COMSATS Institute of Information Technology

COMSATS Institute of Information Technology, Lahore

 Allied Bank of Pakistan,
Multan Cantt. Branch, Multan

Advisor
Madam Sarosh Haneef

Presented by
Muhammad Asad Amin
CIIT/FA05-MBA-007/LHR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, JINNAH CAMPUS

DEFENCE ROAD OFF RAIWIND ROAD, LAHORE

COMSATS Institute of Information Technology, Lahore 2

COMSATS Institute of Information Technology, Lahore
COMSATS Institute of Information Technology, Lahore 2
 DEDICATION

I dedicate my efforts to my parents who pray for me every minute, my brothers who
guide me at every step of my life, my classmates and my group fellows who stand by
me whenever I need them and to all those who help and encourage me whenever I find
hurdles in my life.

COMSATS Institute of Information Technology, Lahore

 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 aptitude to do this project efficiently and
successfully . 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 gratefulness to our
praiseworthy advisor Madam Sarosh Haneef, her enthusiastic interest, in time and
useful suggestions, continuous encouragement, vivacious 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, 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, EVP at ABL Regional Office Multan. I also pay my regard to all others whose
names can not be included due to the scarcity of space and time.

At the end I’d like to thank Mr. Muhammad Shakeel Asghar, 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

 TABLE of CONTENTS
Executive Summary 02

Vision, Mission and Core Values 03

History of Allied Bank of Pakistan 04

Board of Directors 08

Organizational Structure 09
Competitive Strategy 10
Business Process Analysis 13
Learning as an Internee 24
New Knowledge Acquired 26
Problems Encountered 32
How Experience Impacts My Career 33
SWOT Analysis 34
Recommendations 41

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

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knowledge of the banking sector is concerned. I was rotated in different departments
including clearing, online transfer, and customers’ services 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

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

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

History of Allied Bank of Pakistan

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

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network. In August 2004 the Bank was restructured and the ownership was transferred
to Ibrahim Group.

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.

The Pre Freedom 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.

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The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5
million by the end of first full year of operation, and by the end of 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. 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.

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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

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.

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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.

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 BOARD OF DIRECTORS

Mr. Mohammad Naeem Mukhtar

Chairman

Mr. Sheikh Mukhtar Ahmed Mr. Mohammad Waseem Mukhtar

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 CHAIRMAN A. Sherwani

President & CEO

CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

Organizational Chart

SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

COMSATS Institute of Information

SENIOR VICETechnology,
PRESIDENTLahore
(SVP) 10
 EXECUTIVE VICE PRESIDENT (EVP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

SUPPORTING STAFF

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 strategies are focused
on making their existing customers loyal because they believe that it is their existing

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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.

VARIETY in PRODUCTS
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 as 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 ment 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.

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.

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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.

ONLINE FEATURES

By Allied bank Online you can;

1Check your account balances

2Transfer funds between your own accounts and to a third party account
3You can use your card for loan account payments
4Check transaction history of your accounts
5Get your account statement through fax
6Receive information on various Allied bank products and services
7Find out status of your card or loan application
8Request balance or reference certificate
9Get currency exchange rates
10Issue stop payment instructions
11Report loss of your cheque book
12Request change in address and telephone numbers

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.

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TOLL FREE NUMBER

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

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Business Process Analysis
PRODUCTS OF Allied bank

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

• Rupees Deposit Accounts

• Foreign Currency Accounts
• Allied Cash+ Card
• Online Banking
• Internet Banking
• Credit Card
• Advances/Financing
• Services

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ACCOUNTS

RUPEES DEPOSIT ACCOUNT

The following accounts are the parts of rupee deposits accounts:

• Current Account
• Saving Account
• Allied Term 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.

BENEFITS

• Free Online Transactions

• Free issuance of Payment Orders
• Free issuance of Demand Drafts

SAVING 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

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 • 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

ALLIED TERM DEPOSIT ACCOUNT

Allied Term Deposit Account is a profit bearing checking account with the payment of
profit on a fixed term basis. The estimated rate of profit is given below.

Rs 0.5(M) to less than Rs 1 (M) 6.50%

Rs 1 (M) to less than Rs 5 (M) 7.50%

Rs 5(M) & above 8.00%

SALIENT FEATURES

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

average term 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

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ALLIED 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

SPECIAL BENEFITS

The Scheme Provides The Following Special Benefits:

• Complementary ATM card for depositor and spouse

• 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

ADDITIONAL BENEFITS for DEPOSITORS of Rs 0.5 (MILLION) & ABOVE

• Free online transaction

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

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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. 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.

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 • 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.

CREDIT CARDS

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 ALLIED BANK-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/CREDIT DEPARTMENT

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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 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.

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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 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
• Remittances
• 1-Link ATM
• Business Account
• Foreign Currency Account

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

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

HAJJ SERVICES

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.

SET-UP 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.

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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.

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

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safe way to transact amount because of which the businessman have no problem to
take cash and travelers cheques with him.

EASY TO DEPOSIT AND WITHDRAW

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

PAY ORDER AND DEMAND DRAFT

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 PROCEDURE

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

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 • Japanese Yen

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.

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ONLINE FACILITY PROVIDER 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.

CUSTOMER CARE 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.

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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.

DIVERSE 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 online 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 ACQUIRED

CHEQUE BOOK ISSUING PROCESS

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

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

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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.

CLEARING AND COLLECTION

There are two types of clearing/collection cheques

1Inward clearing/collection
2Outward clearing/collection

OBCs

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
labour.

PROCEDURES

The cheques and drafts come to branch from different banks. They enter the particulars
of the cheques on a register. After this process the balance with total drafts and total
amount are given to the representative. ABL works under the rules and regulations
prescribed byf 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

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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 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.

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
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 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

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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 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.

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ACCOUNT OPENING

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.

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.

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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.

ONLINE TRANSFER

The department providing online facility to the customers, I liked the most. I learnt
different procedures regarding this department. I learnt the process of online transfer.
The whole this process need is filling of a slip, and cheque or cash. In the slip the name
of remote branch and account number of the remote person must be entered. If the
person is not an account holder of the bank then he has to attach his NIC copy with the
slip for his identification. The person availing this facility submits the cash on the cash
counter and then gives the slip to the host person at the department, who then enters
the data in the computer. In this way the money is transferred to an account through
PAK account, which is the central account of the bank and all the inter branch
transactions has to go through this process.

LEARNINGS in FOREIGN EXCHANGE and ADVANCES DEPARTMENT

As an internee I learnt many things some of which I have described above. The
remaining few include the processes involved in the foreign exchange and advances
department. Now a day, both of these departments are considered to be the backbone
of any bank. Foreign exchange department brings foreign reserves. Mostly import and
export business takes place through foreign exchange department.

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Advances/Credit department is equally important. This department gives the bank a real
business. The bank gives money to the borrowers on interest and earns a lot in this
way. The bank lends money against some guarantee or pledges some property for this
purpose. So that in case the customer cannot pay back money, the bank can meet over
come its expenditures.

PROBLEMS ENCOUNTERED

NEW ENVIRONMENT

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.

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HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of practical life. Now I feel
that I am better prepared to enter the world of professional work. I have come to know
and been appreciated by a number of professionals who are lending their services to
the banking sector for more than a decade. I feel honored that I have worked with such
experienced professionals. I must admit that such interaction in this respectable
professional community will help me in seeking out good job opportunities in the near
future.

Each task I performed was a different experience in itself. By the end of it, I must say I
realize my potentials, I have realized that practical life is not so easy after all, it takes a
lot of hard work and devotion, 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.

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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 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.

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STRENGTHS

LARGE 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.

VARIETY in 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.

SECURE BANKING

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

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are given to the customers. Moreover, to prevent illegal acts, the person who transfers
any amount submits his copy of NIC to the bank.

LOCKERS FACILITY

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.

CUSTOMER CARE 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.

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.

SAME ACCOUNT NUMBER 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.

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PAID LEAVES

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.

SECURE ENVIRONMENT

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 an EASY PROCESS

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’ REPLACEMENT

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

LOW RATE OF INTEREST

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

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SUPPORTIVE ENVIRONMENT

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

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

INCREMENT IN WORKFORCE’S PAY

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.

LATE PROMOTIONS

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 PRODUCT 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

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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 it’s missing a big market share of
consumer banking. If it enters this market then this bank can become the biggest and
the most efficient bank of Pakistan.

THREATS

COMPETITORS

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:

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

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

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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 CIRCUMSTANCES

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

TRADE and INDUSTRY CONDITIONS

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

POLICIES of ABL

Another threat to the bank’s progress is its own policy. Bank is not concentrating on
improving its overall process. There is still lack of highly qualified staff in the bank. And
the employees are given promotions on reference basis, which causes frustration
among employees and overall graph of the performance comes down. So ABL should
reconsider their policies so that the bank may remain in the race.

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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.

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