Presentation Askari Bank Ltd

Presentation Transcript

Imran Mehmoodmc070200390MBA (Finance) : Imran Mehmoodmc070200390MBA (Finance)

Askari Bank Ltd.Khanewal Branch : Askari Bank Ltd.Khanewal Branch

Brief Introduction of the Askari Bank : Brief Introduction of the Askari Bank Date of Existence October 9, 1991 by AWT (Army welfare Trust) Started operations during April 1, 1992 Listed on KSE, LSE, ISE

Business volume : Business volume Assets over Rs. 206 Billion Over 8 Lacs Customers

Competitors of the Askari Bank : Competitors of the Askari Bank National Bank of Pakistan Meezan Bank Limited Allied Bank Limited MCB Bank Limited NIB Bank Limited United Bank Limited Habib Bank Limited House Building Finance Corporation Khushhali Bank Limited

Organizational Hierarchy Chart : Organizational Hierarchy Chart

Training Program : Training Program Weekly Training Schedule

Agriculture - Finance Department : Agriculture - Finance Department Maintaining Database Completing files of Clients those request for Loans Providing necessary information about the loan Checking accounts of the customer in the computer data base to giving current information. Computer Database Work (Continue)

Account Opening department : Account Opening department How to fill the deposit Slip How to fill the different accounts Form How to fill the voucher for issuing of the Cheque Book for the first time How to fill the requisition slip for the second time issuance (Continue)

Account Opening department : Account Opening department Formalities for opening an account How to issue the Cheque Book How to enter it in the register What are the procedures for the issuing ATM card

Clearing Department : Clearing Department Responsibilities 1. Inward clearing 2. Outward clearing (Continue)

Clearing Department : Clearing Department Inward Clearing Entering the cheques lodged for inward clearing e.g., cheque number, account holder name, cheque number, bank name and amount to be paid (Continue)

Clearing Department : Clearing Department Outward Clearing Same as entering cheque number account holder name amount and Bank name

REMITTANCE DEPARTMENT : REMITTANCE DEPARTMENT Demand Draft. Pay order. Traveler's Cheque

Structure of Finance Department : Structure of Finance Department Departmental hierarchy First Level Senior Agricultural Credit Officer (SACO) OG1 Second Level Agricultural Credit Officers (ACO’s) OG2 Third Level Field Credit Officers (Commission based staff)

Functions of Finance Department : Functions of Finance Department Accounting system of the organization Fully Computer Based Accounting system Reliable Electronic data is used in decision making. Generation of funds from Sales of Shares and Fixed Deposits from Customers. High rate of Interest on Loan and Different Services good Sources of funds Allocation of funds by providing Financial Services. Double Entry Book keeping System Foolproof

Finance system of the Askari Bank : Finance system of the Askari Bank Based upon borrowing and lending

Use of electronic data in decision making : Use of electronic data in decision making Fully Computer Based Accounting system Reliable Electronic data is used in decision making.

Mobilization of funds : Mobilization of funds Advertisements Sales Promotions Activities

Generation of funds : Generation of funds Sales of Shares Fixed Deposits from Customers

Sources of funds : Sources of funds Fixed Deposits from Customer Sales of Shares General Banking Income

Allocation of funds : Allocation of funds Lending to Financial Institutions Lending people on interest E.g. Loans, Car Finance, House Finance

Critical Analysis : Critical Analysis You are required to present all the financial statements (balance sheet, profit and loss account, cash flow statement, etc). a) Financial analysis Ratio analysis Horizontal analysis Vertical analysis b) Organization analysis in comparison with its industry (or with its competitors) c) Future prospectus of the organization You are required to show complete calculations.

Financial Analysis : Financial Analysis Ratio Analysis Uses of Ratio Analysis Make comparison between investments Analyze working capital Adjusting the component of working capital if needed Users of Financial Ratios Managers Stock Analyst Credit Analyst

Slide 25: Balance Sheet 2008

Profit and Loss Account : Profit and Loss Account

Cash Flow Statement : Cash Flow Statement

Statement of Changes in Equity : Statement of Changes in Equity

Essential Financial Ratios for 2008 : Essential Financial Ratios for 2008 Current Ratio = Current Assets / Current Liabilities = 19,984,449 / 17,774,976 = 1.12 Current Ratio

Working Capital : Working Capital Working Capital = Current Assets – Current Liabilities =19,984,449 - 17,774,976 =2,209,473

Times Interest Earned : Times Interest Earned Times Interest Earned = Earning Before Tax / Interest Exp = 461,382 / 5,915,615 = 0.077993919

Debt Ratio : Debt Ratio Debt Ratio = Total Debt /Total Asset = 18,186,248 / 206,191,138 = 0.08820092

Debt Equity Ratio : Debt Equity Ratio Debt Equity Ratio = Total Debt / Total Equity = 18,186,248 / 12,034,895 = 1.51

Return on Assets : Return on Assets Return on Assets = Operating Income / Average Total Assets = 2,531,035/ 206,191,138 = 0.012275188

Return on Investment : Return on Investment Return on Investment = Net Income / Total Assets = 2,531,035/206,191,138 = 0.012275188

Horizontal and Vertical Analysis : Horizontal and Vertical Analysis

SWOT Analysis of the Askari Bank : SWOT Analysis of the Askari Bank Means To analyze Strengths and weaknesses of the organization, which are part of the internal the environment To analyze the threats and opportunities that are part of external environment.

Strengths : Strengths Largest Financial Institution of Pakistan Strong Customer relationship management Vast & Integrated Network High Market Share Highest share price Rs. 418 in month of January , 2009 Military Sponsored Enterprise

Weakness : Weakness Lack of Marketing Promotions Furniture and Fixture White Elephant Branches Low number of branches Idle HR Department

Opportunities : Opportunities Technological Advancement Facility for Illiterate people Emphasize on Agriculture Sector of Pakistan Closing White elephant branches

Threats : Threats Economic Environment Political and Legal environment Threats from Competitors e.g. MCB

Conclusion : Conclusion Financialy Strong Bank Rational Decision making from top management at corporate level Attraction for Depositors Presentation of ethics from staff of bank Creativity, Innovative and reliable

Recommendations : Recommendations High trained employees Must create friendly environment with customers Marketing promotions are necessary Should deal in foreign currency Should analytically analyze while issuing loan Should increase the financing activites Security system must be updated Increase number of employees

Slide 45: Thank You