Internship Report

On
Allied Bank

Bosan Road Branch (0255) Multan

Submitted To:
Commerce Department
Submitted by:
Saima Batool
Roll no. 07

Department
Commerce

Of

Bahauddin Zakariya
University
Multan
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In the Name of

Be beneficent and be
Merciful

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PREFACE

T h i s Re p o r t i s s p e c i a l l y m e a n t f o r t h e s t u d e n t
of(M.Com).
I t i s concerned to a brief study of the operation, Function, tasks
and services of Allied

Bank of Pakistan. Banking play very important

role in the commerce and economic development of a country. Now-adays banks are using different modern technologies, which influence the
managerial activities, that is why I decided to do my internship Training in
the bank. In preparation of this Report is have tried my best to provide all
Possible information about the operation, function and tasks of ABL in brief

and comprehensive form. It also includes a brief department worked

during internship. I have also tried my best to use simple and easy words and
language. Then internship report ends with some recommendation after

identification of some problems observed during the course of internship.

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ACKNOWLEDGEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and
abilities to complete this report successfully I am grateful to my parents who are always been
a source of encouragement for me throughout my life and from start to the end of this
report I am thankful to all my staff members so Allied Bank Of Pakistan Limited Bosan,
Road Branch, Multan. and helpful for providing me the Theoretical as well as practical
knowledge about the function and operation of the bank.

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DEDICATION
I WOULD LIKE TO DEDICATE
THIS INTERNSHIP REPORT
TO MY HONORABLE

TEACHERS

AND MY SPECIALS REGARDS TO MY

MOST RESPECTFUL AFFECTIONATE LOVING
PARENTS,
WHO ALWAYS, PRAYED FOR MY BETTERMENT
AND SUCCESS.

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Executive Summary
I have done my internship in ABL Bosan Road Branch, Multan. For the first two weeks I worked
with operational manager Rashid Sb he told me about how we fill the cash deposit slips and how we
open new account. In chapter one I discuss the background of the organization and the
background of the branch after it I discuss. the vision and mission of the organization .In chapter
two I discuss the structure of the organization, structure of the branch, board of director,
executive committee, strength, and weaknesses.
Opportunities and threats, marketing strategy, competitive strategy, and in the end
there is business process analyses .In chapter three I discuss about my activities, duties and
accomplishments as internee there was four department which I worked as cash department
how we maintain record of the cash, clearing department, (customer care
department, online facility, advance and credit department), utility bill
payment department the most important work which I have done to inform the essential
information about the account which will be operated. The staff made me learns the basics of different
departments in this way. I faced a lot of difficulties during the span of learning but I got full
attention and support from the staff, and they really made me learn a lot. During the
internship I kept on consulting my internship advisor every week. At the end of
internship the manager gave me the internship letter and evaluated my overall performance on an
evaluation form prescribed by our university.

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TABLE OF CONTENTS
Acknowledgement_______________________________________________________ 07

Executive Summary______________________________________________________ 09

Preface________________________________________________________________ 10

About Silk Bank________________________________________________________ 11

Employees Hierarchy____________________________________________________ 14

Branch Introduction_____________________________________________________ 16
What I Did? ___________________________________________________________ 16

Employee Development & Training_________________________________________ 23

Financial Analysis_______________________________________________________ 25

Recruitment & Selection Criterion_________________________________________ 27

Products & Services of Silk Bank___________________________________________ 45

SWOT Analysis_________________________________________________________ 63

PEST Analysis__________________________________________________________ 65

My Experiences________________________________________________________ 66

Suggestions &Recommendation___________________________________________ 66
Conclusion____________________________________________________________ 68

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Introduction:
What is Bank?
A system of trading in money which involved safeguarding deposit and making funds
available for borrowers
Definition of Bank:
An organization usually a corporation Chartered by a State or Federal Government,
which does most or all of the following:

Receives demands and deposits,

Honor instruments drawn on them,
And pays interest on them;
Discounts notes, makes loans, and invest in securities;
Collects checks, drafts, and notes; certifies depositors check

Meaning of Banking:
The Banking companies Ordinance, 1962 defines Banking as Banking means
accepting for the purpose of lending or investment, of deposits of money from
public, Repayable on demand or otherwise and withdrawal by checks, drafts
,order, or otherwise

BACKGROUND OF ALLIED BANK OF PAKISTAN:

ABL was established in Lahore before independence in Dec3, 1942 asaustralasia
Bank at Lahore with capital of 0.12 million. In August 2004 the Bank was
restructured and the ownership was transferred to IBRAHIM group. August 14,
1947 all the branches in India were closed and new Branches were opened in
Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and
Kasur .Later its network spread to Multan & Quetta.1970s were a difficult decade
for all Banks of Pakistan. In 1971 East Pakistan was separated and Australasia
Bank lost its 51 branches and a lot of capital as well. In 1974 all the Banks were

nationalized including Australasia Bank. On 1st July 1974the new entity was renamed as
ABL of Pakistan Limited. Then it started its operations as Public sector financial
institution.
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Over 1991, 745 branches were there in all over the Pakistan. From 2008 to 2010 ABL is now one of the
largest banks in Pakistan with a network of 779 branches in over 350cities and towns offering real
time online banking. The bank leads the way by having the largest network of more than 450
ATMs in more than 145 cities and towns across Pakistan. Currently ABL possesses
932nd position in the world. The management has a vision to move forward and to be one of the
worlds leading banks.

History
Allied Bank of Pakistan Limited was formed in 1974 by the merger of Sarhad Bank Ltd,
Lahore Commercial Bank Ltd and Pak Bank Ltd into Australasia Bank Limited and renamed
by the government.
Australasia Bank:
Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital
of PKR 0.12 million under the Chairmanship of Khawaja Bashir Bux, and his business
associates, including Abdul Rahman Malik who was amongst the original Board of Directors,
the bank had attracted deposits, equivalent to PKR 0.431 million in its first eighteen months
of business. Total assets then amounted to PKR 0.572 million. Today Allied Bank's paid up
Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total
assets equal Rs. 170 billion. The Allied Bank's story is one of dedication, commitment to
professionalism, adaptation to changing environmental challenges resulting into all round
growth and stability, envied and aspired by many.
1942 - 1947: Pre Independence:
In the early 1940s the Muslim community was beginning to realize the need for the active
participation in the field of trade and industry. The Hindus had since the late 1880s
established a commanding presence in these areas and industry, trade and commerce in the
undivided Sub-continent was completely dominated by them. Banking, in particular, was an
exclusive enclave of the Hindus and it was widely believed, and wrongly so, that Muslims
were temperamentally unsuited for this profession.
It was particularly galling for Khawaja Bashir Bux and Abdul Rahman Malik to hear the gibe
that Muslims could not be successful bankers. They decided to respond to the challenge and
took lead in establishing this first Muslim bank on the soil of Punjab that was to become
Pakistan in December 1942; by the name of Australasia Bank Limited.
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The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5
million by the end of first full year of operation, and by the end of 30 June 1947 capital
increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.

1947 to 1974:
Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August
the 14th, It had been severely hit by the riots in East Punjab. The bank was identified with the
Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala,
Jalandhar , Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were
opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur.
Later it network spread to Multan & Quetta. The Bank financed trade in cloth and food grains
and thus played an important role in maintaining consumer supplies during riot affected early
months of 1948. Despite the difficult conditions prevailing and the substantial setback in the
Banks business in India, Australasia Bank made a profit of Rs 50,000 during 1947-48.
By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of
East Pakistan which became Bangladesh. The bank did well in despite losing lot of its assets.
By the end of 1973 the bank had 186 branches in West Pakistan.

1974 to 1991: Public

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was renamed
as Allied Bank. The first year was highly successful one: profit exceeded the Rs 10 million
mark; deposits rose by over 50 percent and approached Rs 1460 million. Investments rose by
72 percent and advances exceeded Rs 1080 million for the first time in bank history. 116 new
branches were opened during 1974 and the Bank started participation in the spot procurement
agriculture program of the Government. Those seventeen years of the Bank saw a rapid
growth. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46
billion, and Advances and investments from Rs 1.34 billion to Rs 22 billion during this
period. It also opened three branches in the UK.

1991 to 2004: Privatization

As a result of privatization in September 1991, Allied Bank entered in a new phase of its
history, as the worlds first bank to be owned and managed by its employees. In 1993 the
First Allied Bank Modaraba (FABM) was floated.
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After privatization, Allied Bank registered an unprecedented growth to become one of the
premier financial institutions of Pakistan. Allied Banks capital and reserves were Rs. 1.525
(Billion) and assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion).
Allied Bank enjoyed an enviable position in the financial sector of Pakistan and was
recognized as one of the best amongst the major banks of the country.
In August 2004 as a result of capital reconstruction, the Banks ownership was transferred to
a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.
Today the Bank stands on a solid foundation of over 63 years of its existence having a strong
equity, assets and deposits base offering universal banking services with higher focus on
retail banking. The bank has the largest network of on-line branches in Pakistan and offers
various technology based products and services to its diversified clientele through its network
of more than 700 branches.
2005-today:
In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with
and into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL
shares held by them. Application for the listing of ABL shares in all the Stock Exchange
Companies of Pakistan was made. ABL was formally listed and trading of the shares of the
Bank commenced w.e.f. the following dates.

Islamabad Stock Exchange - 8 August 2005

Lahore Stock Exchange -

Karachi Stock Exchange -

10 August 2005
17 August 2005

Main Sector of the Organization:

Main sector of the ABL are the:

Credit department (Advances department)

Foreign currency department (Deposit department)
Customer management services

The credit department and the foreign currency departments are basically the main
departments in which the organization is dealing at a large scale and dealing is set in motion

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in customer management services department. These departments are playing a vital role in
banking sector. These departments give the bank a real business.

Credit Department:
The main function of the credit department is to lend money to the borrower son the interest
and hence bank earns a lot .ABL is serving the customers by giving the short term ,medium
term, long term, farm and non firm credits. The bank lends money against some guarantee or
pledges or some property. ABL the is giving the clean advances against promissory notes,
giving secured advances against tangibles and marketable securities and now also lending
money against life policies and immoveable property.
Foreign currency department:
The ABL is also giving the facilities of foreign currency account as well as Pak rupee
account. Foreign currency department is also playing a vital role in the banking and it
becomes immense source of earning. In the allied bank the foreign currency account can be
opened in many currencies but the four main currencies are:
Customer management services:
This is the department which is dealing with customers and convinced them towards to open
the accounts and persuading them to indulging in many other activities of bank, these
departments serving the customers in the various ways. The above two departments activities
are actually starting from here it can be say that customer service department is composed of
the foreign currency departments and credit departments.

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Vision, Mission, Values

Vision
To become a dynamic and efficient bank providing integrated solutions in order to be the first
choice bank for the customers.
Mission

To provide value-added services to our customers.

To provide high-tech innovative solutions to meet customers requirements.
To create sustainable value through growth, efficiency and diversity for all
stakeholders.
To provide a challenging work environment and reward dedicated team members
according to their abilities and performance.
To play a proactive role in contributing towards the society.

Values

Integrity
Excellence in Service
High Performance
Innovation and Growth

Branch Network :
There are Four Provincial Headquarters of Allied Bank Limited situated at Lahore (Punjab),
Karachi (Sind), Peshawar (NWFP & Azad Kashmir) and Quetta (Baluchistan). 800 Domestic
Branches. Arrangements with large number of Correspondent Banks/Exchange Companies.
Over 200 Branches for Foreign Currency Accounts. Over 70 branches for trade finance.
Large number of branches for Inland Remittances. Large number of branches for Rupee
Travelers Cheques.

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Provincial Headquarters
PUNJAB:
196/Upper Mall, Lahore
SINDH:
Jubilee Insurance House, I.I. Chundrigar Road, Karachi
NWFP:
1st floor, State Life Building, The Mall,
AZAD KASHMIR:
Peshawar Cantt.
BALUCHISTAN:
C.C. & I Building, Zarghoon Road, Quetta
CORPORATE INFORMATION

Board of Directors:
1. Mohammad Naeem Mukhtar

Chairman

2. Sheikh Mukhtar

Member

3. AhmadMohammad Waseem

Member

4. MukhtarAbdul Aziz

Member

5. KhanSheikh Jalees

Member

6. AhmedFarrakh Qayyum

Government Nominee

7.

Government Nominee

Nazrat Bashir

Audit Committee
1.
2.
3.
4.

Sheikh Mukhtar Ahmad

Farrakh Qayyum
Mubashir A. Akhtar
Sheikh Jalees Ahmed

Company Secretary

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Chairman
Member
Member
Member

Waheed-Ur-Rehman,

FCA

Auditors
M. Yousuf Adil Saleem & Co.

Chartered Accountants

KPMG Taseer Hadi & Co.

Chartered Accountants

Legal Adviser
Haidermota and Company,

Advocates and Solicitors

Shares Registrar
Technology Trade (Pvt.) Ltd.
Central Office
Bath Island, Khayaban-e-Iqbal,Main Clifton Road,Karachi. 75600
UAN: (92 21) 111-110-110
Head Office/Registered Office
8-Kashmir / Egerton Road, Lahore.
UAN: (92 42) 111-110-110
Website & Email
Website:
http://www.abl.com
E-mail: info@abl.com
ORGANIZATIONAL STRUCTURE

Management System of ABL

Successful and profitable banking management depends on two principal factors.
The manner in which the functions of banking, that is the acquiring of
deposits, the investing or converting such deposits into earning assets,
and the servicing of such deposits, are performed
The degree to which officers and employees contribute their talents to the progress
and welfare of the bank in discharging duties and responsibilities.
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Allied Bank Management

Banks are managed by board of director or similar group of men who are responsible to the
owners, creditors and the government for the well being of their institutions. The government
selects all or some of directors of ABL .Management of ABL are given as follows:
Asim Tufail

(Group Chief, Consumer & Personal Banking)

Fareed Vardag

(Chief Risk Officer)

Iqbal Zaidi

(Group Chief, Compliance)

Mohammad Abbas Sheikh

(Group Chief, Special Assets Management)

Mohammad Aftab Manzoor

(Chief Executive Officer)

Muhammad Jawaid Iqbal

(Group Chief, Corporate & Investment Banking)

Muhammad Shahzad Sadiq

(Group Chief, Audit & CRR)

Muhammad Yaseen

(Group Chief, Treasury)

Mujahid Ali

(Group Chief, Information Technology)

Shafique Ahmed Uqaili

(Group Chief, Human Resources)

Khawaja Mohammad Almas

(Head, Core Banking Projects)

Tahir Hassan Qureshi

(Chief Financial Officer)

Tariq Mehmood

(Group Chief, Operations)

Waheed ur Rehman

(Company Secretary)

Zia Ijaz

(Group Chief, Commercial & Retail Banking)

MANAGEMENT HIERARCHY

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The management hierarchy represents the different positions and designations inthe hierarchy
of the ABL. However, this is not the reporting hierarchy but merelyrepresents the positions
and grades on the basis of seniority and grades.
President

Senior Vice President

Vice President

Executive Vice President

Senior Executive Vice

Regional General Manager

Branch Manager

FUNCTIONAL HIERARCHY
The functional hierarchy represents the reporting order in the hierarchy of ABL. The
hierarchy has president and directors at top management level and officers Grade I, II and
Grade III at the lower level management of ABL. The middle level management consists of
regional general Manager and Regional Controller of Operations. These positions are not

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fixed. Any person in the hierarchy above the branch manager can be appointed as RGM and
controller operations.

President and CEO

Board of Directors

Head Of Department

Regional General Manager

Controllers of operations

Branch manager

Office G-I, II & Other Lower Staff

Number of Employees:
The organization has minimum of 12000 Employees

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STAFF ORDER OF BOSAN ROAD BRANCH, MULTAN:

The staff order of the Bosan Road branch is as follows
Branch Manager

Customer Service Manager

Officer

Teller

Cashier

Messenger

ABL Products:

Commercial Products
Consumer Products
Corporate Products

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COMMERCIAL PRODUCTS
The Commercial & Retail Banking Group (CRBG) offers a variety of asset and
liabilityBased retail products to its customers. The Groups main focus has been

on introducing various financing and investment products for its valuable clientele, and
contributing to the steady growth of the financial industry.
Deposit Account
Various deposit accounts are as follows:
1.

PLS Account

Allied Bank offers the PLS Savings Account facility to its customers with the following
attractive features.

Attractive return of up to 5.00% per annum

Free Online Transactions, DD/TT/PO for depositors maintaining an average monthly

balance of Rs. 2.500 (M) & above.

Free issuance of cheque book at the time of account opening.
2. Current Account
Allied Bank offers the Current Account facility for individuals as well as for institutions and
commercial customers.

There are free Online Transactions, DD/TT/PO for depositors main tainingan average

monthly balance of Rs. 0.5 (M) & above.

Free issuance of cheque book at the time of account opening.
3. Allied Basic Banking Account
In order to provide basic banking facilities to its lower-middle class customers,
Allied Bank has introduced the Allied Basic Banking Account (ABBA).

Account can be opened with an initial deposit of Rs 1,000/=

It is a non-remunerative account with a no minimum balance requirement.
The Statement of Account is issued on a yearly basis.
The account will be closed automatically if the balance remains zero for one year.
No service charges on the account for a maximum of 2-withdrawals and 2-deposits
during a calendar month. Additional transactions will be subject to a service charge as per
the Banks Schedule of Charges for every withdrawal/deposit.

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 Unlimited withdrawals from ATMs.

4. Allied Business Account
Allied Business Account is a non-profit current account with countless benefits and services.
If you are a businessman, trader or an individual, Allied Business Account is an ideal
proposition for you.
If the Avg. Balance of Features & Benefits
the previous months
is:
Rs.
100,000
Above

& Online/Manual Remittances

50% relaxation on charges as

per Schedule of Charges

Issuance
of
DD/TT/PO/OBC 50% relaxation on charges as
&Express collection
per Schedule of Charges
Rs.
500,000
Above

& Online/Manual Remittances

Free

Outward Cheque Return

Free

Issuance
of
DD/TT/PO/OBC Free
&Express collection
5. Foreign Currency Deposits:
Allied Bank offers the facility of opening Current, Savings and Term deposit Accounts.
Foreign Currency accounts can be opened in US Dollar, Pound Sterling, Euro, and Japanese
Yen at designated branches.

6.

Monthly Profit Plus:

Saving has now become all the more appealing with our Monthly Profit Plus Scheme, which
earns you monthly profits on investments. The scheme is designed for a period of 1 Year with
the following profit rates:

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7.

Tenure

1 Year

Profit Rate

10.00% p.a.

Profit Payment

Rs.833* per month

Rewarding Term Deposit:

A term deposit scheme which gives a high rate of return and the flexibility of various tenure.
Investment can be made with the minimum of PKR 25,000 only.
Rate of Profit :
Deposit Amount

1 month

3 Month

6 Month

12 Month

Rs. 25000 & Above

7.00%

9.00%

9.50%

10.50%

8.

Allied Advance Profit scheme:

In keeping with our objective to bring you new and innovative services and banking products,
we now introduce Allied Advance Profit Scheme that gives the entire profit upfront.
Product Specifications:
Minimum Investment Required

Rs.25, 000Investment Terms: 18 months Auto roll-over (optional)

Profit Payment:

Profit of Rs.13, 500 (on an investment of Rs.100, 000) will be immediately credited in
the customers Current Account.

9. Behtar Munafa Account

If you want a chequing account that earns you attractive returns, paid on monthly basis, then
this is the account for you.
Rate of Profit:
Up to Rs. 5,000,000

5.00%

Rs. 5,000,001 to Rs. 25,000,000

6.00%

Rs. 25,000,001 to Rs. 50,000,000

7.00%

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Rs. 50,000,001 to Rs. 100,000,000

8.50%

Rs. 100,000,001 to Rs. 250,000,000

9.25%

Rs. 250,000,001 to Rs. 500,000,000

10.00%

Rs. 500,000,001 & Above

10.50%

10. Behtar Munafa Term Deposit:

If you want to fix your money now to secure your future, this is the product for you.
Rate of Profit:
BEHTAR MUNAFA TERM 1 Month
DEPOSITS(3739):
Up to Rs. 5,000,000
6.00%

3 Months

6 Months

1 Year

8.00%

8.5%

9.5%

Rs. 5,000,001 to Rs. 25,000,000

8.5%

9.00%

10.00%

Rs. 7.00%

9.00%

9.50%

10.5%

Rs. 7.50%

9.5%

10.00%

10.75%

10.00%

10.5%

11.00%

Rs.
25,000,001
50,000,000

to

Rs.
50,000,001
to
100,000,000
Rs. 100,000,000 & Above

6.5%

8.00%

11. Allied e-Savers Accounts

Saving has never been so flexible! The Allied e-Savers Account is a unique savings plan
where you can earn returns as high as 7.5% with the convenience of 4 withdrawals a month.

Slabs

Profit Rate

Rs. 400,001 up to Rs. 500,000

7.50%

Rs. 300,001 up to Rs. 400,000

6.00%

Rs. 200,001 up to Rs. 300,000

5.00%

Up to Rs. 200,000

5.00%

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Note:
All profits payable are subject to applicable Zakat and Govt. Levies and changes in the Banks
policy from time to time.
Agriculture Finance
The Bank, under the Agricultural Financing Scheme, as decided by the State Bank Of
Pakistan, extends short, medium and long term, farm and non-farm credits. The farm credits
are extended for production (inputs) and development purposes. Non-farm credits are allowed
for livestock (goats, sheep, and cattle), poultry and factories including social forestry and
fisheries (inland and marine, excluding deep sea fishing). Details are as follows:

Farm Loans
a. Production Loans
1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labor charges, water
charges, vegetables, floriculture, etc.
2. Working capital finance to meet various farming expenses.

b. Development Loans

Improvement of agricultural land, orchards, etc.

Construction of Godowns

Tractors, Machinery & other equipments

Tube wells

Farm Transportation, etc.

Non-Farm Loans

Livestock

Poultry

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Fisheries

Forestry

Other Services
These other services provided by ABL.

Utility bill

Lockers

Hajj Services

Internet Banking
Banking is now at your fingertips! Allied Direct Internet Banking offers you the convenience
to manage and control your banking and finances - when you want ,where you want! It's
Simple, Convenient, Secure and Faster. So, just get clicking !Some of the advantages of
Allied Direct Internet Banking are
1.

Simple and Convenient

Easier navigation and help provided at every step so you can make full use of this service.
With Allied Direct convenience is just a click away.
2. Secure and Faster
Encrypted with latest tools and technologies, Allied Direct is the choice for secure and fast
Internet Banking.
3. 24x7 Access
You now have access to your account 24 hours a day, 7 days a week. You can transfer funds
or pay bills, even when it's a holiday.
Online Banking
Allied Online Banking is a unique service being offering from Allied Bank. Through this
service, your account in Allied Bank is available to you from any of our branches
country wide.
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Corporate Leasing
Allied Bank started lease operations when it integrated with Ibrahim Leasing Limited.
Facilities include leases for machinery, commercial vehicles and equipments. The Bank
provides lease facilities to corporate and commercial clients in all industrial enterprises for
balancing, modernization, replacement and expansion schemes.
Allied ATM Network
Allied Bank has a vast network of over 460 ATMs installed in over 130 cities, which
continues to grow at a rapid pace.
1 - LINK ATM
Additionally, Allied Bank is a member of the 1
LINK ATM sharing switch comprising of over 2,000 ATMs nationwide, therefore, giving its
Allied Visa Debit Card holders access to even more ATMs across the country.
M-Net Network
The Allied Visa Debit Card can also be used at M-Net ATMs, for cash withdrawal.
CONSUMER
In line with the Banks aim to provide a host of products and services to its customers, substantial ground
work has been done to establish a strong consumer banking business. Furthermore, to achieve
this objective ,professionals from across the industry have been recruited into areas of
product development, sales, credit policy, research, consumer analytics, call centers and
service quality departments .The consumer portfolio, comprising the debit card, credit cards,
auto loans ,personal loans and mortgages will be established phase by phase. However, wear
confident that our strengths, together with our largest network of online branches, a superior
technology platform, a big customer base and the Consumer Personal Banking Group (CPBG), will
take the Banks profitability to new heights.

Visa Debit Card

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Allied Visa Credit Card

Visa Debit Card

Some features of Allied Visa Debit Card are as under:
Get Cash
You are always on the move, now your bank account is too. You can use your Allied Visa
Debit Card to withdraw cash directly from your bank account from over 3,500 ATMs in
Pakistan.
Shop Anywhere
Use the Visa power of your Allied Visa Debit Card to shop at over 49,000retailers in Pakistan
and over 27 million retailers internationally.
Dine Out
Go to all your favorite restaurants and order whatever you want without having to worry
about how much cash you have in your pocket.
Enjoy Traveling
Imagine traveling without carrying cash. With your Allied Visa Debit Card, you can buy your
plane tickets and do all your shopping abroad without worrying about spending too much or
running out of cash.
Fuel Up
Now you can fuel up your car without emptying your wallet. Pay for all your fuel purchases
with your Allied Visa Debit Card.

Have Fun
Whether you feel like taking the family to see a movie at the cinema or treating some friends
to a night of bowling, you can do it all and more with your Allied Visa Debit Card.
Stay Alert
Now, be more secure and keep better track of your spending. With your Allied Visa Debit
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Card, you can get SMS alerts when you make transactions on your Card. You can also access
the details of your transactions via internet banking at http://www.abl.com.pk so you are
always updated and alert.
Activation Instructions
Please follow the instructions stated below so that you are able to use your Card at any
merchant outlet or Visa ATMs.1. Kindly sign the signature panel on the back of your Card in
permanent ink as soon as you receive it.2. To activate your Card, please call Allied
Phone Banking.3. Enter the PIN provided to you in order to use the Card at ATMs.
Allied Visa Credit Card
Welcome to the world of privileges, benefits and savings with your Allied Visa Credit Card.
In order to cater to your growing financial needs we are proud to introduce Allied Visa Credit
Card with The Lowest Service Charge ever! So now you can save money where it counts and
spend lavishly at your favorite places with greater flexibility, convenience and most
important-Affordability !With your Allied Visa Credit Card you can enjoy a variety of stateof-the-art features and unmatched value by spending at over 49,000 merchants across
Pakistan and 27 million merchant outlets worldwide! And what more, you can also use your
credit card at over 1 million ATMs internationally. There are two types of Allied Visa Credit
Card:
a.

Allied Visa Gold Credit Card

b.

Allied Visa Platinum Credit Card

With your Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold
Card internationally with unmatched savings greater flexibility, convenience and security.

Features:
Buy Now, Pay Later
With your Allied Visa Gold Credit Card, your free credit period allows you to pay for your
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purchases up to 50 days after the date of purchase. So now you can buy all the things you
want - whenever you want - at your own convenience.
Flexible Repayment
When paying your credit card bill, your Allied Visa Gold Credit Card gives you the option to
either pay the entire amount according to your statement or a minimum of 5% of your total
outstanding balance.
Cash Advance Facility
As an Allied Visa Gold Credit Card member, you are entitled up to 75% of your available
credit limit in cash. Just go to your nearest ATM with the VISA or PLUS sign and avail the
facility of withdrawing cash 24 hours a day.
Balance Transfer Facility
In case you have outstanding balances on other cards, consolidate these onto your Allied Visa
Gold Credit Card with the lowest BTF rate and save more on your outstanding payments than
ever before.
b. Allied Visa Platinum Credit Card
With your Allied Visa Platinum Credit Card you can enjoy exceptional benefits and a host of
local and international benefits like never before!

Features:
Visa Platinum Golf
Fancy a game of golf? With your Allied Visa Platinum Credit Card, you can enjoy golf at its
best with complimentary tee-offs, discounted green fees and access to
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some of the world s most celebrated golf clubs.

Platinum Life
Life is a unique platform that showcases exclusive programs and events specially designed
for Visa Platinum Credit Cardholders. With your Allied Visa Platinum Credit Card, you are
eligible to join this exclusive platform and avail many exciting services like Platinum Club,
Platinum Dining, Platinum Golf, Experiential Travel and much more.
Visa Platinum Club
As a member of the Visa Platinum Club, you are part of an internationally reputed rewards
program that provides an unmatched quality of services and customized luxuries to all Allied
Visa Platinum Credit Cardholders.
Visa Experiential Travel
Your Allied Visa Platinum Credit Card now takes you further than ever before .With the Visa
Experiential Travel Program, choose the package of your choice as you travel the world and
enjoy exotic travel adventures catered especially to your taste. And also enjoy Allied Visa
Gold Credit Card holder facilities

CORPORATE PRODUCTS
The Corporate Investment Banking Group (CIBG) holds the Bank s loan portfolio and enjoys a leading
position in corporate lending in the country. It offers a wide range of financial services to
medium and large sized public and private sector entities. These services include, providing
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and arranging tenured financing, corporate advisory, underwriting, cash management, trade
products, corporate finance products and customer services on all bank related matters. Vast
amount of funds to large industrial and corporate sectors of the economy and because it has
played a big part in major investment and corporate banking transactions Allied Bank is
considered one of the top investment banks in the country today.
Corporate Banking
CBG offers a wide range of financial services to medium and large sized public and private
sector entities. CBG has expertise in providing exemplary customized and personalized
service to its Corporate Customers under the Relationship Management concept, which is
basically catering to all the customer needs through One Window operations. CBG has strategically
placed its
presence in all major corporate hubs of the country namely Karachi, Lahore, Islamabad,
Multan and Faisalabad. It presently enjoys a leading position in corporate lending in the
country and has played a key role in economic development of the country by providing large
facilities, long term, short term, working capital etc in all the key sectors of the economy.
Despite being a late entrant in Corporate Banking, CBG has not only able to position itself as
one of the prime banks for the existing clientele but also created and cemented new
relationships with several top tier names in the market.

Investment Banking
ABL IBG (Investment Banking Group) was established in 2005 and focuses on the
Investment Banking market. It has the highest number of Successful Arrangement and
Participation in Key Privatization & Acquisition Financing Transactions achieved by any

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Investment Banking Group in Pakistan. It has already penetrated the investment banking
market by taking the lead in a number of major transactions and arranging funding of more
than US$ 6 billion to date.ABL IBG is reputable for building business on the basis of strong
corporate relationships and showing a clear understanding of Structured Finance. The team
consists of dedicated and young professionals with extensive experience, who provide
various Advisory & Arrangement Services to Corporate Clients. ABL-IBG has played an
active role in Debt Origination and Distribution through innovative and tailor made solutions
for its target customer base. It is also well known for having successfully completed mandates
in a timely manner, and is regarded as one of the most active Investment Banking entities in
the country today.
Financial Institutions
ABLs Financial Institutions team shows a strong commitment to product and business development.
Our client portfolio includes top domestic names, important regional players, top global
financial institutions, leasing companies, modarabas, microfinance, the insurance sector and
specialist money transfer companies. ABL's dedicated team of Financial Institution
professionals brings a wealth of local and international expertise to all facets of this complex
industry, and can serve as your single point of contact for a comprehensive set of products
and services. As our institutional customers face continuing challenges, they look to ABL for
comprehensive transactional banking solutions, greater operational efficiency and broad
geographic coverage

OWN PRACTICAL WORK

During the course of my internship at Allies Bank of Pakistan Bosan road Branch Multan, I
assisted the manager operations. Moreover I worked in the remittance department clearing
Department and I learned:
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Account Opening and Closing

Filling of deposit slips of various types of deposit, cheque , online transaction etc.
Preparation of Weekly and Monthly Position
Allied Express cash payment (Remittance paid on cash counter)
Arrangement of vouchers by segment of deposit types.
Calling and Checking of Cash, transfer, clearing, online Transactions from day end

report.
Issuance of Pay Order, Demand Draft
Making of Pak A/C The purpose of the bank is to provide financial services to general
public. And for this purpose different banks provide different services to the people in
different forms. The main functions and services which ABL provides to different
People s are as follows :Open different accounts for different peoples Accepting
various types of deposits Granting loans and advances For proper functioning of
branches and the overall bank has been divided indifferent departments. These
departments handle different jobs so that division of work is there for improvement of
functions and also it is easy to control the situation. The general division is as follows:
Cash Department Deposit Department Clearing department

Advances Department Remittance Department Human Resource Department Technology

Department Account Opening and Closing Department

DEMAND DRAFT:
Demand draft is a written order drawn by a branch of a bank upon the branch of same bank to
pay certain sum of money to or to the order of specified person. A demand draft may be
issued against the written request of customer before issuing it must be seen that demand
draft is in order.
PAY ORDER:

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A Pay order is written authorization for payment made in a receipt from issued and payable
by the bank. To the person named and address. A record of all issued and paid should be
maintained.
ACCOUNTS OPENING
When a customer wants to open an account, the bank officer gives application form to him.
All information, which is necessary to be known by the bank, is requirements of the
application form. Some essential documents also require to be attached by the customer
basically following information is required:

Applicants Name
Date of Birth Nationality Identification No.
Mothers Name
Residential Address Telephone Number Currency of Account Nature of Business

Residential Status Special instructions regarding the account

Signature of the Applicant

ISSUANCE OF CHEQUE BOOK:

When a customer opens an account with the bank he is provided with cheque book for
withdrawals of account. A cheque book contains twenty five and fifty leaves. The cheque
book also carries a requisition slip for issuance of new cheque book. The slip is duly filled
and signed by the customer.
HOW TO CLOSE AN ACCOUNT:
The account can be closed by the customer. The customer is required to submit an application
for closing the account. Then the account is closed out and his balance is paid to him. The
cheque book is returned to bank and the officer cancels the remaining cheques in cheque
book.

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SWOT ANALYSIS:
The SWOT analysis is a comprehensive and critical overview of the operations, procedures,
rules and regulations, services and other related activities, the analysis include the analysis of
ABL Bank Branches in the light of the entire branch and Bank specific variables which
directly or indirectly affect the operations of the branch. The tool selected for the analysis of
organization is SWOT analysis. SWOT analysis is an acronym that stands for Strengths,
Weaknesses, Opportunity and Threats. This is a careful evaluation of an organizations strengths to
avail an opportunity by overcoming its weaknesses and phasing out all the threats to its
survival in order to grow and survive.
STRENGTHS:
Allied Bank Limited has certain strengths which are different from the other Banks. ABL is
the first Muslim Bank of the world, which is owned and managed by its own employs. This is
the biggest strength of the Bank. A feeling of ownership is present in every employ, which not
only helps in increasing the productivity of employs but also creates sincerity with the Bank
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in them. Strength is the high motivation of employees to their work because they know that
what so ever they do. It will be in their own benefit. They know that the profit,
which they will earn, will be distributed among the employees. So they work with
high motivation and concentration. Salaries are very reasonable, so the employees are not
financially disturbed and they devote their selves fully to their work. They have wide area
network in all over the Pakistan, so that they cover a lot of portion of cash transactions and
make customer satisfied. The Bank has very strict rules and regulations about the customer's
complaints. The customers are treated as very special persons in the Bank. The branch is
linked through an online network of BRANCHES, thus enabling them to serve customer in
better way. This branch is provided with latest computer which increases the speed of
computer work .The branch is situated in commercial area were business activities perform
greater as compare to residential area. Thus it increases the number of customers. The
Branch has the most experienced and the least experienced staff, which is a good combination
of experienced heads and exuberance of youth.
WEAKNESSES:
No entertainment facilities are available in the Bank when customer goes to the
Bank and wait for a longer time. Thesefacilities can be the newspaper. Magazines, etc.The Branch has
a good staff combination on the basis of experience, but their training capabilities are not up
to the requirements of the fast changing banking environment. The technical training of the
staff is negligible e.g. in case of the absence of computer there is no alternate trained personal
who can record the daily transactions. The organization is very much mechanistic and
provides no flexibility to encourage creativity. The organizational environment is not
cooperative. In spite of the presence of technology many jobs are done manually such as the
letters, drafts for fax messages and other calculations, which could be easily, done in MS
Word and Ms Excel.
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OPPORTUNITIS:
The policies of the new government to uplift the economy and pursue financial sector reforms
are

expected

to

yield

positive

results

in

the

banking

industry

of

the

country. The ABL is very well praised to avail promising opportunities. As a result of the
different steps taken by the Government regarding the betterment of the economy. Small
borrowers are attracted to get the financing and start small businesses. So, The ABL
has an opportunity to attract the customers by giving them attractive schemes. They have
wide area network in all over the Pakistan, if ABL can make it possible the fast delivery of
fund from abroad through online banking, it can cover the major market of Pakistan
which still is capturing by 'Hundi's. A considerable portion of the labor force of the area is
serving overseas. Their families can be encouraged to use ABL as channel for remittances.
The Internet facility in the area provides an opportunity to ABL to get Online. The Bank has
the basic infrastructure, which can facilitate the online process.
The location of the ABL, Bosan Road, Multan branch, itself provides an opportunity to ABL
to get more and less cost deposits.
THREATS:
First threat is that of political influence. The biggest threat in the banking sector is the
continuous downfall of the country economy since the last few years.

If this downfall

remains for more few sears then it may be the great barrier in achieving the Bank's
objectives. High-pressure interest groups are developing which poses a constant threat to
Allied Bank. The biggest threat to the operational success of the branch is the better
Competitons services. Many private sector banks are offering higher rates of return to customers than
Allied Bank of Pakistan.

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One of the biggest to the ABL Bosan Road Branch, is the increasing rate of dissatisfies
customers. Most of these customers were observed to be dissatisfied with the delays in their
servicing. New Privates Bank coped with emerging new Technology of IT.

Pest analysis:

Political:
Pakistan despite all international and public perceptions, today is a functioning democracy
and gradually there is a change in complexion and composition of legislatures with
more educated people and women (27% of National Assembly and 17% of Senate)
entering into politics Similarly it helps in designing best strategies to implement that
could support the revival of bank industry. Like in the era of nationalization banks had to suffer
as other industries thats why that impact is still found in the performance of this industry.

Economical:
Although

banking

sector

development

is

important

at

the

early

stage

of

economic

growth, general liberalization presuming a homogeneous bank role may notnecess

arily

promote

growth.

The

estimated

cost

structure

indicates

that

state-

owned commercial banks are large enough, while development financial

institutions and private banks can expect to obtain cost-saving advantages
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byexpanding their operations. Since scope economies are significant, portfoliodiv

ersification generally increases bank profits. In addition, privatized banks are the most
efficient, followed by foreign and private banks. Public banks are the least efficient.

Social:
Banks always helped people in improvement of living condition of poor people in various
forms like giving loans to poor for starting business or directly providing them the
instruments that could enhance their living conditions. Similarly Allied Bank always tried
to provide the needy people loans on soft terms and also helped to eradicate
unemployment by providing job opportunities.

Technology:
The Banking sector in Pakistan has experienced a rapid transformation. Just
about a decade back this sector was limited to the Sarkari (read nationalized)and
co-operative banks. Then came the multi-national banks, but these were confined to
serving an elite few. One could regard the past as the 'medieval ages' in the banking industry,
wherein

every

branch

of

the

same

bank

acted

as

anindependent information silo and multichannel banking (ATMs, Net banking,T

ele-banking, etc) was almost non-existent. Today banks have to look muchbeyond
just providing a multi-channel service platform for its customers. There are other pressing
issues that banks need to address in order to chalk-out a roadmap for the future.
Here are the top three concerns in the mind of every bank's CEO. The customer is
interested in how he/she can benefit from the bank and its products. That's why it becomes
necessary for a bank to differentiate
itsp r o d u c t s f r o m t h e o t h e r s . S o m e o f t h e w a y s i n w h i c h d i f f e r e n t i a t i o n c
a n b e introduced are through specialization, new products, and increasing the added

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Balance Sheet
As at Dec. 31, 2010
Rupees in 000

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Cash Flow Statement

For the year ended Dec.31, 2010

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Vertical And Horizontal

Analysis

Vertical Analysis of Balance Sheet:

Assets

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Amount in 000

Horizontal Analysis of Balance Sheet :

Assets

RATIO ANALYSIS:

LOAN TO DEPOSIT RATIO

LOAN TO ASSET RATIO
NET PROFIT RATIO

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Amount in 000

RATE OF RETURN AT LOANS

RETURN ON ASSETS
RETURN ON EQUITY CAPITAL
RETURN ON EQUITY

ANALYSIS:
This ratio shows a relationship between loans and advances and reveals how much
productively the deposits are used. Analysis shows an increase in loan to deposit ratio,
because advances are also increasing sharply with the increase of deposits. This condition is
favorable or the bank. If deposits increase by higher rate than an increase in loan then bank
has to face difficulty.

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ANALYSIS:
Total advances of the bank increased from 2006 to 2008 and total assets also increased from
in 2006 to in 2008. This parallel increase in advances provide us gradually increasing ratio.

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ANALYSIS:
The net profitability of the company is increasing from 2006 to 2008 as shown above. The
Increasing net profit trend shows the management s efficiency to
control the operating cost and to maximize the net profit.

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ANALYSIS:
The rate of return at loans of the company is increasing. This shows that the bank is in good
position when we compare the interest income of the company with its loan. The rate of
return is increasing with the amount of total loans. This shows that the bank is earning
favorable interest income on its loans.

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ANALYSIS:
In return on assets ratio we evaluated whether the banks management has
earned a reasonable return with the assets under its control. The bank is required to increase
its performance as the standard rate of return is 3% or more.

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ANALYSIS:
The equity capital of the bank is increased every year while in 2007 the net income decrease
and in 2008 the net income is also increased. Due to this the equity capital ratio has
decreasing trend from 2006 to 2008. We cannot set any
standard for the banks return on capital because different capitals have different capacities.

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ANALYSIS:
It is a tradition that stockholders have expected to earn an average annual return of 12% or
more from equity investment in large companies. In this case we can see that the banks return
on equity is up to the standard of the return on equity and the stockholders received favorable
return from 2008 to 2010.

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SUGGESTIONS & RECOMMENDATIONS:

ABL should provide technical training of the staff

The circle of ATM machines should extend in all major cities of the Pakistan.
ABL should encourage creativity .
The book should have the moving cameras in their branches for securities purpose.

CONCLUSION:
This organization is well managed with organized structure and efficient employees. Due to
its growth in online branch system, it has bright future in Financial Organizations.

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