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COMSATS Institute of Information Technology SAHIWAL

ALLIED BANK LIMITED, 89/6-R BRANCH (0277) SAHIWAL

SUPERVISED BY: MISS HINA IMTIAZ LECTURER DEPARTMENT OF MANAGEMENT SCIENCES SUBMITED BY: SYED MUBASHER QADEER FA09-MBA-B-B5-60 Cell no 0301 7951736 12-10-2010

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COMSATS Institute of Information Technology COMSATS Road Off. G. T. Road Sahiwal

Executive Summary
I have done my internship in ABL 89/6-R branch Comprehensive road Sahiwal. For the first two weeks I worked with operational manager Jawad Rafique he told me about how we fill the cash deposit slips and how we open new account. In chapter one I discuss the background of the organization and the background of the branch after it I discuss the vision and mission of the organization. In chapter two I discuss the structure of the organization, structure of the branch, board of director, executive committee, strength, and weaknesses. Opportunities and threats, marketing strategy, competitive strategy, and in the end there is business process analyses. In chapter three I discuss about my activities, duties and accomplishments as internee there was four department which I worked as cash department how we maintain record of the cash, clearing department, (customer care department, online facility provide department, advance and credit department), utility bill paid department the most important work which I have done to inform the essential information about the account which will be operated. The staff made me learns the basics of different departments in this way. I faced a lot of difficulties during the span of learning but I got full attention and support from the staff, and they really made me learn a lot. During the internship I kept on consulting my internship advisor every week. At the end of internship the manager gave me the internship letter and evaluated my overall performance on an evaluation form prescribed by our university. COMSATS Institute of Information Technology, Sahiwal - ii -

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TABLE OF CONTENTS

CHAPTER 1:...................................................................................................................................1
1: BACKGROUND OF ALLIED BANK OF PAKISTAN............................................................1
1.1: Background of ABL 89/6-r Sahiwal.....................................................................................1
1.2: Vision....................................................................................................................................3
1.3: Mission..................................................................................................................................4
CHAPTER: 2...................................................................................................................................5
BUSINESS OPERATIONS ............................................................................................................5
2.1: ORGANIZATIONAL STRUCTURE .................................................................................5
2.2: BRANCH STRUCTURE.....................................................................................................6
2.3: BOARD OF DIRECTORS...................................................................................................7
2.3.1: CHAIRMAN..................................................................................................................7
2.3.2: CEO...............................................................................................................................7
2.3.3: DIRECTORS.................................................................................................................7
2.4: EXECUTIVE COMMITTEE...............................................................................................8
2.5: SWOT ANALYSIS OF ABL 89/6-R...................................................................................9
2.5.1: STRENGTHS................................................................................................................9
2.5.2: WEAKNESSESS.........................................................................................................10
2.5.3: OPPORTUNITIES......................................................................................................10
2.5.4: THREATS...................................................................................................................11
2.6: MARKETING STRATEGY...............................................................................................12
2.7: COMPETITIVE STRATEGY............................................................................................13
2.8: BUSINESS PROCESS ANALYSIS..................................................................................13
2.8.1: DEPARTMENTS........................................................................................................13
2.8.2: SERVICES OFFERED BY ABL 89/6-r BRANCH....................................................14
2.9: PRODUCTS........................................................................................................................15
2.9.1: LOCKERS...................................................................................................................16
2.9.2SAFE DEPOSIT LOCKERS INSURANCE.................................................................16
2.9.2: CHEQUE BOOKS.......................................................................................................16
2.9.3: ALLIED CASH + CARD............................................................................................17
2.9.5: DEMAND DRAFT......................................................................................................17
2.9.6: PAY ORDERS.............................................................................................................18
2.10: 1 LINK NETWORK.....................................................................................................18
2.11: TYPES OF ACCOUNTS AND PACKAGES OFFERED BY ABL 89/6R.....................19
2.11.1: PLS SAVING DEPOSIT...........................................................................................19
2.11.2: CURRENT ACCOUNT............................................................................................19
2.11.3: ALLIED BUSINESS ACCOUNT.............................................................................19
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ADDITIONAL BENEFITS.......................................................................................................20
Chapter 3........................................................................................................................................22
LEARNING AS A STUDENT INTERN......................................................................................22
3.1: Duties and accomplishment................................................................................................22
3.1.1: ACCOUNT OPENING................................................................................................22
3.1.2: CLEARING DEPARTMENT.....................................................................................22
3.1.3: ONLINE TRANSFER OF MONEY...........................................................................23
3.1.4: ATMS, CHEQUE BOOKS AND LOCKERS...........................................................23
3.1.5: DIVERSE DUTIES.....................................................................................................24
3.2: NEW KNOWLEDGE ACQUIRED...................................................................................24
3.2.1: CHEQUE BOOK ISSUE.............................................................................................24
3.2.2: OPEN NEW ACCOUNTS .........................................................................................25
3.2.3: ZAKAAT.....................................................................................................................26
3.2.4: CLEARING DEPARTMENT.....................................................................................26
3.2.5: CLEARING CHEQUES..............................................................................................26
3.2.6: PAK ACCOUNT.........................................................................................................27
3.2.7: INTER-BRANCH CLEARING AND COLLECTION...............................................28
3.2.8: COLLECTION CHEQUES OR OBCs........................................................................28
3.2.9: MAINTAINING REGISTER for OBCs......................................................................29
3.2.10: ONLINE TRANSFER...............................................................................................29
3.3: PROBLEMS ENCOUNTERED.........................................................................................30
3.4: HOW EXPERIENCE IMPACTS MY CAREER...............................................................31
REFRENCES.................................................................................................................................32

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CHAPTER 1: 1: BACKGROUND OF ALLIED BANK OF PAKISTAN


ABL was established in Lahore before independence in December 3, 1942 as Australasia Bank at Lahore with capital of 0.12 million. In August 2004 the Bank was restructured and the ownership was transferred to IBRAHIM group. August 14, 1947 all the branches in India were closed and new Branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later its network spread to Multan & Quetta. 1970s were a difficult decade for all Banks of Pakistan. In 1971 East Pakistan was separated and Australasia Bank lost its 51 branches and a lot of capital as well. In 1974 all the Banks were nationalized including Australasia Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan Limited. Then it started its operations as Public sector financial institution. Over 1991, 745 branches were there in all over the Pakistan. From 2008 to 2010 ABL is now one of the largest banks in Pakistan with a network of 779 branches in over 350 cities and towns offering real time online banking. The bank leads the way by having the largest network of more then 450 ATMs in more than 145 cities and towns across Pakistan. Currently ABL possesses 932nd position in the world. The management has a vision to move forward and to be one of the worlds leading banks. 1.1: Background of ABL 89/6-r Sahiwal As internee I saw the history and background of the branch. It was established in 1979 because it was situated near a village so the capital of the branch was not more then Rs. 20 billion. In this area mostly people were not aware about the banking sector and there were no idea about the bank. Mostly people keep their cash with them and they feel to lost it after open the branch it was so necessary to aware to the people about the 1

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bank so the bank manager decide to call the honorable personalities and provide information about the benefits of the bank. After some time when people look that there honorable persons goes to the bank and there is a good relation with the staff members and with the manager and they deposit their cash without any hesitation and their cash is totally safe so every persons desire to deposit there cash into the bank and get profit against their cash. After 2 months new account open in the branch was only 94. So bank manager decide to enhance it. He conduct meeting with staff members and the point was that how we can give interaction with people and how we open more new account so for this instance bank manager organize a seminar and give intention and tell them more benefits about the bank and tell them that they can borrow money from bank when they want and after completion some time then can easily return back. So the people work there fields they need cash when session start they went to the bank and open account and deposit their cash and when need they easily withdraw their cash. So with the span of time there is increase in the opening new accounts and the behavior of the staff member and bank manager was so good and the satisfaction power of the members was so strong. Bank manager keep good relation with the people and provide information about the benefits of the branch. Because branch was near about the villagers houses so they can easily deposit and withdraw cash so they prefer to open their account in the branch. After one year when look that how much new account opened so there is open round about 800 new accounts. So it was a great achieve by the bank manager and the whole staff members. In initial stage branch have no own building and started work in a rental building and now it has own building and provide all facilities to the customers.

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VISION AND MISSION

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

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1.3: 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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CHAPTER: 2 BUSINESS OPERATIONS


2.1: ORGANIZATIONAL STRUCTURE

PRESIDENT

ASSEISTANT VICE PRESIDENT (AVP)

SENIOR VICE PRESEDENT SENIOR EXECTIVE VICE PRESEDENT

CEO

EXECTIVE VICE PRESEDENT (EVP)

OG-I

OG-II

OG-III

SUPPORTING STAFF

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2.2: BRANCH STRUCTURE

BRANCH MANAGER

OPERATIONAL MANAGER

CUSTOMER SERVICES MANAGER (CSM)

CASHIER

TELLER

LOWER STAFF

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2.3: BOARD OF DIRECTORS The people who draw the picture of the organization on the broader canvas of strategy and planning, the pioneers of prosperity and world of wisdom that paves the path to long term success

Following are the names of the Chairman, Chief executive officer, and Board of Directors of ABL

2.3.1: CHAIRMAN 2.3.2: CEO MOHAMMAD AFTAB MANZOOR MR KHALID A SHERWANI (PRESIDENT & CEO) MOHAMMAD NAMEEM MUKHTAR

2.3.3: DIRECTORS PERVAIZ IQBAL BUTT FARRAKH QAYYUM ABDUL AZIZ KHAN AHEIKH JALEES AHMAD MUHAMMAD WASEEM MUKHTAR SHEIKH MUKHTAR AHMAD TASNEEM M. NOORANAI NAZRAT BASHIR MUBASHIR A. AKHTAR

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2.4: EXECUTIVE COMMITTEE

Mr. Khalid A. Sherwani Mr. M. Naveed Masud Mr. Akhter Ali Khan Mr. Tahir Saeed Effendi Mr. Mohammad Yaqoob Mr. Masud A. Sidique Mr. Anwar Zaki Mr. Khalid Mehboob Mr. Sayed Mujtaba Gillani

President & (CEO) Senior Executive Vice President Head Credit Head I.T & Financial Officer Head Islamic Banking & Planning Div Head Human Resource Head Treasury Head Business Promotion Head Special Vigilance Unit

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2.5: SWOT ANALYSIS OF ABL 89/6-R By checking SWOT analysis of the branch the present and future conditions and status of the organization can be evaluated. To run an organization it is very important to know the strengths of that organization so that they can be made the competitive advantage of that firm against its competitors. Same is the case with weaknesses that by knowing them a firm can try to overcome those weaknesses. And by knowing the opportunities and threats of a firm or an organization, that organization can make plans for its future. It can avail the opportunities and avoid the threats. So following is the SWOT analysis of ABL 89/6-r branch that is in my view and the knowledge.

2.5.1: STRENGTHS 89/6-r branch has first mover advantage, there are two banks near about it MCB and NBP but people prefer to deposit there cash in this branch because it was establish first and best relation with customers There is no line to withdraw the amount just fill the slip and give to the CSM and sit on you seat after verification the cashier calls your account no and on counter you can easily receive your cash There is no token system The Bank has very strict rules and regulations about the customers complaints. The customers are treated as very special persons in the Bank. The branch have an edge on other branches thats in emergency case any staff member is missing they can hire the alternative person who is well known about the work This branch provide same account number facility it mean if any person have more then two account in this branch this branch number which is help full for account holder provide just one account

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Branch provide facility to the staff member to get the car on lease without paying extra taxes but this facility is only for staff members Give shares to the branch manager and other staff members when branch fulfill their targets as a reward

2.5.2: WEAKNESSESS Mostly there is problem exist in the ATM machine The technical training of the staff is negligible that is in case of the absence of computer there is no alternate trained person who can record the daily transactions The lower staff is not so much cooperative as compared the lower staff of other branches No entertainment facilities are available in the Bank when customer goes to the Bank and wait for a longer time. Advertisement of the branch is not such goods as of other banks Out look of the ABL branches is not attractive as compared to the MCB and NBP The control of the manager is not effective, Some time The behavior of the bank manager rude No efforts are made to recover the outstanding debts There is no facility for receiving and satisfying complaints and inviting suggestion

2.5.3: OPPORTUNITIES As a result of the different steps taken by the Government regarding the betterment of the economy, small borrowers are attracted to get the financing and start small businesses. So, ABL has an opportunity to attract the customers by giving them attractive schemes

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They have wide area network in all over the Pakistan, if ABL can make it possible the fast delivery of fund from abroad through online banking, it can cover the major market of Pakistan which still is capturing by Hundi If any party is late to return their loan which is borrow from the branch the bank manager manage it and provide facility that after some extra days you can return it

2.5.4: THREATS One of the biggest threat of the 89/6-r branch is the increasing rate of dissatisfies customer. Most of the customer were observed to be dissatisfied with the delays in their servicing First threat is that of political influence. Three boards of directors are of government. So that they can influence on the decisions of the ABL. New Privates Bank coped with emerging new Technology of IT. Services charges is higher then other banks The biggest threat to the operational success of the branch is the better competitors services. Many private sector banks are offering higher rates of return to customer then Allied Bank of Pakistan All the banks are the competitor of ABL When branch provide loan to the customer it charge low interest rate that is threat for the bank and for the low interest rate the earning is low Due to continuous political instability in the country the foreign exchange
accounts and overall growth of financing sectors has really declined a lot
High pressure interest groups are developing which poses a constant threat to the Allied Bank.

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2.6: MARKETING STRATEGY The target market of the branch is all the salaried persons, labors house wives, retired people and all those type of people who want to save cash for their future life. Where as the big business men and big investors, financers, can deposit and withdraw their cash. As internee I saw that how this branch creates public relation with others

to contribute and bring about positive changes in the area. Some time branch organize concerts and games for special childrens who can not participate in any game it mean organize special children concert and also invited there parents to provide information about the bank so this is a way to create public relation. A Musical evening was also arranged for childrens; most of those students never had an opportunity to participate in any such lively event. This musical event creates a will to do something and this day makes an unforgettable day they will remember for many months to come. Some time branch organize matches between different villages and support the players with finance and gifts and some time the branch distribute pamphlets. At the time of independence branch organize a big hall and invited different schools children and there parents the students perform there performance and after the end of the day they distributes gifts and provide entertainment to the whole crowd and describe little address about the performance of the bank and there is mention about the benefits of the bank. Some time branch organize quiz competition among different schools students all the faculty member and parents of the children are also invited the look the children performance and enjoy it and after the end prizes distribution ceremony and little address with crowed about the branch and the spending time with village so from this way branch done his publicity.

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2.7: COMPETITIVE STRATEGY ABL 89/6-r branch has this strategy that it always gives first priority to its customers as compared to other banks. According to their strategy it is the demand and need of customers which should be given priority and importance, so that if customers will get what they really want then definitely they will be satisfied and prefer then bank over others. Another important thing which differentiates them is that, this branch believes that making your existing customers loyal is very important, because it is really the existence of your already existing customers that attracts new people, like a famous saying that money attracts money so in the same way loyal customers attract new customers. To achieve this motive, this branch has made it its policy to give its customers full time and attention, to introduce them with new policies, through their employees, help line number, pamphlets, magazines, and it is made the duty of its employees to deal with customers in such a manner that they feel very safe, that they have got all the safety of their wealth, full attention and interest by the bankers.

2.8: BUSINESS PROCESS ANALYSIS In business process analysis there is include that how much department are exist in the branch and how they perform there duties and what kind of product and services offered by the branch.

2.8.1: DEPARTMENTS 1. Cash department 2. Clearing department 3. Online facility provider department 4. Utility bills paid department 5. Advance and credit department

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1. Cash basis transaction pass in this department any party wants to deposit or withdraw cash then can easily deposit or withdraw cash there is a cashier who handle all the transaction and maintain the record in the books. 2. In clearing department there are two types of clearing inward and outward clearing we can send cheques to other branch and received cheques by other branch which transaction passed by last day 3. From this department cash send from our branch to another branch of the bank with in seconds firstly fill up the slip and mention the amount and the remount branch name and account holder account number and name after it slip given to the officer and amount given to the casher after some time cash send to the remount account 4. in this department there is paid only utility bills through cash and cheques and maintain record into the computer 2.8.2: SERVICES OFFERED BY ABL 89/6-r BRANCH This branch provides many services to its customers which really serves it as its competitive strategy. All the performance of a bank mainly depends on the services provided by its customers, better and higher the services greater the performance. All the new customers and the already existing ones really get attracted by the performance of the branch. The most prominent service offered by ABL 89/6-r, which differentiates it by other banks is the online transaction facility. ABL is that one bank which has the largest network all over the country to provide this facility; this service is provided in each and every branch of ABL. Other services which is provided by the branch included lockers, Home remittance, remittances, internet banking, and Utility bills. This branch uses these services to win its customers and their level of satisfaction as its competitive strategy. ABL, keeping in mind the queries and problems of its customers has set up a toll free number, to provide facility to its customers, so that if they face any problem they can simply contact to the branch to get help. And this number costs nothing

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to its customers as its a toll free number, simply its made for the convenience of its customers. ONLINE BRANCH NETWORK Online banking facilities are available for the customers to maintain their accounts Cash deposit for immediate credit to remote branch Remote cheque Encashment from the branch Instant funds Transfer between any two online branches Remote balance inquiry and statement of accounts

UTILITY BILLS This branch collects utility bills as electricity and telephones through cash and cheques. Utility bill payment facility pays your telephone, electricity bills through ATM of the branch without having to wait in long queues outside your branch. 2.9: PRODUCTS PRODUCTS OFFERED BY ABL 89/6-R Branch offers products towards the customers. The following products are available for the customers: Lockers Cheques Book Allied Cash+ Card Demand draft (DD) Payment order (PO) Online Banking

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2.9.1: LOCKERS ABL 89/6-r branch given its customers the facility of lockers, so that they can secure their important things in the lockers, for example gold, important documents or anything which a person wants to keep safely. ABL lockers are available in three different sizes large, medium, and small on a yearly fee. There is no need to open account to get the facility of lockers. 2.9.2SAFE DEPOSIT LOCKERS INSURANCE The bank has already informed its safe deposit locker holders through half yearly statement of accounts. Maximum insurance ceiling provided for each category of lockers is mentioned hereunder: Serial number 1: 2: 3: Small Medium Large Locker size Annual locker rent (current) Rs. 1500/Rs. 2000/Rs. 4000/Maximum loss coverage/Limit Rs. 500,000 Rs. 1,000,000 Rs. 1,500,000

2.9.2: CHEQUE BOOKS Cheque book issued according to the nature of account .There are two types of cheque books, the first one is of 25 leaves and the second one is of 50 leaves. For current account 50 leaves book we issued and for saving account there are 25 leave book. The charges will be rupees 125 for 25 leaves and 50 leaves cheque book charges are 250 rupees. Cheque book issued after one week for opening of account, the first cheque book is free and if customer wants to reissue next cheque book.

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2.9.3: ALLIED CASH + CARD Allied bank ATM Debit card, also referred to as Allied Cash+, can be used to withdraw cash and may also be used as a debit card at merchant locations / service outlets having ORIX POS terminals and displaying the ORIX logo. Through this card you can have an experience of Cashless shopping at thousands of merchant locations. Get instant cash and check balances. Here is what they have to offer: Round-the-clock cash withdrawals

You can make withdrawals up to Rs: 25000 in a day (depending upon your deposit) Balance inquiry and mini statement of account The ATM screen will reveal the balance in your account. A mini statement Comprising last 8 transactions can also be obtained from the ATM. Pin change You can now easily change your Pin at regular basis to maintain security. Utility bill payment facility You can easily paid telephone, electricity bills from the branch ATMs without wasting time. Funds transfer facility You can easily transfer cash from ATM machine with in seconds . 2.9.5: DEMAND DRAFT Demand draft is one of the most popular banking instrument in the trade circles to settle business deals and transferring funds from one place to another. 89/6-R provide this facility to their customers

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2.9.6: PAY ORDERS Pay Order is a bank instrument issued by a bank in Pak rupees at the request of a customer through banking channel. 2.10: 1 LINK NETWORK In continuation of ALL TIME BANKING SERVICES, with the country wide network of 779 branches, ABL has also enhanced ATM services by joining the 1-LINK SWITCH which has following member banks. AL BARAKA ISLAMIC BANK ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LIMITED ATLAS BANK LIMITED BANK AL HABIB LIMITED BANK ALFALAH LIMITED BANKISLAMI PAKISTAN LIMITED CRESENT COMMERCIAL BANK LIMITED DUBAI ISLAMIC BANK PAKISTAN LIMITED EMIRATES GLOBAL ISLAMIC BANK LIMITED FAYSAL BANK LIMITED FIRST DAWOOD ISLAMIC BANK LIMITED HABIB BANK LIMITED KASB BANK LIMITED MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN SONERI BANK LIMITED STANDARD CHARTERED BANK PAKISTAN LIMITED UNITED BANK LIMITED MYBANK LIMITED

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The card holders of ABL are thus able to access member banks ATMs for balance
inquiry and can withdrawal simultaneously vice versa.
The card holders member banks can access ABLs ATM machines.
Every ATM which is connected with 1-LINK SWITCH has a logo which indicates that 1-
LINK SWITCH member can access the ATM.
2.11: TYPES OF ACCOUNTS AND PACKAGES OFFERED BY ABL 89/6R The different types of accounts offered by ABL are: PLS saving account (profit and loss saving account): Current account: ABA account (Allied business account)

2.11.1: PLS SAVING DEPOSIT Branch offers PLS savings account facility to its customers with the following attractive features. Attractive return up to 1% per annum

Free online transaction, DD, PO for depositors maintaining average monthly balance of Rs: 25000(M) and above during the previous month. 2.11.2: CURRENT ACCOUNT Branch offers current account facility for individuals as well as institutions and commercial customers. Free online transactions, DD, PO for depositors maintaining average monthly balance of Rs: 25000 (M) and above during the previous month.

2.11.3: ALLIED BUSINESS ACCOUNT

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Branch offers a banking experience beyond expectations. Allied business account is a non-profit current account with countless benefits and services. If you are a business man, trader or an individual Allied business account is an ideal proposition for you. Minimum average balance Transaction limit Eligibility Rs:10000/- monthly No limit All individuals and institutions

AVERAGE MONTHLY BALANCE

SERVICES

CHARGES

Rs: 500,000 and above

Online/Manual remittance

Free

Rs: 500,000 and above

Outward Cheque return Issuance of

Free

Rs: 500,000 and above

DD/TT/PO/OBC/Expression collection

Free

ADDITIONAL BENEFITS 24 hours helpline service Free internet banking facility SMS transaction alerts ATM/DEBIT card for cash withdrawals through any ATM and debit transactions at various retail outlets

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PREMATURE ENCASHMENT No profit shall be paid from the date of issue, if en-cashed before completion of 6 months. In case encashment take place after 6 months, In case encashment takes place after 6 months, the profit is to be paid for completed half year on the prescribed rates and 6% for the completed months as per the projected rates. 2.9: SERVICE QUALITY TRAINING GIVEN TO THE EXISTING EMPLOYEES IN THE 89/6-R BRANCH SERVICE QUALITY TRAINING Branch is focusing on quality customer services to deliver the best customer experience. The aim of the Service Quality Group is to create Service Awareness across the bank where every individual has the willingness to help both internal and external customers and provide prompt services while adopting a personalized approach. To put this in effect, the role of the service quality group is to conduct service oriented training programs, which would be conducted across the customer touch points. The participants were the CSOs, Branch Managers, CSM and Tellers. The aim of this training was to develop the skills and knowledge of our frontline staff on delivering consistent courteous behavior, which would consequently build trust and confidence in branch customers.

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Chapter 3 LEARNING AS A STUDENT INTERN

3.1: Duties and accomplishment In the branch my I perform different types of duties in different department. I was rotated in different departments in different weeks, so that I could get the experience of different tasks in the bank. But my duties were always supervised by the employees of the branch so that I do not make any major mistake. My duties are mentioned as follows.

3.1.1: ACCOUNT OPENING During my first two weeks in the bank I did work in account opening department. During my training in that department I was taught that how to open the account of the customers in the bank. That whenever a customer comes how he should be explained about the types of accounts and the benefits provided in each account. My supervisor told me that how to fill the account opening form and which documents are required for opening the account. But I didnt use the software system of the bank because its a very sensitive issue and I was not so much trained thats why I used to only fill the forms and do stamping on them.

3.1.2: CLEARING DEPARTMENT I also spent two weeks in clearing department. I learned to fill the deposit slips of current and saving account in this department. COMSATS Institute of Information Technology, Sahiwal - 22 -

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I also learned to fill the cheques in this department, as most of the customers do not know that how to fill the cheques and deposit slips (mostly the labor class and others who do baking by giving just thumb impressions). I also learned to do clearing of inward and outward cheques. I learned to make OBCs I learned to make Demand drafts AND I also learned to enter the daily inward and outward proceedings in the register as record

3.1.3: ONLINE TRANSFER OF MONEY In this department I learned to make transfer slips and see the online transfer of money from one branch of ABL to another, I spent one week in this department. I couldnt get a chance to transfer money myself online because this is a very sensitive issue. Thats why I was assigned the duty of filling the online slips of the customers, to tell them about this facility and solve any of their quires. As online transfer facility is the point on which branch really has comparative advantage thats why a lot many people used to come for online transfer of money every day and as its a new service and people used to have many queries and I had to solve them ,thats why it kept me very busy all the week.

3.1.4: ATMS, CHEQUE BOOKS AND LOCKERS I also spent one week in this department. I learned how to issue ATM card, cheques books and to operate lockers. Whenever any customer used to come to collect his or her ATM, cheques book then I used to take his sign on the register as record, do stamping, write date of issuance, match his sign with sign card and then provide him his card and cheques book. It was also my duty to explain him the working procedure, so that if any customer had any problem in his mind he can question to me.

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3.1.5: DIVERSE DUTIES In the last week of my internship, I had to perform some other duties as well. Calling was one of those duties. Its manual checking of the record produced by the computer pertaining encashment, transfer and collection of cheques and other instruments like deposit slips and online slips. I also had to do arrange the cheques in the evening. One of my duties was also to do phone calls to customers to remind them about their ATM cards and cheque books. I also had to do customer care service, means if any customer had any query about any procedure or if he wanted information regarding any account then I had to explain him all the procedure.

3.2: NEW KNOWLEDGE ACQUIRED

3.2.1: CHEQUE BOOK ISSUE Whenever a person opens an account with branch, for this purpose he has to fill a requisition slip, and then after about six days of opening of account he gets his cheque book, which comes from Karachi. And first cheques book is free of cost. There are two types of cheque books: The first type of cheque book has 50 leaves. The second type of cheque book has 25 leaves.

There is also another requisition slip inside each cheque book, which is used for the purpose of reissuence of a new cheque book if the leaves of first cheque book start finishing. There is written the title of account holder, his account number, the stamp of

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Allied bank and the signatures of the authorized person on every page of cheque book and also on the requisition slip.

3.2.2: OPEN NEW ACCOUNTS As internee I had learned that how open new account and what kind of term and condition should be fulfill for opening the account. A signature card Requisition slip The main account opening form Acknowledgement Know your customer profile
ATM application form

If any person want to use ATM there is


These all forms will be filled by the customer and following things are required by the customer: A copy of NIC A copy of job evidence or student id card copy

If the customer wants to change his signature on the account opening form then he has to fill another form that is called Undertaking form By this form customer can change his signature

One the person completes these forms then his account is opened, the account opening officer gets this form signed by CSM officer and the Manager of the bank. Then the account opening officer enters the account opened in the software system. He also scans the Signature card onto the system software, and gives the Requisition slip and ATM request form to the officer responsible for issuance of Cheque book and ATM. And

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attaches a Letter of thanks with the remaining forms and now the person is an account
holder of the bank.
The minimum amount of money for opening account is Rs: 1000, which has to be
deposited by the customer at the time of account opening.
Illiterate persons give their Thumb impressions instead of Signatures.
Now a days those ladies which do Pardah also need to submit the photograph.
After a few days the Bank sends or mails another copy of Letter of thanks to the
customer as well.

3.2.3: ZAKAAT From the 1st Ramadan zakaat is deducted from the account holder according to the Islamic rate. But the people who do not want to deduct zakaat by the bank and want to distribute it at their own they concern with bank and said that they dont want to deduct there Zakaat by the bank but want to distribute own self so for this instance bank fill the form by the account holder and the bank can not deduct Zakaat from the account holders account. 3.2.4: CLEARING DEPARTMENT There are two types of clearing: Inward clearing Outward clearing

3.2.5: CLEARING CHEQUES 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 labor. COMSATS Institute of Information Technology, Sahiwal - 26 -

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PROCEDURES The cheques and drafts which come to branch from different banks. They entered into the register. After this process the balance with total drafts and total amount are given to the representative in shape of clearing. ABL works under the rules and a regulation set by the State Bank of Pakistan (SBP) and ABL has an account with SBP. The main work of the clearinghouse of SBP (NIFT) to collect inward and outward cheques and maintain the record as branches. 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 signatures, 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 to give Rs. 4 Million to AL Faisal bank and AL Faisal has to give Rs.3 million to ABL then ABL will draw a cheque of 1 Million in favor of AL Faisal. SBP will debit this amount from ABL account and credit of AL Faisal account. In this way mutual cross debiting and crediting in the books of SBP settle the banks account. 3.2.6: PAK 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

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will similarly send advice to the branches of the returns, if any. Copies of all advices will be sent to the head office. 3.2.7: INTER-BRANCH CLEARING AND COLLECTION 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 another 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. 3.2.8: 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 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 favor of which its drawn. The customer presents the cheque to his branch, which sends 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 its own branch if available for collection from the payers banks otherwise the OBC is directly sent to other bank.

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3.2.9: MAINTAINING REGISTER for OBCs I maintain the 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 any fault, we take it back as a return but after that we call the concerned person and we also write name of the person. 3.2.10: ONLINE TRANSFER Online transfer is a very interesting department as well. Any person who wants to transfer some amount from minimum 500/- to 500,000/- can transfer from our branch to another branch of ABL within minutes. The fee charged for this service for within city is Rs: 175/- and inter city is 375/-.The only thing which i had to do was to fill the slip of online transfer in which the most important columns were; Name and code of remote branch Title of the remote account Account number of remote account Applicants name Amount to be transferred in words Amount to be transferred in numbers If cheque is submitted then the number of cheque A copy of NIC

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3.3: PROBLEMS ENCOUNTERED The biggest problem I had to face during my start of internship was the NEW ENVIRONMENT. In the beginning it was very difficult to understand the environment of the organization. In the first weak I face loat of problems I feel hesitation to ask any question about any query. Basically it was all because of being in a new place. But after a week I started adjusting with them and after two weeks I also felt that I am a part of this branch. The second problem was that I faced to be formal there, like as we are very casual and free minded in university life but when I was in the bank, I really felt that I have to be very formal all the time. Then another problem which I faced was the hectic routine of the bank. I had to go on time, work or at least to sit on a single place from 9 to 5 and be formal and present minded all the time without being non serious. And as all the customers used to come for things related to finance, which is a very sensitive issue thats why I had to be very attentive all the time. The knowledge which we acquired through our books is totally different from the practical knowledge thats why I feel some problem to understand the things. And all those things which we have studied in our books in the form of different theories when I had to apply them practically it was not so easy but in some case is totally different. The major problem which I faced was hectic routine work from 9 am to 10 pm.

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3.4: HOW EXPERIENCE IMPACTS MY CAREER By doing internship for 6 weeks and 3 days in Allied bank limited 89/6-R branch I have learned a lot of practical experience of doing work, which was really different from the experience of student life. By doing internship I learned the knowledge of banking sector which is not so easy I have learnt the meaning of time management, responsibility and professionalism. From this experience now I can decide well that should join banking field or should go for another one. The main thing which I saw by doing this internship was the confidence and knowledge which we gain from our student life is far more different from this one because whenever I used to talk or deal with those bankers who are in banking sector from more then a decade they provide me a lot of knowledge to deal with daily routine matters of banking sector. Whenever I used to meat with such highly professional bankers I used to hesitate in the beginning but as time spend I also gained much confidence and a ask question about anything which create problem for me. In the beginning it was very difficult for me to interact and work with such formal people in such a formal/professional environment but with the passage of time that I really leant to work with them and talk to them and now I think I will not find any difficulty in at least understanding the environment of organizations and offices when I will start my job in near by future. I also feel that I have also understood the basic culture and environment of professional life which is very important to understand for doing any kind of job. Now I really feel that the knowledge which I got by working in ABL for six weeks and three days will be really helpful to me in future as I have got the experience of General banking during my student life in my vacations from university. This experience will also help me in getting a good job in near future because now at least I have some experience of work.

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REFRENCES

www.abl.com.pk www.google.com

Interviews with Bank Staff


MR. JAVVAD RAFIQ, CSM, ABL COMPREHANSIVE ROAD Branch Sahiwal (Personal
interview July, 07, 2010)
MR. SHAHID, BM, ABL COMPREHANSIVE ROAD Sahiwal (Personal interview July, 07
2010)
MR,DILBAR, Credit officer, ABL COMPREHANSIVE ROAD Sahiwal (Personal interview
july 07, 2010)
History retrieved July 08, 2010 from
https://www.abl.com.pk/aboutus/ Mission, vision retrieved July 08, 2010 from https://www.abl.com.pk/aboutus/financial_report/report_2009/annual_dec09/ Board of directors retrieved July 09, 2010 from https://www.abl.com.pk/aboutus/board_directors/ Overseas locations retrieved July 10, 2010 from https://www.abl.com.pk/overseas/

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