Report on Credit Rating of Askari Bank

Financial Institutions Project

Askari Commercial Bank Limited

Presented To: Ms. Ramsha Hasan

Presented by:

Aleena Irfan

Daniyal Mansoor

Najam-uz-Zehra

Sana Jamshed

Syed Abuzar Abbas

Talha Bilal

Company Profile

Askari Bank ("Askari) is a publically listed commercial bank, having started operations in April 1992 with Army Welfare Trust as a primary sponsor having 50% stake. It has since grown to 226 branches by 2009, including 31 Islamic Banking branches, and an offshore banking unit in Bahrain. By Dec 09, Askari was the seventh largest private Bank in Pakistan by assets size (US$ 3.021 billion), with deposits of $2.27 billion and net profits of $12.8 million.

Army Welfare Trust (AWT) remains the principal shareholder controlling the board of directors through its nominees and a shareholding of 50.17%. AWT has business interests in about 30 industrial, financial and services concerns and is one of the largest groups in Pakistan.

Pakistan's Banking Sector Industry Analysis

Banking is one of the most sensitive and important businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production and distribution of public finance.

Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. By 1970, it had acquired a flourishing banking sector.

SBP acts as a nucleus in the financial system of the country....