HRM619 – FINAL PROJECT HUMAN RESOURCE MANAGEMENT PROPOSAL

ASKARI BANK LIMITED

Submitted by:
BC220210502 EHSANULLAH JAN

Submitted to:

DR. NABEGHA MAHMOOD

DEPARTMENT OF MANAGEMENT SCIENCES
VIRTUAL UNIVERSITY OF PAKISTAN
2024

Dated: 17 May, 2024

Letter of Undertaking

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Acknowledgment

First of all, I praise and thanks to Allah Almighty, the most gracious and the most merciful, f
or giving me the courage and strength to go through this laborious task. I also thanks to our P
rophet Muhammad (PBUH) for influencing our life as the best teacher.

I would like to express my deep and sincere gratitude to my beloved supervisor, Dr.
Nabegha Mahmood Department of Management Sciences, Virtual University of Pakistan fo
r her ample encouragement and advice during my proposal, I am indebted to her for her help.
Her dynamism, vision, sincerity, and motivation have deeply inspired me. She has taught me
the methodology to carry out the research and to present the research works as clearly as poss
ible. It was a great privilege and honor to work and study under her guidance. I am extremely
grateful for what she has offered me.

Finally, my deep and sincere gratitude to my family for their continuous and unparalleled lov
e, help, and support. I am forever indebted to my parents for giving me the opportunity and e
xperience that have made me what I am. They selflessly encourage me to explore new directi
ons in life and seek out my destiny. The journey would not have been possible without them a
nd I dedicated this milestone to them.

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Executive Summary

This report provides a comprehensive analysis of Askari Bank Limited, one of the leading
banks in Pakistan, focusing on critical aspects such as organizational structure, HRM
functions, PEST analysis, SWOT analysis, and strategic recommendations.

The report begins with an overview of the organization, highlighting Askari Bank's strong
brand reputation, diversified product portfolio, extensive branch network, and skilled
workforce. A detailed examination of the bank's organizational structure reveals a
hierarchical framework that supports strategic alignment and operational effectiveness.

An analysis of HRM functions showcases Askari Bank's strategic approach to human

resource planning, recruitment, training, performance management, and employee
compensation. The bank's emphasis on talent development, performance optimization, and
compliance underscores its commitment to fostering a high-performance culture and
employee engagement.

The PEST analysis delves into the political, economic, social, and technological factors
shaping Askari Bank's operating environment. While political stability and economic growth
present opportunities for expansion, regulatory compliance, and technological advancements
pose challenges and threats that require careful navigation.

The SWOT analysis identifies key strengths such as brand reputation and diversified product
offerings, weaknesses including limited international presence and technological limitations,
opportunities in digital transformation and market expansion, and threats from intense
competition and economic instability.

In conclusion, the report recommends strategic initiatives to enhance digitalization, expand

market reach, strengthen regulatory compliance, focus on talent development, diversify
product portfolio, mitigate cybersecurity risks, and optimize customer engagement. By
implementing these recommendations, Askari Bank can overcome challenges, capitalize on
opportunities, and sustain its competitive position in the dynamic banking industry of
Pakistan.

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 Contents

1 Overview of Askari Bank Limited ......................................................................................5

2 Organizational Structure of Askari Bank Limited ...........................................................6

3 Analysis of HRM Functions at Askari Bank Limited .....................................................10

4 Critical Analysis of Askari Bank Limited ........................................................................17

5 PEST Analysis of Askari Bank Limited............................................................................19
6 SWOT Analysis of Askari Bank Limited .........................................................................21

7 Conclusion ...........................................................................................................................23
8 Recommendations...............................................................................................................23
References...............................................................................................................................25

List of Table and Graph

Graph 1: Organizational Hierarchy Chart of ABL .............................................................7

Table 1: Critical Analysis of Structure of ABL....................................................................9

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 ORGANIZATIONAL ANALYSIS REPORT

1. Overview of Askari Bank Limited

Askari Bank Limited stands as a significant entity in Pakistan's banking sector, embodying a
commitment to excellence and innovation since its commencement in 1991.

a. Brief Introduction of Organization

Askari Bank Limited is a leading commercial bank in Pakistan, recognized for its robust
banking solutions and unwavering dedication to customer service. Established with a vision
to provide reliable and modern banking services, the bank has evolved into a trusted financial
institution over the years. Askari Bank is renowned for its customer-centric approach,
innovative products, and adherence to the highest standards of integrity and professionalism.

b. Head Office Address

Askari Bank Limited

Third Floor, Plot No. 18, NPT Building, F-8 Markaz, Islamabad.
Phone: 051-8092000, 051-2857424-39
Fax: 051-2857448
c. Product Lines

Askari Bank offers a comprehensive range of banking products, services, and solutions to
meet the diverse needs of its customers. Here's a glimpse into the bank's product lines.

1. Retail Banking: Askari Bank caters to the personal banking needs of individuals
through a wide array of products and services, including savings accounts, current
accounts, debit and credit cards, personal loans, mortgages, and wealth management
solutions.
2. Corporate Banking: The bank provides customized banking solutions to corporate
clients, including working capital financing, trade finance, project finance,
syndications, and cash management services.
3. Islamic Banking: In line with Shariah principles, Askari Bank offers a range of
Islamic banking products and services, such as Islamic deposits, financing facilities,
Takaful (Islamic insurance), and Islamic wealth management solutions.

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 4. Treasury Services: Askari Bank's treasury division specializes in foreign exchange,
money market operations, treasury bills, and other treasury products, catering to the
financial needs of institutional clients, investors, and government entities.
5. Digital Banking: Embracing digitalization, Askari Bank provides online banking,
mobile banking, and electronic payment services to enhance customer convenience
and accessibility.

d. Competitors

Askari Bank faces competition from several domestic and international players in the
Pakistani banking sector. Some of its notable competitors include:

 MCB Bank Limited

 Habib Bank Limited (HBL)
 United Bank Limited (UBL)
 National Bank of Pakistan (NBP)
 Standard Chartered Bank Pakistan

Competing in a dynamic market environment, Askari Bank continually strives to differentiate

itself through superior customer service, innovative products, and efficient operations, aiming
to maintain its position as a leading player in the banking industry.

2. Organizational Structure of Askari Bank Limited

a. Organizational Hierarchy Chart

 Board of Directors
 President & CEO
 Executive Management Team
 Group Chief Risk Officer
 Group Chief Financial Officer
 Group Chief Compliance Officer
 Group Head of Human Resources
 Group Head of Corporate & Institutional Banking
 Group Head of Commercial & Retail Banking
 Group Chief Technology & Operations Officer
 Other Functional Heads
 Regional Heads (Domestic & International)

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  Branch Managers & Department Heads

Graph 1: Organizational Hierarchy Chart of ABL

 Which Organizational Structure Type does your organization represent out the
following types?
Askari Bank Limited uses a Hierarchical structure. This structure enables
organizations to streamline business processes, develop clear career paths, and reduce
conflicts. A company hierarchy leaves no place for challenging managers’ authority,
which can be good in some cases. On the other hand, a hierarchical structure slows
down decision-making and may hurt employee morale.
Key points for this structure are here:
• Obvious chain-of-command.

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 • Clearly defined reporting structure and individual responsibilities.
• Sets clear career path growth.
• Builds niche skills and specialties.
• Departments and teams create a sense of “we’re in this together”.

b. Comments on the Organizational Structure

Askari Bank Limited's organizational structure reflects a Hierarchical Structure that aligns
with its strategic objectives and operational requirements. Here are the key features and
benefits of this structure:

1.
Centralized Leadership: The Hierarchical Structure at Askari Bank starts with the
Board of Directors, which provides strategic oversight and governance, setting the
direction for the organization. The President & CEO, as the top executive, is
responsible for executing the board's vision and guiding the bank's overall strategy.
This centralized leadership ensures that the bank's strategic goals are consistently
pursued across all levels.
2.
Executive Management Team: The Executive Management Team consists of senior
executives overseeing key functional areas critical to Askari Bank's operations and
success. This includes leaders responsible for risk management, finance, compliance,
human resources, corporate and institutional banking, retail banking, technology, and
operations. The Hierarchical Structure ensures clear lines of accountability and
coordination across these different business units, fostering efficient decision-making
and oversight.
3.
Regional Structure: Within the Hierarchical Structure, Askari Bank's operations are
organized regionally, both domestically and internationally. Regional heads oversee
operations and business development efforts in their respective territories. This
regional organization allows for a decentralized approach to adapt to local market
dynamics and customer needs, while still maintaining overall strategic alignment with
the central leadership.
4.
Branch and Departmental Levels: At the operational level, branch managers and
department heads play pivotal roles in executing the bank's strategies, delivering
customer service, and ensuring operational efficiency. This tiered structure, typical of
a Hierarchical Structure, facilitates effective communication, decision-making, and

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 performance management within the organization, ensuring that the bank's strategies
are effectively implemented at all levels.

Overall, Askari Bank's Hierarchical Structure emphasizes centralized governance,

functional specialization, and regional autonomy. This structure enables the bank to
navigate complex market dynamics, manage risk, and deliver value to its stakeholders
effectively. Continuous evaluation and refinement of the structure ensure alignment with
evolving business needs and industry best practices.

 Critical Analysis of Structure

Taking into consideration the centralized structure of Askari Bank, we can summarize the
positives and negatives of this type of structure for Askari Bank as follows:
Table 1: Critical Analysis of Structure of ABL

Positive Negatives
Driven by the Askari Bank’s values of Centralized structure leads to a
Stability and Reliability. Ensures the bureaucratic system at Askari Bank
decisions taken at all levels are in making some tasks complicated and non-
accordance with bank policies. routine tasks take time to implement.

Helps in effectively managing over 9,000 Communication delay along the

employees in more than 500 branches hierarchy as the messages have to pass
through formal control systems through a lot of levels in management.

Supports the strategy of increasing number Delayed feedback to important decisions

of stores and emphasis on quality of work made by the Board of Directors of Askari
than on innovation to enhance the bank’s Bank and concerning its response at
overall ranking in operations branch level.

Ensures the resources are always available Employees opinions are not taken into
department and that work is done at branch consideration leading to an inflexible
level with low uncertainty, leading to work environment with little focus on
stability. innovation and creativity.

Centralized structure helps the

management in effective risk management
and adapting to changes in external

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 environment.

3. Analysis of HRM Functions at Askari Bank Limited

a. Human resource planning and forecasting

I. Human resource planning process

 Recruitment and Selection

Theory: Recruitment and selection involve identifying and attracting potential

candidates and selecting the best candidates from the pool.

Application at Askari Bank: Askari Bank employs a rigorous recruitment process,

including online applications, assessments, and interviews to ensure a high caliber of
employees.

 Training and Development

Theory: Training and development are essential for enhancing employees' skills and
competencies.

Application at Askari Bank: The bank provides regular training sessions,

workshops, and e-learning opportunities to ensure continuous professional
development of its staff.

 Performance Management

Theory: Performance management involves setting goals, monitoring performance,

and providing feedback.

Application at Askari Bank: Performance appraisals are conducted semi-annually to

assess employee performance and identify areas for improvement.

 Compensation and Benefits

Theory: Compensation and benefits include salary, incentives, and other perks to
motivate employees.

Application at Askari Bank: Competitive salary packages, health insurance, and

retirement benefits are provided to attract and retain top talent.

 Employee Relations

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 Theory: Maintaining positive relationships between the employer and employees is
crucial for a harmonious workplace.

Application at Askari Bank: Regular town hall meetings and an open-door policy
ensure transparent communication and address employee grievances promptly.

 Overall Analysis of Askari Bank Limited Human resource planning process

 Strengths

○ Strong recruitment and selection process.

○ Comprehensive training and development programs.

○ Effective performance management system.

○ Attractive compensation and benefits packages.

○ Positive employee relations and communication channels.

 Weaknesses

○ Limited focus on employee wellness programs.

○ Need for more advanced technology in HRM processes.

 Opportunities

○ Expansion of training programs to include digital skills.

○ Implementation of AI-driven HRM tools.

 Threats

○ High competition for top talent in the banking industry.

○ Economic instability affecting employee retention.

The bank’s recruitment and selection process ensure that only the most qualified candidates
are hired, while continuous training and development programs keep the employees’ skills
up-to-date. Performance management at the bank is systematic, with regular appraisals that
help in setting clear goals and providing constructive feedback. The compensation and
benefits offered by the bank are competitive, contributing significantly to employee
motivation and retention. Furthermore, the bank maintains positive employee relations
through transparent communication practices. However, there are areas for improvement,

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such as enhancing employee wellness programs and adopting more advanced HRM
technologies. Despite these challenges, the bank has opportunities to expand its training
programs and integrate AI tools into its HRM processes, positioning itself for future growth
and success in a competitive industry.

II. Forecasting Human Resources Requirements at Askari Bank Limited

 Current Workforce

○ Analyze the current number of employees in different departments.

○ Assess the skills and qualifications of the existing workforce.

 Future Needs

○ Project the number of employees required in the next 5 years based on business
growth.

○ Identify key skills and roles that will be in demand.

 Retention Strategies

○ Develop strategies to retain top talent, such as career development plans and
succession planning.

 Recruitment Plans

○ Outline recruitment plans to fill anticipated gaps, including diversity and inclusion
initiatives.

Forecasting the human resources at Askari Bank involves a detailed analysis of the current
workforce, future needs, retention strategies, and recruitment plans. Currently, the bank has a
diverse team across various departments, each with specific skills and qualifications. To align
with its growth trajectory, the bank anticipates needing additional employees in critical areas
such as digital banking and risk management over the next five years. Key skills in demand
will include data analytics, cybersecurity, and customer service excellence. To retain top
talent, the bank plans to implement comprehensive career development programs and
succession planning. Additionally, the bank's recruitment strategy will focus on filling
anticipated gaps, emphasizing diversity and inclusion to build a more robust and innovative
workforce.

III. Methods to Forecast HR Needs

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Askari Bank utilizes various methods to forecast HR needs, including demand forecasting
based on business projections, supply forecasting based on internal talent pipelines and
external market trends, and gap analysis to identify discrepancies between current and future
workforce capabilities. This holistic approach enables the bank to address skill gaps,
succession planning, and talent development proactively.

b. Employee Recruitment & Selection

○ Sources of Candidates
Askari Bank employs a multi-channel approach to sourcing candidates, leveraging
both internal and external sources. Internal sources include employee referrals,
internal job postings, and talent pools, while external sources encompass online job
portals, recruitment agencies, campus hiring, and industry networking events. This
diversified approach ensures a continuous pipeline of qualified candidates across
various roles and levels within the organization.
○ Employment Selection Process
The bank's selection process is rigorous and standardized, comprising multiple stages
such as resume screening, competency-based assessments, interviews, reference
checks, and background verification. This process ensures that candidates possess the
requisite skills, competencies, and cultural fit for the organization. Additionally, the
bank emphasizes transparency, fairness, and equal opportunity throughout the
selection process to maintain integrity and attract top talent.

c. Training & Development

I. Training Needs Assessment at Askari Bank Limited

Askari Bank employs various methods to assess training needs for its employees.
Here's how it's done:
 Performance Appraisals
○ Managers evaluate employee performance against predefined goals and
competencies.
○ This process helps identify areas where additional training is necessary.
 Surveys and Feedback
○ The bank conducts surveys and gathers feedback from employees and managers.
○ Insights from these surveys highlight specific training requirements.

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  Job Analysis
○ Detailed analysis of job roles and responsibilities.
○ Helps identify the skills and knowledge needed for each position.
 Industry Trends
○ Monitoring industry trends and technological advancements.
○ Identifying new skills and knowledge areas to keep employees competitive.
 Types of Training Provided
 On-the-Job Training
○ Employees learn hands-on while performing their job duties.
○ Practical experience enhances their skills.
 Classroom Training
○ Structured sessions conducted by internal or external trainers.
○ Focuses on specific skills or knowledge areas.
 E-Learning
○ Online modules covering technical and soft skills.
○ Employees can complete them at their own pace.
 Workshops and Seminars
○ Interactive sessions led by experts.
○ Opportunities for learning and discussion.
 Mentoring and Coaching
○ Senior employees or external coaches provide guidance.
○ Supports skill development and career growth.
II. Employee Development
 Career Development Plans
○ Individualized plans outline career goals and necessary steps.
○ Includes required training and development activities.
 Leadership Development Programs
○ Specialized programs identify and nurture future leaders.
 Succession Planning
○ Identifying high-potential employees for future leadership roles.

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  Continuous Learning Opportunities
○ Askari Bank actively encourages its employees to engage in continuous learning.
This includes pursuing further education, obtaining certifications, and
participating in professional development courses. By staying updated and
enhancing their skills, employees contribute to their own growth and the bank's
success.

III. Difference Between Training and Development

 Training
○ Training is a process aimed at enhancing specific skills and knowledge to improve
an employee’s performance in their current role.

○ Objective: To provide employees with the tools and skills needed to perform their
jobs effectively.

○ Focus: Short-term, specific skill acquisition.

○ Goal: Improving performance in the current job role.

○ Approach: Structured and often formal, with specific objectives and timelines.

○ Example: Training employees on using a new software system.

 Development
○ Development is a broader, long-term process focused on the overall growth and
career progression of employees.

○ Objective: To prepare employees for future roles and responsibilities, enhancing

their overall capabilities.

○ Focus: Long-term, overall growth and career progression.

○ Goal: Preparing employees for future roles and responsibilities.

○ Approach: Broader and more informal, encompassing various learning

experiences.

○ Example: Leadership development programs aimed at preparing employees for

management roles.

d. Performance Management

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 ○ Setting Performance Standards and Expectations
Askari Bank sets clear performance standards and expectations for employees,
aligning individual goals with departmental and organizational objectives.
Performance expectations are communicated through performance plans, job
descriptions, and key performance indicators (KPIs), ensuring clarity and
accountability.
○ How Performance Reports are Written
Performance reports at Askari Bank are written objectively, highlighting
achievements, areas for improvement, and development opportunities. Managers
provide regular feedback, conduct performance appraisals, and document
performance discussions to assess employee performance accurately and facilitate
performance improvement.

e. Employee Compensation & Benefits

○ Type of Compensation & Benefits

Askari Bank offers a competitive compensation package comprising base salary,
performance-based incentives, allowances, bonuses, and benefits such as medical
insurance, retirement plans, employee discounts, and wellness programs.
Compensation structures are benchmarked against industry standards to ensure
competitiveness and employee retention.

f. Organizational Career Management

○ Employee Job Changes

Askari Bank facilitates various job changes within the organization, including
promotions, transfers, demotions, and separations, based on performance,
organizational needs, and employee preferences. These changes are governed by
transparent policies and procedures aimed at promoting career growth, talent mobility,
and organizational effectiveness.
○ Job Changes with the Organization
Promotion: Recognizing and rewarding high-performing employees with upward
career progression opportunities.
Transfer: Facilitating employee mobility across departments, branches, or regions to
leverage diverse skill sets and address organizational needs.

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Demotion: Addressing performance issues or organizational restructuring needs by
reassigning employees to lower-level roles with appropriate support and development
opportunities.
Separations: Managing employee separations, including layoffs, terminations,
resignations, and retirements, with sensitivity and compliance with legal and ethical
standards.
Layoff:
○ A layoff is the termination of an employee's position due to business reasons
such as cost-cutting, downsizing, or organizational restructuring.
○ Employees are typically given notice and sometimes a severance package.
○ Outplacement services might be provided to help laid-off employees find new
jobs.
Termination:
o Termination refers to the involuntary end of an employee’s job due to
performance issues, misconduct, or policy violations.
o Typically involves a performance review process and documentation.
o Employees might be given warnings before termination, depending on
company policy.
o Legal considerations and compliance with labor laws are crucial.
Resignation:
o Resignation is when an employee voluntarily leaves their job.
o Employees typically provide a notice period, often outlined in their
employment contract.
o Exit interviews may be conducted to understand the reasons for resignation.
Retirement:
o Retirement is when an employee voluntarily leaves the workforce after
reaching a certain age or completing a career span.
o Employees often provide advance notice of their retirement plans.
o Retirement planning support and financial advice might be offered by the
employer.
Understanding, these different jobs change scenarios is crucial for managing human
resources effectively at ABL. Each scenario requires specific strategies to ensure

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 smooth transitions, maintain employee morale, and uphold the organization's
reputation and operational efficiency.

g. Labor Management Relations

Askari Bank fosters positive labor-management relations through open communication,

employee engagement initiatives, and adherence to labor laws and regulations. Regular
dialogue between management and employee representatives, grievance redress mechanisms,
and proactive employee engagement initiatives promote a collaborative work environment,
minimize disputes, and enhance organizational productivity.

In conclusion, Askari Bank Limited demonstrates a comprehensive approach to HRM,

encompassing strategic workforce planning, recruitment, training, performance management,
compensation, career development, and labor-management relations. By prioritizing
employee engagement, talent development, and organizational effectiveness, the bank
sustains a competitive advantage in the banking industry, driving growth and innovation
while fostering a culture of excellence and collaboration.

4. Critical Analysis of Askari Bank Limited

a. Relating Theoretical Concepts of HRM with Askari Bank Limited

Askari Bank Limited's HRM practices align closely with theoretical concepts, reflecting a
strategic approach to managing its workforce and fostering organizational success.

 Strategic HRM
Askari Bank demonstrates a strategic approach to HRM by aligning its human
resource practices with organizational goals and objectives. The bank's emphasis on
workforce planning, talent management, and performance optimization reflects the
principles of strategic HRM, ensuring that human capital is leveraged effectively to
drive business outcomes.
 Employee Recruitment and Selection
The bank's recruitment and selection processes are guided by principles of fairness,
transparency, and competency-based assessment. By sourcing candidates from diverse
channels and employing rigorous selection criteria, Askari Bank ensures that it
attracts and retains top talent capable of contributing to its long-term success.
 Training and Development

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 Askari Bank prioritizes employee development through structured training programs,
on-the-job learning, and leadership development initiatives. By investing in
continuous learning and skill enhancement opportunities, the bank fosters a culture of
innovation, adaptability, and employee engagement, in line with HRM theories
emphasizing the importance of human capital development.
 Performance Management
The bank's performance management system is characterized by clear performance
standards, regular feedback, and performance appraisals. By setting SMART
(Specific, Measurable, Achievable, Relevant, Time-bound) goals and providing
constructive feedback, Askari Bank facilitates performance improvement and
accountability, in accordance with HRM principles aimed at enhancing organizational
performance.
 Employee Compensation and Benefits
Askari Bank offers a competitive compensation package and benefits to attract,
motivate, and retain employees. By aligning compensation structures with market
benchmarks and performance outcomes, the bank reinforces employee engagement,
productivity, and organizational commitment, consistent with HRM theories on
employee motivation and retention.

b. Overall Analysis of Askari Bank Limited and its Future Prospects

Askari Bank Limited exhibits strengths such as a strong brand reputation, diversified product
portfolio, and customer-centric approach, positioning it favorably in the competitive banking
industry. However, the bank faces challenges such as regulatory compliance, technological
advancements, and market competition that warrant attention. To capitalize on opportunities
and mitigate threats, Askari Bank should consider the following strategies:

 Digital Transformation
Embracing digitalization and investing in technology-driven solutions will enhance
operational efficiency, improve customer experience, and drive innovation. By
leveraging digital platforms for banking services and embracing fintech partnerships,
Askari Bank can stay ahead of the curve in a rapidly evolving market landscape.
 Talent Development
Continued investment in employee development initiatives, leadership programs, and
succession planning will nurture a skilled workforce capable of meeting future

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 business challenges. By fostering a culture of continuous learning and innovation,
Askari Bank can empower its employees to drive organizational growth and adapt to
changing market dynamics.
 Customer-Centric Innovation
The bank should prioritize customer-centric innovation by leveraging customer
insights, feedback, and market trends to develop tailored products and services. By
anticipating customer needs and delivering value-added solutions, Askari Bank can
strengthen customer loyalty and gain a competitive edge in the marketplace.
 Risk Management
Given the dynamic regulatory environment and evolving risk landscape, Askari Bank
should enhance its risk management capabilities to mitigate operational, credit, and
compliance risks effectively. Proactive risk assessment, robust internal controls, and
adherence to regulatory requirements will safeguard the bank's reputation and
financial stability.

Askari Bank Limited exhibits strong fundamentals and a strategic approach to HRM,
positioning it for sustained growth and success in the future. By leveraging its strengths,
addressing challenges, and embracing opportunities for innovation and growth, the bank can
navigate the evolving business landscape successfully, delivering value to its stakeholders
and maintaining its position as a leading player in the banking industry.

5. PEST Analysis of Askari Bank Limited

a. Political Factors

Political situation in Pakistan is characterized by weak government, corruption, terrorism and

military operations to fight them, high taxation and frequent changes in its policies. Over time
Pakistan has increased its minimum wage rate and increased rights given to minorities. Due
to this political situation foreign investment have decreased due to less trust in Pakistan
economy. However, Askari has managed to get and maintain its relatively high customer base
due to it being operated under Askari Welfare Trust. Askari is considered a safe bank and is
perceived as being independent of government interferences.

b. Economic Factors

Economic factors play a crucial role in shaping Askari Bank's performance and growth
prospects:

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  Interest Rates: Fluctuations in interest rates impact the bank's net interest margin,
profitability, and lending decisions. Lower interest rates stimulate borrowing and
economic activity, while higher rates can dampen consumer spending and investment.
 Inflation and Economic Growth: Inflationary pressures affect purchasing power,
consumer spending patterns, and loan repayment capacity, influencing the demand for
banking products and services. Economic growth rates impact credit demand, loan
quality, and investment opportunities for the bank.
 Exchange Rates: Exchange rate volatility affects the bank's foreign currency
transactions, international trade finance, and profitability of foreign currency-
denominated assets and liabilities.

c. Social Factors

Social factors reflect demographic trends, cultural norms, and societal attitudes that shape
consumer behavior and market dynamics:

 Demographic Shifts: Changes in population demographics, such as population

growth, urbanization, and aging populations, influence consumer preferences, demand
for financial services, and distribution channel preferences.
 Cultural Trends: Cultural preferences, values, and norms impact consumer attitudes
towards banking products and services. For example, preferences for digital banking
channels may vary across different demographic segments.
 Workplace Attitudes: Employee expectations, work-life balance preferences, and
generational differences influence workforce dynamics, talent management strategies,
and organizational culture at Askari Bank.

d. Technological Factors

Technological advancements and trends have a profound impact on Askari Bank's operations,
service delivery, and competitive landscape:

 Digitalization: Rapid advancements in digital technology have transformed the

banking industry, driving the adoption of online banking, mobile banking, and digital
payment solutions. Askari Bank must invest in digital infrastructure, cybersecurity
measures, and innovative fintech partnerships to remain competitive and meet
evolving customer expectations.

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  Automation and AI: Automation and artificial intelligence (AI) technologies
streamline operational processes, enhance efficiency, and enable personalized
customer experiences. Askari Bank can leverage AI for data analytics, risk
management, and customer relationship management to gain insights and improve
decision-making.
 Regulatory Compliance: Regulatory technology (RegTech) solutions help
streamline compliance processes, monitor regulatory changes, and mitigate
compliance risks. Askari Bank must invest in RegTech solutions to ensure adherence
to regulatory requirements and minimize compliance costs.

The PEST analysis highlights the complex interplay of political, economic, social, and
technological factors shaping Askari Bank's operating environment. By proactively
monitoring and adapting to these external factors, the bank can mitigate risks, capitalize on
opportunities, and maintain its competitive edge in the dynamic banking industry of Pakistan.

6. SWOT Analysis of Askari Bank Limited

a. Strengths

 Strong Brand Reputation: Askari Bank has built a strong brand reputation over the
years, recognized for its reliability, stability, and customer-centric approach in the
banking sector.
 Diversified Product Portfolio: The bank offers a diverse range of banking products
and services, including retail banking, corporate banking, Islamic banking, and digital
banking solutions, catering to a wide range of customer needs.
 Extensive Branch Network: Askari Bank has an extensive branch network across
Pakistan, providing accessibility and convenience to customers in urban and rural
areas.
 Skilled Workforce: The bank boasts a skilled and experienced workforce, equipped
with the expertise to deliver high-quality banking services and solutions to customers.
 Strong Risk Management Practices: Askari Bank has robust risk management
practices in place, ensuring prudent lending practices, effective credit risk
management, and compliance with regulatory requirements.

b. Weaknesses

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 1. Limited International Presence: Compared to some of its competitors, Askari Bank
has a relatively limited international presence, which may hinder its ability to
capitalize on global opportunities and diversify its revenue streams.
2. Technological Limitations: While the bank has made strides in digitalization, it may
still face challenges in keeping pace with rapidly evolving technology trends, leading
to potential gaps in customer experience and operational efficiency.
3. Dependency on Traditional Banking: Askari Bank's reliance on traditional banking
channels and processes may limit its ability to fully leverage digital banking
opportunities and cater to the evolving preferences of tech-savvy customers.
4. Employee Turnover: Like many organizations in the banking sector, Askari Bank
may face challenges related to employee turnover, which can impact continuity,
knowledge transfer, and organizational culture.
5. Regulatory Compliance Burden: Compliance with regulatory requirements and
reporting standards can be a burden for Askari Bank, requiring significant resources
and attention to ensure adherence and avoid penalties.

c. Opportunities

 Digital Transformation: Embracing digital transformation presents an opportunity

for Askari Bank to enhance customer engagement, streamline operations, and
introduce innovative digital banking solutions to meet evolving customer needs.
 Expansion into New Markets: Exploration of new markets, both domestically and
internationally, can open up growth opportunities for Askari Bank and diversify its
revenue streams beyond its current geographic footprint.
 Partnerships and Collaborations: Strategic partnerships with fintech companies,
other financial institutions, and non-banking entities can facilitate innovation, product
development, and market expansion for Askari Bank.
 Islamic Banking Growth: The growing demand for Islamic banking products
presents an opportunity for Askari Bank to expand its Islamic banking portfolio and
capture a larger share of the Sharia-compliant banking market.
 Infrastructure Development: Investment in infrastructure development, particularly
in rural and underserved areas, can help Askari Bank reach new customer segments
and expand its customer base.

d. Threats

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  Competition from Established Players: Intense competition from established
players in the banking sector poses a threat to Askari Bank's market share, customer
retention, and profitability.
 Emerging Fintech Disruption: Disruption from emerging fintech companies and
non-traditional competitors presents a threat to Askari Bank's business model,
challenging its relevance and market position.
 Economic Instability: Economic instability, including factors such as inflation,
recession, and exchange rate volatility, can impact Askari Bank's asset quality, loan
demand, and overall financial performance.
 Regulatory Changes: Changes in regulatory requirements, tax policies, and
compliance standards can create uncertainty and compliance challenges for Askari
Bank, affecting its operations and profitability.
 Cybersecurity Risks: With the increasing digitization of banking services,
cybersecurity threats, such as data breaches, phishing attacks, and malware infections,
pose a significant risk to Askari Bank's reputation, customer trust, and financial
stability.

Askari Bank Limited faces a mix of internal strengths and weaknesses, as well as external
opportunities and threats in the dynamic business environment of the banking sector. By
leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and mitigating
threats, the bank can navigate challenges effectively and sustain its competitive position in
the market.

7. Conclusion

In conclusion, Askari Bank Limited demonstrates resilience and adaptability in the face of
internal and external challenges, as evidenced by the critical, PEST, and SWOT analyses.
The bank's strategic focus on customer satisfaction, risk management, and digital
transformation positions it well for sustained growth and success in Pakistan's competitive
banking landscape. By leveraging its strengths in brand reputation, diversified product
offerings, and skilled workforce, while addressing weaknesses such as technological
limitations and regulatory compliance burdens, Askari Bank can capitalize on opportunities
for digital innovation, market expansion, and partnerships. Despite facing threats from
intense competition, economic instability, and cybersecurity risks, the bank's proactive
approach to risk mitigation and strategic planning equips it to navigate uncertainties and

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emerge stronger in the evolving business environment. Overall, Askari Bank remains poised
to achieve its objectives and maintain its position as a leading player in the banking sector,
driving value for its stakeholders and contributing to the growth and development of the
economy.

8. Recommendations

To address the challenges and capitalize on opportunities identified through the critical,
PEST, and SWOT analyses, Askari Bank Limited should consider the following
recommendations:

1. Enhance Digitalization: Invest in upgrading technological infrastructure and

implementing innovative digital banking solutions to improve customer experience,
streamline operations, and stay competitive in the digital era.
2. Expand Market Reach: Explore opportunities for market expansion, both
domestically and internationally, by targeting underserved areas, leveraging strategic
partnerships, and tapping into emerging markets.
3. Strengthen Regulatory Compliance: Proactively monitor regulatory changes,
enhance compliance processes, and invest in regulatory technology solutions to
ensure adherence to evolving regulatory requirements and mitigate compliance risks.
4. Focus on Talent Development: Prioritize employee training and development
initiatives to equip the workforce with the skills and competencies needed to adapt to
changing market dynamics, foster innovation, and drive organizational growth.
5. Diversify Product Portfolio: Continuously innovate and diversify the product
portfolio to cater to evolving customer needs, with a particular focus on expanding
Islamic banking offerings and introducing innovative digital banking solutions.
6. Mitigate Cybersecurity Risks: Strengthen cybersecurity measures, enhance data
protection protocols, and invest in cybersecurity training and awareness programs to
safeguard against cyber threats and protect customer data.
7. Optimize Customer Engagement: Implement customer-centric strategies to enhance
customer engagement, satisfaction, and loyalty through personalized services,
targeted marketing campaigns, and proactive communication channels.

By implementing these recommendations, Askari Bank can overcome challenges, capitalize

on opportunities, and strengthen its competitive position in the banking industry, driving
sustainable growth and value creation for its stakeholders.

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References

[1]. Abbas. Ansar, (16 May, 2024). Branch Manager. Askari Bank Limited, 596-Mohalla
Chamra Mandi Jhang Road Toba Tek Singh. [Personal communication].

[2]. Askari Bank Limited. (2023). Annual Report 2022. Retrieved from
https://askaribank.com/annual-reports

[3]. Askari Bank Branch Operations Handout - (internship document)

[4]. Official Website of Askari Bank: http://akbl.com.pk/

[5]. Top Private and Islamic Banks in Pakistan (2016) | Rightjobs.com

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