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DEDICATION ACKNOWLEGEMENT PREFACE EXECUTIVE SUMMARY INTRODUCTION TO BANKING OVERVIEW OF BANKING COMMERCIAL BANKING IN PAKISTAN HISTORICAL BACKGROUND OF ALLIED BANK LIMITED BOARD OF DIRECTORS MANAGEMENT TEAM OF ABL ORGANIZATION & FUNCTIONAL CHART ORGANIZATION HIERARICHY ORGANIZATION STRUCTURE OF BRANCH BRANCHES AND ATM FIELD OF ACTIVITIES WORKING AREA DURING INTERNSHIP BUSINESS PERFORMANCE SWOT ANALYSIS FUTURE PLANS AND SUGGESTIONS IMPORTANT ABREVIATIONS
04 05 06 07 08 09 11 12 17 18 19 20 22 23 24 56 71 72 73 74
encourage and pray for me. And those who love. 5 . AND Specially My Loving “ Mother “ By virtue of whose prayers I have able to reach this position.DEDICATION I dedicate my internship report to ALLAH ALMIGHTY Who has created me as human being and helps me in difficulties.
I am also extremely grateful to all my teachers whose timely help and guidance paved a way for me to complete this internship report. I am also thankful to all friends and batch mates who have offered me help in order to complete this difficult task. material and give me proper training. That’s why I am able to prepare this internship report. Holly Prophet Hazrat Muhammad (PBUH) who is forever sourcing and spring of guidance of every sphere of life.ACKNOWLEDGEMENT First of all I am thankful to Almighty Allah who in spite of all my weaknesses enabled me to prepare this internship report. I pay hum-age to greatest personality of the Universe. It was surely their method of teaching and eagerness for imparting knowledge that I did not find much difficulty to give ink to my thoughts and information. 6 . I am also thankful to all Allied Bank Limited Samnabad Branch (0224) Lahore members who provide me information.
literature on banking. SAIMA SALEEM Miss. This is among the leading domestic financial institution. as it is one of the oldest commercial banks in Pakistan. KHAWAR Miss. In this contest. With the attachment of following people. I select the Allied Bank of Pakistan Limited. for the students of BBA (Hons) is a golden chance to develop their capability and skill of customer relationship and management in the practical environment of different business organization. SAIMA EJAZ Miss. I have received valuable assistance from the staff of Allied Bank of Pakistan Limited. Mr. This work is a collection my observation and experience during the internship period and afterward. SYEDA RABIYA HASSAN Mr. senior student working in banks and my class mates. I have learned about different type of activities performed by a banker now days. Moreover. I am thankful to Mr. KHWAJA MASOOD UL HASSAN (Chief Manager) is very polite and courteous personality.PREFACE Internship. particularly being a student of bussnies studies. MARIYUM AHMED Customer Services Manager Supervisor (Bills/Remittance/Cash) General Banking Officer Customer Support Officer Cash Officer Cash Officer 7 . and verbal discussion with bank officials. RIFFAT JAVED JAFRI Mr. In the preparation of this report. He always positively enforced me to learn more and more. Samnabad Branch LHR (0224). The source of my information for the preparation of this report also includes the written notes. it is necessary for me to get practical knowledge of the managerial and financial activities of the organization. in fact.
and they provide me the detail information of all routine activities. 8 .I am very thankful to all of above-mentioned persons who are very much cooperative.
Allied Bank's paid up Capital & Reserves amount to Rs.431 million in its first eighteen months of business. 0. the Bank attracted deposits equivalent to Rs. the Bank’s total assets amounted to Rs. all branches are computerized on branch based multi-user computer systems. 143 billion and total assets equal Rs. I have chosen the Allied Bank for my internship because it is among the leading commercial banks of Pakistan and I want to continue my learning at well reputed organization which would be productive both for the organization and me as well. Now with its network of over 800 branches located in the urban and rural arrears throughout Pakistan. 0.EXECUTIVE SUMMARY Allied Bank was the first Muslim bank to have been established in Pakistan. 0. deposits exceed Rs.5 billion. At the time.12 million under the Chairmanship of Khawaja Bashir Bux. ABL has invested extensively in branch automation. 170 billion. Allied Bank is positioned to provide personalized banking services to its customers at locations convenient to the customers.572 million. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 10. 9 . Today.
Here some of the definitions are quoted as follows. for the purpose of lending or investment. There have been many attempts by different writers to explain the exact significance of the term “Bank”. order of otherwise.” 10 . and withdrawal by cheques.INTRODUCTION TO BANKING ORIGIN OF THE WORD “BANK”: There are many definitions of the word “Bank” even the standard encyclopedia and law books find it difficult to state exactly what a Bank is. of deposits from the public. According to the Banking Companies Ordinance 1962” Section 5 (b) defines: “Banker means a person transacting the business of accepting. and include any post office saving banks” According to Crowther: ”Bank is a dealer of debt.” According to Gilbert: “ A bank is a dealer in capital or dealer in money.” According to Samuelsion: “Commercial banks provide certain services for customers and in return receive payments from them. He is an intermediary party between the borrowers and lenders. his own and of other people. drafts.
The priests in Greece used to keep money and valuables of the people in temples. was the accepting of deposits of cash from those persons who had surplus money with them. These priests thus acted as financial agents. The FIRST STAGE in the development of modern banking.” Bank accepts deposits and repays cash to its customers on their demand. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The history of banking is traced to as early as 2000 BC. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. BANKING HISTORY Word Bank is said to be derived from the words “Bancus” or “Banque”which means bench Other authorities hold the opinion that the word bank is derived from the German word “Back” which means ‘joint stock fund’. These receipts were the 11 . It is thus a profit-lending concern. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. Bank cannot lend all the money that has been deposited with it. The goldsmiths used to issue receipts for the money deposited with them. They used to keep strong safes for storing the money and valuables of the people. thus.OVERVIEW OF BANKING HISTORY OF BANKING “Bank is a pipeline through which currency moves into and out of circulation. The origin of banking is also traced to early goldsmiths. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
They also found that most of the money deposited with was lying idle. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. Bank of England was established in 1694. When every bank issues receipts and most of them allowed the overdraft facilities. in development of banking.earlier bank notes. This proved quite a profitable business for the goldsmiths. they found that they were being constantly requested for loan on good security. At the same time. By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. The SECOND STAGE in development of banking thus was the issue of bank notes. 12 . In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE. They instead of charging interest from the depositors began to give them interest on the money deposited with them. The responsibility of issuing of notes is now entrusted to a central bank of each country. in the development of banking. The first central bank was formed in Geneva in 1578. They found that only a few persons presented the receipt for encashment during a given period of time. They thought it profitable to lend at least some of the money deposited with them too the needy persons. It was decided that a bank should be set up by the state. In order to create confidence among the people. which should streamline the banking organization and technique. there was then too much confusion in the banking system. They allowed the depositors to draw over and above the money actually standing to their credit. The goldsmiths soon discovered that all the people who had deposited money with them did not come to withdraw their funds in cash. A conference was held in Nuremberg in 1548. steps were taken to regulate the banking organization. The failures on the part of the bankers to return money caused widespread distress among the peoples. This was the THIRD STAGE.
But with the passage of time these are improving.880 Million. So the Govt. Out of these Banks the Pakistani Banks were only 2 . Indian Banks 29 & Exchange Banks were 7. The government of Pakistan nationalized all Banks in early 1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan..COMMERCIAL BANKING IN PAKISTAN At the time of partition total number of Banks were 38 only. & advances were Rs: 198 Million. The total of deposits of Pakistani Banks was Rs. had to revise its decision in1990. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as “Scheduled Bank”. Being the largest source of credits. At the time of independence Bank services was badly affected. Banking Industry is a pivot of whole the economic activities in Pakistan. According to banking companies ordinance Banks are the companies. Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. which transacts the business of Banking in Pakistan. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited 13 .
Bank borrows money at lesser rate of interest & lends it at higher rate of interest. Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. In this way Banks earn money. Banks accept deposited of money and repay it on demand. 14 . Professor Berton: “Banks are the guardian & distributor of money “. they keep certain portion of it as reserve to meet the uncertain demand of the customer.have been denationalized. Since then Banks were working well. Bank do not lend all money they collect. Now slogan of the Banks is to serve their customers in the best possible manner.
the Bank’s total assets amounted to Rs.572 million. deposits exceed Rs. Since the late 1880s. 0. 170 billion. At the time. The Bank’s journey has been about dedication. Allied Bank's paid up Capital & Reserves amount to Rs. professionalism and adapting to environmental changes. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. It is these factors that have made it a Bank the rest look up to.431 million in its first eighteen months of business. 0. the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. S. leading to its immense growth and stability. The first branch of Australasia Bank. 143 billion and total assets equal Rs. 10. A view of Khawaja Bashir Bux's Residence. commitment. A view of Khawaja Bashir Bux's Residence.5 billion. in particular. Jariwalla (sitting in the center) A legendary figure in the history of the Bank. Banking. The Pre Independence History (1942 to 1947) In the early 1940s. was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were Mr. 15 . trade and commerce and were especially dominating in the Sub-continent area. 0. Today. Hindus had established a commanding presence in the areas of industry. The first branch of Australasia Bank.R.Overview Allied Bank was the first Muslim bank to have been established in Pakistan.12 million under the Chairmanship of Khawaja Bashir Bux. the Bank attracted deposits equivalent to Rs.
Noorani (Director) Sheikh Jalees Ahmed (Director) Nazrat Bashir (Director) 16 .Board of Directors Pervaiz Iqbal Butt (Director) Muhammad Waseem Mukhtar (Director) Farrakh Qayyum (Director) Sheikh Mukhtar Ahmed (Director) Abdul Aziz Khan (Director) Tasneem M.
Special Assets Management) Mohammad Aftab Manzoor (Chief Executive Officer) Muhammad Jawaid Iqbal (Group Chief. Akhtar (Director) Mohammad Naeem Mukhtar (Chairman) Management Team Asim Tufail (Group Chief. Business Transformation Team) Tahir Hassan Qureshi (Chief Financial Officer) Tariq Mehmood (Group Chief. Coprate & Investment Banking) Muhammad Yaseen (Group Cheif. Compliance) Mohammad Abbas Sheikh (Group Chief. Commercial & Retail Banking) 17 . Operations) Waheed ur Rehman (Company Secretary) Zia Ijaz (Group Chief. Consumer & Personal Banking) Fareed Vardag (Chief Risk Officer) Iqbal Zaidi (Group Chief. Information Technology) Shafique Ahmed Uqaili (Group Chief. Human Resources) Syed Shahid Raza (Head. Treasury) Mujahid Ali (Group Cheif.Mohammad Aftab Manzoor (CEO) Mubashir A.
O. Protocol and Stationary Finance Division Environmental Protection Division Legal Affairs Division Overseas Operation (UK Branches) Investment & Fund Management Division Division Agriculture & Small Finance Division President’s Secretarial & Board Affairs 10 Credit Audit Offices Located 4 Provinces Research & Development Division Credit Processing Division Computer & MIS Division Business Promotion.Chairman & Chief Executive Central Office/ Head Office SEVP SEVP SEVP PHQ SINDH PHQ NWFP/AK PHQ PUNJAB PHQ BALOCHIST AN Islamic Banking Division Admin & Human Resource Division Audit & Inspection Division Customer Services Division International Division Credit Monitoring Division Maintenance Engg. Lahore. Corporate Division Lahore Training Division Academies in Karachi.O. Islamabad & Peshawar 18 Sports Division Shares Division H. Lahore . Marketing Planning Division Recovery Division General Services Credit & Division H.
Organizational Hierarchy Allied Bank of Pakistan Limited PRESIDENT SENIOR EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT ASSISTANT VICE PRESIDENT OFFICERS GRADE III ASSISTANTS I II CASHIER PEONS 19 .
Organizational Set Up Of Allied Bank Of Pakistan Limited HEAD QUARTER KARACHI PROVINCIAL HEAD QUARTERS PUNJAB LAHORE SINDH NWFP & AZAD KASHMIR KARACHI PESHAWAR BALOCHISTAN QUETTA CIRCLE OFFICES BRANCH OFFICES 20 .
Allied Bank Samnabad Road Branch Sialkot (0224) is a branch with fifteen staff members and they do all works very systematically. CHIEF MANAGER / BRANCH MANAGER CUSTOMER SERVICE MANAGER CHIEF ACCOUNTANT CLEARING OFFICER ACCOUNTANT CASHIERS 21 .
The following facilities are available: Cash Deposit for immediate credit to a remote branch. account holders of all online branches can obtain the Allied Cash+Shop Visa Debit Card for use at ATMs as well as at POS terminals. 22 .Branches & ATM Online Banking facilities are available to customers maintaining accounts at all online branches across the country. Instant Funds Transfer between any 2 online branches. Remote Balance Inquiry and Statement of Account. Remote Cheque Encashment from any online branch. Additionally.
Allied Munafa Account (AMA) 8. Behtar Munafa Account (BMA) 9.FIELD OF ACTIVITIES DEPOSIT DEPARTMENT: The function of deposit department is to collect deposits from customers. Attractive return of 5. 23 . 11. 100 & Above during the previous month. Behtar Munafa Term Deposit (BMTD) 10. PLS Term Deposit Account 7. Mahana Aamdani Package(MAP) Allied Bachat Scheme (ABS) ALLIED e-SAVERS ACCOUNTS (ESA) 1) PLS Account: Allied Bank offers PLS Savings Account facility to its customers with the following attractive features. Foreign Currency Deposits 6. PLS Account 2. DD/TT/PO for depositors maintaining average monthly balance of Rs. Current Account 3.00% per annum Free Online Transaction. Allied Business Account 4. Allied Basic Banking Account 5. 1. 12. Following type of deposits accounts are offered by Allied Bank.
3) Allied Business Account: Allied Bank offers you a banking experience beyond expectations! Allied Business Account is a non-profit current account with countless benefits and services. If you are a businessman.01. 4) Allied Basic Banking Account: 24 . 2. Levies and changes in the Bank's Policy from time to time. DD/TT/PO for depositors maintaining average monthly balance of Rs.2) Current Account: Allied Bank offers Current Account facility for individuals as well as for institutions and commercial customers.and above Free Additional Benefits: 24 hours helpline service Free Internet Banking facility SMS transaction alerts Allied Cash+Shop Visa Debit Card for cash withdrawals through any ATM and debit transactions at various retail outlets Note: All profits payable are subject to applicable Zakat and Govt. Allied Business Account is an ideal proposition for you. Slabs Rates effective from 01.07 Online/Manual Remittances Outward Cheque Return Issuance of DD/TT/PO/OBC /Expression Collection Free Free Rs.000/. 500.500(M) & Above during the previous month. trader or an individual. Free Online Transactions.
000. and Japanese Yen at designated branches.000 Rs.00% 7.000 Rs50.001 to Rs.000/= It is a non-remunerative account with a no minimum balance requirement.00% 8. The Statement of Account is issued on a yearly basis.50% 6.000 Rs.00% 6.500. Foreign Currency Deposits: Allied Bank offers the facility of opening Current.5.25. 6) PLS Term Deposit Account: Allied Bank offers the following rates in its normal term deposit account: PLS Term Deposits Up to Rs.000. Allied Bank has introduced the “Allied Basic Banking Account” (ABBA).50% 9. Pound Sterling. Savings and Term deposit Accounts.001 to Rs.000 Rs100.50% 9. Foreign Currency accounts can be opened in US Dollar.000.50% Month Months Months 4.00% 5.000.001 to Rs50.50% 7.25% 9.000 1 3 6 1 Year 8.50% 7.000.000.00% 9.000.00% 8. Additional transactions will be subject to a service charge as per the Bank’s Schedule of Charges for every withdrawal/deposit.In order to provide basic banking facilities to its lower-middle class customers. The account will be closed automatically if the balance remains “zero” for one year. No service charges on the account for a maximum of 2-withdrawals and 2-deposits during a calendar month. Account can be opened with an initial deposit of Rs 1.50% 5.25. Levies and changes in the Bank's Policy from time to time.00% 25 . 5.50% 8. Euro.00% 7.000. Note: All profits payable are subject to applicable Zakat and Govt.001 to Rs100. 5) Unlimited withdrawals from ATMs.50% 8.00% 4.00% 8.000.
The estimated rate of profit is given below: Slabs Rs 0.000.01.25% 8.000 Rs50. 500 (M) Rs 500(M) and above Rates effective from 01.000.60% 8.500.80% 9.75% 8.000.000 Rs.00% 10.30% 9.00% 9.000.60% 9.80% 9.75% PLS Term Deposits Up to Rs.000.000.75% 10.25% 9. 26 .50% 9.25.00% 6.5.10% 9.75% 9. 50 (M) >Rs 50(M) to Rs.55% 9.50% 8. 100 (M) >Rs 100(M) to Rs.30% 8.00% Salient Features: The applicable profit rate would be based on slab of amounts maintained on average monthly basis and the profit credited in the account on monthly basis.000.000 - - 9.05% Allied Munafa Account (AMA): Allied Munafa Account is a profit bearing checking account with the payment of profit on a monthly basis. 5.25.000.25% Years Years Years 8.5(M) to less than Rs 5 (M) >Rs 5(M) to Rs 25 (M) >Rs 25(M) to Rs.85% 10.000 Rs.07 5.000.001 to Rs50.50% 9.000.00% 7.001 to Rs.10% 8.50% 9. 250 (M) >Rs 250(M) to Rs.00% 7.00% 10.50% 9.001 to Rs100.00% 8.001 to Rs.000.35% 9.000 Above 500.25% 9.000 7) 2 3 4 5 Years 8.Above 500.000 Rs100.
) Upto Rs.000.000.00% 8.000 Above Rs.00% 9.00% 8.500.00% 6.50 6.00% 7.500.25.000 Rs. The estimated rate of profit is given below: Slabs Rate (p.001 to Rs.000 Rs. Firms.25.100. Individuals.001 to Rs.25.000 Rs50.000.000.00% 9.250.001 to Rs.50.000.001 to Rs.00 11.001 to Rs.000.000 Rs.100.25% 10.50% 7.000 Rs50. Hospitals.000. Companies.50 % 10.100.000.5.5.00% 8.000.001 to Rs.000 1Mon 3Mont 6Mont 1Yea th hs hs r 9.000.a.000.5.50.250.50% 9.000.00% 10.50% 6.000.000. Charitable Organization & Non-Govt.000.000.000 Rs.50% 8.000 Rs.00 % 10.5.50% % 10.000.50% Behtar Munafa Term Deposit (BMTD): Allied Bank offers following rates in its Behtar Munafa Term Deposit. Average Monthly Balance Upto Rs.000.000 Rs.001 to Rs. Schools.001 to Rs.00% 7.50% 9.25.50% 9.00 % % 27 .000.000 9) 5. Organizations etc are free to open their account in this scheme 8) Behtar Munafa Account (BMA): Behtar Munafa Account is a profit bearing checking account with the payment of profit on a monthly basis.
000 (additional investment in multiples of Rs. this account also offers you the flexibility to choose from tenures of 12.000 Salient Features: Account Type: Fixed term deposit Term Period: 1 . 775 Rs. 24 & 36 months. 750 Rs. Rate of Profit For 1 year For 2 year For 3 year Descriptio Retur Rat Retur Retur n Rate Rate n e n n 12 months 24 months 36 months 8. 10.70 % 9.100.000 Above Rs.00 % % % 10) Behtar Munafa Term Deposit (BMTD): Mahana Aamdani Package is a unique product with attractive returns.30 % Rs.000.500.40 % Rs. 100. 100.50 % % % 10.001 to Rs.30 % 10. 858 Approximate monthly returns calculated on the investment of Rs.Rs.00 % 9.50 11.30 % Rs. 700 8.000. 775 9.3 years Minimum Deposit Amount: Rs.000.00% 8.00 12.500.000 8. 725 Rs.00 10. It provides an opportunity to earn a regular monthly income with a flexibility of placement for 12. with which you can earn monthly profits on investments.75 11. 24 or 36 months.50% 10. Saving has never been so convenient! Allied Bank introduces the Mahana Amdani Package. Besides bringing high returns.000) 28 .
Levies and changes in the Bank’s policy from time to time.5 Allied Bachat Scheme is a PLS Term Deposit Account. Maturity Period: 7. including our largest network of ATMs across Pakistan.5 years. and for debit transactions at various retail outlets Note: All profits payable are subject to applicable Zakat and Govt. 50. 10.000/. of Years ABL Projected Rates Repayment amount 29 . 11) Allied Bachat Scheme (ABS): Allied Bachat Scheme is a PLS Term Deposit Scheme based deposit scheme whereby you can double your investment in just 7. This scheme comes with the following schedule of profit rates: No. whereby you can double your investment in just 7.5 years Minimum Deposit: Rs.5 years.000/Expected rate of Profit:The deposit amount will be doubled in 7. Profit: Payable on monthly basis Eligibility: Individuals and institutions (other than financial institutions) Additional Benefits: 24-hour phone banking service Free internet banking facility SMS transaction alerts Allied Visa Debit Card for cash withdrawals through any ATM.with multiples of Rs.
00* 53. Eligibility: All individuals and institutions Note: All profits payable are subject to applicable Zakat and Govt.50% 8.000.00 80.00 100.5 3 3. 12) Allied e-Savers Accounts: Saving has never been so flexible! The Allied e-Savers Account is a unique savings plan where you can earn returns as high as 7.5 2 2.000.00 77.00% 8.00 60.937.00 88.00 55.5 years Free Internet Banking facility Minimum Deposit: Rs.5 6 6.50 92.187.00% 11.5 4 4.5 7 7.500.000.000) Expected Profit Rate: Up to 13.50 84.25% 11.5 5 5.75% 12.000.5% with the convenience of 4 withdrawals a month! 30 .a.00% 10.0 1 1.33% p. 50.625.5 0 7.50% 11.500.937. Levies and changes in the Bank’s policy from time to time.00% 7.00% 13.25% 10.00 Salient Features: Maturity Period: 7.50 65.500.33% 50.000.50% 10.00 71.75% 11.75% 10. 10.000 (additional investment in multiples of Rs.
400. 300.a. 100. Levies and changes in the Bank’s policy from time to time.000 up to Rs.a.0% p.000 Profit Rate 7. 500. 31 .0% p.000 to Rs.0% p. 6.001 up to Rs.000 Rs.000 Rs. 400.001 up to Rs. 5. 500. 10. 4.a.a.001 up to Rs.000 Rs.a.a.50% p. 10. Salient Features: Investment: Rs. 4. 200. Eligibility: Individuals Additional Benefits: 24 hours phone banking service Free Internet Banking facility SMS transaction alerts Allied Cash+Shop Visa Debit Card for cash withdrawals through any ATM including our largest network of ATMs across Pakistan and for debit transactions at various retail outlets First free cheque book . 100. 200.000 Profit: Payable on quarterly basis Expected Profit Rate: Up to 7.E-Savers Rs.A/c Payee only Note: All profits payable are subject to applicable Zakat and Govt.5% p.5% p. 300.000 Rs.001 up to Rs.
Get Groceries Go grocery shopping with your Allied Cash+Shop Visa Debit Card and you will never have to worry about having enough cash in your pocket when you're standing in line at the cash counter. With your Allied Cash+Shop Visa Debit Card. You can use your Allied Cash+Shop Visa Debit Card to withdraw cash directly from your bank account from over 2. Enjoy Traveling Imagine traveling without carrying cash.including Allied Bank's largest network of ATMs . 32 .000 retailers in Pakistan and over 27 million retailers internationally. Dine Out Go to all your favorite restaurants and order whatever you want without having to worry about how much cash you have in your pocket . you can buy your plane tickets and do all your shopping abroad without worrying about spending too much or running out of cash. now your bank account is too.thanks to your Allied Cash+Shop Visa Debit Card.ALLIED VISA DEBIT CARD: Allied cash+shop Visa Debit Card Features Get Cash You are always on the move.and over 1 million ATMs worldwide Shop Anywhere Use the Visa power of your Allied Cash+Shop Visa Debit Card to shop at over 49.500 ATMs in Pakistan .
call Allied Phone Banking at 0800-22522. due to sickness or accident Terminal Illness Zero Loss Liability The Allied Visa Gold Credit Card’s Zero Loss Liability feature protects you from paying for any unauthorized transactions on your Card in the event that it is lost or stolen. please dial 9221-5301094. With your Allied Cash+Shop Visa Debit Card.com. due to sickness or accident Temporary Total Disability.Have Fun Whether you feel like taking the family to see a movie at the cinema or treating some friends to a night of bowling. Stay Alert Now. Pay for all your fuel purchases with your Allied Cash+Shop Visa Debit Card. Free CIP Lounge Access As an Allied Visa Gold Credit Cardholder. 24-hour Allied Phone Banking For any information and queries about your Allied Visa Gold Card. You can also access the details of your transactions via internet banking at abl. due to accident or sickness Permanent and Total Disability. be more secure and keep better track of your spending. your Allied Visa Gold Credit Card provides payment cover against: Death. you can do it all and more with your Allied Cash+Shop Visa Debit Card. Credit Protection Plus With Credit Protection Plus. you can get SMS alerts when you make transactions on your Card. Fuel Up Now you can fuel up your car without emptying your wallet.pk So you are always updated and alert. Karachi and enjoy a variety of complimentary features. Please notify Allied Phone Banking immediately at 0800-22522 (within Pakistan) or at 9221-5301094 (outside Pakistan) in case your Card is lost or stolen. Relax while you watch leading television channels or select something to read 33 . If you are calling from outside the country. you are eligible to avail the free lounge facility at Quaid-e-Azam International Airport.
Kindly sign the signature panel on the back of your Card in permanent ink as soon as you receive it. beverages and fresh fruits. Important Information Your Card is valid till the expiry date shown on it and will be renewed every year from then onwards. which has a continuous magnetic field. Also. feel free to plug in your laptop and mobile phone into the charging facilities provided. Do not disclose your Card Account Number or Personal Identification Number (PIN) to anyone. You can also treat yourself to a wide assortment of high quality snacks. Do not leave your Card near a television or any other electrical or electronic gadget. Activation Instructions Please follow the instructions stated below so that you are able to use your Card at any merchant outlet or Visa ATMs. Don’t forget to mention your Card Account Number in all correspondence and on all cheques for payment. Please do not forget to cut your expired Card into two halves before using the renewed Card. Enter the PIN provided to you in order to use the Card at ATMs. please call Allied Phone Banking on080022522and promptly communicate the changes so that your information is updated. 2. In case of change of particulars. Please refer to the Schedule of Charges for details of all charges and fees associated with the use of your Card. Please notify the Bank immediately of any irregularities. This strip is sensitively encoded and requires special care. 3.from an updated library of newspapers and periodicals. Avoid scratching or damaging the magnetic strip. Protect Your Card Do not bend your Card. To activate your Card. Do not expose your Card to direct sunlight. or browse the Internet or send and receive faxes while you wait. ALLIED VISA CREDIT CARDS: 34 . 1. please call Allied Phone Banking.
Visa Platinum Credit Card With your Allied Visa Platinum Credit Card you can enjoy exceptional benefits and a host of local and international benefits like never before! HAJJ SERVICES: 35 . you can also use your credit card at over 1 million ATMs internationally! Allied Visa Gold Credit Card With your Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold Card internationally with unmatched savings greater flexibility. benefits and savings with your Allied Visa Credit Card. convenience and most important-Affordability! With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art features and unmatched value by spending at over 49. In order to cater to your growing financial needs we are proud to introduce Allied Visa Credit Card with The Lowest Service Charge ever! So now you can save money where it counts and spend lavishly at your favorite places with greater flexibility.Allied Visa Credit Card Welcome to the world of privileges.000 merchants across Pakistan and 27 million merchant outlets worldwide! And what more. convenience and security.
immediately after the Hajj policy is announced by the Government of Pakistan. gas.g. Hajj applications are available with all branches during Hajj season. Furthermore. telephone) at any of the Bank’s branches. Bills can be paid with cash or cheque. The forms and other related services are provided by the Bank. UTILITY BILLS: Customers can pay their utility bills (e. customers can also pay their bills using any of the Bank’s ATMs or via Internet Banking for SSGC and SNGP bills.The Hajj Service is available to all pilgrims. electricity. bills are collected on all working days during normal banking hours and also at certain times during the evening. For further convenience. LOCKERS: 36 . plus customers can even drop crossed cheques in drop-boxes available at all branches.
4.000/Rs. Locker holders are not required to have an account with the Bank. 4. under the Agricultural Financing Scheme. The farm credits are extended for production (inputs) and development purposes.000/Rs. medium and long term. medium.small.000/ - 1. sheep. poultry and factories including social forestry and fisheries (inland and marine. extends short. 22.214.171.124.000/ Rs.000.1.000/Rs. as decided by the State Bank Of Pakistan. cattle).2. farm and non-farm credits.000/ Rs. # Locker Size Annual Locker Rent (Current) Rs.500. excluding deep sea 37 . Small Medium Large Extra Large AGRICULTURE FINANCE: The Bank.500. at an annual fee. Non-farm credits are allowed for livestock (goats.000/- Maximum Loss Coverage / Limit Rs. S.1. 3. large and extra large. in four different sizes .500/Rs.000.Allied Bank Lockers are available.
just get clicking! Some of the advantages of Allied Direct Internet Banking are: 38 . Convenient.fishing). etc. where you want! It's Simple. Working capital finance to meet various farming expenses. Development Loans Improvement of agricultural land. weedicides. pesticides. Construction of Godowns Tractors. Machinery & other equipments Tube wells Farm Transportation. floriculture. etc Non-Farm Loans Livestock Poultry Fisheries Forestry INTERNET BANKING: Banking is now at your fingertips! Allied Direct Internet Banking offers you the convenience to manage and control your banking and finances when you want. Details are as follows: Farm Loans Production Loans 1. water charges. herbicides. 2. vegetables. orchards. fertilizers. labour charges. Secure and Faster.Inputs like seeds. So. etc.
You can also use the service. from any branch. No matter where you are in the country and whichever branch your account is maintained at. your account in Allied Bank is available to you from any of our branches countrywide. Our friendly branch staff will help you open your account quickly. You can transfer funds or pay bills.Simple and Convenient Easier navigation and help provided at every step so you can make full use of this service. please visit any of our nearest branches and open your account and obtain an ATM Card. If you do not have an account. 39 . ONLINE BANKING: Allied Online Banking is a unique service being offering from Allied Bank. 24x7 Access You now have access to your account 24 hours a day. Secure and Faster Encrypted with latest tools and technologies. you can have your cheque cashed at any of our 757 online branches located in 250 cities. With Allied Direct convenience is just a click away. Allied Direct is the choice for secure and fast Internet Banking. Through this service. you should be a registered Allied Bank Account holder with a valid ATM Card. 7 days a week. To use Allied Direct Internet Banking. even when it's a holiday.
40 . Allied Online provides a secure.to deposit cash for instant credit into your account or any other account in Allied Bank. Similarly. efficient and convenient facility for making payments to beneficiary accounts from any of our branches countrywide. commercial vehicles and equipments. making a Balance Inquiry and getting an Account Statement are additional services available to Account holders from remote branches. Your cheque drawn from a remote branch for credit into a beneficiary’s account or encashment of a specified amount. What’s more. can also be presented by a third person at any branch. easy documentation and less processing time. preserve working capital. Facilities include leases for machinery. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services. the account-to-account Funds Transfer facility is also available for instant remittance. Leasing is a popular mode of financing because of its distinctive features like tax shield. modernization. The Bank provides lease facilities to corporate and commercial clients in all industrial enterprises for balancing. replacement and expansion schemes . CORPORATE LEASING: Allied Bank started lease operations when it integrated with Ibrahim Leasing Limited.
The customers’ may access relevant information from the following addresses: Attention Valued Customers Unclaimed Deposists/Instruments In accordance with the Banking Companies Ordinance.B.Lease applications are processed at all Bank branches in Pakistan. the Bank is liable to surrender to S. 1962. All such customers/beneficiaries are requested to contect the concerned brance to re-activate their accounts/collect the instruments. Section 31. the bank will be compelled to classify the same "UNCLAIMED" and surrender to SBP. all unclaimed deposits and instruments which have not been operated/collected by the account holders/beneficiaries for last 10 years. UNCLAIMED DEPOSITS: All unclaimed deposits are surrendered to the State Bank of Pakistan. failing which. State bank revised instruction on unclaimed deposits Public Notice 41 .P.
As per Section 31 of Banking Companies Ordinance 1962 A debt in Pakistan Rupee is owing by a banking company by reason of a deposit, not being a deposit in the name of a minor or a government or a court of law, at a branch of the banking company in Pakistan in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during the last ten years period are considered as unclaimed deposits. These include demand deposit, time deposit, pay order, demand draft, etc. As per instructions of the State Bank of Pakistan, all un-claimed deposits are surrendered to the SBP. The customers’ may access this information at the following addresses: 1. Allied Bank website (http://www.abl.com.pk/), respective branches of the Bank and Finance Group, Central Office, Karachi. 2. Website of State Bank of Pakistan (http://www.sbp.org.pk/) 3. Field Offices of SBP Banking Services Corporation in Karachi, Lahore, Peshawar, Quetta, Islamabad, Rawalpindi, Faisalabad, Multan, Sialkot, Bahawalpur, Gujranwala, Hyderabad, Sukkur, D.I.Khan and Muzaffarabad. All the claimants can apply for refund in the bank branch where deposit/instrument account was opened/payable. In cases where such branches have been closed /shifted, the nearest branch of the same bank should be contacted. It may please be noted that after completion of one-year from the date of making the list public, all unclaimed deposits/instruments will cease to be claimable and will be transferred to the government.
CLEARING DEPARTMENT :
Every bank acts in two way i.e. 1. Paying Bank 2. Collection Bank Here in theory no legal obligation on a banker to collect cheques, drawn up to other banks for a customer. It is, however, an important function of crossed
cheques. A large part of this work is carried out though the bankers clearing house wherever it is established.
A clearing house is the place where representatives, of all the banks get together for the purpose of off setting the inter bank indebtedness arising from the transfer of deposits by a customer of a particular bank to another bank.
Advantages of Clearing House:
The advantages are manifold. It prevents the cost and waste involved in collection each and every cheque and claim. Which a banker holds against another, across the counter with all the danger of loss in the transit incumbent upon it. Great economy is also achieved in the employment of liquid cash by setting the difference by simpler transfer of credit from one account to another, there by minimizing the necessity of holding large wash balances, clearing house works under the control of State Bank of Pakistan. A banker has no legal obligation to collect cheque drawn upon other banks for the customers, though modern banks have assumed this important function of their own choice. Therefore, it is very important that since they have assumed this function, the banker should be very careful in their performance, otherwise they will face more difficulties. So, if they provide this facility when the cheques are crossed.
Functions of Clearing Department:
The following are the main functions of clearing department. 1. To accept transfer deliveries and clearing cheques from the customer of the branch and to arrange for their collection.
2. To arrange the payment of cheque drawn on the branch and given for collection to any other branch of Allied Bank of Pakistan or any other members, or sub-members of the local clearing house. 3. To collect amounts of cheques drawn on members, sub-members of the local clearing house, sent for collection by those Allied Bank Limited branches which are not represented the local clearing house.
Procedure of Depositing Cheques in Clearing House:
Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and hands it over the counter along with the instruments he wants to deposit with bank. As far as possible, the customer desire that on of the staff member fill in a slip for him, he should be obliged promptly. The smaller portion of the perforated pay in slip is handed over to the depositor and the portion becomes the regular portion of a credit voucher. 1. Transfer Cheques Transfer cheques are those cheques, which are collected and paid by the same branch of bank. 2. Transfer Delivery Cheques Transfer Delivery cheques are those cheques, which are collected and paid by two different branches of a bank, situated in the same city. 3. Clearing Cheques Clearing cheques are those cheques in which the payee (Person who deposit cheques for collection) and the drawer of a cheque maintain the account with different banks.
Scrutiny of Cheque:
When the cashier receives the cheques, which are to be deposited for clearing purpose the following points must be verified. 1. The instrument should be neither stale nor post dated.
should not be collected for third parties. 8. although negotiable. 45 . or any of local branches. or a holder of bearer cheque) 3. Pay orders. The amount in words and figures should be the same. 10. it can be for the third party (can be endorsee of an order cheque. 6. Brach agent’s permission should be obtained before accepting a third party cheque or draft for creditor the account of the staff member. the instrument cannot be collected. satisfy yourself about the titles of the customer to the instruments before the titles of the customer to the instrument before accepting the deposit. 14.2. or consent. or of the servant of the payees of endorsee of the instruments. but of the payee’s account. not negotiable. Do not collect an instrument in the account of an agent. or Manager of his company or firm. If the cheque is crossed “Account payee’s” “Account payee only” or “Payee’s Account”. 16. The instruments should be drawn on a member. A cheque drawn by a customer in the capacity of an agent. 12. should not be collected for credit to his personal account. 4. it should be accepted for collection for the payee’s account. The cheques or drafts should not be crossed specially to any other bank. The instrument should not bear any unauthorized alteration. 11. A cheque payable to one of the joint account holder should not be collected for the joint account without the payee’s endorsement. or a trust account. 15. If the payee is a government department. If the instruments is crossed. 7. Attorney. Mail transfer Receipts pay ships and treasury receipt should not be collected for persons other than the payee. 13. or the balance or operation of the account is not satisfactory. If an account is new. A cheque payable to a firm should not be accepted for credit to a partner’s account. 5. 9. government official.
Scrutiny. Total amount in words and figures 2. Procedures After Scrutinizing: After scrutinizing the cheques and other deposit instruments and paying slip at the counter the following procedure is under taken by cashier if he is satisfied. The amount noted should be the same as the amount of the instruments. V. transfer delivery. account should not be collected for credit to at trustee account. and the amount in words and figures should be same. 2. Date of Deposits II. 1. Title of the account IV. Procedure Of Clearing At Clearing House: 46 . Separating the cheque into transfer delivery. Account number III. and on endorsement should be missing. On both the counterfoil and the pay in slip following should be checked. Certificates and confirmation by the officer-incharge of the department. 1. The cheque/number and the drawer bank/name. If the payee of an instrument is Allied Bank Limited. Scrutiny Of Pay-In-Slip: The following steps are involved in the scrutiny of pay in slip. and receipt by the authorized officer 3.17. 4. Cheque payable to a trust. Fixing the stamp. or the amount of the instrument may be utilized as desired be the drawer in writing. and clearing cheques. and clearing cheque. it can collected for credit of the drawer’s account. After the cashier scrutinizes the cheques he must also scrutinize the pay in slip. 18. Returning the counter foil to the depositor. Customer should use separate pay in slip for transfer. I. All the endorsement should be regular.
No bank can issue a clean advance of more than Rs. According to the Prudential Regulations of the State Bank of Pakistan. Mortgage: 47 . The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations. Common Securities for the banker’s advances are as under: SECURITIES: Guarantees: When an application for advance cannot offer any tangible security. Every clerk then delivers to the others the cheques and the other claims which their respective banks hold against his banks hold against his bank cheques and other documents dishonored will be returned to the representative of the respective bank.000/-. as well as secured advances against tangible and marketable securities. everyday.The mechanism of setting inter bank indebtedness operates as follows. the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant. ADVANCES DEPARTMENT : INTRODUCTION: The function of advances department is to lend in the form of clean advances. The Clearinghouse. 100. The various amounts of receipts and deliveries are now added up and a balance is struck there in and the final settlement is effected by the supervisor of the clearing house by transferring balance kept and the central bank by these various clearing banks. Clerks representing various banks meet at a common place. against promissory notes.
or to the bearer or the instrument. Moreover. but the pledgee has the exclusive possession of property until the advance in repaid in full. The transfer is called a mortgagor. KIND OF ADVANCES: The advances which are given by Allied Bank Limited are as under.A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by. to pay .on demand or at a fixed or determinable future time a certain sum of money only. but the security is granted by means of letter of hypothecation. “A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker. the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally. The essence of hypothecation is that neither the property in the goods not the possession of them are possessed by the lender. Promissory Note: Sometimes promissory note is also accepted as a security. the goods are said to be hypothecated. 48 . and existing or future debt. the transferee a mortgage.” A promissory note is incomplete until has been delivered to payee or the bearer. Pledge: In a pledge the ownership remains with pledge. or the performance of an engagement which may rise to a pecuniary liability. which usually provides for a banker’s charge on the hypothecation goods. Hypothecation: When property in the shape of goods is charged as security for a loan form the bank the ownership and possession is left with the borrower. While in case of the default the pledgee has the power of sale after giving due notice. to or to the order of certain persons. way of loan.
at zero percent rate of interest. 2. The running finance account can be operated and daily sale proceeds can be deposited into the account. Classification of (DF) 1. 2. quarterly. Ordinary Loan 49 . The mark-up is recovered on the products of daily outstanding balance. Demand Finance (Packing Credit) Scheme introduced by SBP for exporter of carpet. Saving Certificate Deposits Mortgage of property Guarantee of person Demand Finance (DF): Demand Finances are those advances which are allowed in lump sum for fixed period and are repayable lump sum or gradually in installments which could be monthly. Classification of Running Finance: 1. Secured Under this type of overdraft the bank allows his customer to withdraw more than his deposits after giving security against the amount overdrawn. surgical instruments.. Unsecured Under such type of overdraft the bank pay upon the personal security of the customer’s mentioned on the customer’s account. biannualy or annually.RUNNING FINANCE (Overdraft): Running finance (old name overdrafts) is a short term loan allowed by the bank for a period of one year. The Securities against which they given are: • • • • Share certificate. The running finance is suitable for meeting day to day financial needs of the business. While banks provides at concessional rate of interest.
bills of lading airway bills of exchange etc. Tube Wells 50 . Against pledge 3. FAFB (foreign) advances against foreign bill covering bills of exchange. Against locally manufactured goods. teachers without any interest or mark up with the recommendation of the MPA or MNA. Agriculture Loans: Loans to the farmers with holding up to 25 acres for meeting their short term. a company with bills of exchange and invoices. FAFB (local) advance against Railway receipts and truck receipt. Agricultural inputs 2. • • • House Building Loans against mortgage of property. Loan for purchasing vehicles. are given under this head. Finance Against Foreign Bills (FAFB): This facility is available to both local and foreign bills 1. medium and long term agricultural production requirements. Against commodities 4. 2.Qarz-e-Hasana Scheme Loans are allowed to the students. Loan equivalent to month’s salary. such as: 1. Against Trust Receipts Small Loans: Loans are allowed to contractor’s clearing agents. 3. Cash Finance (Commercial Loans Inward): These type of loans are given against following: 1. Loan for Staff Loans are offered to the staff of the following categories.
Inward Bills for Collection (IBC) 2. BILLS DEPARTMENT: Bills department the following functions: 1. Import Export Business/Trade Finance: ABL Provides highly efficient trade finance services for import/export business for our clients/customers through large number of authorized branches where trained and motivated staff is available to handle the business on behalf of customer. These are received from outstation branches banks and parties. Live Stock Framing 4. OUTWARD BILLS FOR COLLECTION (OBC): Clean Bills: 51 . Demand draft includes DD issues and DD payable. medium and long-term loans are also given to industrial sector for purchases of machinery and other capital nature goods. Outward Bills for collection (OBC) INWARD BILLS FOR COLLECTION (IBC): These are bills or cheques etc. Land improvements Industrial Loans: Besides the short-term loans which play an important part in working capital requirements. which is collected locally. Demand Draft: It refers to the payment of money on demand of the holder of draft.3.
Voucher system is use for every transaction.R. Voucher System In journal system entries are posted in Journal Books and then posted to ledger. bills sent for collection on behalf of the customers i. Journal System 2. having title to goods. Voucher has to be prepared either in cash or in transfer or in clearing. Credit Supplementary 52 . Pay Slip: Pay slip is an instrument in receipt. drafts or treasury bills etc. Bills of lading etc.T. collected by the bankers on behalf of their customers. issued by the bank in the following cases: 1. It is adopted by industrial institutions. Debit Supplementary 2.R. Pay Order: Pay order is issued to other banks for collection of payments as said.e. Types of Supplementary: Supplementary are of two type: 1. ACCOUNTS DEPARTMENT: Usually accounts are maintained in two ways: 1. The sheet upon which these vouchers are summarized transactions-wise and consolidated into a figure is called supplementary. 2. drawn on outstation branches. cheques. On account of refund of a payment to a persons under certain circumstances. On account of expenditure incurred by the bank. Documentary Bills: These are bills accompanied by documents such as R.These are negotiable instruments.
Daily Transaction Long Book 8. 19. Balance Book (for a/c ledger) 4. 15. Cashier Long Book 6. Issued Register T. 20.Debit Supplementary is used for debit voucher and credit supplementary is used for credit voucher books. 14. Token Book 5.T. Issued Register D.D. 13. Cash Order Register (SND. 17. 22. DAC & Payorder is recorded) 7.T. Books and registers: Books and registers used by bank are as follows: 1. or Demand Draft Payable Register Law Charges Recoverable A/C Book (under suit account) Office Order Book Book for Allied Mahana Amadani Scheme (payment of monthly profit) P/L Income and Expenditure Accounts Book P/L Balance Book for Income and Expenditure A/C (weekly balances of expenditure A/C are recorded) 53 . 16. General ledger 2. Ledger of A/Cs 3. Open/Close Register Pak A/C Book Suspense A/C Book Weekly Telegram Book (Cost is written) T. 12. Day Book 9. 18. Transfer Book 10. 11. 21.D. or Telegraphic Transfer Payable Register D.
other securities and receives payments for these services) 2. insurance. 32. 27. 54 . Stationary. Brokerage (A bank sells and buys shares. 34. Salaries. 28. 26. stocks. telegram. Rent. Discount 3. taxes. Profit paid on deposits and borrowings 4. allowances and provident fund 2.23. lighting etc. Rent (On Building) 5. Commission (from utility services) Expenditures: Expenditures Includes 1. 3. 24. 25. Postage. Cheque Book Issue Register Stock Register Cheque Books in hand PLS (TDR) Term Deposit Register Stationery in Hand Register OBC (Outward Bills for Collection) Register Dak Inward Register Dak Outward Register Stationery in Hand Register Cash in Transit Register Clearing Register Inward/Outward Running Finance Register Office Attendance Register Incomes: Income Includes 1. 33. 31. 29. debentures. 30. Service Charges 4. and stamps 5. printing and advertisement charges etc.
Mail Transfer (MT) 2. beneficiary advice 5. Customer fills the form given by bank. 1. Demand Drafts (DD) 1) MAIL TRANSFER (MT): When a customer requests the bank to transfer his money from one branch of bank to another branch of the same bank or from one city to another city to the same bank or any other bank. 2) TELEGRAPHIC TRANSFER (TT): This type of transfer is simple. Then it is sent to the required bank which on receiving it immediately makes the payment to the customer and afterwards the voucher are sent to that bank by ordinary mail. advice to customer In case where the sustome4r is not account holder of the bank then the customer will have to deposit the amount which he wants to transfer under Mail. If the customer has an account with that amount as mentioned in the application form then concerned officer will undertake the following procedure to make the mail transfer complete.6. Issuing branch register Copy 4. 3) DEMAND DRAFTS (DD): 55 . REMITTANCES DEPARTMENT: Remittance department performs following functions: 1. After filling the application form the concerning officer shall fill the telegraphic transfer form. Auditor’s fee and legal charges. Branch Mail transfer form 2. Telegraphic Transfer (TT) 3. Receiving Branch Register copy 3. Then the above said procedure will be done.
Draft is only issued when the bank knows customer and bank has the confidence in him.Demand draft is just like cheques and issued when the customer wants to take cash with him personally. the bank persuades the customer to transfer money by drafts and avoid the risk of frauds involves in MT and T. I learn how to apply my theoretical knowledge in the practical field of business and commerce. In case of transfer of money by drafts. Demand draft can easily be handled whatever amount it has and the money can easily be taken from the bank when it is presented. In fact. Customer’s debit form 3. the customer has to fill an application form. Customer’s advice 2. Cover Advice A foreign bank uses the cover advice if draft is issued to National Bank of Pakistan. Then the concerned officer fills the following forms: 1. detail of that learning are discussed under as follows: 56 . During my internship I have spend large time in many desks. The idea behind is to avoid the risk and burden of currency notes in huge quantity. WORKING AREAES DURING INTERNSHIP WORK DONE BY ME The time span I passed at ABL Samnabad Lahore (0224) is very attractive and learned for me.T. Register copy 4.
But if sufficient balance is available. These entries show the balance in the account. he moves to the queue for cheque encashment indicated by a written notice on the wall. the same officer approves cheque. Cheque Encashment Process (Flow Chart) 57 . The customer counts money at the counter and then leaves after satisfaction. In case of no balance or insufficient balance the cheque is returned. Usually customers are aware that they have to double sign the cheque. they do it before or after the officer asks them. After this approval a second officer (superior to cashier) signs the cheque and now the cheque is finally ready for encashment.CHEQUE ENCASHMENT As soon as the customer came in the branch. After this the cashier verifies the signs manually with signature card and then entries are posted to computer. He now directly goes to the queue and presents his cheque to cheque encashment officer. The cashier counts money and gives it to the customer.
Cheque given with double signs Cheque verified for signatures Entries posting in computer Cheque approval Balance is checked 2nd signatures of senior officer Cash counted and given CLEARING Customers come in the branch and go to clearing officer and give him the Cheque or other instruments for clearing along with the pay in slip. Or 58 .
check the amount. The same day in the evening they make provision computer entries to different banks’ accounts (First clearing). (Those who come with already filled slips they usually belong to or are daily customers like different companies etc. After second officer verification the instruments are given to the computer for provisional computer entries to related accounts After this the main branch personnel come and take all the instruments (along with return instruments of the previous day if any) kept in a bag before they come. date etc on both the instrument and slip. After the customer leaves instrument is stamped with other stamps for security purpose. At the end of the day the main branch collect them and check is there any return. Party is informed the same day by phone or to their personnel if he is there. and third in add list. When the banking hours start these instruments are on their tables so they check and give back if accounts have no balance or there is any problem. and instrument is also given to him. The third day the clearing is confirmed and banks are informed about return or not honored instruments. But in case of phone the instruments re sent through TCS to the related party. second in clearing sheet. After checking all requirements the officer out stamp on the slip as well as the instrument and sign it and then give the receipt to the customer. sign. At the same the entries are made in three books of accounts: one in daybook. fill it and then give to the officer. 59 .sometimes it happens that the customer come and first take pay in slip from the same counter. so they get the whole book of slips for this purpose). At the day ends all the instruments and slips (separated from the instruments) are given to another officer for verification and check for errors. The banks in their computer confirm the clearing or in case of return debit the account again both in daybooks and computer. The officer takes slip. The next day these instruments are sent to related banks early morning. if not then all provisional entries are confirmed or return entries are made (Second clearing).
signed & received by officer Entries in daybooks are made Entries checked & verified by another officer after banking hours by officer Cheques collected at the day end by Main Branch’s Officials Cheques are sent to respective banks next day after posting in computer by Main Branch The same day not honored cheques are returned to Main The day after tomorrow the banks are informed about Provisional entries for returned cheques are debited again in both computer & daybooks Part of process not carried out in ABL Party is informed about returned cheques through Cheques are mailed through TCS in case of no personal contact the same day ACCOUNT OPENING DESK 60 .Clearing Process (Flow Chart) Cheque with slip Slip is asked & Cheque along with slip checked.
I.C. b) Requirements for Opening of Account • • Duly filled prescribed Account opening form. • Certified true copy of rules and regulations or by-laws (in case of association etc. • Letter of partnership or certified copy of partnership deed (in case of partnership). • Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account.). • Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only). • List containing names and signatures of the Directors/Office Bearers duly certified by SECP/Registration Authority. can open and operate this type of Account. • Certified true copy of the certificate of commencement of business (in case of public limited companies only).Current Account a) Eligibility • All-Pakistani’s Resident/Non-Resident. • Certified true copy of the memorandum and articles of association (in case of limited companies). c) Features 61 . Individuals (either Singly-Jointly) Companies/Firms etc. Directors and office Bearers as the case may be. • Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account. Attested photocopy of N./Passport of Account Holder(s). Proprietor. Partners.
1000/. No limit of withdraws.5. b) Requirements for Opening of Account • • • Duly filled prescribed A/C opening FORM. 62 . Service charges Rs. • Two Passport size photographs and signatures on A/C Opening Form for nonresident Pakistani with Shaky Signatures/Thumb Impression. (Attestation by ABL Branch or Pakistan Embassy). Two Passport size photographs for Shaky Signatures/Thumb Impression (Resident Pakistani). 000/. Photo Copy of National Identity Card (Resident Pakistani).180/.if average balance is less than Rs.with no maximum limit.• Account can be opened with Minimum Balance Rs. • Statement of Account dispatched on quarterly basis or as requested. Any foreign national having valid Resident Pakistan VISA can open and operate the Account. • Photocopy of Passport with Page bearing Resident Visa of Pakistan (Foreign Nationals). • • Checking account and No PROFIT is paid. PLS Saving Account a) Eligibility • • All Pakistani’s Resident/Non-Resident can open and operate the Account.during half year. • Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing (Attestation by ABL Branch or Pakistan Embassy).
and above from 1st day to the last day of the month. Profit is calculated on monthly products i.e.180/. • Any foreign national having valid Resident Pakistan VISA can purchase an SNTD. Statement of Account dispatched on half yearly basis after posting of profit. • Service charges Rs. Govt. There is no restriction for withdrawals of amount and numbers of cheques. on minimum balance of Rs. d) Conditions • Deduction of Zakat – Withholding Tax as per rules of the Government. • • • Profit is Paid/Credited in Account on half-yearly basis. /Semi Govt.1000/. Depts. • • • Checking account Profit is payable at yearly rate declared every half year. b) Requirements for Opening of Account 63 .000/.during half year.if average balance is less than Rs. 000/. can purchase an SNTD.c) Features • Account can be opened with Minimum Balance Rs.5.with no maximum limit.5. PLS – 7 days special notice time deposit & PLS – 30 days special notice time deposit: a) Eligibility • All Pakistani’s Resident/Non-Resident Companies Firms.
• Two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Shaky Signatures/Thumb Impression. • Profit is payable at yearly rate declared every half year and on date of encashment. no profit shall be paid for the days short of required notice.1000/. • Photocopy of Passport with Page bearing Resident Visa of Pakistan (Foreign Nationals).with no maximum limit.• • • Duly filled prescribed A/C opening FORM. (Attestation by ABL Branch or Pakistan Embassy). • • Profit is calculated for the days deposit remained with Bank. No profit/return is paid for premature encashment before 7 days or 30 days (as the case may be) from date of issue. • Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing (Attestation by ABL Branch or Pakistan Embassy). • Similarly if notice given falls short of 7 or 30 days (as the case may be). Two Passport size photographs for Shaky Signatures/Thumb Impression (Resident Pakistani). c) Features • SNTD can be purchased with Minimum Balance Rs. 64 . Photo Copy of National Identity Card (Resident Pakistani). • Profit is paid Cash or Credited in Account on encashment. d) Conditions • Deduction of Zakat – Withholding Tax as per rules of the Government.
Two Passport size photographs for Shaky Signatures/Thumb Impression (Resident Pakistani). • Any Foreign National having valid Resident Pakistan VISA can purchase TDRs. • Photocopy of Passport with Page bearing Resident Visa of Pakistan. c) Features • TDRs can be purchased with minimum of Rs. Firms/Companies. Profit is Paid/Credited in Account on half-yearly basis. b) Requirements for Purchase of TDRs • • • Duly filled prescribed FORM. • Two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Shaky Signatures/Thumb Impression.PLS Term Deposit Receipt (PLS TDR): a) Eligibility • All Pakistani’s Resident/Non-Resident individuals. /Semi Govt. Departments can purchase the TDRs.with no maximum limit but for not less than 1-month period. d) Conditions 65 . • Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing (Attestation by ABL Branch or Pakistan Embassy). • • Profit is payable at yearly rate declared every half year. (Attestation by ABL Branch or Pakistan Embassy).1000/. Govt. Photo Copy of National Identity Card (Resident Pakistani).
• Deduction of Zakat – With-holding Tax as per rules of Government PLS KHAS Term Deposit Receipt (PLS KHAS TDR): Indicative Rate may Minimum of Rs. /Semi Govt. Companies. Departments can purchase Khas TDRs.00 % 8. 66 . Two Passport size photographs for Shaky Signatures/Thumb Impression (Resident Pakistani).1000/For 1 ½ years and over but less than 2 years For 2 years For 3 years For 4 years For 5 years and over but less than 3 years and over but less than 4 years and over but less than 5 years and above varies as per SBP’s advise 7. Photo Copy of National Identity Card (Resident Pakistani). • Any Foreign National having valid Resident Pakistan VISA can purchase Khas TDRs.50 % 9.00 % 9.50 % 8. Govt.50 % a) Eligibility • All Pakistani’s Resident/Non Resident individuals Firms. b) Requirements for Purchase of Khas TDRs: • • • Duly filled prescribed FORM.
d) Conditions • Deduction of Zakat – With-holding Tax as per rules of the Government PLS Special Saving Deposits (SSD) The given rate may change as per SBP instructions On Average Saving Deposits of over but less than Rs.00 % 7.3 (M) and Rs.with no maximum amount limit for the period ranging from 1 ½ year to 5 year in multiple of six months. On Average Saving Deposits of Rs. Zakat is not deducted every year but only once at the time of encashment. • Photocopy of Passport with Page bearing Resident Visa of Pakistan (Foreign Nationals).75% 67 .50 (M).25 (M) and Rs. (Attestation by ABL Branch or Pakistan Embassy). • • • Profit is payable at yearly rate declared every half year. c) Features • Khas TDR can be purchased with minimum of Rs. For over 5 years there is no such restriction.25 % 7.50 (M) and Rs. On Average Saving Deposits of over but less than Rs. • Two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Shaky Signatures/Thumb Impression. Profit is paid on maturity of Khas TDR in Cash or Credited in Account.25 (M).1000/.100 (M).• Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing (Attestation by ABL Branch or Pakistan Embassy).50 % 7.100 (M) Indicative Rate 7. On Average Saving Deposits of over but less than Rs.
Certified true copy of the certificate of commencement of business (in case of public limited companies only)./Passport of Account Holder(s).500 (M) and over but less than Rs. Directors and office Bearers as the case may be.1000 (M) and above. 8. Certified true copy of the memorandum and articles of association (in case of limited companies).500 (M). 68 . Proprietor. same terms as of PLS SB & in case of companies etc. • Any Foreign National Individual/Company having valid Resident Pakistan VISA/Work permit can open and operate the Account. • The depositors falling under any of the above category must maintain the required average balance to earn profit. Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only).C. as following:- • • • • Attested photocopy of N.1000 (M).250 (M).00 % 8.25% 8. On Average Saving Deposits of Rs.50 % a) Eligibility • All Pakistani’s Resident/Non-Resident Individual/Company can open and operate the Account.250 (M) and over but less than Rs. In case of individuals. b) • • Requirements for Opening of Account Duly filled prescribed A/C opening FORM. On Average Saving Deposits of Rs.and over but less than Rs.I. Partners. On Average Saving Deposits of Rs.
There is no restriction for withdrawals of amount and numbers of cheques. List containing names and signatures of the Directors/Office Bearers duly certified by CLA now SECP/Registration Authority. Letter of partnership or certified copy of partnership deed (in case of partnership).• • • • Certified true copy of rules and regulations or by-laws (in case of association etc.1000/. Profit under this scheme is calculated and paid to the depositors on daily products basis on the 1st working day of the following month according to above slab. Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account. • If during a calendar month a party maintains average balance which does not come within the ambit of SSD scheme then No Profit shall be paid. • In case the average balance during any calendar month changes (rises/falls) from a slab.with no maximum limit. c) Features • Account can be opened with Minimum Balance Rs.180/. d) Conditions 69 .if average balance is less than Rs. • • • CHECKING ACCOUNT Profit is payable at indicatives rates for each half year. 000/during half year. • • • Profit is paid in Cash or Credited in Account. • SERVICE CHARGES Rs. the profit for that month will be paid at the rate applicable to relevant average balance slab.). Statement of Account dispatched on monthly basis.5.
• Two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Shaky Signatures/Thumb Impression. • Photocopy of Passport with Page bearing Resident Visa of Pakistan (Foreign Nationals). Two Passport size photographs for Shaky Signatures/Thumb Impression (Resident Pakistani). Photo Copy of National Identity Card (Resident Pakistani). • Any foreign national having valid Resident Pakistan VISA can also purchase this TDR. Companies. 70 .00 %* a) Eligibility • All Pakistani’s Resident/Non-Resident individuals Firms. (Attestation by ABL Branch or Pakistan Embassy).50. b) Requirements for Opening of Account • • • Duly filled prescribed A/C opening FORM. Govt.000/Indicative Rate 9. /Semi Govt. can purchase MIS-TDR.• Deduction of Zakat – With-holding Tax as per rules of the Government PLS Monthly Income Scheme (3-YEARS) Minimum Balance Rs. • Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing (Attestation by ABL Branch or Pakistan Embassy).
which is owned and managed by its own employs. • ABL is the first Muslim Bank of the world. The profit paid in excess to PLS Saving A/C rate will be recovered from depositors.c) Features • Account can be OPENED with Minimum Balance Rs.for 3 years maturity with no maximum limit. d) Conditions • Deduction of Zakat – With-holding Tax as per rules of the Government STRENGTHS Allied Bank Limited has certain strengths which are different from the other Banks. The profit already paid will be recovered from depositor. • • Profit is payable on monthly basis at yearly rate declared every half year. 000/. but is accepted in the multiple of Rs.10. Deposit withdrawn within 3 months of date of issuance will not earn profit. • Deposit withdrawn after 3 months but before maturity will earn profit admissible for PLS saving account applicable for the period deposit remained with Bank. • Deposits can be renewed for further 3 years on maturity at request of Depositors. 000/-.50. A feeling of 71 . This is the biggest strength of the Bank.
ownership is present in every employ. • Salaries are very reasonable. which not only helps in increasing the productivity of employs but also creates sincerity with the Bank in them. So they work with high motivation and concentration. so the employees are not financially disturbed and they devote their selves fully to their work. WEAKNESSES • No entertainment facilities are available in the Bank when customer goes to the Bank and wait for a longer time. • Strength is the high motivation of employees to their work because they know that what so ever they do. As compare to other private commercial banks the limited branches of ABL are computerized. magazines. will be distributed among all the employees. so that they cover a lot of portion of cash transactions and make customer satisfied. They know that the profit. etc. • They have wide area network in all over the Pakistan. it will be in their own benefit. The customers are treated as very special persons in the Bank. • • • Advertisement of ABL is not such goods as of other banks. • The Bank has very strict rules and regulations about the customer’s complaints. Out look of the ABL branches is not attractive to the people. which they will earn. OPPORTUNITIES • The policies of the new government to uplift the economy and pursue financial sector reforms are expected to yield positive results in the 72 . These facilities can be the newspaper.
If this downfall remains for more few years then it may be the great hindrance in achieving the Bank’s objectives. Three boards of directors are of government. THREATS • First threat is that of political influence. if ABL can make it possible the fast delivery of fund from abroad through online banking.banking industry of the country. So. • The ABL is very well praised to avail As a result of the different steps taken by the Government regarding the betterment of the economy. So that they can influence on the decisions of the ABL. • They have wide area network in all over the Pakistan. it can cover the major market of Pakistan which still is capturing by ‘Hundi’. the ABL has an opportunity to attract the customers by giving them attractive schemes. promising opportunities. • New Privates Bank coped with emerging new Technology of IT. small borrowers are attracted to get the financing and start small businesses. • The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years. FUTURE PLANS Some future plans of ABL are as follows: 73 .
• Purchase of Sick Units.00 bales of cotton from checking system of the Bank. • The Bank should try to give more loans to the small borrowers as the past history shows that most of the loans given to the corporate borrowers have converted into bad debts. In the first instance a target of 250 branches has been set. • The Bank should keep the proper cheque on stock which is hypothecated.• • Installation of ATMs in every major city of the country. A textile owner may ret the loan on same 10. • Shares Investment Scheme i. • When giving the loan. Bank will trade in shares of different renowned companies to earn profit. This will help in judging the dealing behavior and financial status of the client. the Bank must carefully analyze the past six months transaction history of the borrower. SUGGESTIONS Following are some observations and suggestions during the internship. • The Bank should have the moving cameras in their branches for security purposes. rebuild them and make them profit earning institutions. So Bank should increase its 74 . • The Bank has a lot of financing schemes but there is very little advertisement advertisement. of these schemes. Among them about all the branches of Lahore and Karachi have been computerized.e. In most cases. Computerization of all the branches through out the country. this thing is not properly done and it is the major reason of default of many clients.
• When any one comes to operate the lockers. • • The circle of ATM machines should extend in all the major cities of Pakistan. The employees should be provided the opportunities to attend and participate in seminars and lectures on banking. with the result that they become master of one particular job and loose their grip on other banking operations. it should be relevant and its purpose should be to educate the employees with the advance studies in their field. • With the internship letter should also be requested to provide us the financial reports. More reading material should be brought / provided in the reference Room. And they are not allowed to provide these statements to any trainee. so that customers can check their balances and make transfer of fund online. 75 . Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Because when we demanded the financial reports they said that this is confidential. • All the Bank Branches should be getting online to provide the quality and speedy services to the customers and also remain competitive in the market. • To create royalty in customers ABL should start the facility of online banking through Internet. then the things which he keeps in locker should be checked through metal detector for security purposes. In my opinion all the employees should have regular job experience through job rotation. • Most of the bank employees are sticking to one seat only. The promotion policy should be adjusted.
SOME IMPORTANT ABBREVIATIONS HO RHQ TFCs CDR CEO COD CDR MICs PLS A/c DD MT TT IBC IBCA OBC OBCA OD ATM DA DP LC SLC ULC B/L FOB C&F C. Freight & Insurance Bill of Exchange Export Form 76 . F & I B/E E-Form Head Office Regional Head Quarter Term Finance Certificates Call Deposit Receipts Chief Executive Officer Certificate Of Deposit Call Deposit Receipt Monthly Income Certificates Profit & Loss Sharing account Demand Draft Mail Transfer Telegraphic Transfer Inward Bills Collection Inward Bills Collection Advice Outward Bills Collection Outward Bills Collection Advice Over Draft Auto Teller Machine Delivery against Advance Delivery against Payment Letter of Credit Sight Letter of Credit Usance Letter of Credit Bill of Lading Free On Board Cost & Freight Cost.
) (in foreign T-Bills PIB NIDF NICF CAD RCAD DAC SME CIB LPR BBFS TC CRM Treasury Bills Pakistan Investment bonds (common bonds) Non Interest Demand Finance Non Interest Cash Finance Credit Administration Department Regional Credit Administration Department Disbursement Authorization Certificate Small & Medium Enterprises Central Information Bureau (of SBP) Leaves Prior to Retirement Borrower’s Basic Fact Sheet Trade Checking Credit Risk Management THANK YOU FROM: SHEIKH USMAN AHMED BBA (Hons) ROLL NO. Lahore. 77 . 997 Hajvery University.KIBOR LIBOR Karachi Inter Bank Offer Rate London Inter Bank Offer Rate currency) (in Pak Rs.
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