TABLE OF CONTENTS

INTRODUCTION..............................................................................................3
The Bank...............................................................................................................................3
Vision..................................................................................................................................3
Mission................................................................................................................................3
Core Values.........................................................................................................................4
Strategic Objectives............................................................................................................4
Company Management........................................................................................................5
Board of Directors................................................................................................................6
Bank Organogram................................................................................................................7
DEPARTMENTS................................................................................................8
Current Saving Department................................................................................................8
Account Department............................................................................................................9
Advances Department........................................................................................................12
Remittance Department.....................................................................................................16
Cash Department................................................................................................................18
Foreign Currency Department..........................................................................................19
Clearing Department..........................................................................................................20
PRODUCTS AND SERVICES........................................................................21
Personal banking................................................................................................................21
Business Banking................................................................................................................27
Islamic Banking..................................................................................................................33
Services................................................................................................................................35
FINANCIAL PERFORMANCE.....................................................................40
Balance Sheet......................................................................................................................40
Profit & Loss Account........................................................................................................41
Horizontal Analysis of Balance Sheet...............................................................................42
Horizontal Analysis of Profit & Loss Account.................................................................45
Vertical Analysis of Balance Sheet....................................................................................47
Vertical Analysis of Profit And Loss Account..................................................................50

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INTERNSHIP EXPERIENCE................................................................................52
Concern Department, Duties and Learning.....................................................................52
Cash Department...............................................................................................................52
Clearing Department.........................................................................................................52
Accounts Department.......................................................................................................53
SWOT ANALYSIS................................................................................................54
Strengths..............................................................................................................................54
Weaknesses..........................................................................................................................55
Opportunities......................................................................................................................56
Threats.................................................................................................................................56
CONCLUSIONS AND RECOMMENDATIONS......................................................57
Physical Facilities................................................................................................................57
Availability of Staff.............................................................................................................57
Commitment of Employees................................................................................................58
Simplification of advances.................................................................................................58
Marketing Concept.............................................................................................................59
Customer Orientation........................................................................................................59
Information access..............................................................................................................59
Campaign for increasing the Deposits..............................................................................60
Increase in Business Share.................................................................................................60
ATM Network Problem......................................................................................................61
Cash Deposits Using ATM.................................................................................................61
Online Loans.......................................................................................................................61

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 CHAPTER NO 1

Introduction

1.1. The Bank

Allied Bank Limited was the first bank to be established in Pakistan.

The Bank started out in Lahore by the name Australasia Bank before independence in 1942;
and became Allied Bank of Pakistan in 1974.

In August 2004, because of capital reconstruction, the Bank’s ownership was transferred to a
consortium comprising Ibrahim Group; therefore, it was renamed as Allied Bank Limited in
2005.

Today, with its existence of over 70 years, the Bank has built itself a foundation with a strong
equity, assets and deposit base. It offers universal banking services, while placing major
emphasis on retail banking. The Bank has a large network of 1000 online branches and over
850 ATMs in Pakistan and offers various technology-based products and services to its
diverse clientele.

Allied Bank Limited operates by the following Vision, Mission & Values:

1.1.1. Vision

 To become a dynamic and efficient bank providing integrated solutions in order to be

the first choice bank for the customers.

1.1.2. 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.

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1.1.3. Core Values

 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth

1.1.4. Strategic Objectives

 Enhancing brand image and creating shareholders’ value through sustainable

performance, while optimizing return against acceptable risk appetite.
 Augmenting financial inclusion of unbanked population through innovative and
diversified technologies, building customers’ confidence through convenient delivery
channels and product designs.
 Continuous re-engineering of policies, procedures, SOPs, SLAs and TATs, ensuring
operational efficiencies through effective management of key resources.
 Instilling a culture of ethics and responsibility among human resource and becoming
an ‘Employer of Choice’ for the Top Professionals.

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1.2. Company Management

Tariq Mahmood Chief Executive Officer

Tahir Hassan Qureshi Chief Operating Officer

Tahir Yaqoob Bhatti Chief Commercial Banking

Owais Shahid Chief Corporate and Investment Banking

Asif Bashir Chief Special Assets Management

Tariq Javed Ghumman Chief Retail Banking

Muhammad Idrees Chief Islamic Banking

Imran Maqsood Chief Compliance

Sohail Aziz Awan Chief Information Technology

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1.3. Board of Directors

Mohammad Naeem Mukhtar Chairman / Non Executive Sponsor

Director

Sheikh Mukhtar Ahmad Non-Executive Sponsor Director

Muhammad Waseem Mukhtar Non-Executive Sponsor Director

Abdul Aziz Khan Non-Executive Director

Mubashir A. Akhtar Non-Executive Director

Engr. Dr. Muhammad Akram Sheikh Independent Director

Zafar Iqbal Independent Director

Tariq Mahmood Chief Executive Officer

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 1.4. Bank Organogram

Board of Directors
(BODs)

Chief Executive Officer

CEO

Audit Committee of the

Chief Operating Officer Board

(COO)

Audit & Risk Review

Corporate and Investment Human Resource & General Group
banking Group Services Group

Commercial Banking Group Finance Group

Retail Banking Group Compliance Group

Special Assets Management

Banking Service Group
Group

Real Estate, Engineering &

Treasury Group Infrastructure Development
Group

Information Technology Corporate Affairs Group

Group

Risk Management Group

Islamic Banking Group

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 CHAPTER NO 2

Departments

2.1. Current Saving Department

In ABL Allam Iqbal Town Branch current saving department mainly deals with
cheques, vouchers and advices. First of all a cheque holder have to present his/her cheque to
the person responsible for issuing the tokens. . Then cheque is passed on to the computer
operator to entry it in computer. Afterward it will go for signature verification after which it
will be given to cashier for payment.

 Computer Operations

In ABL Allam Iqbal Town branch the computer section performs several duties that are as
under;

 Daily Transactions

To record all the transactions in case of deposits made by the people and also to
record all the withdrawals made by the people or customers. Each transaction has to be
recorded in its appropriate head of account with the help of prescribed codes.

 Vouchers

To record all the vouchers made by the remittance department. Remittance department
have to prepare debit and credit vouchers for about every transaction recorded in their
department. Then these vouchers are sent to computer operator to record those in computer.

 Advices

To record all advices received from other branches. Most of the-inter branch or intra
branch- remittances are subject to ultimate receipt of advices from the corresponding branch
to materialize the transactions. These advices also have to be recorded in computer.

 Statements

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To close the daily record a number of statements have to be printed out. Statements like:

 Day’s transactions (sequence)

 Overdrawn facilitated a/c statement
 Markup sheet
 Inter branch transactions
 Detail of PLS and Current a/c
 Day’s transactions (a/c wise)
 Operative, Dormant, Inoperative and Unclaimed a/c
 All ATM transactions
 Detail of GL entries (official & non customer transactions)
 Summary of all a/c (debits, credits & balances)
 Profit due, transferred, disbursed, etc.

2.2. Account Department

Deposits the Life Blood of a Bank

Bank borrowing funds from outside parties is more important because the entire
banking system is based on it. Receiving of deposits is a basic function of all commercial
banks. Commercial banks do not receive these deposited for safekeeping purpose only. When
the bank receives the amount of deposited as a depositor, it become the owner of it. The bank
may therefore use these deposits, as it deems appropriate. But there is an implicit agreement
that the amount owned by the bank will be paid back to the depositors on demand or after a
specified period of time.

The borrowed capital of the bank is than the bank own capital. Bank’s borrowing is
mostly in the form of deposits. These deposits are lend-out to different parties. Larger the
difference between the rate at which these deposits are borrowed and the rate at which they
lend-out the greater will be the profit margin of the bank. Larger the funds lend-out the
greater will be the return earned on them and greater the amount of return on these deposits
earned greater will be the profit for the bank. It is because of this interrelated relationship.
Deposits are referred to as the “life blood small” for any banking sector.

 Kinds of Accounts

There are numbers of account that ABL offers to its customer keeping in mind their
needs and dealing.

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  Saving Bank Account

In Pakistan the saving Bank accounts are known as profit and profit and loss sharing
accounts (PLS A/C) fowling the illumination of bank. The owners of such account are not
allowed to withdraw money more than once are twice a week. In case of withdrawal of large
sum, the depositor is required to give to prior notices a week or two. Thus the bankers are not
required is always available to bank for giving to loans to their customers. Thus these
deposits also serves as source of credit certain by the commercial banks.

The rate or profit on this type of account varies from time to time. All the commercial banks
declare the rate of profit every year that is paid on these accounts on the basis of their
monthly credit balance. The bank will determine the proportion of profit & its decision will
be final. Profit will be determined on daily product basis while it will be paid on monthly
basis & will be paid on the minimum balance between the first day & last day of the month.
Zakat will be deducted on the exceeding amount as exempted from the Zakat deduction.
Taxes will be imposed according to the rules & regulations In Pakistan post offices &
national saving centers also maintain this savings bank account to encourage saving habits
among the people.

At the time of opening this account, a minimum amount of Rs.500 is to be deposited.

Subsequently the account is opened & account number is located. The depositor is given a
cheque book.

The depositor who is wishing to close his account is required to present his cheques to the
bank in order to draw the credit balance and to close the account.

 Current Account

There is no limit of withdraw of money from these accounts. In practice the bankers
do not allow any profit to such deposits in Pakistan. The customers are required maintaining
the minimum credit balance in their account in case of failing incidental charges are
recovered from defaulters. This is because the depositors may withdraw current deposits at
any time and as such the bank is not entirely free to employ such deposits. In general, the
bank allows the overdraft facilities to current account holders & the prevailing rate of markup
is charged from these customers.

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In ABL the minimum amount required to open the current account is Rs.500/- No profit is
paid to account beside this that the account holder has the facility to taking as much money as
he wants.

Individual account is opened in the name of the single personal one person on whose name it
is opened only conduct it. While two opens joint account and partnership account are more
person and the bank fallow their instructions for the conduct of the account. Similarly limited
companies can also open their current account.

 Fixed deposit Account/Term Deposits

These deposits are also called as time deposits because these deposits are based on the
fixed duration. The period for which these deposits are kept with bank are ranged from seven
days to ten years in light of the agreement between the customer and the banker. The profit
allowed on these account depend on the duration longer the duration of the deposits the
higher will be the rate of profit.

The operation of fixed account is different from saving & current accounts. Every time
money is deposited with the bank an application from filled and the bank issue a fixed deposit
receipt for amount deposited along with specific period. Fixed deposit receipt is given to the
depositor and the bank retains the counterfoil of the same receipt.

Fixed term deposits may be in the joint names of two or more person. The payment to one of
those people will not discharge by the bank without the authority of others.

 Opening and Operation of Bank Account

As discuss earlier there is a prescribed procedure for opening different types of

account. Following steps re followed while opening a new account.

 Application from for Opening of Accounting

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 A person who wishes to open a bank account is required to complete this from
the personal information is to be furnished. The application signs the declaration to
effect that he has understood the rules and regulation of the bank.

 Introduction

As required by the banking law the new customer needs to be introduced by

the account holder of the same branch where the account is being opened. The manager or
any other bank officer may introduce the new customer if they know them personally.

 Signature card

At the time of opening an account a specimen signature card containing two

signature of the customer is required which the manager of the branch attaches with
application form. During the operation of account the signature is verified when the cheque is
presented for payment.

 Cheque Book

After completing formalities for opening saving and current a cheque books
issued to the customer for withdrawing cash from his or her account at the time of need. The
cheque contains minimum 25 pages & maximum 100 pages. The bank also charges excise
duty on cheque book.

2.3. Advances Department

2.3.1. Lending Principals

The basis function of the bank is to accept deposit and lend money to the borrowers
against a spread so to be able to give some profit to the depositors as well as to earn profit for
the bank.

While lending the money to the borrowers the bank should observe the following lending
principals:

 Safety Principle

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 It means that the lent money will come back along with interest or service charges etc.
The borrower should not invest the money borrowed in unproductive or speculative business.

 Liquidity Principle

The money which has been lent to the borrower should be returned to the bank on
demand or as per repayment schedule provided by the client. The sources of repayment
should be clear and definite

 Purpose Principle

The purpose of the advances should be legitimate and productive. It should be ensured
that the banks, funds are not being utilized for speculative business. The credit restrictions by
the central bank should not be violated & it should also be ensured. It is always beneficial for
the bank to finance for short-term requirements.

 Profitability Principle

The end result of every business activity should be to earn some profit. Similarly the
bank must get some profit out of the activity of lending so that the depositors could get their
shares as well as the shareholders could earn something for their investments.

 Security Principle

The proposal should be dealt on its merit not on security. The security should be
considered a safety for the bank only in case of unexpected emergencies. All the relevant
documents of securities must be obtained & got valuation of the property or any other
security should be assessed correctly.

 Spreading of Risk Principle

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It is always safe for the bank to spread the risk in large number of borrowers instead of
loaning huge amount to few big shots, it is better to obtain different types of securities instead
of concentrating on one security.

 National Interest and Suitability Principle

It is our moral as well as legal obligation to ensure that no loaning is running counter
to national interest. It is also our duty to ensure that our lending policies are not against the
social conditions or bindings.

2.3.2. Function of Credit Department

The main function of the credit department is to lend money to the customer. Allied
Bank Ltd. Lends money in the form of clean advances against promissory notes as well as
secured advances against tangible and marketable securities. Beside these ABL also lend
money against life policies and immovable property.

 LIEN

Lien is the bank right to withhold property until the claim on the property is paid. The
bank looks at their lien as a protection against loss or overdraft or any other credit facility. In
ordinary lien the borrower remains the owner of the property, but the actual or constructive
possession remains with the creditor or bank though the borrower has no right to sell it.

 By Cash Credit

In this the bank lends money to the borrower against tangible security. The total
amount of the loan is not paid in one installment. The borrower has to pay markup on the
amount borrowed. Cash credit is favorite loan for large commercial & industrial concern.

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  By Overdraft

This the most common type of bank lending. When a borrower requires temporary
accommodation, ABL allows its customer to withdraw an excess of the balance form their
account which the borrowing customers have in credit and thus called overdraft. This facility
is given to regular reliable & well established customer. When it is against collateral
securities, it is called “Secured Overdraft” & when borrowing customer cannot offer any
collateral security except his personal security then the accommodation is called “Clean
Overdraft”.

2.3.3. Types of finance

 Short Term Finance

Allied Bank Ltd. receives the saving of the people and lends it for short term to its
customers. Short-term finance is generally given for a period of one year or less in duration.

 Medium Term Finance

The duration range of the intermediate term finance is from one year to three years. It
is also called term loan. Intermediate term finance is usually given for the expansion of an
existing business or for the purchase of new Equipment.

 Long Term Finance

This type of finance is required for the period of more than five years. Long term
finance is generally given for the compilation of big projects, for the construction of building
and for the purchase of machineries.

 Producer of Applying for Loan

Any customer who applies for loan should have an account (usually current account)
with ABL branch concerned. That account must be in running position. When approval from

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head office is given, branch gives tern & condition to the party. Bank does not advance 100%
loan against a security, rather the profit margin is different in different type of loan.

2.4. Remittance Department

Another important department in ABL Awan Town Branch is Remittances

Department. The remittances department transfers the funds from one bank to other bank and
from one place to another place.

In remittances department the collection take place. The ABL made payment of only open
cheques on the counter and prohibits the payment of crossed cheques ABL transfers money
from one place to another by the following means,

 Mail Transfer

When a customer requests the bank to transfer his money from this bank to any other
bank or the branch of some other bank, the first thing he has to do is to fill an application
form. In which he states that he/she wants to transfer the money from this bank to that bank
by mail. If the customer is the account holder of the bank, operating personal will proceed
further with steps like:

 Writing a debit voucher for a/c holder’s a/c

 Preparing an advice in favor of stated bank/branch
 Writing credit voucher for GL
 Mail the advice

If the customer is not the account holder of this bank, then firstly, he has to deposit the money
and then above procedure will be adopted to transfer his money.

 Telegraphic Transfer

With the changing requirements of the customer, ABL has introduced the fastest
transfer of money. The sender is required to apply through a form in which he will give all the
necessary details about the sender and beneficiary. The sender deposits the money to be
transferred plus bank charges at the bank counter. The remittances officials send a telegram to
concerned branch with specified code words and the receiving branch makes payment to the

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beneficiary. Vouchers are sent by ordinary mail to keep the record. On TT, no excise duty is
charged only commission and telegram charges are charged.

 Pay Order

Pay order is the most convenient simple and secure way of transfer of money. It is
issued by, drawn upon and payable by the same branch of the bank. It is neither transferable
nor negotiable and as such it is payable to the payee named there in. The following are the
parties to a pay order.

 Purchaser is a person, firm, company or local authority.

 Issuing/paying branch is one which issues/pays on presentation.
 Payee is a person named there in.

 Demand Draft

Demand Draft is another way of transfer of money from one bank to another bank.
Unlike pay order, a form is required to be filled for the issuance of the demand draft in which
necessary particulars about the beneficiary and sender are given. The sender deposits the
amount of DD plus commission and other charges on the bank counter, from where he is
given a receipt and in accordance with this receipt he is issued

The following are the main essential of draft:

 It is a Negotiable Instrument.
 Filling a form and depositing the amount written on it prepare 2} Draft.
 It is a written order to its branches or to another bank to pay the stated amount
on draft.

2.5. Cash Department

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 This is the most important and critical department in a Bank. There are two basic
functions performed by the cash department. These are

 Receipts

An individual who has account in the Bank can deposit money in his account. For
deposit of the money the individual has to fill the deposit slip in which the account holder
writes his name, Account number, amount of the money both in figures and in words.

After filling the deposit slip the Cash amount along with the deposit slip is submitted with the
cashier. The cashier collects the cash and counts it and after verification the cashier stamps
the deposit slip. One part of the deposit slip is given back to the customer and the other part
of the deposit slip remains with the bank for the record purposes.

The cashier also record the deposits made by the customers in credit sheets daily. The
deposits of all customers of the bank are controlled by mean of ledger account. Every
customer has its own ledger account and has separate ledger cards in which his / her total
record is kept.

Bill collection is also one of the main functions of bank. Cashier has to prepare a list of bills’
serial number, a copy of which is to be sent to the corresponding organization.

 Payments

The procedure of clearance of a cheque or payments is as following. First of all the

customer presents his cheque to the cashier The cashier records the account number and the
amount, which is to be drawn. Then the cashier check the cheque number in the computer for
the verification whether the account holder has such amount in his account which he is
demanding or not. If the computer passes the cheque, the Passing officer signs the cheque and
sent it to the cash counter then cashier pays the written amount to the customer and then in
the end cashier records the amount paid in computer.

2.6. Foreign Currency Department

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Like Pak rupees account the foreign currency has many accounts like

 Savings account
 Current account
 Term deposit account

The bank deal in three type of foreign currency account

1. Dollar

2. Euro

3. Pound

The account is open with 1000 dollar if it is less 5-dollar per month is deducted. For opening
the account NIC & introduction is required of the same bank. If any person wants to import
goods from foreign, an account is required and for international trading the FC is needed.
ABL provide foreign currency on Pak rupee at booking rate and the central office sent Rates

In foreign currency department the remittance is sent through Foreign Telegraphic Transfer.
The account holder can sent the amount in foreign bank account. If any transaction is made
the daily report is given to the central office Karachi daily.

Different accounts can be open like joint account or company account. The thankful letter is
sent for opening the foreign currency account to account holder and introducer. When any
transaction is made the bank inform stock exchange daily. The foreign currency note is
counted and recorded in the cash memo book. The people in the foreign country sent the
amount through S.W.I.F.T. Weekly and monthly report of all the transaction is given to the
stock exchange.

Cheque book is also issued to the account holder & the foreign currency Account number is
given to him. In this FBC & FBR is done. Debit Credit Voucher is used. The charges are
deducted while closing the foreign currency account. And the cheque book is return while
closing the account.

The branch sent excess foreign currency to its main branch. If any branch needs foreign
exchange they sent to this branch.

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2.7. Clearing Department

In clearing process, if the account holder of ABL receives the cheque of other bank
like City Bank, Habib Bank Limited Etc. and he submits it in ABL branch to be cashed. At
the same time the clearing process starts. First the bank name. Cheque number and the
amount are written in the register. After this three kind of stamps are required first bank name
stamp, secondly clearing stamp of next date and If the cheque is not local then the intercity
clearing stamp is required.

Some cheques are local and some are outstation. The institution N.I.F.T. provides the services
in clearing the cheque. They send the different cheque to different banks. The N.I.F.T service
is only in few cities, like Karachi, Lahore & Rawalpindi. The cheque of inter city is send
through N.I.F.T. And where, the N.I.F.T service is not available so the cheque is sent through
T.C.S.

The clearance of cheque is informed through advice. Some cheque is not passed so they
should return so Rs.100 is deducted and if the cheque is intercity then the postage charges is
deducted. For this purpose the Debit & Credit voucher is used. When the cheque is cleared
the today stamp is required. Some cheque is drawn on ABL. This is called outward clearing.
These cheques will be entered in the outward clearing register. And the advice is sent for the
clearance of cheques. The account holder account is credited.

CHAPTER NO 3

Products and Services

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3.1. Personal banking
3.1.1. Everyday banking

Allied Bank offers Everyday Bank Accounts for Day-to-Day Banking and Savings.

Spend a few minutes to explore our everyday bank accounts.

An appropriate bank account leads to achieve transactional and savings objectives. Figure out
exactly where your money goes. Have an accurate picture of what you spend and what you
save. In these times, SAVING your hard earned money and spending conveniently for your
daily routine expenses remain priority and your everyday account should be able to work for
you.

3.1.2. Lifestyle banking

Banking was traditionally seen as rigid and monotonous. At Allied Bank, we are committed
to focus on lifestyle and luxurious experience for our customers.

Banking was traditionally seen as rigid and monotonous. However, the transformation of new
and innovative branch concepts and services has made it possible for us to connect to the
lifestyle of our customers.

Lifestyle banking concept in Allied Bank provides a range of specialized services to serve the
needs of our customers who are accustomed to experiencing banking relationships beyond
conventional banking services and facilities. Our lifestyle based innovative products &
services offer our customers a productive, more relaxed and more rewarding experience when
they visit us. The concepts of Women Branch, Allied Rising Star – Youth Saving Account and
Allied Ba’Ikhtiyar, all correspond to the atmosphere and environment consistent with the
needs of the specific customer segment. By being within the reach of our customers wherever
they are and however they want, we enable them to access their banking services with ease
and convenience.

By positioning ourselves with these innovative lifestyle products for the women and younger
generation, we seek to engage them holistically to play an active role to address all of their
banking needs.

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3.1.3. Savings and Term deposits

Manage your funds with us… Meet your financial goals and Grow your Savings!

Have you managed to put aside some cash – What Now?

Your Savings stuffed into a mattress will never grow. But money deposited in a Savings
Account or in a fixed term, works for you by earning interest – and is also a lot safer. The
longer that saving stays in your account, the more you’ll make out of it.

Saving Accounts give you the ability to earn profit along with the flexibility to withdraw
funds whenever you require offsetting a financial emergency or need. The profit is earned as
per the mechanics of Saving Accounts which are mostly on the basis of Minimum Deposit
maintained in the account.

Alternatively, investing in a term deposit product gives you a safety of knowing that your
profit will not fluctuate.

3.1.4. Term Deposit Mechanics

Term deposits are investment options offered by banks where you deposit your savings for a
certain ‘term’ or period of time – upon which it would earn a particular percentage as profit.
Let’s say you decide to place your deposit for a term of 1 year at Allied Bank. Your deposit
will be kept secured till the maturity date. If you do need to withdraw your funds prior to its
maturity date, then there are pre-mature encashment charges that will apply.

At the maturity date of your term deposit, you may choose,

 To withdraw your principal deposit along with the profit that your savings earned,
or
 You roll over the funds altogether or partially for another term to gain more profit.
There is a core principle that relates to the term deposit i.e. The longer the period of time for
which you are prepared to commit your funds with the bank, the better will be the rate and
greater will be the income

Our Term Deposits can help you reach your savings goal.

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3.1.5. Credit and Debit cards

Range of payment instruments and channels offered by Allied Bank has significantly
contributed to service our customers.

A decade ago, it wasn’t all that unusual to be out for dinner or at the cash counter at a grocery
store and suddenly realize that you don’t have enough cash to cover the bill.

Today, we can conveniently pull out a debit or credit card and settle the bill electronically
there and then. It is difficult now to imagine a time when the card-based payment option were
not available.

Debit cards are issued with a bank account so the money spent or withdrawn, is automatically
deducted from the account. It is a convenient alternate to cash, especially when it is directly
used for shopping at merchant locations on their POS (Point of Sale) machines.

With Credit Card, you can spend more than you have, or leveraging the credit balance, you
can reschedule your payments as per your convenience and typically get better rewards and
better insurance protection. Credit cards allow spending while paying the money back later.

Our customers using debit and credit cards enjoy the convenience that these cards bring in,
for improved financial management.

3.1.6. Domestic remittances

Around 2,000 Pay Anyone transactions are carried out every month!

Domestic Remittance is a significant financial service and a need for many people across
Pakistan. To provide both Allied Bank account-holders and walk-in customers with a
convenient banking channel for remitting money, we offer a domestic remittance service
called “Pay Anyone”. Through this safe, fast, and reliable service, you can send/pay money to
anyone within Pakistan with no mandatory requirement for the beneficiary to have an account
with any bank. Currently, this feature is available via:

3.2. Branch counter for both

i) Account Holders
ii) Walk-in Customers

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3.3. Allied Direct Internet Banking for Allied Bank Customers
3.4. Phone Banking for Allied Bank Customers
3.5. Allied SMS Banking

Pay Anyone through Branch Channel (For Allied Bank’s Account-holders)

 Customer will visit his/her parent ABL branch and fill-in remittance application
form with transaction details and particulars of beneficiary
 Particulars of the beneficiary will include Beneficiary Name, CNIC #, CNIC
Expiry Date, beneficiary Cell Number, address, Remitter Cell Number and
purpose of Transaction
 Customers account for Pay anyone transaction will be debited
 On completion of transaction, a 16 digit Reference Number will be generated and
shared with the remitter for onward intimation to the beneficiary
 As soon as the transaction is successfully completed, SMS will be sent out to the
remitter’s Cell Number
 After completion of transaction, Funds will be immediately available at any
branch of Allied Bank for payment at counter

Pay-Anyone for Walk-in Customers through Branch Counter

Walk-in Customers can Pay Anyone through Allied Bank’s branch counter with no mandatory
requirement for themselves as well as their beneficiaries to have an account with any bank.
The process of Pay Anyone for walk-in customers is as follows:

 Remitter will visit any ABL branch and fill-in an application form with transaction
details and particulars of beneficiary
 Remitter will present a copy of his/her own CNIC/SNIC
 On completion of transaction, a 16 digit Reference Number will be generated and
shared with the remitter for its intimation to the beneficiary
 As soon as the transaction is successfully completed, SMS will also be sent to the
remitter at his/her prescribed cell number, stating the reference number and other
details of the transaction

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  After completion of transaction, Funds will be immediately available at any
branch of Allied Bank for payment at counter

 Pay Anyone through Allied Direct – Internet Banking

Pay anyone feature can be accessed via Allied Direct by logging in to your internet banking
account and navigating into the funds transfer section or via Call Center by calling 0800-
22522. The 2 modes of payments are described below:

i. Pay in Cash

Allied Direct users can remit funds in cash which to be collected from any Allied Bank
Branch all over Pakistan. As input, following information will be required by the system:

 Select Payee
 Enter Beneficiary’s Name, CNIC, Email, and Mobile Number
 Mention Description, Amount, and Financial PIN to initiate the transaction
Once the data is provided and confirmed, 16-digit reference number is displayed to the sender
and also sent to the sender’s email address. In case of call center, reference number is
verbalized to the customer. The sender can then communicate this reference number to the
beneficiary.

Beneficiary can then present his/her 16-Digit Reference Number along with the Copy of
CNIC to collect money from any Allied Bank Branch after 6-12 hours of transactions.

ii. Pay by Check

Internet Banking customers can transfer funds through a banker’s cheque (Allied Express
Cheque) which is delivered to the specified beneficiary’s address and payable at any branch
of ABL. To send funds, following information will be required:

 Select Payee
 Enter Beneficiary’s Name, CNIC, Address, City, Email, and Mobile Number
 Mention Description, Amount, and Financial PIN to initiate the transaction

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Once the data is provided and confirmed, Allied Express Cheque (AEC) will be dispatched to
the Beneficiary’s Address within 3 working days.

3.1.7. Pay Anyone through Allied SMS Banking

Use your mobile device to type the following syntax and pay anyone anywhere anytime:

 Type PAB (space) Payee’s CNIC (space) Amount (space) Payee’s Mobile Number
 Send this SMS to 9080
 Receive SMS to confirm Details of Payment: reply Y (to confirm) or N (to cancel)
 Upon confirmation, receive an automated call and enter your Mobile Pin
 After verification of your Mobile Pin, you will receive a confirmation SMS

3.1.8. Bancassurance

“Investments and Protection plans at Allied Bank” Dreams worth saving for!

 Alsurance
 Il’m
 Anmol Rishtey

3.1.9. e-Banking Services

“Electronic touchpoints to do banking round the clock” Banking on your fingertips!

As customers become more technology literate, Allied Bank delivers services that fit
customers’ lifestyles and offer more choice as to where, when and how they conduct
transaction. Our customers are digitally enabled and have less time to connect, interact and
transact.

We, at Allied Bank differentiate ourselves not just by offering multi-dimensional channels to
our customer but also by enhancing their experience of utilizing those channels and find them
convenient and familiar.

Our e-Banking services make us well positioned in creating better everyday life for our
customers. We have gathered a wealth of experience and expertise in providing electronic

Page 26
transactions to our individual and corporate clients. We handle more than 23 Million
electronic transactions annually.

‘Security’, ‘Speed’ and ‘Ease of use’ are the principles of e-banking infrastructure. At Allied
Bank, we are committed to our ability to speed our customers through to a successful
transaction and improve their efficiency levels while carrying out their financial decisions.
Electronic services vary domestically as well as globally but the challenge resides in
delivering solutions that are efficient, providing customers with the convenience and
confidence they require in performing transactions.

3.2. Business Banking

3.2.1. Corporate and Investment Banking

Corporate and Investment Banking group is a multifaceted business unit geared primarily
towards meeting the complex financing needs of its clientele.

It is responsible for maintaining and augmenting the Bank’s asset portfolio which primarily
includes corporate & institutional lending along with provision of other ancillary services to
its corporate clientele including Corporate Finance Products, Commodity Financing, Project
Financing, Corporate Advisory, Cash Management, Remittances, trade Financing etc.

The group has played a leading role in the economic development of the country as it has
been instrumental in financing of a large number of projects of national importance and is
considered one of the leading players in the Pakistani market when it comes to corporate
lending. Its pre-eminence in the local banking environment can be gauged from the numerous
local and international awards received by its Investment Banking Division.

Also, based on the sheer number of completed transactions, the Corporate and Investment
Banking group continues to lead the industry league table whilst enhancing the Bank’s
footprint internationally. As a first step, it is targeting the lucrative GCC region.

3.2.2. Treasury Group

Page 27
Treasury is responsible for managing interest rate, exchange rate and liquidity risk emanating
from bank’s balance sheet and trading activities.

ABL Treasury is one of the most active players in interbank foreign exchange and sovereign
debt securities market. We strive to provide the best prices to our valued clients with an
objective to grow a mutually beneficial long term relationship.

With ABL’s extensive network of branches and correspondent banking relationship we are
well positioned to help our clients in meeting their transaction / payment requirements.

 Sales Desk
 Foreign Exchange (FX) Desk
 Money Market Desk

3.2.3. Transaction and Business Accounts

Every day millions of transactions are made by Allied Bank customers.

Our real-time and efficient process of transferring funds from one place to another makes us
one of the leading banks in Pakistan offering state of the art Transactional Banking products
and services.

Transaction Banking is not just about transferring funds from one account to another; it’s
about the efficiency, security and adaptiveness in its process that define a true experience of
transaction friendly banking.

Allied Bank’s Transactional Banking comprises of products and services which include Real-
Time Online Banking, Electronic Banking on ATMs, Internet Banking on Personal Computer
or Mobile Phones and host of remunerative and non-remunerative deposit products to serve
our Business customers.

3.2.4. Home Remittances to Pakistan

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  Allied Express – Home Remittance Distribution Service

ABL has been significantly important in helping the growth of home remittances to Pakistan
through its streamlined and trusted services. We are working continuously to develop
innovative ideas into service features that allow us to process and payout remittances even
faster resulting in greater customer satisfaction.

ABL’s real-time online branch network – one of the largest networks in Pakistan, consists of
880 branches in 300 cities and town, providing comprehensive domestic distribution of
remittances to Beneficiaries across Pakistan.

A host of renowned international banks, exchange houses and money transfer companies
from across the world, including the Middle East, Europe, Asia-Pacific and North America,
have been using our services with utmost trust and satisfaction.

A number of options are available to non-resident Pakistanis through our service, including
Direct Credit to Account, Cash Payment over the Counter and issuance of Allied Express
cheques, a payment instrument that is honored across the entire ABL network of branches.

Please contact us to explore the ABL home remittances value proposition on +92-21-3587
5640 or hrc@abl.com. For a more detailed review of what we do and how we do it, you may
download the presentation.

3.2.5. Savings & Term Deposits

Manage your funds with us… Meet your financial goals and Grow your Savings!

Have you managed to put aside some cash – What Now?

Your Savings stuffed into a mattress will never grow. But money deposited in a Savings
Account or in a fixed term, works for you by earning interest – and is also a lot safer. The
longer that saving stays in your account, the more you’ll make out of it.

Saving Accounts give you the ability to earn profit along with the flexibility to withdraw
funds whenever you require offsetting a financial emergency or need. The profit is earned as
per the mechanics of Saving Accounts which are mostly on the basis of Minimum Deposit
maintained in the account.

Page 29
Alternatively, investing in a term deposit product gives you a safety of knowing that your
profit will not fluctuate.

 Term Deposit Mechanics

Term deposits are investment options offered by banks where you deposit your savings for a
certain ‘term’ or period of time – upon which it would earn a particular percentage as profit.
Let’s say you decide to place your deposit for a term of 1 year at Allied Bank. Your deposit
will be kept secured till the maturity date. If you do need to withdraw your funds prior to its
maturity date, then there are pre-mature encashment charges that will apply.

At the maturity date of your term deposit, you may choose,

 To withdraw your principal deposit along with the profit that your savings earned, or
 You roll over the funds altogether or partially for another term to gain more profit.
 There is a core principle that relates to the term deposit i.e. The longer the period of
time for which you are prepared to commit your funds with the bank, the better will
be the rate and greater will be the income

Our Term Deposits can help you reach your savings goal.

3.2.6. Cash Management Solutions

Allied Bank offers a wide range of transactional banking services to meet our Customer’s
complex cash management needs.

 Financial Institutions

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 ABL’s Financial Institutions team is in charge of establishing and maintaining institutional
banking relationships with correspondent banks across the globe. The division aims to facilitate
all areas of international banking operations inclusive of Trade, Treasury, Guarantees and nostro /
vostro relationships. ABL has internationally renowned banks such as JP Morgan Chase,
Citibank, Standard Chartered Bank, Deutsche Bank, Commerzbank, Mashreqbank etc. in its
existing list of correspondent banks, thus enabling ABL to adequately cover the need of its
clients.

The bank also has trade finance facilitation agreements in place with International Finance
Corporation (IFC) Asian Development Bank (ADB).

 Cash Management

The Cash Management team focuses on our corporate customers’ need for Collections and
Payments across the country. Tailor- made products and transactional structures are developed for
customers as well as a host of MIS reporting options for receivables management and handling of
disbursements/ payouts.

Through our value added proposition, ABL’s cash management team strives to deliver the
best combination of services to corporate clients and their suppliers, dealers, vendors and
employees nationwide

 Allied Bank Ltd. Representative Office Dubai

ABL’s Dubai Representative Office, established in 2010, focuses on liaison with leading
Financial Institutions, Exchange Companies and other financial entities in the UAE & the Gulf,
to enhance ABL’s visibility and positioning in this important International Financial Market. The
Representative Office will be critical in identifying new business opportunities for ABL’s
domestic operations.

3.2.7. Trade Services

 Import / Export Business

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 Allied bank, with its variety of export products and expertise, can help customers mitigate
risks involved in export transactions, which in turn, will help their export business flourish. We
offer a wide range of import products delivered by our expert trade team who ensures quick and
efficient processing of transactions.

Below is a list of few services Allied bank provides to help any business having
importing/exporting needs:

 Trade Finance

Allied Bank provides highly efficient trade finance services for import/export businesses
through a large number of authorized branches where trained and motivated staff is available to
handle the business on the customer’s behalf.

3.2.8. SME Financing

At Allied Bank we can make all the difference to your bottom line

ABL has realigned its focus towards SME Business with a vision to capitalize on the bank’s
countrywide footprint and long-standing customer loyalty to become a preferred cum prudent
provider of a “Total Banking Solution” to the Small & Medium Market segment.

With this renewed focus and strategy, ABL offers its customers a wide range of products &
services, meeting the needs of various types of businesses. Having best available technology and
a branch network spread across the country, we are well positioned to cater to all sorts of
business specific requirements.

3.3. Islamic Banking

3.3.1. Islamic Banking Deposits

Allied Bank-Islamic Banking Group offers a diverse range of Deposit and Investment related
accounts ensuring Shariah compliance.

At Allied Bank, Islamic Banking Group endeavors to be your “first choice Sharia Compliant
Financial Services Provider” by offering following Deposit Accounts:

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 1. Allied Islamic Current Accounts– Non Remunerative

 Allied Islamic Current Account

 Allied Islamic Basic Banking Account
 Allied Islamic Asaan Current Account

2. Allied Islamic Current Accounts – Remunerative

 Allied Islamic Anmol Plus Account (for individuals only)

 Allied Islamic Business Plus Account (for business accounts only)

3. Allied Islamic Saving Accounts

 Allied Islamic Savings Account (Regular)

 Allied Islamic Sahulat Account
 Allied Islamic Khalis Munafa Account
 Allied Islamic Asaan Saving Account

3.3.2. Allied Islamic Investment Certificates (TDR)

Allied Bank-Islamic Banking Group will also be offering Corporate and Structured Islamic
Finance Solutions to our Corporate and individual clients in order to meet their financial needs.
We are constantly tailoring highly competitive and Shariah compliant financial modes for our
customers.

3.3.2.1. Islamic Banking Instruments

 Mudarib:

Mudarib is a manager with whom the profits are shared once the work is undertaken by the
individual contracted in the Mudaraba. The manager is usually the working partner or
entrepreneur rather than the financier and provides the management, business acumen, and the

Page 33
products / services the business entails. Bank works as Mudarib in a Mudaraba contract for the
funds received from depositors.

 Rabbulmal:

Rabbulmal is the owner of capital who invests the capital (the capital owner or financier) in a
Mudaraba contract. Depositors are Rabbulmal.

 Mudaraba:

Mudaraba is a partnership in profit between capital and the work whereby one party provides
capital (Depositors / Rabbulmal) and the other party provides services (Bank / Mudarib). The
Mudarib announces its willingness to accept the funds, the sharing of profits being as agreed
between two parties and the losses being borne by the Rabbulmal except if they were due to
misconduct, negligence or violation of the conditions agreed upon by the Mudarib.

 Qard:

Qard means to give anything having value in the ownership of the other by way of virtue so
that the latter could avail of the same for his benefit with the condition that same or similar
amount of that thing would be paid back on demand or at the settled time

 Chequeing Account:

It is an account maintained at a bank which allows the customers freedom to deposit and
withdraw any sum with the Bank without any restriction(s).

 Tiered Rate Account

An account / deposit that attract enhanced rates of profit, based on different tires of
balance(s) as may be decided at the discretion of the Bank as Mudarib and announced from time
to time. The profit will be shared as per the different tiers announced from time to time whereas
the loss will be shared in proportion to the contributed funds utilized in any specific pool.

3.4. Services
3.4.1. Branches & ATMs

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Online Banking facilities are available to customers maintaining accounts at all online
branches across the country.

With branches across Pakistan and one of the largest banking machine networks in the
country, you’ll always have quick and convenient access to your ABL Accounts and our wide
array of banking services.

Explore the services we offer in-branch and at our full service ATMs:

3.4.1.1. In-Branch Services:

 Open a new account

 Withdraw, deposit and transfer funds
 Apply for Debit/credit card
 Convert one currency into another
 Request bank statement
 Request a bank draft
 Make a bill or credit card payment
 Rent a safe deposit locker, and more.
Account holders of all online branches can obtain Allied Cash+Shop Visa Debit Card for use
at ATMs as well as at POS terminals. By using your Allied Debit Card at ABL ATM, you can
perform the following activities,

3.4.1.2. ABL Automated Teller Machine (ATM) Features

 Withdraw cash (up to your daily limit)

 Transfer money between your accounts
 Make bill payments, and credit card payments (for ABL Credit Cards only)
 Make deposits (through selective 4 ABL ATMs only)
 Get mini-statements for your bank and credit card accounts, and more.

3.4.2. Extended Hours Banking

Page 35
Helping Customers Do Their Banking by Extending Our Branch Business Hours.

ABL is pleased to offer Extended Hours Banking Services for its valued customers, with an
aim of accommodating their busy schedules and making their modern-day banking tasks even
simpler & easier. 25 selected branches will remain open from 9:00am to 8:00pm from
(Monday to Friday) and from 9:00am to 5:00pm on Saturdays across the country.

Keeping the doors open for Extended hours services reflects our commitment of continually
providing better financial solutions and tailored-services centered around our customer
requirements, which will enable them to do banking at convenience whilst suiting their life-
cycle needs.

The branches will continue to offer regular banking services (except FX transations) during
extended hours, which include:

 Cash receipt transaction

 Cash payment transaction
 Online transactions
 Collection of utility bills
 Issuance of demand draft / pay order
 Clearing of cheque and other related instruments, and other banking services.

3.4.3. Online Banking

Enjoy Real-time Online Banking service at any Allied Bank Branch. Allied Bank is the only
bank in Pakistan offering 100% online branch network. Wherever you go around the country,
you can access and do transaction through your ABL bank account from any Allied Bank
Branch.

 Deposit Cash for instant credit into the account

 Withdraw Cash through cheque from any ABL Branch
 Make Balance Enquiry and get Account Statement from any Allied Bank Branch
 Transfer funds from one ABL account to any other ABL account across the country
Maximize the productivity of your business or financial management with Allied Bank’s
Online Banking facilities. It is a secure, efficient and convenient way to collect your

Page 36
payments faster, optimize the timing of disbursement of funds, and maintain better control
over your funds.

3.4.4. Safe Deposit Lockers

Allied Bank’s Safe Deposit Lockers Safeguard Your Valuables to Assure Your Peace of Mind
& Confidence.

Lockers are available at Allied Bank’s branches for all our account holders with singly as
well as joint operating instructions. As an additional security and track recording, whenever
our account holders visit their locker, they are supervised by our cordial staff along with the
verification of signatures to ensure safe, verified and vigilant entry.

If you are an Allied Bank Account holder, contact your branch and avail the locker facility
now.

Some key features and charges of Allied Bank’s safe deposit lockers are,

Key features

 Wide Availability
 Lockers are insured according to their size.
 Privacy and comfort to operate lockers
 Lockers available in various sizes. i.e. Small, Medium , Large and Extra Large with
flexible rental fee.
 Lockers are rented out for a minimum period of one year.
 The rent will be recovered from your deposit account maintained with us.
 Direct debits for locker rentals from your account provide convenience and hassle-
free payment of annual fee.

3.4.5. Utility Bills Payment

Our Utility Bills Payment Service Allows You to Pay Your Utility Bills Conveniently and
Securely. You Can Avail the Service at ABL Branches, ATMs, Online Banking, SMS
Banking, and Phone Banking.

Page 37
3.4.5.1. At ABL Branches

Pay your utility bills over the counter at Allied Bank’s more than 840 nationwide branches.
Our friendly staff will help you through the payment process.

3.4.5.2. Via Allied Direct-Internet Banking

Allied Bank provides Fast, Secure and Convenient bill payment system through Allied Direct
– Internet Banking.

You just have to register yourself on Allied Direct!

Registering with Allied Direct enables you to pay your bills online… by bypassing the hassle
of standing in long queues or headaches due to late payment fees.

Just enter your billing details in our Internet banking, and start paying your utility bills,
month on month, absolutely hassle-free.

3.4.5.3. Via SMS Banking

Allied Bank’s customers who are SMS Banking users can now pay their utility bills using
their mobile phone handsets without any GPRS or internet connectivity, just via a few
SMSes. To make utility bill payments using SMS facility, please follow this service
command:

 Type PAYBIll(space)Billing Company’s Name(space)Consumer Name(space)Amount

& send SMS to 9080.
 Receive SMS to confirm “Details of Payment”. Reply Y (to Confirm) and <strongN
(to Cancel)
 Upon confirmation, receive an automated call and enter your Mobile PIN
 After verification of your Mobile PIN, you will receive a confirmation SMS
 Learn more service commands for Mobile Top ups using SMS Banking facility by
viewing Allied SMS Banking – Service Commands Quick Guide.

Page 38
3.4.5.4. At ATMs

You need not to carry cash to pay your bills.

Allied cash+Shop Visa Debit Card holders can make payments anytime at any ABL ATM
Booth conveniently and securely. Customers will receive auto-generated slip after the bills
are paid.

3.4.6. Allied Phone Banking

With Allied Phone Banking, paying utility bills is just a call away. Just dial our 0800-22522
toll free Number any time of the day, and leave the rest to our agents.

To Avail Utility Bill Payment via Phone Banking, all you need is:

 An active Allied Cash+Shop Visa Debit Card

 T-PIN (Telephonic Personal Identification Number) which can be generated by calling
Allied Phone Banking from the telephone/mobile number you have mentioned at the
time of opening your account at Allied Bank Limited.

CHAPTER NO 4

Financial Performance

4.1. Balance Sheet

For Five Years

Rs. in Million
December 31, 2015 2014 2013 2012 2011 2010

STATEMENT OF FINANCIAL POSITION

Page 39
ASSETS
Cash and balances with treasury and other banks 60,789 42,129 45,775 44,381 38,159 31,845

Lending to financial institutions 3,628 2,030 12,461 10,721 1,362 11,489

Investments- Gross 546,855 429,597 364,966 269,351 198,398 123,855

Advances - Gross 340,769 325,825 285,376 288,889 262,137 267,776

Operating Fixed assets 28,850 27,250 22,084 19,871 18,087 15,360

Other assets 32,716 36,055 23,496 20,245 18,185 17,719

Total Assets - Gross 1,013,607 862,886 754,158 653,458 536,328 468,044

Provisions against non-performing advances (19,164) (19,811) (18,375) (17,805) (17,704) (15,431)

Provisions against diminution in value of investment (2,778) (806) (1,587) (1,948) (2,704) (2,682)

Total Assets - Net of provision 991,665 842,269 734,196 633,705 515,920 449,931

LIABILITIES
Bills payable 4,942 4,832 4,879 6,203 4,015 4,119

Inter bank borrowings 137,960 66,096 32,952 38,916 49,993 20,774

Customer deposits 734,596 667,878 608,412 514,707 399,562 371,284

Sub-ordinated loans - 2,994 4,242 5,490 5,493 5,495

Other liabilities 24,911 19,579 17,513 16,351 13,325 12,284

Total Liabilities 902,409 761,379 667,998 581,667 472,388 413,956

NET ASSETS 89,256 80,890 66,198 52,038 43,532 35,975

REPRESENTED BY
Share capital 11,451 11,451 10,410 9,463 8,603 7,821

Share premium - - - - 202 984

Reserves 15,102 13,549 12,438 10,899 8,561 6,533

Un - appropriated profit 41,415 37,053 30,855 23,688 20,447 15,829

Equity - Tier I 67,968 62,053 53,703 44,050 37,813 31,167

Surplus on revaluation of assets 21,288 18,837 12,495 7,988 5,719 4,808

Total Equity 89,256 80,890 66,198 52,038 43,532 35,975

4.2. Profit & Loss Account

For Five Years

Rs. in Million
December 31, 2015 2014 2013 2012 2011 2010

PROFIT & LOSS ACCOUNT

Markup / Return / Interest earned 72,116 67,001 54,222 49,503 51,814 44,993

Markup / Return / Interest expensed (35,977) (38,815) (32,552) (31,142) (26,643) (22,428)

Net Markup / Interest income 36,139 28,186 21,670 18,361 25,171 22,565

Page 40
Fee, Commission, Brokerage and Exchange income 4,409 3,758 3,711 3,169 3,395 2,910

Capital gain, Dividend income and Unrealized gain 4,360 7,850 4,645 10,353 3,507 2,511

Other income 986 1,128 1,247 272 48 251

Non Interest Income 9,755 12,736 9,603 13,794 6,950 5,672

Gross Income 45,894 40,922 31,273 32,155 32,121 28,237

Operating expenses (18,603) (17,390) (15,804) (14,853) (13,684) (11,529)

Profit Before Provisions 27,291 23,532 15,469 17,302 18,437 16,708

Donations (139) (76) (80) (104) (61) (38)

Provisions - charge (1,649) (1,254) (628) (1,362) (3,267) (4,326)

Profit Before Taxation 25,503 22,202 14,761 15,836 15,109 12,344

Taxation (10,383) (7,187) (118) (4,195) (4,969) (4,118)

Profit After Taxation 15,120 15,015 14,643 11,641 10,140 8,226

4.3. Horizontal Analysis of Balance Sheet

2015 15 Vs 14 2014 14 Vs 13 2013 13 Vs 12 2012 12 Vs 11 2011 11 Vs 10 2010 10 Vs 09

Rs. M % Rs. M % Rs. M % Rs. M % Rs. M % Rs. M %

STATEMENT OF FINANCIAL POSITION

ASSETS
Cash and balances with treasury
and other banks 60,789 44% 42,129 -8% 45,775 3% 44,381 16% 38,159 20% 31,845 15%

Lending to financial institutions 3,628 79% 2,030 -84% 12,461 16% 10,721 687% 1,362 -88% 11,489 -59%

Investments – Net 544,077 27% 428,791 18% 363,379 36% 267,403 37% 195,694 61% 121,173 28%

Advances – Net 321,605 5% 306,014 15% 267,001 -2% 271,084 11% 244,433 -3% 252,345 6%

Page 41
Operating Fixed assets 28,850 6% 27,250 23% 22,084 11% 19,871 10% 18,087 18% 15,360 23%

Other assets 32,716 -9% 36,055 53% 23,496 16% 20,245 11% 18,185 3% 17,719 -1%

Total Assets 991,665 18% 842,269 15% 734,196 16% 633,705 23% 515,920 15% 449,931 8%

LIABILITIES
Bills payable 4,942 2% 4,832 -1% 4,879 -21% 6,203 54% 4,015 -3% 4,119 30%

Inter bank borrowings 137,960 109% 66,096 101% 32,952 -15% 38,916 -22% 49,993 141% 20,774 -48%

Customer deposits 734,596 10% 667,878 10% 608,412 18% 514,707 29% 399,562 8% 371,284 13%

Sub-ordinated loans - -100% 2,994 -29% 4,242 -23% 5,490 0% 5,493 0% 5,495 0%

Other liabilities 24,911 27% 19,579 12% 17,513 7% 16,351 23% 13,325 8% 12,284 11%

Total Liabilities 902,409 19% 761,379 14% 667,998 15% 581,667 23% 472,388 14% 413,956 7%

NET ASSETS 89,256 10% 80,890 22% 66,198 27% 52,038 20% 43,532 21% 35,975 20%

REPRESENTED BY
Share capital 11,451 0% 11,451 10% 10,410 10% 9,463 10% 8,603 10% 7,821 10%

Reserves 15,102 11% 13,549 9% 12,438 14% 10,899 24% 8,763 17% 7,517 14%

Un - appropriated profit 41,415 12% 37,053 20% 30,855 30% 23,688 16% 20,447 29% 15,829 30%

Equity - Tier I 67,968 10% 62,053 16% 53,703 22% 44,050 16% 37,813 21% 31,167 20%

Surplus on revaluation of assets 21,288 13% 18,837 51% 12,495 56% 7,988 40% 5,719 19% 4,808 18%

Total Equity 89,256 10% 80,890 22% 66,198 27% 52,038 20% 43,532 21% 35,975 20%

4.3.1. Horizontal Analysis of Balance Sheet

4.3.1.1. Assets
 Cash and Balances with Treasury Banks and other Banks

Under this head, bank has to maintain with State Bank of Pakistan as cash reserve
requirement and a portion of deposits to meet the demand of customers, and the cash, which
the bank keeps in other banks in order to maintain liquidity position. In year 2010 this
percentage increases slightly to 20% and then it decreases during 2012, 2013 & 2014. In the

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year 2015 it increases to 44% that may be due to increase in current accounts with SBP or
increase in banks deposit in other banks.

 Lending to Financial Institutions

The amount, which the bank invests in financial institution come under this head of assets.
This is a safe source to earn profit. Lending of the bank to other financial institutions were
687% in 2012 which is highest increased during previous years but then it decreases to -84%
in 2014. In 2015 it again increases to 79%.

 Investments:-

Under this head bank invest in some securities. For the last few years it is observed that
interest on securities is higher than the interest received from public. Investments were
decreased to 18% in the year 2014, previously they were 36% in 2013. But in 2015 they
increase to 27% again.

 Advances

The Advances are the amount lending to general public. The basic function of a bank is to
accept deposits and lend to general public. In the year 2012 advances were 11% but
decreased to -2% in 2013. In 2014 they again increased to 15% and in 2015 they were 5%
only.

 Operating Fixed Assets

The amount to purchase fixed assets for the business comes under this head. Operating fixed
assets of the bank increases to 23% in 2014 as compared to 2010 but in 2015 they decreased
to 6%

4.3.1.2. Liabilities
 Inter Bank Borrowings

If bank can lend to financial institution then it can borrow from them as well that is liability.
The percentage shows dramatic change in year 2012 and 2013 as it decreases to -22% and
-15% and then increases abruptly 101% and 109% in years 2014 and 2015 respectively when
compared to 2010.

 Customer Deposits

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This is another main function of bank to accept deposits but these have to give back to
customers. Customer deposits were high in 2012 when percentage is 29% but it decrease to
18%, 10% & 10% in years 2013, 2014 & 2015 respectively.

4.4. Horizontal Analysis of Profit & Loss Account

2015 15 Vs 14 2014 14 Vs 13 2013 13 Vs 12 2012 12 Vs 11 2011 11 Vs 10 2010 10 Vs 09

Rs. M % Rs. M % Rs. M % Rs. M % Rs. M % Rs. M %

PROFIT & LOSS ACCOUNT

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INTEREST / RETURN / NON INTEREST INCOME EARNED

Markup / Return / Interest earned 72,116 8% 67,001 24% 54,222 10% 49,503 -4% 51,814 15% 44,993 9%

Fee, Commission, Brokerage and

Exchange income 4,409 17% 3,758 1% 3,711 17% 3,169 -7% 3,395 17% 2,910 -16%

Capital gain, Dividend income and Unrealized gain 4,360 -44% 7,850 69% 4,645 -55% 10,353 195% 3,507 40% 2,511 2%

Other income 986 -13% 1,128 -10% 1,247 358% 272 472% 48 -81% 251 598%

Total Income 81,871 3% 79,737 25% 63,825 1% 63,297 8% 58,764 16% 50,665 8%

MARKUP / RETURN / NON INTEREST EXPENSE

Markup / Return / Interest expensed (35,977) -7% (38,815) 19% (32,552) 5% (31,142) 17% (26,643) 19% (22,428) 0%

Operating expenses (18,603) 7% (17,390) 10% (15,804) 6% (14,853) 9% (13,684) 19% (11,529) 20%

Donations (139) 83% (76) -5% (80) -23% (104) 69% (61) 60% (38) -139%

Provisions (1,649) 31% (1,254) 100% (628) -54% (1,362) -58% (3,267) -24% (4,326) -2%

Taxation (10,383) 44% (7,187) 6014% (118) -97% (4,195) -16% (4,969) 21% (4,118) 21%

Total Expense (66,751) 3% (64,722) 32% (49,182) -5% (51,656) 6% (48,624) 15% (42,439) 7%

Profit After Taxation 15,120 1% 15,015 3% 14,643 26% 11,641 15% 10,140 23% 8,226 13%

4.4.1. Horizontal Analysis of Profit And Loss Account

 Interest/ Return/ Non Interest Income Earned

It includes all incomes including interest income, markup and non-interest income. Profit and
Loss account shows that income of the bank increased during previous years. In 2014
income of the bank increased to 25%. It shows that bank is efficiently using its deposits to

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meet interest expense and the provisions against non-performance loans, diminution in the
value of investments and other bad debts. From its income from advances is improving day
by day.

 Markup/ Return/ Non Interest Expense

It shows the total expenses of the bank including markup and non-markup expenses. Profit
and Loss account shows that the expenses of bank decreased only during the year 2013 by
5% but in all other years it increased. Increase in the expenses is mainly due to increase in
administration expense.

 Profit before Taxation

It is the main indicator to observe the efficiency of the organization. The figures under
this head show that it was continuously raised every year that is a good sign. It shows
the regular growth in profitability of the bank.

 Profit after Taxation

The net profit of Allied Bank was increased to 15% in 2012, 26% in 2013, 3% in 2014 and
1% in 2015 as compared to 2010. That figure shows continuance success in the market.

4.5. Vertical Analysis of Balance Sheet

2015 2014 2013 2012 2011 2010

Rs. M % Rs. M % Rs. M % Rs. M % Rs. M % Rs. M %

STATEMENT OF FINANCIAL POSITION

ASSETS
Cash and balances with treasury
and other banks 60,789 6% 42,129 5% 45,775 6% 44,381 7% 38,159 7% 31,845 7%

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Lending to financial institutions 3,628 1% 2,030 1% 12,461 2% 10,721 2% 1,362 0% 11,489 3%

Investments - Net 544,077 55% 428,791 51% 363,379 50% 267,403 42% 195,694 38% 121,173 27%

Advances - Net 321,605 32% 306,014 36% 267,001 36% 271,084 43% 244,433 47% 252,345 56%

Operating Fixed assets 28,850 3% 27,250 3% 22,084 3% 19,871 3% 18,087 4% 15,360 3%

Other assets 32,716 3% 36,055 4% 23,496 3% 20,245 3% 18,185 4% 17,719 4%

Total Assets 991,665 100% 842,269 100% 734,196 100% 633,705 100% 515,920 100% 449,931 100%

LIABILITIES
Bills payable 4,942 0% 4,832 1% 4,879 1% 6,203 1% 4,015 1% 4,119 1%

Inter bank borrowings 137,960 14% 66,096 7% 32,952 4% 38,916 6% 49,993 10% 20,774 5%

Customer deposits 734,596 74% 667,878 79% 608,412 83% 514,707 81% 399,562 77% 371,284 82%

Sub-ordinated loans - 0% 2,994 1% 4,242 1% 5,490 1% 5,493 1% 5,495 1%

Other liabilities 24,911 3% 19,579 2% 17,513 2% 16,351 3% 13,325 3% 12,284 3%

Total Liabilities 902,409 91% 761,379 90% 667,998 91% 581,667 92% 472,388 92% 413,956 92%

NET ASSETS 89,256 9% 80,890 10% 66,198 9% 52,038 8% 43,532 8% 35,975 8%

REPRESENTED BY
Share capital 11,451 1% 11,451 2% 10,410 1% 9,463 1% 8,603 1% 7,821 2%

Reserves 15,102 2% 13,549 2% 12,438 2% 10,899 2% 8,763 2% 7,517 2%

Un - appropriated profit 41,415 4% 37,053 4% 30,855 4% 23,688 4% 20,447 4% 15,829 3%

Equity - Tier I 67,968 7% 62,053 8% 53,703 7% 44,050 7% 37,813 7% 31,167 7%

Surplus on revaluation of assets 21,288 2% 18,837 2% 12,495 2% 7,988 1% 5,719 1% 4,808 1%

Total Equity 89,256 9% 80,890 10% 66,198 9% 52,038 8% 43,532 8% 35,975 8%

4.5.1. Vertical Analysis of Balance Sheet

4.5.1.1. Assets
 Cash and Balance with treasury Bank and Other Banks

Cash and Balance with treasury Bank and other Banks is 7%, 6%, 5% & 6% in the years
2012, 2013, 2014 & 2015 respectively that shows the bank has excess cash after meeting the
operating requirements.

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  Lending to financial Institutions

In 2012 lending to financial institutions to total assets was 2% and 2% in 2013. The bank did
not give loan to financial institution and figure comes down and it was only 1% in 2014 and
1% in 2015.

 Investments

The bank is continuously increasing its investments. In year 2012 investments were 42% and
in 2015 investments increased to 55%.

 Advances

Advances decreased as compared to 2010. In year 2012 they were 43% and in 2015 they
were decreased to 32%.

 Operating fixed Assets

The percentage of operating fixed assets remained same and it is 3% during previous four
years.

4.5.1.2. Liabilities
 Inter bank borrowings

Inter bank borrowings were 4% in 2013 and 7% in 2014 but increased to 14% in 2015. This
rapid increase in borrowings is not a healthy sign for the bank.

 Deposits

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Deposits of the bank were 83% in 2013 but decreased in 2014 and 2015 to 79% and 74%
respectively.

4.6. Vertical Analysis of Profit And Loss Account

2015 2014 2013 2012 2011 2010

Rs. M % Rs. M % Rs. M % Rs. M % Rs. M % Rs. M %

PROFIT & LOSS ACCOUNT

INTEREST / RETURN / NON INTEREST INCOME EARNED

Markup / Return / Interest earned 72,116 88% 67,001 84% 54,222 85% 49,503 78% 51,814 88% 44,993 89%

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Fee, Commission, Brokerage and
Exchange income 4,409 6% 3,758 5% 3,711 6% 3,169 5% 3,395 6% 2,910 6%

Capital gain, Dividend income

and Unrealized gain 4,360 5% 7,850 10% 4,645 7% 10,353 17% 3,507 6% 2,511 5%

Other income 986 1% 1,128 1% 1,247 2% 272 0% 48 0% 251 0%

Total Income 81,871 100% 79,737 100% 63,825 100% 63,297 100% 58,764 100% 50,665 100%

MARKUP / RETURN / NON INTEREST EXPENSE

Markup / Return / Interest expensed (35,977) 44% (38,815) 48% (32,552) 51% (31,142) 49% (26,643) 46% (22,428) 44%

Operating expenses (18,603) 23% (17,390) 22% (15,804) 25% (14,853) 24% (13,684) 23% (11,529) 23%

Donations (139) 0% (76) 0% (80) 0% (104) 0% (61) 0% (38) 0%

Provisions (1,649) 2% (1,254) 2% (628) 1% (1,362) 2% (3,267) 6% (4,326) 9%

Taxation (10,383) 13% (7,187) 9% (118) 0% (4,195) 7% (4,969) 8% (4,118) 8%

Total Expense - percentage of total income (66,751) 82% (64,722) 81% (49,182) 77% (51,656) 82% (48,624) 83% (42,439) 84%

Profit After Taxation 15,120 18% 15,015 19% 14,643 23% 11,641 18% 10,140 17% 8,226 16%

4.6.1. Vertical Analysis of Profit And Loss Account

 Interest/ Return/ Non Interest Income Earned:-

Interest/ Return/ Non Interest Income Earned of the bank is gradually increasing from which
interest income has a major portion and previously in 2015 it was 88%.

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  Markup/ Return/ Non Interest Expense:-

Markup/ Return/ Non Interest Expense is almost same during previous years but out of these
expenses taxation shows an increase of 13% in 2015 which is high.

 Profit after Taxation:-

Profit after taxation was increased to 23% in year 2013 but then decreased gradually in 2014
and 2015 to 19% and 18% respectively.

CHAPTER NO 5

Internship Experience

5.1. Concern Department, Duties and Learning

My duties at the bank during my internship were of the diversified nature. I was rotated in the
different departments of the bank. I was also assigned with some responsibilities of the minor

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level. They gave me some assignments as well to give me the true exposure of practical work
environment. So my duties can be categorized department wise as under,

5.1.1. Cash Department

In cash department I learnt how to make payments on cheques, accept deposits and collection
of utility bills. The parties to cheque must be considered while acknowledging the person
who is ordering for payment, the bank who has to pay the amount and finally the payee who
is receiving the payment. The cheque is the most important, convenient and well established
medium of modern banking used for withdrawal of funds and settlement of debts by an
account holder i.e. a drawer. While taking cheques from customers the verification of
signatures must be kept in mind be checked according to the signature card. I observed that
when cheque is posted it is supervised to know the effect of posting and if the cheque is ‘ok’
it is forwarded to the cashier for payment. Furthermore, when a customer wants to deposit
any amount in its account it goes to the relevant officer who accepts deposit and give a
receipt to the customer. I learnt when a customer wants to deposit any amount in its account it
goes to the relevant officer who accept deposit and give a receipt to the customer. The cashier
in cashier long book enters the amount deposited by the customer on its credit side. Another
facility provided to customers the utility bills collection of electricity, gas and telephones. The
bank collects utility Bills during banking hours. Bills can be paid through cash or cheques.

5.1.2. Clearing Department

In clearing department the branch receives cheques of other banks than one process of getting
payment against these cheques is that you sent a person who will take money on your behalf
but in these cities where State bank exist this function is performed by clearing. I recorded
clearing payments in outward registers considering the receiver, drawer, drawee, cheque
number, account number and the amount. In the same way when payment is received from
the other bank than I entered in inward clearing register. The representatives of local banks
meet there at 9:00o’clock and exchange their cheques and other instruments with each other.
Then they come to their bank and check these instruments if these are ok or not. The
representative again meet at 12:00 o’clock in the clearance house and the cheques which are
ok get payment against these and the cheque that cannot be cashed are again exchanged.

5.1.3. Accounts Department

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Under accounts department they taught me the process of getting deposits from general
public which is the main task of accounts department. I realized, continuous addition of new
accounts is an important functional activity of a bank because it not only builds up its
deposits base, but also increases its profitability and is very necessary for its survival. All
Accounts are opened with a fixed minimum cash deposit. It is checked carefully that account
opening form is complete in all respects and signed by the account holder and introducer. I
checked carefully whether the account opening form is complete in all respects and signed by
the account holder’s introducer. Attested copy of national identity of account holder and
introducer is obtained. In addition, the opening account relevant information is recorded in
account opening register.

My internship experience has given me a realistic preview of practical life. Now I feel
that I am better prepared to enter the world of professional work. I have come to know and
been appreciated by a number of professionals who are lending their services to the banking
sector for more than a decade. I feel honored that I have worked with such experienced
professionals. I must admit that such interaction in this respectable professional community
will help me in seeking out good job opportunities in the near future. Each task I performed
was a different experience in itself. By the end of it, I must say I realize my potentials, I have
realized that practical life is not so easy after all it takes a lot of hard work and devotion.

CHAPTER NO 6

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 Allam Iqbal Town branch in the light of the entire branch and Bank specific

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variables which directly or indirectly affect the operations of the branch. The tool selected for
the analysis of organization is SWOT analysis.

SWOT analysis

SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and
Threats. This is a careful evaluation of an organization’s strengths to avail an opportunity by
overcoming its weaknesses and phasing out all he threats to its survival in order to grow and
survive.

6.1. Strengths

• This branch is provided with fax machines and telephone connections, which make
communication easier with different branches.

• The branch is linked through an online network of 755 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 the commercial area of Lahore. This location provides a
competitive edge to the Branch.

• The branch is situated in commercial area where 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.

6.2. Weaknesses

• 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 organization is very much mechanistic and provides no flexibility to encourage

creativity.

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• The lower staff is non-cooperative as compared the lower staff of other branches.

• There is a lack of commitment and professionalism on part of the employees. The

staff is always in a hurry to leave the bank as soon as possible. They were also observed to
starting their operations comparatively late.

• The organizational culture is not cooperative

• Nepotism was observed on part of the manger as well as the top management towards
some staff members.

• 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.

• The branch lacks some physical facilities such as clean washrooms which can affect
employee’s performance

• The job distribution is not up to the mark. The immediate result of which is:

1. Filing system is not up-to-date. Much time is wasted while searching for even a week
old document.
2. The staff spent over time in collections than required.

• Delays were observed because the prescribed procedures are not followed.

• No efforts are made to recover the outstanding debts.

• Facility for receiving and satisfying complaints and inviting suggestions is not good
enough.

6.3. Opportunities

• 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.

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• 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, Awan Town Branch itself provides an opportunity to ABL to
get more and less cost deposits.

• The group from its survey and analysis of IT companies have found out that there are
many companies which are not satisfied with its current bank, so Awan Town Branch with its
superior service quality and long working hours can capture those customers.

6.4. Threats

• The biggest threat to the operational success of the branch is the better competitor’s
services. Many private sector banks are offering higher rates of return to customers than
Allied Bank of Pakistan.

• One of the biggest to the ABL, Awan Town Branch is the increasing rate of
dissatisfies customers. Most of these customers were observed to be dissatisfied with the
delays in their servicing.

• The greatest threats to the performance of ABL, Awan Town Branch are the
decreasing morale of employees. They feel that they are not provided with bonuses. They are
not given proper attention to have a say in the annual meetings.

• High-pressure interest groups are developing which poses a constant threat to Allied
Bank.

CHAPTER NO 7

Conclusions and Recommendations

The critical analysis ABL in the former section of this report is the representation of
its past, mirror of its present, and an insight into its future. The past data of ABL Awan Town
Branch enabled me to study the organization in a historical perspective and understand the

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nuisances in the banking operations. Study of the present of ABL helped me evaluate the
organization in comparison to its future and competitors. The data obtained from the analysis
of its present and future in combination with my professional studies resulted in some
suggestions and implementation plans, which can help to increase the profitability and
operational success of the ABL, Awan Town Branch Lahore.

Some of the major findings suggestions are discussed.

7.1. Physical Facilities

The physical facilities or the layout are the most fundamental features in an
organization, which the customers observe in forming an opinion, perception or idea about
the organization. Therefore, every organization tries to make a good first impression on
customers through the presentation of its physical facilities or layout. The physical facilities
in the branch are not up to the mark, which requires timely changes to provide good
environment to customers. The suggested changes and corrective actions are gives below:

• The lighting system must be improved and all the out of use lights must be replaced.

• Newspaper should be provided to the customers to avoid the pain of waiting long.

• A cash counting machine can help reduce the time spent in counting cash.

7.2. Availability of Staff

The existing staff in the Bank is overburdened due to the non-availability of more
staff. Staff in the branch must be in proportion to the customer has so as to expedite the
workflow, avoid overloading of staff and remove the customer’s grievances arising mainly
due to delay in workflow.

The additional staff required is in the fallowing categories.

• More technically trained staff should be added to the existing staff strength

• One staff assistant or grade 2 officers properly trained in computer and sufficiently
trained in foreign currency accounts.

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7.3. Commitment of Employees

The decreasing commitment of employees can be increased by introducing an

effective performance appraisal system, which can reward and recognize the achievements
and services of employees for the Bank.

The appraisal system must have the following features.

• Feed Back

Periodically provided to employees and recognizing their efforts through reward (bonuses)
and publicly appreciation.

• Uniform:

The appraisal system must be uniform in evaluating all the employees without any
discrimination.

• Objectivity:

The appraisal system must be based on facts and figures and objective evaluation of the facts
on grounds.

7.4. Simplification of advances

The biggest source of the bank revenue is advances. The advances of ABL, Awan
Town Branch are on a decreasing trend, causing a decrease in the revenue for the bank. The
bank should make the advance procedure simple and quick to meet the customer’s
requirements. The following steps are suggested for simplifying the advance procedure.

• Speeding up the process of investigation and verification.

• Expanding its customer base.

7.5. Marketing Concept

The concept of marketing should be followed in every aspect of the organization.

Generally, the bank’s staff considers that marketing is to go to customers, beg them for
opening an account with the Bank and to abide by his every just and unjust action.

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They should be taught that marketing is not only to go to customers only. A customer can also
be attracted by provided customer oriented services, showing empathy to your customers and
attending him personally.

7.6. Customer Orientation

Deposits are the main source of funds for commercial banks. Therefore, the priority of
every bank is to increase the number and amount of deposits. The key to successful business
does not lie in simply attracting new customers. The real success is to maintain in the old
customers and attract new customers at the same time because retaining a customer is more
difficult than attracting new customers.

• Every depositor should be given equal importance and there should be no

differentiation between customers so that every customer feels himself as much important as
the other customer.

• The attitude of the staff should be friendly to all the customers. The customers should
be taken to the concerned person or guided friendly if the concerned person is not available.
The attitude of “that’s not my job” should not exist anymore.

7.7. Information access

The Bank should provide information to all the present and potential customers
relating to the new products, services, some service’s fee structure and other matters, which
are likely to affect the customers. It should be made sure that all the customers have access to
this information. Conveying information is of no use, unless, there is some feedback from the
customers. The following measures are suggested to implement this suggestion.

• Brochures, handouts, pamphlets and other printed reports must be provided to

customers, which should provide all the information necessary to attract and retain customers
and to satisfy the customer’s need for more information.

• Personal contacts with the customers can help in providing information to customers.
All the customers must be provided a chance to get the desired information by personal
contact with the Bank staff.

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• Complaint and suggestion box should be maintained at the door of the Bank where the
customers can point out drawbacks in the customer’s services and put forward their
suggestions on his improvement of the services quality of the Bank.

7.8. Campaign for increasing the Deposits

The numbers of account holders in a bank make a significant contribution to the

deposits of the Bank and determine its business volume, profits and size of a bank. Therefore,
ABL, Awan Town Branch must have a clear plan for increasing the number of accounts. The
details of plan for increasing the number of accounts are given in the implementation plan.

7.9. Increase in Business Share

Along with concentrating on increasing the customer base, the Bank must also emphasize on
securing the highest market share in other banking services such as issuance of letter of
credit, foreign exchange, remittances, bills identification of productive secure and easily
realizable advances etc. to achieve this strategy the Bank should have a clear plans with the
consent of the higher management. The plan must be divided into different periods – weekly,
monthly, semiannual and annual. Every stage of the plan must be monitored and controlled
on regular basis.

7.10. ATM Network Problem

I have found some problems with ATM network. Many customers have complaints
that their requests placed on ATMs don’t carry out. It is mainly because of bad PTCL lines.
Distortion in lines of PTCL restricts the execution of requests placed on ATM machines by
customers. Although there is a network of dedicated lines for ATM machines, a request may
not be successfully carried out because of complicated request processing. A successful
execution of a request needs to be approved from three places:

 The branch (online) with which the customer (placing the request) have the account
 Main branch of that area (city)
 The head office (in Karachi)

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So connecting to all of these three places simultaneously and getting the request approved is a
complicated process. However management claims that there is nothing wrong with
processing. The only problem lies with PCL lines. So to solve this problem the bank should
hire technicians who can work during public holidays to make the ATM useable while it
shows any distortion.

7.11. Cash Deposits Using ATM

Now-a-days in foreign countries ATM machines are also used for deposits of money
and utility bills can be paid up through ATM. But in Pakistan these services have not been
utilized yet. So if ABL upgrades its ATM technology so definitely it will get the competitive
advantage over other banks.

7.12. Online Loans

I have found that there is no online facility to apply for a loan. In other banks
especially in foreign banks the customer who has an account in the same bank, can apply for
a loan through internet. So that he can save his time from going physically to the bank.

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