Professional Documents
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Allied Bank Internship Report
Allied Bank Internship Report
Table of Contents
PREFACE ACKNOWLEDGMENT BANKING SYSTEM TODAY CHAPTER 1 THE ORGANIZATION HISTORY AND BACKGROUND: GENERAL PROFILE OF THE ALLIED BANK LIMITED: PRODUCTS: ORGANOGRAM OF ALLIED BANK: BRANCH NETWORK: CREDIT RATING: VARIOUS BANK DEPARTMENTS: APPRAISALS AND PROBLEMS AT ABL: CHAPTER 2 ANALYSIS SWOT ANALYSIS FINANCIAL ANALYSIS: FUTURE OUTLOOK: CHAPTER 3 INTERNSHIP ACTIVITIES WEEKLY ACTIVITIES: MANAGEMENT STYLE WORKING ENVIRONMENT: CHAPTER 4 SUMMARY & RECOMMENDATIONS OVERALL SUMMARY: RECOMMENDATION FOR RECOMMENDATION FOR ANNEXURE: 2 3 4 5 6 10 15 36 39 40 43 56 57 58 61 64 65 66 101 101 102 103 104 105 106
THE THE
ORGANIZATION: IBIT:
Annexure:
PREFACE
The report is specially meant for the students of MBIT. It is concerned to a brief study of operations, functions, tasks and services of Allied Bank of Pakistan. Banking play very important role in the commerce and economic development of a country. Now-adays banks are using different modern technologies, which influence the managerial activities, thats why I decided to do my internship training in the bank. In preparation of this report I have tried my best to provide all possible information about the operations, functions, tasks and the corporate information of Allied Bank of Pakistan in brief and comprehensive form. Then internship report ends with some recommendation after identification of problems that I observed during the course of my internship training.
Acknowledgment
To Him belongs the dimension of the Heavens and the Earth, it is He who gives life and death and He has power over all things.
(Al-Quran)
All acclamations are to Allah, the most Merciful and Compassionate, who has empowered and enabled me to accomplish this task successfully. After that I submit my earnest thank to my affectionate parents, who pray for my success and always been a source of encouragement for me. Secondly, I am grateful to my prestigious institute that made this learning opportunity a part of my education, especially I would like to thank my Professors as the knowledge imparted by them enable me to gain knowledge and learning exposure of the organization in the best way. Also I express my appreciation to all staff members of Allied Bank of Pakistan who are very cooperative guided me a lot and also I express my greatest gratitude to my kindhearted supervisor Mr. Asif Incharge of reporting fraud, forgery and dacoity, Miss Syeda Ana Mehdi Credit Analyst and the wing head Mr. Syed Mujtaba Gillani.
BANKING SYSTEM TODAY The banking business as we know it today is composed of three separate and distinctive principal functions these are: The acquiring of funds to invest and advances
The investing of such funds and advances (loans) in bonds The servicing of such funds, such as providing of checking, saving facilities and the collection of draft, notes and cheques
These functions while deferring in detail of operations follow the same principles established hundreds of year ago by money lenders and exchangers.
VISION:
To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers.
MISSION:
To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements To create sustainable value through growth, efficiency and diversity for all stakeholders To provide a challenging work environment, and reward dedicated team members To play a proactive role in contributing towards the society
CORE VALUES:
The core values of Allied Bank are these: Integrity Excellence in Service High Performance Innovation and Growth
OBJECTIVES:
Allied Bank has following objectives: Prime focus to earn profit by providing values to its customers To provide superior services to its customers To provide assistance in the development of the commerce and trade industry Focus on blending skills and experience towards creating an enabling environment Core focus is to inculcate a culture of collaboration intended to deliver world class customer service
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
Mr. Mohammad Naeem Mukhtar Mr. Mohammad Aftab Manzoor Mr. Khalid A. Sherwani Mr. Pervaiz Iqbal Butt Mr. Mohammad Waseem Mukhtar Mr. Farrakh Qayyum Mr. Sheikh Mukhtar Ahmed Mr. Abdul Aziz Khan Mr. Tasneem M. Noorani Mr. Sheikh Jalees Ahmed Mrs. Nazrat Bashir Mr. Mubashir A. Akhtar
Chairman (CEO) President & (CEO) Director Director Director Director Director Director Director Director Director
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
THE MANAGEMENT:
The brilliants whose passion is dedicated to discover newer ways to make the organization goals reality
Mr. Asim Tufail Mr. Fareed Vardag Mr. Iqbal Zaidi Mr. Mohammad Abbas Sheikh Mr. Mohammad Aftab Manzoor Mr. Muhammad Jawaid Iqbal Mr. Muhammad Yaseen Mr. Mujahid Ali Mr. Shafique Ahmed Uqaili Mr. Khawaja Mohammad Almas Mr. Tahir Hassan Qureshi Mr. Tariq Mehmood Mr. Waheed ur Rehman Mr. Zia Ijaz
(Group Chief, Consumer & Personal Banking) (Chief Risk Officer) (Group Chief, Compliance) (Group Chief, Special Assets Management) (Chief Executive Officer) (Group Chief, Corporate & Investment Banking) (Group Chief, Treasury) (Group Chief, Information Technology) (Group Chief, Human Resources) (Head, Core Banking Projects) (Chief Financial Officer) (Group Chief, Operations) (Company Secretary) (Group Chief, Commercial & Retail Banking)
PRODUCTS:
In line with the Banks aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer banking business. Furthermore, to achieve this objective, professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments.
Phone Banking:
Allied Bank is focused on delivering exceptional services to its customers that would strengthen the relationship and build Loyalty. To make banking experience quick, efficient, secure and easy, Allied Bank of Pakistan now offer its customers 24/7 Phone Banking Services. Allied Phone Banking provides its customers immense comfort! In addition, Allied customers can also avail a host of services through automated Allied Phone Banking (IVR/Self Service Banking) that lets them use their telephone keypad to inquire about their financial balance/transactions. Allied Phone Banking Services: Dial - 0800-22522 to get absolute Banking freedom
Branch Banking:
1. Inquiry A/C balance Statement details Product information
2. Transactions Cheque book request TPIN issuance & re-issuance ATM PIN issuance & re-issuance PO/DD & Bank certificate Funds transfer
Credit Cards:
1. Inquiry Card balance Statement details Product information Application status
1. Transactions Card activation Card lost/stolen Card replacement Credit Card bill payment Insurances
Internet Banking:
Banking at your fingertips Allied Direct Internet Banking offers convenience to its customers to manage and control their banking and finances - when they want to, where they want to! So, just get clicking. Allied Direct Internet Banking is; Simple and Convenient Secure and Faster 24X7 Account Access
Online Banking:
Allied Online Banking is a unique service being offering from Allied Bank. Through this service, account in Allied Bank is available to customers from any of abl branches countrywide. No matter where customers are in the country and whichever branch their account is maintained at, customer can have their cheque cashed at any of abl 757 online branches located in 250 cities.
Customers can also use the service, from any branch, to deposit cash for instant credit into their account or any other account in Allied Bank. Similarly, the account-to-account Funds Transfer facility is also available for instant remittance. Customers cheque drawn from a remote branch for credit into a beneficiarys account or encashment of a specified amount can also be presented by a third person at any branch. Whats more, making a Balance Inquiry and getting an Account Statement are additional services available to Account holders from remote branches. Allied Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of abl branches countrywide. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services.
1 Link Network:
Additionally, Allied Bank is a member of the 1-LINK ATM sharing switch comprising of over 2,000 ATMs nationwide, therefore, giving its Allied Cash+Shop Visa Debit Card holders access to even more ATMs across the country. The "1-Link Switch" has the following Bank members:
ABN Amro Bank KASB Bank Limited Al Baraka Islamic Bank Meezan Bank Limited Allied Bank Limited National Bank of Pakistan Askari Commercial Bank Limited NIB Bank Limited Atlas Bank Limited PICIC Commercial Bank Limited Bank AL Habib Limited Soneri Bank Limited Bank Alfalah Limited
Standard Chartered Bank Pakistan Limited Bankislami Pakistan Limited Union Bank Limited Crescent Commercial Bank Limited United Bank Limited Dubai Islamic Bank Pakistan Limited MyBank Limited Emirates Global Islamic Bank Limited Tameer Micro Finance Bank Limited Faysal Bank Limited Habib Bank Limited First Dawood Islamic Bank Limited
All ATMs connected with the"1Link Switch" will show its Logo.
M NET Network:
The Allied Cash+Shop Visa Debit Card can also be used at M Net ATMs, for cash withdrawal.
The "M Net Switch" has the following Bank members: JS Bank (American Express Bank) Bank of Khyber Bank of Punjab Citibank First Women Bank Limited Habib Metropolitan Bank HSBC Bank Muslim Commercial Bank Saudi Pak Commercial Bank Prime Commercial Bank
Corporate Leasing:
Allied Bank started lease operations when it integrated with Ibrahim Leasing Limited. Facilities include leases for machinery, commercial vehicles and equipments. The Bank provides lease facilities to corporate and commercial clients in all industrial enterprises for balancing, modernization, replacement and expansion schemes. Leasing is a popular mode of financing because of its distinctive features like tax shield, preserve working capital, easy documentation and less processing time. Lease applications are processed at all Bank branches in Pakistan.
Unclaimed Deposits:
If the account is dormant or not operated for 5 years then these are called unclaimed deposits and all unclaimed deposits are surrendered to the State Bank of Pakistan. In accordance with the Banking Companies Ordinance, 1962, Section 31, the Bank is liable to surrender to S.B.P, all unclaimed deposits and instruments which have not been operated/collected by the account holders/beneficiaries for last 10 years. All such customers/beneficiaries are requested to contact the concerned branch to reactivate their accounts/collect the instruments, failing which, the bank will be compelled to classify the same "UNCLAIMED" and surrender to SBP.
Deposit Accounts:
Allied Bank of Pakistan provides different nature of deposit accounts to its customers. PLS Account Current Account Allied Basic Banking Account Foreign Currency Deposit Monthly Profit Plus Rewarding Term Deposit Behtar Munafa Account Behtar Munafa Term Deposit Allied Munafa Account Allied Bachat Scheme Allied e-Savers Accounts Allied Business Account
PLS Account:
Allied Bank offers the PLS Savings Account facility to its customers with the following attractive features: Attractive return of up to 5.00% per annum Free Online Transactions, DD/TT/PO for depositors maintaining an average monthly balance of Rs. 2.500 (M) & above. Free issuance of cheaque book at the time of account opening
Current Account:
Allied Bank offers the Current Account facility for individuals as well as for institutions and commercial customers. There are free Online Transactions, DD/TT/PO for depositors maintaining an average monthly balance of Rs. 0.5 (M) & above. Free issuance of cheaque book at the time of account opening
Salient Features: Account Type: Term Deposit Term Period: 1 year Profit: Payable on monthly basis Minimum Deposit Amount: Rs.25,000 Eligibility: Individuals & Institutions (other than financial institutions)
Additional Benefits: Cheaquing Account for monthly profit credit 24 hour phone banking service Free internet banking facility SMS transaction alerts Allied Cash + Shop Visa Debit Card
Rate of Profit: D 1 3 ep M M Rs. 7.0 9.0 os on on 25, 0% 0% it Salient Features: th th 00 A s 0 m Account Type: Term Deposit & ou Term Period: 1-12 months Ab nt Investment: Rs. 25,000 & above ov e Profit: Payable on maturity Eligibility: Individuals & Institutions 6 M 9.5 on 0% th s 12 M 10. on 50 th % s
Profit Payment: Profit of Rs.13, 500* will be immediately credited in the customers current account. *on an investment of Rs.100, 000 Tax/Zakat will be applicable as per rules Additional Features & Benefits Current account for regular banking needs Allied Cash+Shop Visa Debit Card Financing facility of upto 80% on investment Free internet banking facility 24-hour phone banking service
basis, then this is the account for such customer. Rate of Profit:
Salient Features: Account Type: Chequing Account Investment: Up to Rs.5,000,000 & above Profit: Payable on monthly basis Highest Profit: Up to 10.50% p.a Eligibility: Individuals, and institutions
Rate of Profit:
Rate of Profit: Account Type: Fixed Term Deposit Investment: Up to Rs.5,000,000 & above Profit: Payable on maturity Highest Profit: Up to 11% p.a. Eligibility: Individuals, and institutions
Salient Features: Investment: Rs. 10,000 to Rs. 500,000 Profit: payable on Half Yearly basis. Expected Profit Rate: Up to 7.50% p.a. Eligibility: Individuals
Features & Benefits Online/Manual Remittances Outward Cheque Return Issuance of DD/TT/PO/OBC /Expression Collection
SME:
The Commercial and Retail Banking Group (CRBG) caters to the needs of commercial entities and small and medium enterprises. A dedicated team of Relationship Managers first identifies the specific needs of each customer segment, then designs and delivers a facility package, which is in conjunction with those needs, and provides customers the full support and opportunity to take advantage of the various business prospects available in the market.
Letter of Guarantee (LG): On behalf of the customers, the Bank issues a guarantee in favor of the beneficiary, against the performance of a particular job/contract, within a particular time. Import Export: Allied Bank provides highly efficient trade finance services for import/export businesses through a large number of authorized branches where trained and motivated staff is available to handle the business on the customers behalf. Cash/ Liquid Financing: The product is aimed at providing prompt financial services (fund based and non fund based) to SME sectors. The cash/liquid collateral financing program is aimed to be the cheapest source of funds available to the SME sector. Vendor Financing: The product is aimed at vendors of large corporate entities whereby the corporate entity has an agreement with the vendor to provide specific quantities of certain goods in a specific period of time. ABL whould finance such vendors in order to promote their production capabilities.
Agriculture Finance:
The Bank, under the Agricultural Financing Scheme, as decided by the State Bank Of Pakistan, extends short, medium and long term, farm and non-farm credits. The farm credits are extended for production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats, sheep, cattle), poultry and factories including social forestry and fisheries (inland and marine, excluding deep sea fishing). Details are as follows:
Farm Loans:
Production Loans:
1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges, water charges, vegetables, floriculture, etc. 2. Working capital finance to meet various farming expenses.
Development Loans
1. Improvement of agricultural land, orchards, etc. 2. Construction of Godowns 3. Tractors, Machinery & other equipments 4. Tube wells 5. Farm Transportation, etc
Non-Farm Loans
1. Loan Tenure: 3 Years (Clean up once a year) 2. One time documentation for 3 years 3. Loan limit will be based on the Indicative per Acre limit prescribed by SBP
Development Loans/Finances (Term Loans)
1. Loan Tenure: up to 5 years 2. Repayment: Monthly/Quarterly/Bi-Annual 3. Criteria Selection: a) b) c) d) e) f) g) Should be a Pakistani & have a CNIC. Preferably is an account holder with ABL. Have a permanent residence and be a self-cultivator. Not be a defaulter of any other Financial Institution/Clear ECIB. Be reputable in the business Have Repayment Capacity Be able to produce proper securities
Amount of Finance
a) b) c) d)
Value of agricultural land/Pass Book 80% of PIU or 50% of last 3 years average Sale Price or Market Value 50% of Residential/Commercial property in municipal limit. 90% of DSCs/SSCs/TDR/SNDR
Insurance
Insurance facility is available for all Farm and Non Farm Loans except orchards. Insurance premium amount of subsistence holding farmers availing loans for following 5 major crops will be reimbursed by the Government of Pakistan.
1) 2) 3) 4) 5)
Utility Bill:
Customers can pay their utility bills (e.g. electricity, gas, telephone) at any of the Banks branches. For further convenience, bills are collected on all working days during normal banking hours and also at certain times during the evening. Bills can be paid with cash or cheaque, plus customers can even drop crossed cheaque in drop-boxes available at all branches. Furthermore, customers can also pay their bills using any of the Banks ATMs or via Internet Banking for SSGC and SNGP bills.
LOCKERS:
Allied Bank Lockers are available, at an annual fee, in four different sizes - small, medium, large and extra large. Locker holders are not required to have an account with the Bank.
S. # 1. 2. 3. 4.
Locker Size
Small Medium Large Extra Large
Hajj Services:
The Hajj Service is available to all pilgrims. The forms and other related services are provided by the Bank. Hajj applications are available with all branches during Hajj season, immediately after the Hajj policy is announced by the Government of Pakistan.
Features:
With Allied Visa Gold Credit Card, free credit period allows customers to pay for purchases up to 50 days after the date of purchase.
Flexible Repayment:
When paying credit card bill, Allied Visa Gold Credit Card gives the option to either pay the entire amount according to the statement or a minimum of 5% of total outstanding balance.
Cash Advance Facility:
As an Allied Visa Gold Credit Card member, customers are entitled up to 75% of available credit limit in cash.
Allied Easy Installments (AEI):
The Allied Easy Installments (AEI) plan provides customers with the facility to pay outstanding card balance in equal and affordable monthly installments spread over 3, 6, 12, 18, 24, 30 or 36 months.
Supplementary Cards:
Want to share the benefits of Allied Visa Gold Credit Card with others? Now customer can! Treat up to two people with supplementary credit cards and pass on the many privileges of Allied Visa Gold Credit Card to the chosen friends and family members.
Balance Transfer Facility:
In case customers have outstanding balances on other cards, consolidate these onto the Allied Visa Gold Credit Card with the lowest BTF rate and save more on the outstanding payments than ever before.
Credit Protection Plus:
With Credit Protection Plus, Allied Visa Gold Credit Card provides payment cover against: 1. 2. 3. 4. Death, due to accident or sickness Permanent and Total Disability, due to sickness or accident Temporary Total Disability, due to sickness or accident Terminal Illness
Zero Loss Liability:
The Allied Visa Gold Credit Cards Zero Loss Liability feature protects its customers from paying for any unauthorized transactions on their Card in the event that it is lost or stolen.
Free CIP Lounge Access:
As an Allied Visa Gold Credit Cardholder, its customers are eligible to avail the free lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of complimentary features. Also feel free to plug in your laptop and mobile phone into the charging facilities provided or browse the internet or send and receive faxes while you wait.
Features:
With Allied Visa Platinum Credit Card, customers can enjoy these facilities:
Visa Platinum Golf Visa Platinum Dining Visa Experiential Travel Priority Pass Airport Lounge Program
Platinum Life Platinum Life is a unique platform that showcases exclusive programs and events specially designed for Visa Platinum Credit Cardholders. With Allied Visa Platinum Credit Card, customers are eligible to join this exclusive platform and avail many exciting services like Platinum Club, Platinum Dining, Platinum Golf, Experiential Travel and much more. Visa Platinum Club As a member of the Visa Platinum Club, you are part of an internationally reputed rewards program that provides an unmatched quality of services and customized luxuries to all Allied Visa Platinum Credit Cardholders. Visa Platinum Websites The Visa Platinum websites have been designed to ensure that Visa Platinum Cardholders around the Asia-Pacific region are up-to-date with the latest product offerings and benefits. The sites also include additional features like:
The latest information on Visa Platinum regional programs, such as the Visa Platinum Club, Visa Platinum Dining, Visa Platinum Golf, Holidays and Visa Platinum Experiential Travel Facilities. The latest information on local country promotions and events. Online applications such as Concierge Online. A directory of toll-free numbers for reaching the VPCC from all key global destinations.
Get Cash:
By using Allied Cash+Shop Visa Debit Card to withdraw cash directly from bank account from over 3,500 ATMs in Pakistan - including Allied Bank's largest network of ATMs - and over 1 million ATMs worldwide Stay Alert Now, be more secure and keep better track of spending. With Allied Cash+Shop Visa Debit Card,customers can get SMS alerts when they make transactions on their Card.
Shop Anywhere
Use the Visa power of your Allied Cash+Shop Visa Debit Card to shop at over 49,000 retailers in Pakistan and over 27 million retailers internationally.
Dine Out Enjoy Traveling Get Groceries Have Fun Fuel Up
Cash Management:
ABLs cash management team offers a full range of transactional banking services, from collections to cross-border payments, from customized services to comprehensive industry expertise. Having the largest real-time online branch network in Pakistan, combined with a host of value-added services, ABL is uniquely positioned to meet the demanding requirements of global corporate, public sector enterprises and top-tier domestic companies. With its collaborative approach to building and implementing solutions, ABL is committed to giving its customers the best service possible.
Home Remittances:
Allied Bank has rolled out its state-of-the-art e-Remittance services to facilitate international remittances sent to Pakistan by overseas Pakistanis. ABL has been significantly important in originating home remittances to Pakistan, and is continuously working to develop innovative ideas for maximizing its reach to all Pakistanis living abroad. We have identified several strategic partners in the main overseas markets, and will be providing a fully automated, end-to-end solution for non-resident Pakistanis.
ABLs real-time online branch network one of the largest networks in Pakistan, consists of over 760 branches in 350 cities, and provides domestic distribution of remittances to customers receiving money in Pakistan. A host of top international banks, exchange houses and funds transfer companies from across the world, including the Middle East, Europe, Asia-Pacific and North America, have been involved to make this a quality service. By implementing a fully automated, straight-through processing facility, we are in a position to activate an innovative set of remittance products. A host of options is available to non-resident Pakistanis under this service, including direct credit to account, cash payment over the counter and issuance of the Allied Express cheque, a payment instrument that can be honored across the entire ABL network of branches.
CIBG (Corporate Investment Banking Group) Corporate Banking Project Finance Long Term Financing Short Term Financing Trade Finance Investment Banking - Project Finance - Syndication - Advisory Financial Institution - Cash Management - Home Remittances
Finance G roup
B ranches
O perations G roup
Organogram of SVU
BRANCH NETWORK:
Allied Bank has 885 nationwide branches of which approximately 67% i.e. 573 are located in large metropolitan area, namely Karachi, Islamabad, Faisalabad, Lahore, Multan, Peshawar and Hyderabad. The network of 855 branches enables the bank to generate a substantial and stable deposit base, provide a wide range of banking products and other financial services and diversify lending risks geographically, as well as on the basis of credit and customer type. Allied Bank divided into four Centers i.e. North, Central-I, Central- II and South. These Centers have the regions and the regions further have the sub branches of Allied Bank Limited. The detail is given there:
CREDIT RATING:
Allied Banks credit rating has been maintained to AA for long term, by the Pakistan Credit Rating Agency (PACRA), the leading credit rating agency in the country and AA donates a very low expectation of credit risk, indicates very strong capacity for timely payment of financial commitments and not significantly vulnerable to foreseeable events. The short term rating was also maintained at A1+, which is the uppermost possible rating under this category and represents highest capacity for timely repayment.
and success.
Rank Categories Performance based Profit on average capital (ROE) Return on assets (ROA) Real profit growth Soundness based Capital assets ratio Size based Assets Overall world ranking
Rank
517th
846th 969th
Mission:
Our mission is to provide an independent, objective assurance and consulting services to management designed to add value and improve operations of the bank, dedicated to providing assistance to the management in effectively and efficiently accomplishing its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Terms of Reference:
One of the prime responsibilities is the satisfactory implementation of the internal control over financial reporting. The committee also determines appropriate measures to safeguard banks assets, ensures consistency of accounting policies, reviews financial statements and recommends appointment of and coordinates with external auditors. The committee is also responsible to ascertain the internal control system including financial and operational controls, ensuring adequate and effective accounting and reporting structure, determining and monitoring compliance with the best practices of the corporate governance. Implementation of the management testing plan, assessing the testing results and advising appropriate corrective action is also a major responsibility of Audit Committee.
Terms of Reference:
The primary functions of Risk Management Committee (RMC) is the monitoring of managements adherence to prudent and sound risk policies, assessing the ever changing risk profile and providing risk appetite to the business units. It also ensures development of risk management principles to build stakeholders confidence, safeguard and enhance reputation. The committee approves risk limits for Credit, market and operational risks, Credit approval grid and proposals regarding rescheduling/write-offs and filling of recovery suits. Overseeing of certain management committees and groups is also undertaken by the RMC. The Committee also monitors the initiatives and expenses pertaining to Basel II and up gradation of Risk Management Systems.
Structure of RMG:
Risk management functions have been segregated by business specialization i.e. Credit Risk, Operational Risk, Market Risk, Credit Administration, Risk Architecture and Risk Analytics.
Risk Analytics:
Risk Analytics is an integral part of the credit process. The objective of Risk Analytics is to limit portfolio concentrations, reduce volatility, achieve optimum earnings and create shareholder value. It also incorporates portfolio strategy and planning. The Risk Analytics is a relatively new concept in Pakistan, and the function at ABL has started managing portfolio risk through launch and usage of risk rating model, design and launch of a new Credit Application Package, that ensures a risk-based approach to credit presentations and allows pursuing systematic data gathering with a view to migrating to advanced approaches.
Credit Administration:
Credit Administrations role is to minimize losses that could arise due to security and documentation deficiencies. The Credit Administration unit constantly monitors the security and documentation risks inherent in the exiting credit portfolio. This function operates through eight regional departments located all over the country. All these functions are operating in tandem to improve and maintain the health of the lending portfolio and keeping aggregate risk within the Banks overall risk taking capacity.
Credit Risk:
Credit Risk Management at ABL is divided in to two branches; 1. Corporate & Financial Institutions Risk 2. Commercial & Retail Risk This function ensures that the risk exposures undertaken match the risk appetite of the Bank, and that proper credit approval procedure are adhered to. Identification and Monitoring of problematic exposures and to take proactive measures to minimize the financial loss to the bank is also a responsibility of this function.
Market Risk:
Market Risk is defined as any fluctuation in value of the portfolio resulting from changes in market price and market parameters, such as interest rates, exchange rates and share prices. The Bank intends to build an effective Market Risk Management unit to independently identify measure, monitor and control the potential losses that may arise from the Banks activities in financial market.
Operational Risk:
It includes risks that primarily arise from internal processes of the Bank. Operational Risk Management unit is developing an effective system for identification of critical risk areas, and developing processes/controls to mitigate these risks.
BRANCH MANAGERS
Operation Group:
Operations Group, apart from re-engineering the existing procedures to ensure safe and smooth conduct of Banks operational activities also focuses on supporting the field offices in pursuit of their business objectives and goals while maintaining adequate controls from a risk perspective. Group also assisted in launching of a variety of value added services facilitating banks account holders/customers by offering them a wider product range and efficient delivery. Operations Group is divided into the following five areas. 1. Alternative Delivery Channels provides innovative and value added I.T. based solutions to the Banks clients. 2. Branch Operations supports the field functionaries through procedural manuals, branches rationalization, fully automated inter branch & nostro accounts reconciliations. It also provides support Hajj & Zakat matters. During 2005, it has developed a number of new procedural manuals including ATM, Allied Online, Remittances, and Cash & Teller etc. 3. Treasury Operations supports Treasury front office in settlement of its trading/investment activities in Foreign Exchange, Money Market and Stock Market besides providing operational support in cash management to the branches and other business areas of the Bank. 4. Establishment caters to the Banks requirements for printed stationary, operating and fixed assets, insurance and security arrangements at the central office level. 5. Engineering is responsible for the purchase of new properties and construction/renovation of the existing/newly hired premises.
But with the launch of the Core Banking project driven from Head Office at Lahore, the IT Group will be re-structured very shortly. A complete revamping of the IT Group is underway to cater to the expansion of activities within the IT Group and to create capacity for the Core Banking Project. Moreover, the IT Group will extend its support to the newly created Regional Offices as well. The new IT Organization is expected to grow both vertically and horizontally and a substantial number of new hiring will take place to fill the gaps within the new organization chart.
Finance Group:
Finance Group plays a central role in strategic decision making, transparent financial reporting and enhancing the economic value of the Bank. It also provides support to the business groups in performance analysis and launching new products and initiatives. Finance Group has three major areas: Planning and MIS arm of the Finance Group translates financial and operational data into strategic information for an efficient and effective decision making. Financial and Regulatory Reporting arm of the Finance Group provides timely, relevant and reliable information to the shareholders, regulators and other stakeholders while following the statutory requirements and international best practices. Taxation wing of the Finance Group manages the Bank wide tax matters and endeavors to bring tax efficiency while complying with the tax laws.
6. To obtain approvals through circulation on the cases from the Board of Directors, Strategic Planning & Monitoring Committee. 7. To maintain record of Board of Directors, S. P. & M. C. Other Committees along with former Executive Board. 8. To arrange meetings of the Management Committee and prepare agenda for such meetings. 9. To affix company seal on Powers of Attorney, Shares and other documents as & when required and keeping its record. 10. To keep liaison with Govt. nominee and non-employee Directors of the Bank. 11. To assist Group Chief in carrying out different assignments entrusted by the President. 12. To provide information to Credit Rating Agency and co-ordinate with them in the process of Entity Rating. 13. To co-ordinate with Share Wing and Finance Group for arranging AGM/Extra Ordinary General meetings. 14. To provide informations to external Auditors and SBP Auditors.
SHARES WING:
Shares Wing a part of Corporate Affairs manages shareholders matters and co-ordinates with the Shares Registrar for the transfer and issue of Banks shares. 1. To supervise Government Compensation Bonds. 2. To make correspondence relating to ABL Shares with Employees / Legal Wing / Registrar / shareholders. 3. To make arrangements for floatation of shares & TFCs and payment of dividend on behalf of public limited companies.
SAM Group:
The Special Asset Management Group further grouped into three wings namely: 1. Legal Affairs Wing 2. Special Vigilance Wing 3. Corporate & Commercial Wing
LEGAL AFFAIRS:
The personnel engage with Legal Affairs is responsible for monitoring of all legal matters pertaining to the bank, covering functions of rendering opinions of applicable laws, to deal with special tasks and assignments , advice on legal issues relating to operational matters, legal compliances and to ensure remedial and litigation management. This diligently provide counseling on all legal matters including suits filed, executions of decrees & criminal complaints etc;. It coordinates with the advocates on Banks panel; ascertain their enlistment and selection of appropriate lawyers in complicated legal cases which is one of its core responsibilities. Through its law officers, following objectives are achieved.
FUNCTIONAL RESPONSIBILITIES
1. To render legal advices and guidance sought by the branches in matters of legal significance and involvement. 2. To provide assistance to the branches/offices in filing of suits, Execution application and in other Legal matters. 3. Follow-up of all the pending Suits, Decreed cases and Executions. 4. To impart legal opinion on documents viz. Succession Certificates, Bond of Indemnity, Staff & Executives H.B. Finance cases etc. 5. To prepare and submit all statements in respect of Suits Decreed and Executions filed by or against the Bank for submission to concerned quarters as per proforma A to I attached. 6. To attend all legal matters and provide assistance to the Group at Central Office, Karachi. 7. To process proposals for enlistment of Advocates on Banks panel, duly recommended by the Field Offices. 8. To maintain record pertaining to under Suit /Decreed/Execution Cases and submission of returns to SBP on fortnightly/monthly/half yearly/yearly basis.. 9. To scrutinize documents and to impart legal opinion on various property/charge, documents, agreement.. 10. Examination of Lease Agreement, Bank Guarantee and Bid Bonds.
PROCESSING UNIT:
Each Area Manager of Processing Unit will attend the cases of NPL A/Cs of respective area in line with Banks approved strategy. The Area Manager will process the proposals of settlements, rescheduling / restructuring, with or without financial relief in shape of waiver/write-off received through SAM Branches of respective area and put up the proposals with proper Analysis keeping in view the prudential regulations, financial aspects of defaulting borrowers and others facts about the proposal. The Area Manager will handle the proposals in respect of incentives to the staff on account of Cash Recovery in terms of Banks Policy and put up the proposals with their Analysis. The Area Manager examines the proposals received from SAM Branches for grant of permission of publications, approval for sale/disposal of mortgaged/pledged assets, deployment of security guards and formation of sale Committee where-ever required, and submits office notes for approval of valuation and legal and misc. expenses. The Area Managers will closely monitor and make follow up with Field Offices /SAM Branches asking for implementation in respect of cases settled/approved by competent authority The Area Manager will prepare the cases in respect willful defaulters to be submitted to SBP for issuance of 7 days notice to the borrowers/guarantors/mortgagors by the Governor, SBP, under NAB ordinance 199. The Area Managers will co-ordinate with Risk Management Group with regard to implementation of BASLE II accord as per SBP directives. The Area Manager has to make liaison with the Risk Management Group with regard to classification of accounts and to deal with the matters relating to placement/deletion of names of defaulters on Exit Control List (ECL), and correspondence thereon with SBP/Ministry of Interior, Islamabad.
Scope of the unit, its TOR, Organogram, Staff requirements and Reporting structure was approved by the competent authorities. Scope of the Unit: 1. The unit will monitor all the cases of Frauds committed by the staff exclusively or in collusion with other where bank sustain operational losses. 2. To monitor all the cases of Dacoities occurred at the branches/offices, carrying loss of cash and other valuable of banks. 3. To pursue with law enforcing agencies for expeditious disposal of the cases of Frauds/Docoities against the culprits. 4. To settle the claims with insurance co. in respect of operational losses on account of frauds and dacoities. 5. Frauds and Forgeries reporting to the management or State Bank of Pakistan. Term of Reference: On receipt of initial reports about the incidents of Frauds, Forgeries and Dacoities, Special Vigilance Unit (SVU) will undertake the following actions: 1. To liaison with Audit and Inspection Group (AIG) to ascertain the modus operandi/quantum of loss and tentative names of responsible persons. 2. To visit the branch/office where incident took place, for personal verification of the facts. 3. To make efforts for the catch hold of the culprits and to ensure that the losses are made good by recovering the cash/valuables from them. 4. In case of no instant recovery to keep lien on the assets held by the culprits and their associates and to execute the agreements etc. 5. To acquire the services of suitable lawyers and to coordinate for lodgment of FIR and taking other legal steps. 6. To obtain and provide details about incident/loss and arrange lodgment of proper claims with concerned insurance co. in case of Allied Bank Limited it is EFU. 7. To refer the cases of delinquent staff to Human Resource Group (HRG), recommending suitable actions in accordance with rules and regulations. 8. To liaison with agencies like Police/FIA/NAB for recovery of accounts, finalization of cases and submission of challans at concerned courts and pursue the cases. 9. Submission of Quarterly statement of Frauds/Forgeries/Dacoities on the prescribed format to the Operational Risk Unit, Banking Surveillance Department of State Bank of Pakistan within 15 days of close of quarter. 10. Maintenance of database of operational losses of frauds, forgeries and dacoities and its reporting to the Operational Risk- RMG.
11.
Fewer Incentives: In back offices as compared to the branches the incentives are very less given to the employees and this arises the dissatisfaction among them. Work Burden: In back offices the staff is very few as compared to the work load so the few employees bearing the more work burden and this create discomfort in them. No Job Rotation: Most of the employees stick to the one job for long periods and having no grip on all the operations. Still Manual Work: In the some offices and wings of ABL the employees still depend on manual work which causes slow performance. Favoritism: The most discouraging thing in ABL is that the promotions of employees are very late and mostly based on favoritism.
Chapter 2 Analysis
SWOT Analysis
Strengths: 1. Brand name: earned a reputation for extending quality services. 2. Allied Bank Limited was the first Muslim bank to be established in Pakistan. 3. Allied Bank Limited proudly extends its ovation over the nationwide or internationally by opening new and more branches to facilitate the customers and having more than 850 branches in Pakistan. 4. Allied Bank has become the first bank to participate in the Sustainability Finance Facility of the IFCs Global Trade Finance Programme. IFC is a member of the World Bank Group. 5. The bank is passionate about high performance, innovation and delivering value to its customers. 6. With a vision to make ABL one of the most technologically advanced organization in the country with ability to provide real time services to its client the BOD embarked to implement state of the art Core Banking Solution TEMENOS at ABL, that is working in more than 500 locations worldwide. 7. ABL has opened the Management Development Center MDC that caters to the growing needs of ABL staff through computerized training workshops and seminars. 8. Training needs analysis to be conducted on annual bases to identify training gaps. 9. ABL has the large network of ATM throughout the nation. 10. ABL do the time to time monitoring over its different wings and groups to increase efficiency. 11. The Bank has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth. 12. Successfully launching new Product Lines. 13. With the objective of achieving decentralization and cutting down expenses, the decision making has been reduced from two to four tiers. 68 controlling offices, comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated into 16 regional offices. 14. A centralized Special Asset Management Division has been established for expeditious recovery and settlement of non-performing loans. 15. ABL offers the privilege of using thousands of ATMs of all banks without the extra charge of Rs 15 to its customers. 16. At ABL the customers who have more than one account can have the facility of the same account number only the suffix is changed for the easy remembrance. 17. For employees entertainment and relaxation, ABL gives the facility that the employees may get the 36 medical leaves and 1-month vacation in one year with their pay.
Weaknesses: 1. 2. 3. 4. 5. 6. ABL did not introduce any Islamic product. The controls of Heads are not effective. In spite of the presence of technology many jobs are done manually. ABL is not enhancing the new obligors. Fewer incentives in back office as compared to the branches. ABL credit group do not sanction the loan to the lawyers, politicians and the female having no blood relative. 7. In back offices the employees are less so it creates more work burden on the existing one. Opportunities: 1. The policies of the new government to uplift the economy and pursue financial sector reforms are expected to yield positive results in the banking industry of the country. The ABL is well praised to avail promising opportunities. 2. As a result of different steps taken by the government regarding the betterment of the economy, small borrowers are attracted to get the financing and start business. So, the ABL has an opportunity to attract the customers by giving them more attracted schemes. 3. They have wide area network in all over the Pakistan, if ABL can made it possible the fast delivery of funds from abroad through online banking, it can cover the major market of Pakistan which still is capturing by Hundi. Threats: 1. The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years. 2. Other treat which ABL faces is the policies of the Government; tax charged on the income of banking co. is much than the income of other companies. 3. 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. 4. As the situation of Frontier Province of Pakistan is not sound and ratio of dacoity cases in branches is high so it is the big threat to the Bank. 5. The default ratio of customers who are availing the credit facilities from the ABL is very high due to the economic recession in Pakistan. 6. Also the threat of new entrants exists there.
Financial Analysis:
Horizontal Analysis
Assets Cash and balances with treasury and other banks Lending to financial institutions Investments - net Advances - net Operating Fixed assets Other assets Total assets - net of provisions Liabilities Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 110.0% 105.3% 140.7% 146.3% 98.3% 101.6% 131.8% 160.9% 37.6% 110.3% 273.5% 181.8% 113.6% 163.9% 220.8% 124.0% 115.3% 354.2% 248.3% 155.2%
Financial Ratios:
2004 2007 2008
Rs. in Millions
December 31 CASH FLOW STATEMENT - SUMMARY Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Cash & Cash equivalent at the Beginning of the Year Effect of Exchange Rate changes on Cash & Cash equivalent Cash & Cash equivalent at the End of the Year FINANCIAL RATIOS Return on equity (ROE) Return on assets (ROA) Profit before tax ratio (Profit before tax / Gross Income) Gross spread ratio Return on capital employed (ROCE) Advances to deposits ratio (ADR) - Gross Advances to deposits ratio (ADR) - Net Income to expense ratio Cost to revenue ratio Growth in gross income Growth in net profit after tax Total assets to shareholders funds Intermediation cost ratio NPL ratio Net infection ratio Weighted average cost of debt Capital adequacy ratio (CAR)* SHARE INFORMATION Cash dividend per share Proposed bonus issue per share Dividend yield (based on cash dividend) Dividend payout ratio (Total payout) Earnings Per Share (EPS) ** Price earnings ratio *** (PE x) Market value per share - highest / lowest during the year Book value per share OTHER INFORMATION Non - performing loans (NPLs) Imports and Exports business Number of employees Number of branches 2003 Restated 2006 8,253 (8,512) (12) 10,803 58 10,590 4,523 (17,183) 14,176 10,483 109 12,107 (5,893) 11,664 12,129 (21) 17,877 9,328 (4,241) 1,403 17,753 124
0.34% 16% 77% 44% 36% 1.4 69.5% 14% 136% (24.1) 3.8% 35.7% 20.93% 3.54% -12.33% 8% 0.14% 8% 85% 8% 55% 47% 1.5 66.5% 4% -50% 16.4 3.4% 22.0% 8.28% 2.45% 16.64% 28% 1.78% 49% 80% 28% 74% 69% 2.30 43.5%
Future Outlook:
Institute of Business & Information Technology
The global financial crisis has its effects trickling down to the banking system. The financial sector is facing its lows but still on its comparative basis its better than other neighboring countries owing to regulations and role of SBP to take timely corrective measures. Measures include relaxation of CRR and SLR in phases. The banking sectors spread continues its rising trends after witnessing a dip to the level of 6.78% in June 2008 that has been taken as an after effect of minimum profit payment of 5% on saving accounts. The profits shows that long term investment in Pakistani banking system will be lucrative, as the asset quality is quite satisfactory. Challenges faced by the economy in general and banking sector in particular, include restrained liquidity, slowdown of economic activities and high inflation. Despite of these issues, ABL has been able to maintain its profitability and equipped to face challenges with its dynamic management and trained workforce.
Weekly Activities:
First week:
In the first week of my internship training I have worked on the process flow chart of fraud, forgery and dacoity. I have learnt how the reporting procedure of frauds, forgeries and dacoities has done? The process flow chart of reporting of any incident about frauds and dacoits in Allied Bank of Pakistan is here: a. Cases of frauds/forgery and gross negligence in CRBG or CIBG branches: Detection of incident
Immediate intimation to GCA and CRRG by the line management compulsorily within 1 working day from the occurrence /detection of the incident
Legal Cell of SAMG to draft the Charge Sheet, to be vetted by the lawyer and sent it to the respective Regional Head CRBG with three working days
The alleged employee shall have seven days to respond to the Charge Sheet
Reply received from alleged employee on Charge Sheet, to be forwarded by the Regional Head CRBG directly to the enquiry committee within two working days with copies to SAMG
Enquiry committee to conduct an enquiry within 1 week of the receipt of charge sheet from alleged employee through the Regional Head CRBG
The Central Administration Action Committee to meet on the First and Third Wednesday of each month, review the case, takes the decision within 2 weeks of report enquiry
Punishment is communicated & verdict implemented within 1 working day of the decision of The Central Administration Action Committee
Also SVU immediately issue the emergency report of the incident to Management and State Bank of Pakistan SBP in specific terms and conditions within the duration of 72 hours otherwise State Bank of Pakistan will Charge the Penalty to the bank.
The concerned Regional Head/ Head Branch Operations or Group Head or Regional Operation Manager after that submit the FIR to the SVU. Audit and Inspection Group (AIG) will immediately be contacted to depute a team to make a thorough probe and to submit the investigation to SVU. SVU immediately report the Insurance Co. i.e. EFU for the claim.
Insurance co. (EFU) then appoints a surveyors and report it to SVU. Surveyors should submit the survey report with policy documents within period of 60 days. The following documents are required for the survey to the surveyors: 1. 2. 3. 4. 5. 6. 7. 8. Log Book (one month record) Cashiers daily memo book Cashiers daily cash position Copy of all cheques/credit slips/withdrawal of log book Detailed statement of happening by the branch manager Attested copy of FIR. Policy Progress Report Claim from duly filled in, signed and stamped
After the survey report of surveyor Chief Manager of the concerned branch submits the Police Progress Report to the surveyor so that insurance claim will be finalize. During this process of Final Police Progress report SVU requested to release 80% of insurance claim under bankers blanket insurance policy and 20% after the submission of Final Police Progress Report to the surveyor. Insurance co. (EFU) deducts the charges of insurance policy i.e. Rs.50, 000 and bank transfer this loss or write off this amount to the Expense Account to balance the figure of Suspense Account.
Claim Lodged Less: Policy Deductible Net Loss Less: 80% received & reimbursed to bank Balance 20% receivable
Rs.
Then enclose the Final Police Report and request to insurance co. (EFU) to disbursement of insurance claim under bankers blanket insurance policy that is remaining 20%. SVU issued Legal Letter of Subrogation to insurance co. and granting permission that all rights title and interests transferred to the insurance co. in the said cash that it shall now the property of insurance co. and bank have no right on it that police did not recover and has not found yet. The scanned copy of Legal Letter of Subrogation is here also attached in the annexure.
In the case if no amount is recovered under the bankers blanket insurance policy then at Allied Bank certain powers are defined who have rights to write off the lost/unrecovered amount involved in cases related to inter branch, other assets, fraud and forgeries, looting/theft of cash. These powers are delegated to the followings:
Approving Authority Group Chief Operations, Group Chief Risk Management Group Chief, Operations with the President Strategic Planning and Monitoring Committee (SP&MC) Commercial Retail Banking Group (CRBG) Board of Directors (BOD)
Powers Rs. 500,000 Rs. 1,500,000 Rs. 5,000,000 Rs. 300,000 Rs. 500,000
Such report will immediately be put up before senior Management in order to proceeds with suggested actions. SVU will liaison with the concerned branch/office controlling tiers and the external agencies, for lodgment of proper repots/complaints as per law and to effectively monitor the legal action as well as the task of recovery and to submit the progress report.
3rd Week:
All banks/DFIs are advised to submit a quarterly statement of frauds/forgeries/dacoities on the revised format, within 15 days of the close of each calendar quarter along with a soft copy to the Banking Supervision Department. The quarterly report includes all actual as well as attempted fraud cases even if the bank may not have sustained any monetary loss. Therefore, cases where bank recovers the entire amount involved and does not suffer any loss must also be reported to SBP. Furthermore, banks/DFIs l separately report to this Department all material incidents of frauds/forgeries/dacoities etc. of Rs. one million and above on urgent basis as under:a) Preliminary report within 2 working days of the occurrence of such incident by mentioning the date of the incident and other information about the case as available at the time of such reporting; and b) Detailed report within 15 days of the occurrence of such incident on the format. I prepared the quarterly report of Fraud, Forgeries and Dacoites of Allied Bank of Pakistan that submitted to the State Bank of Pakistan for the 2nd Quarter of 2009 that is ended at June 30, 2009. The report was submitted on July 17, 2009 to the State Bank of Pakistan.
ANNEXURE A (FORM-I)
ANNEXURE "A" (Form-I) ALLIED BANK LIMITED, Special Vigilance Unit, SAM Group HEAD OFFICE, LAHORE SUMMARY POSITION OF CASES OF FRAUDS /FORGERIES /DACOITIES FOR THE QUARTER ENDED 30.06.2009
Cases Detected prior to the quarter under report which were still outstanding at the beginning of this quarter ( including those closed during the quarter) a b c d e No of cases Total amount originally involved Adjustment to amount involved during the quarter*** Total recoveries prior to the quarter under report from old cases Recoveries made during this quarter from cases outstanding prior to the quarter Insurance Other sources Progressive Total Recovery (1d+1e) Total amount still recoverable (1b+1c-1f) Provision held against (1g) above Provision held against (1g) above during the quarter Expected Recovery from Insurance Other sources
Total (1+2+3)
62 891.554 88.230
f g h i 0
302.423 415.959
39.345 19.722
3.903 3.022
317.758 438.698
345.671 438.703
Internship Report 2009 2 All Cases Detected during the quarter under report (Whether detected and closed in the same quarter) a b c No of cases Total amount originally involved Total Recoveries made, from any source against the cases detected during the quarter under report 1) Serious frauds cases (10M and above* 0 0.000 3) Low severity cases below 1 (M)* 7 1.210
Total (1+2+3)
7 1.210
Insurance 0.000 0.000 0.000 0.000 0.000 Other sources 21.382 0.000 1.210 0.000 22.592 d Total amount still recoverable ( 2b-2c) -21.382 0.000 0.000 0.000 -21.382 ANNEXURE "A" (Form-I) e Provision made against (2d) above 0.000 0.000 0.000 0.000 0.000 ALLIED BANK LIMITED, f Expected recovery from: Special Vigilance Unit, SAM Group Insurance 0.000 0.000 0.000 0 0.000 HEAD OFFICE, LAHORE Other sources 18.950 0.000 0.000 0.000 18.950 SUMMARY POSITION OF CASES OF FRAUDS /FORGERIES /DACOITIES FOR THE QUARTER ENDED 30.06.2009
ANNEXURE A (FORM-I)
ANNEXURE A (FORM-I)
1) Serious frauds cases (10 M and above)* 0 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2) Medium severity cases 1-10 (M)* 5 11.400 9.713 0.937 0.750 11.400 0.000 0.000 0.000
3) Low severity cases (below 1 M)* 9 1.929 0.719 0.000 1.210 1.929 0.000 0.000 0.000
All No progress cases ** 14 12.613 10.33 0.573 1.71 12.613 0.000 0.000 0
Total (1+2+3)
a b 3 c d
No of cases Total amount originally involved ( after all adjustments to original amounts) Total recoveries prior to the current quarter Recovery during the current quarter from: Insurance Other sources Total recoveries (3c+3d) Total amount recoverable before closure of cases ( 3b-3e) Write off against provision Direct write off
e f g h
Total (1+2+3)
b c d e f
No of cases (1a+2a-3a) 1 Total amount originally involved ( 1b+1c+2b3b) Total cumulative recoveries including this quarter recoveries (1f+2c-3e) Total amount recoverable (4b-4c) Provision held against 4d above (1h+1i+2e-3g) 4 Expected recovery from: Insurance Other sources
S #
Natur e
Individu al Involved
Amoun t Involve d
Date of Detectio n
0501430100 1
0501300000 1
3 Khori Garden Branch merged with Jodia Bazar Branch, Karachi Sindh Kaghzi Bazar Branch merged with Bomba y Bazar Branch, Karachi / Sindh
10
03'
02'
01'
Old case
19.09.01 to 25.09.01
25.10.01
09'
03' Total
01'
Old case
2000 to 2002
26.09.02
Previous Recover y
Current Recover y
A(1) 11 12 13
A(2) 14
A(3) 15
A=A1+ A2+A3 16
R1 17
R2 18
R3 19
25.10.01
30.06.02
12.353
0.000
0.000
12.353
0.647
0.000
9.365
23.04.03
30.06.04
19.530 31.883
0.000 0.000
0.000 0.000
19.530 31.883
0.000 0.647
0.000 0.000
0.000 9.365
TOTAL
Allied Bank
Group, Lahore 425941270
SAM Ph:0
Direct Writeoff
R=R1+ R2+R3 20
(W1) 22
(W2) 23
(X) 26 27 28
(Y) 29
10.012
0.000
0.000
0.000
2.341
0.000 10.012
0.000 0.000
0.000 0.000
0.000 0.000
19.530 21.871
0.000 Case pending in the Court of Law. Regional Settlemen t Committe e has deferred the case till Court's decision. 0.000
2.341
0.000
0.000
0.000
19.530 21.871
0.000 0.000
0.000 0.000
0.000 0.000
Allied Bank
Ph:0425941270
NAB M/s. Adamjee Insurance company Ltd., declined the bank claim. However, negotiation with officials of Adamjee Insurance Company is under way for reconsideration of bank claim.
Action against the staff if any. Is there any progress on case in the quarter, if no, then why.
Mr. Muhammad Shoaib, Cashier, dismissed from bank's services. Mrs. Saira Ali OG-III, dismissed from bank's services. Mr. Atta ur Rehman, OG-III, dismissed from bank's services. Mr. Faisal Riaz OG-II, dismissed from bank's services. Mr. Munir Ahmed Awan OG-II, dismissed from bank's services. Mr. Yasir Mehmood OG-II, letter of reprimand issued.
Yes there is progress. Negotiations with the top management of M/s Adamjee Insurance Company are under way for reconsideration of bank insurance claim. The bank has taken up the matter with NAB for declaring the culprit as proclaimed offender. Claim of the few claimants has been settled.
ALLIED BANK LIMITED DETAILS OF ACTUAL /ATTEMPTED FRAUDS / FORGERIES/ DACOITIES CASES SERIOUS & MEDIUM SEVERITY CASES DETECTED /REPORTED DURING THE CURRENT QUARTER Fraud Identification Code. 05024909001 FIELD DESCRIPTION Detail of staff at fault (Name & NIC) Ms. Seher Rana (MG-11 Holder of master Key of Locker) found negligence. CNIC #36302-8410863-8 Mr. Syed Haider Chiragh Kazmi maintaining PLS/B visited the branch on 26-04-09 operated the locker #245 and reportedly placed gold ornaments there in. On 18-04-09 Mr. Murad Kazmi S/o Syed Haider Chiragh Kazmi (additional authority) operated locker # 245 Mrs Seher Rana, Officer arranged operation of locker. After operating it, he left the branch without informing to the staff. Later on, he came back with his father. Both disclosed that the gold ornaments weighing about 45 tolas amounting to Rs.1.100(M) were not available in their locker #245. The locker was got operated again in the presence of Manager/ Locker In-charge and found empty.
Reason for the time lag, if any, i.e. not reported the case in the quarter in which case was detected & reasons if the investigation not completed within 30 days of detection Pending with Court / Police Stat us Insurance Claim lodged Action against the staff if any Any other
----Insurance claim lodged. Under process. --All the concerned staff of the branch has been advised to ensure enforcement of the Banks laid down system/procedures in letter and sprit regarding operation of lockers under their jurisdiction in order to avoid recurrence of such instance in future. ----
Steps taken to avoid such incidents in future Points for consideration of SBP, if any.
Annexure A Form V
Special Vigilance Unit SAM Group, Lahore
DETAILS OF ACTUAL/ATTEMPTED FRAUDS/FORGERIES/DACOITIES CASES DETECTED/REPORTED DURING THE CURRENT QUARTER ENDED 30.06.2009 (LOW SEVERITY CASES BELOW RS.1.000 (M)
Busines s Line
Individu al Involved
Amount Involve d
Date of Commitment
Date of Detection
(1)
01 & Shers hah, Karac hi.
(2) B-05
(3) 01
(4) 03
(5) 00-03-2009
(6)
Reason for the time tag if any i.e. not reporting the case in the quarter in which it was detected (7)
Modus Operandi
Annexure A Form V
Special Vigilance Unit SAM Group, Lahore
DETAILS OF ACTUAL/ATTEMPTED FRAUDS/FORGERIES/DACOITIES CASES DETECTED/REPORTED DURING THE CURRENT QUARTER ENDED 30.06.2009 (LOW SEVERITY CASES BELOW RS.1.000 (M)
Action against staff if any (13) Enquiry against the delinquent staff is under process.
Steps taken to avoid such incidents in future (19) All branches have been advised to ensure banks laid down procedure / systems for the collection of utility bills.
---
---
----
0.429 (M)
---
---
STAFF DATA
05016108001
Description.
Hyderi Market Branch, Karachi Rs.86.691(M) Mr. Muhammad Aslam Khan Muhammad Ibrahim Khan 42101-9396910-5 MG-08/Manager Permanent 26 Years Dismissed from banks service vide letter No.CO/HRG/CAAC/09/ 1868 dated 31.01.2009
5th Week:
During the 5th week of my internship training in Allied Bank of Pakistan, the task of maintain complete and comprehensive database of all the pending and withdrawal cases of frauds, forgeries and dacoity since 2005 to till date is assigned to me and I have completed that project within one week successfully.
6th Week:
During the 6th week of my internship training I have prepared the report of detailed insurance claim lodged how much rejected from them, overall position of insurance claims and the detail of the settled claims some of them is mentioned there.
ALLIED BANK LIMITED SPECIAL VIGILANCE UNIT, SAM GROUP, LAHORE DETAIL OF INSURANCE CLAIMS WHICH HAVE BEEN REJECTED BY ADAMJEE INSURANCE CO DURING THE YEAR 2009.
Sr No
Branch Name
Amount Involved
Loss No
Reasons
45.000
45.000
05/C/367/002643/12/2003
56.869
56.869
05/C/367/002860/06/2006
Gross negligence at the part of branch does not cover any clause of the insurance policy. However, insurance company offered to pay Rs. 22.500 (M) to Group Chief SAM during the meeting dated 24.05.2006 held at Adamjee House, Karachi, which was declined by the then Banks Management as they demanded 100% claim of loss amount. The claim rejected due to violation of bank staffs rotation policy. Gross negligence at the part of CRBG, Islamabad by instructing Mr. Yasir Mahmood, the new Manager to take charge and issue a relieving letter to the culprit Manager, Mr. Muneer Ahmed Awan without verifying the records despite the lapse of two weeks.
Total
102.486
102.486
Amou nt Receiv ed from Insura nce Co. up to 3112-08 5 15.011 1.560 16.571
2 15 03 18
Amou nt Recei ved from Ins. Co. 01-0109 to 31-0709 6 4.981 2.416 7.397
100% Claim Amou nt Receiv ed from Insura nce Co. 7 19.992 3.976 23.968
OUTSTANDING INSURANCE CLAIMS WITH M/S EFU GENERAL INSRUANCE COMPANY Rs. In Million Nature of Incident No. of Claims Claim Amount Dacoity 02 2.695 Fraud & Forgery 14 350.322 Total:16 353.017
DECLINED CLAIMS BY M/S EFU GENERAL INSURANCE COMPANY Nature of Incident Looting cases in Kohat/ Mingora Branches under Terrorism/Operation Fraud & Forgery Cases: Total:No. of Claims 06 06 12 Loss Amount 70.821 14.318 85.139
LONG OUTSTANDING CLAIMS WITH M/S ADAMJEE INSURANCE COMPANY Nature of Incident No. of Claims Claim Amount Dacoity 01 0.466 Fraud & Forgery Cases: 08 73.679 Total:09 74.145
DECLINED CLAIMS BY M/S ADAMJEE INSURANCE COMPANY Nature of Incident No. of Claims Claim Amount Dacoity 00 0.000 Fraud & Forgery Cases: 03 102.486 Total:03 102.486
Special Vigilance Unit, SAM Group, Lahore DETAIL OF 100% SETTLEMENT OF INSURANCE CLAIMS DURING THE YEAR 2009 WITH M/S EFU GENERAL INSURANCE COMPANY IN RESPECT OF DACOITY CASES
Sr . N o
Name of Branch.
O/S Amount to be written off as Policy Deductibl e 0.000 0.025 0.025 0.000 0.000 0.050 0.000 0.000 0.000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Metrovill, Karachi Hassan Abdal Azizabad, Karachi Kashmir Road, Lahore Nazimabad, Karachi Pattoki Khadimaba d, Mir Pur, (A.K) Public School, Haydrabad Survey Centre, Karachi Hafizabad Road, Gujranwala D.C. Road Gujranwala Regency Apartment, Karachi Sanda Road, Lahore Kotri Baba-eUrdu, Karachi Total:-
02.08.200 7 06.09.200 7 22.09.200 7 11.12.200 7 16.11.200 7 26.11.200 7 31.12.200 7 31.03.200 8 10.04.200 8 13.06.200 8 20.06.200 8 25.06.200 8 25.07.200 8 16.09.200 8 04.11.200 8
1.048 0.000 0.638 1.882 2.912 2.067 0.445 0.427 0.762 1.036 22.942 0.000 1.306 0.600 1.650 0.000 0.000 0.156 0.000 0.000 0.000 0.000 0.000 1.200 15.011 1.011 4.981 0.590 0.177 0.147 0.039 1.454 0.412 0.363 0.326 0.160
1.632 2.062
0.000 1.817 0.195 0.177 0.737 1.011 19.992 0.000 0.250 0.250 0.025 0.025 0.650 0.250 0.000 0.000 0.000 0.000 1.100
Concerned Branch Initiate Credit Application (CA) Send it to Regional Head of the Concerned Branch
Levels Analyze the Queries & Approve for the Sanction Send Copies to Regional Head Credit Administration Dept Issue BFL Sanction (Bank Facility Letter) Customer/Obligor Institute of Business & Information Technology Send to CAD Issue DAC Concerned Branch
Approval Grid Leve ls I II III IV V VI Members BM/CM +RH RCRR RH CRBG+ Manager RCRR Manager RCRR+Head Asset Marketing Group Head CRBG GC CIBG President Security Type S1 S2 S3 10 0 0 25 10 0 Agri Financ e 0.5 5 Per Part y 10 25 Grou p 10 25
100 50 50 50 100 100 200 100 100 100 200 200 100 100 100 0 0 0 1000 1000 3000 All amounts exceeding level V as per Prudential Regulations
50 >50 Allowe 10 d
>50 Allowe d
Please refer to the policy 100% Cash Margin/li en on ABL Deposits a) upto Rs 25M against 100% Cash Margin/lien on ABL Deposits b) upto Rs 10M against 25% Casah Margin on ABL Deposits and balances against security type Allowed Allowe d Allowe d Allowe d
3yr
3yr
5yr
5yr Allowe d
8yr Allowe d
Any Allowe d
Allowed
100% Cash Margin 100% Cash Margin/li en on ABL Deposits Usance LC: Allowed a) upto Rs 25 M against 100% Cash Margin b) upto Rs 10 M against 25% cash Margin on ABL Deposits & balances against security type S1 or Parri Passu Mortgage on
LC for import of new machinary & Perishable items E. Leasing Leasing Min Cash Margin Against Leasing Max Leasing Tenor for Vehicles Max Leasing Tenor for Machinery F. Others New Customer exposure Startup Venture Underwritting Commitments Interbank Treasury Lines Investment in TFCs Lending Against Shares Clean Lending
Allowe d Allowe d 5% >5yr >5yr Allowe d Allowe d Allowe d VI Allowe d Allowe d Allowe d
Allowe d Allowe d
Security Description:
Cash/Near Cash 100% Cash Margin Lien over Deposit Lien over Registered Govt Securities
S1
1 2 3
4 5 6 7 1 S2 2 3 4
Pledge /Lien over FEBCs/Bearer/Registered US $ Bonds issued by Govt of Pakistan Mortgage of Rural Property through pledge of agri pass book joint registration of vehicles Mortgage of urban Property Pledge/Fixed Assets Pledge of goods imported under Sight LC issued by Abl Pledge of locally produced agricultural commodities Parri Passu Mortgage on Land And Building Lien over Deposit with a minimum rating of B Fixed Assets/Current Assets/Shares/TFCs Parri passu charge on current assets Parri passu hypo charge on plan & machinery pledge of stocks imported under non ABL LC/finished goods Parri Passu Mortgage on Land & Building Shares & Closed Ended Mutual Funds Term Finance Certificates Pledge on locally produced goods
1 2 S3 3 4 5 6 7
Borrowers Evaluation (Pre-Sanction Stage): 1. Objectives of Analyzing the Information: To determine the strong points To reveal the weaknesses To learn about operations peculiarities of the business firms To determine crucial/vital factors for the continuing success of borrowers business To determine as to whether the prospective borrower can timely repay the requested finance from the stated sources of funds without financial/operational difficulties Institute of Business & Information Technology
Getting complete information about a tentative borrower is possible through random collection of information from different resources and clubbing them together to understand their business position on the following points. Financial position Method of operation Management policies Future plans Product quality
As a credit analyst the following documents are essentially analyzed or to keep in view for sanctioning the credit: 1. Credit Application I. Exposure Summary: The exposure summary contains the following information about obligor: 1. Credit Application (CA) type- it may be annual, interim, initial & classified. 2. Credit Application (CA) No. 3. Date of Review 4. Obligor Name 5. Extending Unit 6. Control Unit 7. Signature and Stamp of Concerned BM/CM/RM/GRM 8. Information about exposure limit- how much the obligor is already requiring and also his proposed limit with increment or decrement 9. Exposure summary whether it is Fund Base: or Non Fund Base 10. Obligor risk rating internal or external
11. Obligor classified exposure if it is in Watch List- the amount is overdue more than 30 days , Substandard- the amount is overdue more than 90 days, Doubtful- the amount is overdue more than 180days & Loss- the amount is overdue more than 365days
1. Stability criteria whether the obligor previously breach or violate any essential requirement e.g. Prudential regulation breach, Covenant violation 2. TER Temporary Extension Request 3. Approved by the Manager RCRR and recommended by RH-CRBG I. Sanction Advice: The Sanction Advice contains the following information about obligor: 1. National Tax No. of obligor 2. Industry type 3. Industry Code 4. Business Segment- whether SME, Commercial 5. Legal entity i.e. Sole Proprietor, Partnership, Co. 6. Total Asset of Obligor and the Turnover 7. Type of Credit Facility, the Obligor is obtaining previously and extending as well 8. Pricing according to SBP and Bank Policies-Floor Pricing i.e. KIBOR three month average +Spreads fixed by SBP 9. Margins 10. Personal Guarantees 11. Securities detail whether same or changed 12. Charge on Securities, Margin on Securities, Collaterals and its For Sale Value & Market Value 13. Covenants I. Group Facility Summary:
If the Obligor is not individual then Group Facility Summary is required. II. Basic Information Report (BIR): The Basic Information Report (BIR) contains the following information about obligor: 1. Obligor Name, Address & Tel. No. 2. Date of establishment of business 3. Background of obligors business and product details
I.
Shareholding Status- Business directors name, Shareholding whether 100% or not and Net Worth Management- Name, Position, Tel. Nos. Remark (Age, Experience, Qualification, and Association with the Co.) Bank Lines- from which the obligor obtaining the credit lines. Credit Checking from CIB- Status whether clean, overdue, default Market Checking- At least 3 checking from the market ( from Buyers/Suppliers/Competitors) should be made Classification History External Rating- ( Long term/Short term)
Credit Memorandum: The Credit Memorandum contains the following information about obligor: 1. Purpose- describe the purpose of the proposed facility 2. Special Approvals- Provide comments for each Stability Criterion Exceptions checked off on the front page of CA 3. Ways Out Analysis- Indicate for each facility, the primary, secondary way out. 4. Three year exposure Trend 5. Industry Analysis 6. Management Analysis- Provide an assessment of the integrity of the borrowers 7. Financial Analysis-Balance Sheet, P&L Account, Statement of Sources (Fund Flow Statement), Notes on Accounts and Auditor Certificate 8. Risk Factors- Business Risk, Financial Risk, Management Risk, Security Risk, Account Performance Risk, Environmental & Social Risk and Disaster Risk 9. Relationship Strategy- In view of the risks discussed above provide a relationship strategy (Grow, Maintain, Reduce, Exit) for the obligor.
1. Borrowers Basic Fact Sheet (BBFC) on approved pattern/ specimen duly filled in all respect, duly signed & stamped by the obligor & BM 2. Form 151- Loan Application Form 3. Security Compliance Certificate SCC- confirming the security/ documentation status for the existing approved facilities. 4. Copy of DAC in case of previous sanction 5. Latest Balance Sheet duly signed by obligor i.e. proprietor/Counter signed by CA/ duly audited as per requirements along with cash flow statements 6. Spread Sheet in case of exposure exceeding Rs. 10 M- to inculcate the practice of determining the Short term working capital requirement and long term repayment capacity through financial projection and cash flow analysis
7. Projected Balance Sheet 8. Previous/ Other Bank Report from whom the credit lines availed 9. Occupancy status of collateral security i.e. self occupied/ rental/ state commercial/ residential/industrial 10. Mark up payment history 11. Extracts from inspection & compliance 12. Ensure compliance of convent imposed in last year approval 13. Copy of Last Sanction 14. Ensure all columns of CA are filled in completely and correctly on proper prescribed formats of the bank. All pages of CA must be signed/ initialed by the BM. 15. Ensure Principal/collateral securities meet marginal requirements. 16. Forced Sale Vale Certificate signed by RH showing occupancy status of property/location/i.e. industrial/commercial/residential as well as approved map held or not. Ensure that Forced Sale Vale Certificate should not later than 3 years 17. Ensure stock report held and outstanding reported therein tally with statement of A/C and meet marginal requirements. 18. Statement of Account for last one year and ensure satisfactory turnover. 19. Ensure personal guarantees are recommended of all concerned i.e. proprietor/partner/directors/owner of the properties/holder of liquid securities etc. 20. Photocopies of Title Documents i.e. Title Deeds, NEC, Valuation Report, Legal opinion, Revenue Record, Excise & Taxation record in case of fresh proposals. 21. Ensure that valuation of properties is made from the short listed panel of PBA (Pakistan Banking Association) Evaluators in case of limits exceeding Rs.5 (M). 22. Date of Valuation-Ensure that valuation of Properties should not later than 3 years. 23. Prudential Compliance Check list must be compliance for SME, LC, Agri R8 and for corporate R3 24. In case party is also dealing with other banks ensure copies of other banks ensure copies of Other Bank Sanctions/Statement of A/C 25. Copy of account opening form in case of fresh proposals 26. Net Worth statements of obligor/partners/directors 27. EE Statement for borrowing in case of exporters, issued by SBP on yearly bases and this statement reports all exports of the particular obligor was carried out through which bank. 28. Confirm age of obligor is not more than 65 years in case of SME 29. Fresh Search Report in case of limited companies 30. Ensure the registration of charge over the Current/Fixed Assets of the Limited Co. Call copy of Form No. 10 or 16 i.e. Registration of Charge over the Current/Fixed Assets of the Limited Co. 31. Account Profitability Report when the limit is > 10 M- issued by the branch shows the previous credit lines avail by the obligor, the outstanding behavior and calculated yield. 32. Performa invoice in case of import
33. Form 29 i.e. Board resolution of limited co. 34. PDO Post Due Obligation of the obligor 35. Undertaking or confirmation for proper utilization of loan from obligor 36. Form 20 i.e. List of Directors of private limited co. 37. Clean up of facilities- an important element of credit initiation is proper structuring of credit facilities so as to minimize the risk associated with lending. This structuring of facilities in terms of amount, tenor and underlying security requires a thorough analysis of obligors WCR and an understanding of CCC of Co. firm. A clean up is considered to have taken up place when the outstanding finance has been fully adjusted repaid for a period of min 2 consecutive working days. Credit Analysis for Sanctioning Loan to Agriculture Sector: Furthermore the documents for sanctioning the loan for agriculture required are: 1. Zarai Pass Book- Evidence of Title 2. Latest copy of Khasara Gardawri( to check applicant is self cultivator or not) 3. Fard Jama Bandi 4. Total cultivated land (owned+ rented) 5. Lease Agreements Limit of Agri Credit Initiation to Obligor: Loan Entitlement 1. Valuation: Market Value of cultivated land *50%---------------------- Maximum Limit 2. Production Unit (PIU): Production Unit *Per Unit Price------------------------------ Minimum Limit 3. Owned & Leased Land: Total Area Cultivated * As Per Circular Production Crop Price/Acre
Financial Analysis for Sanctioning Loan: 1. 2. 3. 4. 5. 6. 7. 8. Equity of the Business of obligor Past year Sales And Turnover Current Ratio Quick Ratio Leverage Ratios Cash Conversion Cycle Work Capital Requirement = (Cost of Sales/365)*CCC Already available WCR = Current Asset-Current Liabilities (if it is more than the WCR then may be more enhancement is rejected) 9. Cash Flow Statement 10. Entitlement = 4* Equity Collateral Acceptable by ABL: Generally the following are the types of collateral acceptable by ABL are: 1. Mortgage of Land & Building: Credit facilities against mortgage of land & building may be granted as per the margins specified by the bank, on the forced sale value of the property determined by PBA approved valuation firm, subject to the following condition: 1. Max tenor of up to 7 year 2. Max grace period of up to 12 months from the date of first drawn- down. 3. The collateral must be easily realizable and must have an independent approach and right of way. 2. Hypothecation of Stocks, Plant & Machinery: Credit facilities against hypothecation of stock may be granted as per the margins specified by the bank subject to the following condition: 1. Max tenor of 1 years 2. No grace period is allowed 3. Asset coverage to be monitored via monthly stock report by the borrower showing the position of stock on month end. 4. Hypothecation to be provided on present and future stock. 5. Semiannual stock inspection is conducted 6. Annual clean up requirement may be imposed where deemed necessary
Credit facilities against hypothecation of Plant & Machinery may be granted as per the margins specified by the bank subject to the following condition: 1. Max tenor of up to 7 year 2. Max grace period of up to 12 months from the date of first drawn- down. 3. Hypothecation to be provided on present and future Plant & Machinery. 3. Pledge of Stocks, Raw Material & Finished Goods: Credit facilities against pledge of readily marketable stocks, raw material and finished goods may be granted as per margin requirements specified by the bank subject to the following condition: 1. Max tenor of 6 to 11 months depending upon the asset conversion of the borrower. 2. PBA approved macadam to take charge of the pledged stock and keep it under lock & key. 3. Macadam to submit monthly stock position report. 4. clean up requirement may be imposed where deemed necessary
Management Style:
In Allied Bank of Pakistan, the Managers are promoting the Open Door Banking. They used to interact with their subordinates and workers on time to time basis this is the main reason the managers at ABL know the problems that their employees are facing and this time to time interaction has created a healthy environment among the staff and their managers and this monitoring increase the efficiency at ABL. In ABL the managers having the control over the staff members and employees and having the check over the tasks of employees that they are performing even on daily basis. Although the environment is very learning but also in some wings and groups of ABL the management approach towards their employees is still bureaucratic. Some most experienced managers are hesitant to adopt the learning and open door banking.
Working Environment:
Allied Bank boasts of a work culture, which displays respect for all walks of life and different ways of thinking. Everyone at Allied Bank has a common corporate vision and values. However, all employees are encouraged to grow as individuals and collaborate in teams. Increments, bonuses and promotions are based solely on individual skills, qualities, abilities and attitude. It is our aim to provide innumerable opportunities for all those employees who show aptitude and the will to keep learning. Training programmes, both local and foreign, are also considered important for employee growth.
Overall Summary:
At present there is no such organization in the world that is free from problems and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge. The management of ABL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. During my internship I have learned many new things in spite of the knowledge gained at university and also came to conclusion that education alone is not enough, practical training in every field is crucial to become a successful manager. The bank has great image due to the trust but it needs to use it effectively to increase market share. Also the flaws in branch operations such as misallocation of resources should be rectified. As the business and economic conditions remain uncertain, ABL continues to develop the new products like it has been doing in past.
While studying in IBIT, I have analyzed some problem. Keeping in views those problems followings are my recommendations: 1. The management of this prestigious institute should introduce the training programmes among the departments i.e. IAS & IBA same as the UMT does with the IBA for the promotion of students. 2. This institute also should organize the seminars with the cooperation of industries like with Chamber of Commerce and Supply Chain Group of Pakistan that assist its students and the market will knows its students. 3. The institute also should arrange the field tours for its students to enhance and give the market exposures.
Annexure: