COMSATS Institute of Information Technology

Allied Bank of Pakistan,

Multan Cantt. Branch, Multan

Advisor
Madam Sarosh Haneef

Presented by

Muhammad Shakeel Asghar

CIIT/FA05-MBA-017/LHR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, JINNAH CAMPUS

DEFENCE ROAD OFF RAIWIND ROAD, LAHORE

COMSATS Institute of Information Technology, Lahore 1

 ‫حيِم‬
ِ ‫ن الّر‬
ِ ‫حم‬
ْ ‫ل الّر‬
ِ ‫سِم ا‬
ْ ‫ِب‬
In the name of Allah, the Beneficent, the Merciful.

َ ‫ب اْلَعاَلِمي‬
‫ن‬ ّ ‫ل َر‬
ّ ‫حْمُد‬
َ ‫اْل‬
All praise is due to Allah, the Lord of the Worlds.

‫حيِم‬
ِ ‫ن الّر‬
ِ ‫حمـ‬
ْ ‫الّر‬
The Beneficent, the Merciful.

ِ ‫ك َيْوِم الّدي‬
‫ن‬ ِ ‫َماِل‬
Master of the Day of Judgment.

ُ ‫سَتِعي‬
‫ن‬ ْ ‫ك َن‬
َ ‫ك َنْعُبُد وِإّيا‬
َ ‫ِإّيا‬
Thee do we serve and Thee do we beseech for help.

‫ط الُمسَتِقيَم‬
َ ‫صَرا‬
ّ ‫اهِدَنــــا ال‬
Keep us on the right path.

َ ‫ضاّلي‬
‫ن‬ ّ ‫عَليِهْم َوَل ال‬
َ ‫ب‬
ِ ‫ضو‬
ُ ‫غيِر الَمغ‬
َ ‫عَليِهْم‬
َ ‫ت‬
َ ‫ن َأنَعم‬
َ ‫صَراطَ اّلِذي‬
ِ
The path of those upon whom Thou hast bestowed favors. Not (the path) of
those upon whom Thy wrath is brought down, nor of those who go
astray.

*************

COMSATS Institute of Information Technology, Lahore 2

COMSATS Institute of Information Technology, Lahore 3
 ACKNOWLEDGEMENT

I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and

the Most Considerate and the entire source of all knowledge and wisdom. I
thank ALMIGHTY, ALLAH, who gave me the capacity to do this project
proficiently and productively . I faced a lot of difficulties during this period of
developing internship report. But Allah gave me a lot of patience and due to
the continuous encouragement of my teachers and other people concerned, I
was able to complete this work. I offer my humblest respects to the HOLY
PROPHET HAZRAT MUHAMMAD (Peace Be upon Him) who is, forever a
torch of guidance and knowledge for humankind as a whole.

It’s not very easy for me to find the right words to express my appreciation to
our worthy advisor Md. Sarosh Haneef, her keen interest, in time and useful
suggestions, continuous encouragement, lively supervision and kind behavior
throughout my internship period.

Apart from my respectable advisor, there are many other people who have
been very helpful to me right from the beginning .I’d like to mention Mr. Akhlaq
Ahmad Siddiqui, AVP/Manager ABL Multan Cantt., Mr. Abdul Sattar, Head of
Online Section ABL Multan Cantt, Mr. Aziz Ahmad Khan, AVP at ABL
Regional Office Multan, Mr. Zia at ABL Regional Office Multan. I also pay my
regards to all others whose names can not be included due to the scarceness
of space and time.

At the end I’d like to thank Mr. Muhammad Asad Amin, my class fellow and
my internship colleague as well, whose company was a cause of support and
motivation, because without naming him this acknowledgement will be
incomplete.

COMSATS Institute of Information Technology, Lahore 4

 TABLE of CONTENTS
Executive Summary 03

Vision, Mission and Core Values 04

History of Allied Bank of Pakistan 05

Organizational Structure 09

SWOT Analysis 11
Competitive Strategy 18
Business Process Analysis 21
Learning as an Internee 32
New Knowledge Acquired 34
Problems Encountered 39
How Experience Impacts My Career 40
Conclusion 41
Annexes 42

Executive Summary

My Internship at Allied Bank Limited Multan Cantt Branch started on July 20,
2006 and completed on August 30, 2006. During my stay at the bank I learnt a lot
as the practical knowledge of the banking sector is concerned. I was rotated in
different departments including clearing, online transfer, and customers’ services

COMSATS Institute of Information Technology, Lahore 5

foreign exchange and advances departments. I learnt the basics of operations
performed in each department. I undertook some assignments that helped me
apply the learnt techniques. I faced some problems during this course, but I got
full attention from the concerned persons and they always encouraged me for
asking any kind of question that rose during the course of my work. I have been
sending the reports of my progress on weekly basis to my internship advisor. On
the last day, the manager gave his comments and evaluation of my work on the
prescribed form provided by the institute and also certificate of internship.

Vision, Mission & Values

Vision

• To become a dynamic and efficient bank providing integrated solutions

In order to be the first choice bank for the customers.

COMSATS Institute of Information Technology, Lahore 6

 Values

• Integrity
• Excellence in service
• High performance
• Innovation and growth

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

OLDEN TIMES of ALLIED BANK

ABL was established in Lahore before independence in 1942 Allied Bank Limited
is one of the largest banks in Pakistan with more than 700 Branches connected
to an online network. In August 2004 the Bank was restructured and the
ownership was transferred to Ibrahim Group.

COMSATS Institute of Information Technology, Lahore 7

Overview
Allied Bank is the first Muslim bank to have been established on the territory that
became Pakistan. The bank has seen many phases of changes since it came
into being.

Established in December 1918 with the name “Australasia Bank” at Lahore with a
paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja
Bashir Bux, the Bank had attracted deposits equivalent to Rs. 0.431 million in its
first eighteen months of business. Total assets then amounted to Rs. 0.572
million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5
billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion. The
Allied Bank's story is one of dedication, commitment to professionalism,
adaptation to changing environment resulting into all round growth and stability,
envied by many.

PRE INDEPENDENCE HISTORY

In the early 1940s the Muslim community was beginning to realize the need for
the active participation in the field of trade and industry. The Hindus had since
the late 1880s established a commanding presence in industry, trade and
commerce in the undivided Sub-continent. Banking, in particular, was an
exclusive enclave of the Hindus and it was widely believed, and wrongly so, that
Muslims were temperamentally unsuited for this profession.
It was particularly a hard thing to swallow for Khawaka Bashir Bux to hear that
“Muslims could not be successful bankers”. He decided to respond to the
challenge and took lead in establishing this first Muslim bank on the soil of
Punjab that was to become Pakistan in December 1918; by the name of
Australasia Bank Limited.

COMSATS Institute of Information Technology, Lahore 8

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to
Rs 0.5 million by the end of first full year of operation, and by the end of 30th
June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728
million.

Australasia Bank

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory
on August 14, 1947.It was severely hit by the riots in East Punjab. The bank was
identified with the Pakistan Movement. At the time of independence all the
branches in India, (Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Agra) were
closed down. New Branches were opened in Karachi, Rawalpindi, Peshawar,
Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later its network spread to
Multan & Quetta. The Bank financed trade in cloth and food grains and thus
played an important role in maintaining consumer supplies during riot affected
early months of 1948. Despite the difficult conditions prevailing and the
substantial set back in the Bank’s business in India, Australasia Bank made a
profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the
separation of East Pakistan. The bank did well despite losing lot of its assets. By
the end of 1973 the bank had 186 branches in West Pakistan.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and with the
union of Lahore Commercial Bank and Sarhad Bank it was renamed as Allied
Bank. The first year was highly successful one: profit exceeded the Rs 10 million
mark; deposits rose by over 50 percent and approached Rs 1460 million.

COMSATS Institute of Information Technology, Lahore 9

Investments rose by 72 percent and advances exceeded Rs 1080 million for the
first time in bank history. 116 new branches were opened during 1974 and the
Bank started participation in the spot procurement agriculture program of the
Government. Those seventeen years of the Bank saw a rapid growth. Branches
increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46 billion,
and Advances and investments from Rs 1.34 billion to Rs 22 billion during this
period. It also opened three branches in UK.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered in a new

phase of its history, as the world’s first bank to be owned and managed by its
employees. In 1993 the “First Allied Bank Modaraba (FABM)” was floated.

After privatization, Allied Bank registered an unprecedented growth to become

one of the premier financial institutions of Pakistan. Allied Bank’s capital and
reserves were Rs. 1.525 (Billion), assets amounted to Rs. 87.536 (Billion) and
deposits were Rs 76.038 (Billion). Allied Bank enjoyed an enviable position in the
financial sector of Pakistan and was recognized as one of the best amongst the
major banks of the country.
In August 2004 as a result of capital reconstruction, the Bank’s ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim
Group.

Today the Bank stands on a solid foundation of over 88 years of its existence
having a strong equity, assets and deposits base offering universal banking
services with higher focus on retail banking. The bank has the largest network of
online branches in Pakistan and offers various technology-based products and
services to its diversified clientele through its network of more than 700
branches.

2005 to Onward

COMSATS Institute of Information Technology, Lahore 10

In May 2005 Ibrahim Leasing Limited (ILL) was amalgamated and vested in
Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL
shares held by them. Application for the listing of ABL shares in all the Stock
Exchange Companies of Pakistan was made.

ABL was formally listed and trading of the shares of the Bank commenced
W.E.F. the following dates.

Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005
Karachi, Stock Exchange 17th August 2005
Now all shareholders of Allied Bank Limited can trade in the shares of the Bank
at their free will.

BOARD of DIRECTORS

Mr. Mohammad Naeem Mukhtar

Chairman

Mr. Sheikh Mukhtar Ahmed Mr. Mohammad Waseem Mukhtar

COMSATS Institute of Information Technology, Lahore 11

 Director Director

Mr. Sheikh Jalees Ahmed Mrs. Nazrat Bashir

Director Government Nominee Director

Mr. Abdul Aziz Khan Mr. Farrakh Qayyum

Director Government Nominee Director

Mr. Khalid A. Sherwani

President & CEO

Organizational Structure

CHAIRMAN

CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

COMSATS Institute of Information Technology, Lahore 12

 SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

SENIOR VICE PRESIDENT (SVP)

EXECUTIVE VICE PRESIDENT (EVP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

SUPPORTING STAFF

SWOT Analysis
SWOT is the abbreviation of four words these are “S” stands for strength “W”
stand for weaknesses “O” stands for opportunities and “T” stand for threats.
Strength and weaknesses are the internal factors of the organization and these
are also known as the micro factors but the opportunities and threats are the
external factors and these are known as the macro factors. Micro factors are the
controllable factors but the macro factors are uncontrollable.

Whenever the organizations come into a form, they have to know about their
strength and weaknesses. Then they have to find out their opportunities and then

COMSATS Institute of Information Technology, Lahore 13

they come to know about their threats but according to the latest theory the word
SWOT is know as WOTS. According to this theory, first of all the organizations
know their weaknesses, then they get knowledge of their opportunities that they
have in the particular sector and then they have come to know about their
competitors and at the last they think about their strengths.

The easiest way to know about any organization is the SWOT analysis. So to
reveal the hidden factors I did a SWOT analysis of the Allied bank. It is not the
SWOT analysis of ABL as a whole but only of the branch where I worked. Many
aspects are same almost in every branch of the Allied bank.

STRENGTHS

The Bank with High Number of Branches

Allied bank has maximum number of branches in all over Pakistan. It has more
than 735 branches connected to each other through an online network and most
of the branches are working at the main business points.

COMSATS Institute of Information Technology, Lahore 14

Range of Products

Allied Bank has many products for almost all type of customers. So, it depends
on the customer that which product he likes and in which sector he wants to
invest depending on whether a person is salaried one or a businessman. It also
gives the companies the facilities of collection accounts. ATM and Credit cards,
online transfer, DD, TT, Rupee Traveler cheques are the main products available
for customers.

Online Facility

Allied bank is providing the facility of online banking. This facility allows a
customer to send or deposit money through cash or a cheques to an account of
any other branch of ABL. It also gives the facility of balance inquiry and cash with
drawl from a certain account of any other branch of ABL through cheques.

Safe and Sound

The online banking feature provides less chances of fraud. Because whenever
some transactions take place, they can be checked any time and their receipts
are receipts are given to the customers. Moreover, to prevent illegal acts, the
person who transfers any amount submits his copy of NIC to the bank. secure

Facility of Lockers

Many banks provide the facility of lockers but not in their all branches but Allied
bank is the only bank that provides the lockers facility to their customers at their
all branches.

COMSATS Institute of Information Technology, Lahore 15

Customer Service Center

Allied bank has customer care center for its customers. They have toll free
numbers on which customers can dial and they have not to pay any thing for it.
This center also provides the facility to the customers on spot and helps them
whatever the matter is.

Branch Level Monthly Conferences

Monthly branch meetings are held with in the branches to solve the problems or
how to attract new customers. They discuss all those things in the meeting to
achieve their targets.

Seminars

Allied bank also conducts the seminars on certain topics for example, how to
improve their service quality and the concerning person from almost every
branch of the region attend these seminars. They share their knowledge and
experience to make the things better.

Foreign Exchange

Allied bank provides the facility of foreign exchange to its customer. The
customers may also open their accounts in foreign currency. The bank provides
the facility of letter of credit and other export/import facilities to its customers. The
customers may get the facility of money exchange on the current rates. To get
the latest rates, the head office provides them with the fax facility of daily rates of
foreign currency.

COMSATS Institute of Information Technology, Lahore 16

Linked Account Facility

At Allied bank the customers the person who has more than one account can
have the facility of the same account number only the suffix is changed. This
facility provides the customer with easy remembering of the account number.

Relaxation to Employees

For employees the relaxation is that the employees may get the 36 medical
leaves and 1-month vacation in one year with their pay in case of some
emergency.

Safety Measures

Cameras are installed in all the branches of the bank to ensure security of its
customers and employees. Also security guards are available through out the
day. Cameras are installed in front of the cash counters. These cameras are
switched on all the time. The branch manager can see all the activities while
sitting in his office on a display monitor. If some thing goes wrong then the
manager can buzz the security alarm immediately.

Account Opening, So Easy

At Allied bank it’s very easy to open an account just an introducer and a copy of
NIC is required. Customer just needs to fill up account opening forms and can
enjoy the facilities of any type of account the want. This is the strength of Allied
bank facilitates all of its customers.

EMPLOYEES’ Back up

In every branch of Allied bank the back up of every employee is there in case of
emergency if some officer is not available at the bank, some other person will

COMSATS Institute of Information Technology, Lahore 17

back him up. That person is always well familiar with the responsibilities of that
officer.

Loans on Marginal Interest

Allied bank offers loans to its customers on very low rates. This thing invites the
customers to do a business with ABL.

Cooperation

The staff of the ABL is very much cooperative. This thing enhances its
performance very much by facilitating its customers and also by helping
colleagues and sharing workload.

WEAKNESSES

Lack of Performance Based Incentive System

Most of the staff in the Allied Bank is not completely satisfied with the
inducements. This dissatisfaction sometimes leads to less motivated employees
in banking which in turn can effect its business efficiency. Moreover, permanent
staff is not given any performance related incentives. As a result of this, an
inefficient manager or employee is earning the same as an efficient employee
who is the real asset for the organization

Insufficient Increments in Employees’ Pays

The other main weakness of the Allied bank is that there are mostly no annual
increments to their employees’ salary. This thing leads to the dissatisfaction of
employees.

No Timely Promotions

COMSATS Institute of Information Technology, Lahore 18

The other thing that for the employee’s point of view is a weakness in Allied bank
is that the employees are promoted after a big period against the schedules
specified by the bank.

Low Products Credibility

Allied Bank has still not got the edge where the consumers become loyal to its
products and services. Mostly customers become its customers out of no reason
than request from a personal banker. And talking about consumer banking,
though credit cards awareness in our middle class society has gradually
improved but not up to the point where they can compare the features that one
Bank is offering and other is not. Truth must be said, most customers do not
even know the points behind the term “interest free days”. The point is,
consumers do not know of the product being offered so how can they rely on the
product.

OPPORTUNITIES

The Allied Bank is having a great opportunity to emerge as the best bank of the
country by giving best possible services to its customers. The banking sector is
improving day by day and consumer banking is making great revolutions in the
banking sector. Allied Bank is still working in the corporate sector and its missing
a big market share of consumer banking. If it enters this market than this bank
can become the biggest and the most efficient bank of Pakistan.

THREATS

Competition in the Market

Allied Bank has the threats from their competitors in the banking sector, from the
Govt. policies and from the current economic conditions of the country:

COMSATS Institute of Information Technology, Lahore 19

The main competitors in the banking sector are the Bank-Alfalah, Faysal Bank,
Muslim Commercial Bank, Prime Commercial Bank etc Due to the tough
competition the bank is forced to sanction the loans at the reduced rates and
other services at minimized cost This reduces the profit margin which is a big
hurdle in the way of innovation and extended customer services.

Government Policies and Regulations

Other threat which ABL: faces is the policies of the government. Tax charged on
the income of banking companies is much higher than on the income of other
companies. The strict regulations issued by the central bank, revenue authorities
and other concerned authorities are also a big threat to the bank. The Govt.
revises the tax policies on continuous basis, which often are not in the interest of
the industry including the banking sector.

Political Conditions

Political conditions in Pakistan have been unstable since a very long period.
Continuous changes of regimes and military intervention in the political affairs are
great threat towards the healthy growth of the whole industry.

Economic Conditions

Sudden rise and fall in the trade and industry conditions of the country also
adversely affect the growth of banking sector. Unemployment, unfavorable
balance of payment and trade, decreased per capita income; inflation and
deflation, recession and boom are the source to the handicapped progress of
banking sector.

COMPETITIVE STRATEGY
Allied Bank strongly believes that the customers can be attained and retained
only by providing them the services they want. Allied bank’s competitive

COMSATS Institute of Information Technology, Lahore 20

strategies are focused on making their existing customers loyal because they
believe that it is their existing customers who attract new customers. Allied Bank
uses KYC (Know your customer) forms to have complete acquaintance with their
new customers.

Target Market

Allied Bank’s main focus is not on the retail banking but on the corporate banking
rather. In the retail banking they target salaried individuals, housewives, retired
individuals and anyone who has the potential of providing legal deposits to the
bank.

Corporate customers being the main target of the bank get handsome packages
of loan and other financial services. The bank’s main source of revenue earning
is also the corporate sector customers.

Products: The Competitive Tools

Allied bank has skillfully crafted their products to use them as their core
competencies and also as their tools for competitive strategy. The products
include Agricultural Finance, Import Export Business/Trade Finance, Running
Finance, and Demand Finance. These products serve multiple purposes to bank.

Services: The Competitive Tools

Same is the case with the services offered by Allied Bank. Services are the main
tool through which the bank acquires new customers and retain them. These
services are not merely meant to earn profit, but also to keep pace with the
changing needs of the customers and modern day’s banking trends. These
services include Home Remittances, Remittances, Hajj Services, Utility Bills,
Lockers and Commodity Operations. Along with these core services provided by
the bank, online banking and Internet banking serve as supplementary services.

COMSATS Institute of Information Technology, Lahore 21

COMPETITIVE BENEFITS

These products and services are mainly directed towards customer satisfaction
and ABL uses it for the customer satisfaction as their competitive strategy. Some
of the many benefits availed by the customers are mentioned as follow in bank’s
own style.

ONLINE FACILITY

Now the bank gives you the absolute convenience of instant access to a host of
banking facilities and personalized services 24 hours a day, 7 days a week, 365
days a year.

Simplify the way you bank and experience a higher level of convenience.

Convenience

Why visit the bank when you can better use your precious time to meet other
commitments? With ONLINE, our special discounted charges also offer you
substantial savings.

Give yourself the advantage of breakthrough innovation and cutting edge and get
time on your side.

Online Features

By Allied bank Online you can;

2 Check your account

balances

COMSATS Institute of Information Technology, Lahore 22

 3 Transfer funds between your own accounts and to a third party
account
4 You can use your card for loan account payments
5 Check transaction history of your accounts
6 Get your account statement through fax
7 Receive information on various Allied bank products and services
8 Find out status of your card or loan application
9 Request balance or reference certificate
10 Get currency exchange rates
11 Issue stop payment instructions
12 Report loss of your cheque book

Toll Free Numbers

Connect to Allied bank ONLINE by dialing from anywhere within Pakistan. Your
call costs you nothing because it is toll free. This just goes to show that we at
Allied bank always put your interests first.

Dial now to discover just how Allied bank can make you’re banking experience
even more enjoyable and rewarding.

By offering all of the above ABL makes its way through the tough competition of
the day. This helps the bank to keep pace with growing needs of its customers
and anticipate their future needs and manage them accordingly in time thus to
make sure that the quality is not compromised and the customers get what they
want

Business Process Analysis

Products Offered by the Bank

Allied bank offers a wide range of products geared towards the customers. The
following products are available for customers:

COMSATS Institute of Information Technology, Lahore 23

 • Rupees Deposit Accounts
• Foreign Currency Accounts
• Allied Cash+ Card
• Online Banking
• Internet Banking
• Master Card
• Lending Products
• Seasonal Finance
• Agricultural Finance
• Import Export Business/Trade Finance
• Running Finance
• Demand Finance

ACCOUNTS

Pak Rupee Account

The following accounts are the parts of rupee deposits accounts:

• Current Account
• Saving Account
• Allied Profit Plus – Deposit Account
• Allied Monthly Income Scheme

Current Account

Allied Bank offers Current Account facility for individuals as well as for institutions
and commercial customers.
There are free services for the depositors who maintain minimum balance of Rs.
0.1 (M) in previous month.

COMSATS Institute of Information Technology, Lahore 24

Benefits

• Free Online Transactions

• Free issuance of Payment Orders
• Free issuance of Demand Drafts
• Free Issuance of Deposit at Call Receipts

PLS Account

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

• Attractive return up to 5.00% per annum

• No service charges on active accounts
• Complementary ATM cards

For depositors maintaining a minimum balance of Rs. 0.5 (M) in the previous
month.

BENEFITS

• Free Online Transactions

• Free issuance of Payment Orders
• Free issuance of Demand Drafts
• Free Issuance of Deposit at Call Receipts

PPA (Profit Plus Account)

Allied Profit Plus–Deposit Account is a profit bearing checking account with the
payment of profit on a monthly basis. The estimated rate of profit is given below.

Rs 5(M) to less than Rs 10 (M) 6.50%

COMSATS Institute of Information Technology, Lahore 25

Rs 10(M) to less than Rs 25 (M) ` 7.50%

Rs 25(M) & above 8.00%

Significant Features

• The applicable profit rate would be based on slab of amounts maintained

on average monthly basis and the profit credited in the account on
monthly basis.
• There is no restriction for maintenance of any minimum balance in the
account
• Individuals, Companies, Schools, Hospitals, Charitable Organization etc,
are free to open their account in this scheme

Monthly Income Scheme

Allied Monthly Income Scheme is a unique product with attractive returns. It

provides an opportunity for a regular monthly income. The period of deposit
under this scheme is 3 years.

• Minimum Amount Rs 100,000 (with increments of Rs

10,000/-)
• Profit Payable on monthly basis
• Projected profit rates Rs 850 per month on a deposit of Rs 100,000/-
@ 10.20% per annum
• Eligibility All individuals & institutions other than Financial Institutions
• Period 3 years

Extraordinary Benefits

The Scheme Provides The Following Special Benefits:

• Complementary ATM card for depositor and spouse

COMSATS Institute of Information Technology, Lahore 26

 • Profit to be credited in the depositor’s PLS saving A/C and can be
withdrawn through ATM free of charge
• Complementary credit card with approved credit limit
• Free transfer of monthly profit to any branch of ABL all over the Pakistan
• Loan facility against deposit

Extra Benefits for the Account Balance of More than 0.5 Million

• Free online transaction

• Free Issuance of Pay Orders
• Free Issuance of Demand Drafts
• Free Issuance of Deposit at Call Receipts

Allied Cash+ CARD

Allied Bank ATM Card, also referred to as "Allied Cash+", can also be used as a
debit card at merchant locations/service outlets having ORIX POS Terminals and
displaying the ORIX logo.

Online Banking

Allied Online is a unique service offering by Allied Bank Limited. Through Allied
Online, your account is available to you from any of our branch countrywide. No
matter where you are in the country and in which branch your account is
maintained, you can have your cheque encashed at any of our over 735
branches located in 250 cities. Similarly account-to-account Funds Transfer
facility is also available for instant remittance. Other services available to
accountholders are Balance Enquiry and Account Statement at remote branches.

Allied Online provides a secure, efficient and convenient facility for making
payments to beneficiary accounts from any of our branches countrywide.

COMSATS Institute of Information Technology, Lahore 27

Corporate customers requiring funds collection or disbursement facility can use it
for cash management services.

Internet Banking

Banking at consumer fingertips! Allied Direct Internet Banking offers the

customers convenience to manage and control his banking and finances - when
he wants, where he wants! It's Simple, Convenient, Secure and Faster. So, just
by clicking one can enjoy this facility.

Features of Allied Direct

• Simple and Convenient Easier navigation and help provided at every

step, so the customers can have most out of this service. With Allied
Direct convenience is just a click away.
• Secure and Faster Secured & encrypted with latest tools and
technologies, Allied Direct is the choice for secure and fast Internet
Banking.

• 24x7 Access The customers now have access to your account 24 hours a
day, 7 days a eek. They can transfer funds or even pay bills even if it's a
holiday.

To use Allied Direct Internet Banking, consumers should be a registered Allied

Bank Account holder with a valid ATM Card. If some one does not have an
account, he may visit any of the nearest branch and open his account and obtain
an ATM Card. Our friendly branch staff will help him open his account quickly.

END USER PRODUCTS

Credit Card

COMSATS Institute of Information Technology, Lahore 28

The customer can now become the holder of a true Credit Card here in Pakistan.
Allied Bank under license from Master Card International, U.S.A issues it's
Master Card to anyone meeting the eligibility criteria. With the Allied Bank -
Master Card the consumers will be assured of a service meeting the highest
international standards maintained by Master Card.

THE NEW MASTER CARD

Allied Bank is of the view that the time has come to bring about a radical change
in the Pakistani credit card industry. Being a successful individual, customer
deserves a life unrestricted by cash limitations, he deserves a reliable credit line,
deserves the best. Luxury, status, prestige and convenience await him with the
Allied Bank-MasterCard - at no extra cost. That’s why the Allied Bank-
MasterCard is now available for customers – with a set of unique features, a
simple application procedure and the fastest processing time! Accepted at
16,000+ establishments in Pakistan and over 17 million retailers across the
world, the Allied Bank-Master Card is the ticket to financial independence.

Advances

Seasonal Finance

Seasonal Finance facility is allowed against pledge of produced Crops harvested

in that particular crop season. The delivery of pledged stocks/goods is made
against appropriate cash payment.

Agricultural Finance

Bank under Agricultural Financing Scheme envisaged by the State Bank Of

Pakistan extends short, medium and long term, farm and non-farm credits. The

COMSATS Institute of Information Technology, Lahore 29

farm credits are extended for production (inputs) and development purposes.
Non-farm credits are allowed for livestock (goats, sheep and cattle), poultry,
factory including social forestry and fisheries (inland and marine excluding deep
sea fishing).

Trade Finance

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

Running Finance

It is a short-term loan allowed by the bank for a period of one year. The running
finance account can be operated on daily basis. The mark-up is recovered on the
products of daily outstanding balance. The running finance is suitable for meeting
day-to-day financial needs of the business

Demand Finance

It is disbursed in lump sum or in accordance with the agreed disbursement

schedule and it is repayable as per the agreed installments, which could be
monthly, quarterly, biannual or annual.

Corporate Finance

Allied Bank Limited commenced lease operations upon amalgamation with

Ibrahim Leasing Limited. Facilities include leasing for machinery, commercial
vehicles and equipments. The Bank provides lease facilities for balancing,
modernization, replacement and expansion schemes to corporate and
commercial clients in all industrial enterprises.
Leasing is a popular mode of financing due to its distinctive features like tax

COMSATS Institute of Information Technology, Lahore 30

shield, preserve working capital, easy documentation and less processing time.
Lease applications are entertained at all Bank branches in Pakistan.

Services

Any one can rely on Allied banks friendly staff that is eager to assist their
customers as best as possible. Allied Bank offers the following services to its
customers:
Remittances

• Hajj Services
• Utility Bills
• Lockers
• Commodity Operations

Utility Bills

All branches of the Bank collect utility bills of electricity, gas and telephones. For
convenience of the customers, the branches collect Utility Bills during banking
hours and also in the evening banking on all working days. Bills can be paid
through Cash or Cheques. Consumers may drop bills with crossed Cheques into
a drop box available at the branches under "Cheque Drop-in" system.

Utility Bill payment facility – can also be availed through any of the ATMs without
having to wait in long queues outside the branch.

Remittances

Allied Bank can transfer funds to the remote part of the country for
payment/credit to the customer himself or a third party, through

COMSATS Institute of Information Technology, Lahore 31

Telegram/Telex/Tele fax for payment/credit on the same/next day. Telegraphic
transfers can also be made abroad in Foreign Currency

Hajj Facilities

The Bank serves the intending pilgrims by helping them in performing this
religious obligation. The bank provides the forms and other related services.
However, the terms and conditions for accepting the Hajj forms from intending
pilgrims are in accordance with the Hajj Policy announced by the government,
each year. Hajj applications are available with all branches during Hajj season,
immediately after the Government of Pakistan announces the Hajj policy

Lockers

Allied Bank Lockers are available in three different sizes Small, Medium and
Large on a yearly fee. Locker holders need not have an account in the Bank.

Network of ATM

Allied Bank has vast network of ATM's presently consisting of 100 ATM's
installed in over 40 cities which is undergoing expansion.

In addition, Allied Bank has a member of 1-LINK ATM sharing switch comprising
of over 600 ATM's nationwide. Consequently, the Bank's ATM cardholders can
avail services of Allied Bank's own or 1-LINK ATM's.

COMSATS Institute of Information Technology, Lahore 32

1-Link Network

In continuation of ALL TIME BANKING services, with the country wide network of
735 branches, ABL has enhanced ATM services by joining the "1-Link Switch"
which has following member Banks:

• ABN Amro Bank

• Allied Bank
• Bank Alfalah
• Habib Bank Limited
• Askari Bank
• Bank Al Habib
• National Bank
• PICIC Commercial Bank
• Union Bank
• United Bank
• Soneri Bank
• Meezan Bank

The cardholders of our bank will thus be able to access member banks ATMs for
balance inquiry and cash withdrawal simultaneously. The cardholder's member
banks will access our bank ATMs.

Business Account

It’s the easiest current account, which gives the facility to businessman to have
transaction there where his business takes him. Business Account presents you
the safe way to transact amount because of which the businessman have no
problem to take cash and travelers cheques with him.

COMSATS Institute of Information Technology, Lahore 33

Easy to Operate

Because of online real time technology all over Pakistan, the clients can easily
deposit or withdraw money from any of the branch of ABL.

Banking Instruments Availability

In Pakistan where ever the customer is, business account holder can easily get
the pay order and demand draft from any of the Allied Bank branch.

Clearing Process

Because of online real time technology cheques process, and funds transfer
work so fast that it never happened before.

Account Information

Wherever the customer is in Pakistan, he can get any information about his
account. The information may be about accounts balance and account
statements.

Foreign Currency Accounts

Allied bank deals in following foreign currencies.

• US Dollars
• Great Britain Pound
• Euro
• Japanese Yen

COMSATS Institute of Information Technology, Lahore 34

Learning as an internee
Duties and Accomplishments

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 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:

CLEARING DEPARTMENT

In this department I spent about 3-4 days. I observed the procedure carried down
here. Based on my observation and briefing from the staff I was asked to prepare
advices for collection of demand draft amount, Outward Bill for Collection (OBC),
fill in the deposit slips presented by the customers, enter the proceedings in
concerned registers.

ONLINE DEPARTMENT

Online banking is a wide spreading concept in banking sector. This department

mainly performs the basic operation of fund transfer and other functions
facilitating the transfer and enquiries. I observed the basics of the department.

I didn’t have the opportunity to seek the details because the online department is
a sensitive area and also electronic based.

I prepared online transfer slips foe the customers. I also informed the customers
of their account balance, account status and about other queries available online.

COMSATS Institute of Information Technology, Lahore 35

Customer Service Department

This department serves as the front representative of the bank. Multiple tasks
are executed in this department. I was asked to observe different complaints
received by the bank by its customers. I maintained the sundry account register,
suspense account register. I put the applications received for the ATM cards in
the register. I also had to maintain the register maintained to record the receipt of
new account opening forms along with the register kept for recording those ATM
cards, which have been delivered.

Foreign Exchange Department

This is the department with a very vast scope and a variety of dimensions. There,
I had to maintain the record of some Letters of Credit (LCs). I was liable for
making drafts of outgoing SWIFT messages. I also made the entries of incoming
SWIFT messages in the register. I was asked to enter the particulars of I-form
(Import form) and E-form (Export form) in their respective registers.

Advances And Credit Department

In this department I was given some files to study, which were about the
applications of credit to be approved. The person in charge of there briefed me
about the term and conditions on which the bank accepts or rejects an
application foe the credit. In this department, like the online department, I didn’t
have an opportunity to practically handle the work due to the sensitive nature of
the work.

Miscellaneous Duties

Apart from the duties mentioned above, I had to perform some other duties as
well. The prominent amongst them is called “Calling” in the banking jargon. It’s
manual checking of the record produced by the computer pertaining encashment,
transfer and collection of cheques and other instruments like deposit slips and

COMSATS Institute of Information Technology, Lahore 36

slips. I had to work with the person responsible of keeping the record of DD
payable. I was assigned with the duty of keeping the record of DD payable of a
given period.

NEW KNOWLEDGE GAINED

How to Open an Account

If some one opens a new account and become the client of the Allied bank of
certain branch then he gets the requisition slip on which cheque book is issued

Normally people use two types of accounts

1 Current Account
2 Profit and loss account or PLS Account
3 Term Deposit Account

• Current account cheque book has 50 leaves and it cost RS.100

• Profit and loss account or PLS account cheque book has 25 leaves
and it cost RS.125
• Term deposit account cheque book has also 25 leaves and it also cost
RS.50

In every cheque book there is also a requisition slip available for the purpose of
reissue of a cheque book, if the first cheque book has no more leaves. There is
written the title of account holder, his account number, the stamp of Allied bank
and the signatures of the authorized person on every page of cheque book and
also on the requisition slip.

TYPES OF CLEARING AND COLLECTION CHEQUES

There are two types of clearing/collection cheques

1 Inward clearing/collection

COMSATS Institute of Information Technology, Lahore 37

 2 Outward clearing/collection

OBCs

Cheques presented for Clearing

This department receives the cheques and other negotiable instruments drawn
on local branches of other banks. NIFT has a clearing house, in which cheques
and other negotiable instruments are brought by each local bank representative
and the claims of each bank on other is offset and a settlement is made by the
payment of difference. Clearing system is helpful for both the customers and
bank in saving money, time and labour.

PROCEDURES

The cheques and drafts come to then from different banks. They write them on a
daily voucher record sheet and then separate different banks. Then they write the
same one bank’s slips and summary of banks. After this process the balance
with total drafts and total amount are given to the representative. ABL is a
member of State Bank of Pakistan (SBP) and has an account with SBP. The
clearinghouse of SBP (NIFT), through whom branches forward/receive-clearing
cheques along with a schedule conducts clearing. The clerk of forwarding branch
prepares the schedule and vouchers of all the clearing cheques, which he
receives by the clerk on that day and sends these cheques to the checking
officer. Checking officer passes these cheques and vouchers by his initials,
endorsement stamp and branch special crossing stamp. Clerk posts the contra
entries of these vouchers in the clearing register. Representatives’ banks collect
these cheques. Next day at 8:30 A.M. representatives of all local banks and
foreign banks exchange their cheques, which are drawn on their banks.

The clearinghouse debits/credits the payee/receipt branch with the total amount
of the cheques paid on their behalf. The settlement of book entries e.g., if ABL is

COMSATS Institute of Information Technology, Lahore 38

to give Rs. 2 Million to UBL and UBL has to give Rs.1 million to ABL then ABL
will draw a cheque of 1 Million in favour of UBL. SBP will debit this amount from
ABL account and credit of UBL account. In this way mutual cross debiting and
crediting in the books of SBP settle obligation of banks.

Central Account

All the inter-bank adjustments will be affected through head office account called
Pak account. It will be essential for the branch to advise pak account of each
transaction so that they may also pass the necessary entries in their books. The
NIFT will send a consolidated debit/credit advice to the branches in respect of
clearing cheques delivered to or received from the branches. The amount of the
advice will agree with the total amount appearing in the schedule of cheque
delivered/received. The head office will similarly send advice to the branches of
the returns, if any. Copies of all advices will be sent to the head office.

INTER-BRANCH OBCs

Branch receives the cheques and other negotiable instrument drawn on other
branches of the same bank. Main branch of ABL handles the transfer and
delivery of cheques. The same clearing cheque procedure will be adopted in the
transfer deliveries except in case when the facility of SBP is not availed. In case
of cheques drawn on one branch and collected by an other branch for the credit
of its constituents, the branch delivering the cheques will send a consolidated
debit advice. If any cheque is returned unpaid, a credit advice will be sent to the
branch returning the cheque.

COLLECTION CHEQUES OR OBCs

The collection cheques/OBCs are the cheques, which we have cleared for our
customers when some of our customers receive the cheque that is of some other

COMSATS Institute of Information Technology, Lahore 39

city. These types of cheques are known as collection cheques or the other name
we gave them is OBC

PROCEDURE OF COLLECTION

On the cheque there is written that the person to whom it may concern can cash
it from the certain branch of the bank in favour of which it’s drawn. The customer
presents the cheque to his branch, which send a document called “OBC” to the
bank that has to make the payment. The clearing department of the receiving
bank follows a prescribed procedure and credits the amount to sending bank
through a central account maintained by each bank with SBP.

ABL sends the cheque to it’s own branch if available for collection from the
payer’s bank otherwise the OBC is directly sent to other bank.

MAINTAINING REGISTER for OBCs

We have a register in which we have the serial no for OBCs with other details like
amount, date, sending and receiving branches’ codes. Every OBC is entered in
that register on daily basis.

If OBC is not cleared due to what ever fault, we take it back as a return but after
that we call the concerned person and we also write name of the person.

How to Open an Account

I learnt how to open a new account. The person willing to open an account has to
complete the account opening forms, which has several particulars pertaining to
personal information of the person. The bank makes sure that all the information
provided by the person is authentic. Along with the information given by the
person himself, bank requires introduction of an already existing account holder
of the same bank but preferably of the same branch. The bank also requires
account no. and copy of the introducer’s NIC.

COMSATS Institute of Information Technology, Lahore 40

Bank also requires a copy of the NIC from account opening person. He will also
have to provide two samples of his specimen signatures for any withdrawal of
amount. In case of illiterate person, he will provide the bank with his left thumb
impression along with two photographs. In case of a Pardah Observing lady, the
bank prefers not to open an account but if so, it will require her to provide
impressions of her both thumbs.

After all this formality, the bank after a few days sends a letter of thanks to the
address of the person disclosed in the AOF. When the letter is received, the
person may come to bank and collect his cheque book.

The bank also informs its head office about the new accounts and also charges
nominal amount at first time.

Matter of Zakaat

The deductions of Zakaat from the account of Muslims are made on the 1st
Ramadan according to the Islamic rate. But the people who do not want the bank
to deduct Zakaat and want to disburse it at their own, they have to provide an
affidavit on a prescribed format provided by the bank.

COMSATS Institute of Information Technology, Lahore 41

PROBLEMS ENCOUNTERED

New Situations and Working Field

Initially I had difficult time in mixing with organization members and felt
uncomfortable in that new place with new people. However, after some time, I
became a part of it just like everyone else and felt completely comfortable.

The other major problem was the hectic routine of the bank. It made me uneasy
at first but with the passage of time I became used it. I had to face a great
difficulty in understanding bank’s terminology by the knowledgeable guidance of
the staff I was able to overcome the problem to a satisfactory level.

The real problem I faced in the bank was the difference between what I had
learnt from the books and what was being practiced. Practical application of the
theories learnt during academic sessions was a great challenge, which I
overcame by the cooperation of the staff.

COMSATS Institute of Information Technology, Lahore 42

HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of my field of

education. 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 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 earning money is not so easy
after all, it takes a lot of hard work and devotion, and not to forget time. And I now
know that if I want I can make things possible, and I also know how good it feels
to having accomplished something and being appreciated for it. I definitely have
learnt things, which will impact my career and my character.

The overall experience of my internship was very good; I have learnt the sense of
responsibility in its literal meaning. I am now capable of dealing with different sort
of customers, and how to be patient while doing so. Besides this I also gained
knowledge about banking which I previously lacked and many more products
being offered by the bank. So in a nutshell, this internship gave me the
experience, which would no doubt boost my confidence to work in future.

COMSATS Institute of Information Technology, Lahore 43

RECOMMENDATINOS and SUGGESTIONS

During my stay at ABL, I tried to observe the environment profoundly. I found

some problems that were creating problems in achieving targets and objectives

• The bank is still depending on manual work to a great deal which causes
slow performance and increases the chances of mistakes. It should
convert their system to an automated one to better achieve its targets and
also to take the advantage over its competitors.
• Approach towards employees is still bureaucratic and a lot is to be done in
this regard. Late promotions, shortage of training and development
facilities, favoritism in appraisals and lack of sufficient incentives are some
problems that are arising dissatisfaction among employees. Due to this
overall performance of the bank also decreases.
• Outlook of the branch I worked for was not good enough. The bank
working beside this branch was attracting more customers due to this
factor also. In the new era this feature counts a lot to any organization. So
the administration of the bank should think on this aspect also and make
these conditions better.

COMSATS Institute of Information Technology, Lahore 44