective work well through out the year
considered and who have not been able to show good performances.
. Pay Plan at Askari: -
Pay plans at Askari are established on the basis of job rating. All jobs are ranked
from top to bottom, on the basis of commendable factors. Employee with higher rank
gets higher salaries and incentives. Askari Bank has its own criteria for establishing pay
. HR manager believes that competency and skill based pay can increase
motivation and employee commitment. But more often employees are paid on the basis
of their jobs. Their pay is based on job or skills.
Skill Based Pay: -
Skill based pay is given to employees for the recognition of their knowledge,
decision making, problem solving abilities and competency of efficient and effective
working in their jobs.
Variable Pay: -
Variable pay is a group incentive plan that ties pay to some measure of an
organization’s overall profitability. When the bank performs or the branch of the bank