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Executive Summary
Allied Bank is amongst the leading commercial banks in the country and has always played a pioneering role in introducing innovative technology-bused banking services. The role played by its human resources is highly valued, both in terms of their skills and dedication in implementing uniq1o banking services. The Bank Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by the same Australasia Dank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. In August 2008, because of capital reconstruction, the Bank’s ownership was transferred to a consortium comprising Abraham Leasing Limited and Abraham Group. Today . with its existence of over 60 years, the Rank has built itself a foundation with a strong equity, assets and deposit base. It offers universe banking services, while placing major emphasis on retail banking The Bank also has the largest and work of over 700 online branches in Pakistan and offers various technology-bused products and services to its diverse clientele.

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 • In provide a challenging work environment, and reward dedicated team.

LAHORE COLLEGE FOR WOMEN UNIVERSITY,LAHORE

2 • To play a proactive role in contributing inwards the society.

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CORE VALUES
• • • • Integrity Excellence in service High performance Innovation and Growth

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Brief Introduction of the Organization’s Business Sector
IMPORT EXPORT BUSINESS Allied Bank 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 I4ndle the business on behalf of customer. Running Finance It is a short term loan allowed by the bank for a period of one year. The running finance account can be operated and daily sale proceeds can be deposited into the account. Corporate Leasing Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim Leasing Limited. Facilities include leasing for machinery, commercial vehicles. Agriculture Finance The Bank under the Agricultural Financing Scheme as decided by the State Flank of Pakistan, extends short medium and long term farm and non- farm credits. The farm credits toe extended for production I inputs I and development purposes. N on-farm are ill is arc allowed for livestock (goats. sheep, and cattle), poultry and factories including social forestry and fisheries (inland and marine, excluding deep sea fishing), The function of commercial banking and application of the fundamental principles of the depositor bank relationship have remained essentially the same since about BC. Bank operation methods and procedures, on the other hand, have undergone a constant process of evolution because of economic growth, the mounting volume of transactions and greater use of banking facilities. As a result of these contributing factors, methods and practices necessary to bundle the increased volume of detail work ins e been developed “bite other and quicker

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methods have been adaptive in order in cope with the increased volume, much of which has been accomplished without unduly increasing the cost of doing business. During the last twenty years we have experienced a constant transition from the old to the new - from manual to mechanical methods and procedures - from old established prepuces to current techniques and to n more scientific approach to the solution of problems brought about by day to day changes in business practices.

OUR BANKING; SYSTEM TODAY:
The Banking Business as we know it today is composed of three separate and distinct principal functions. 1. 2. 3. The acquiring of funds to invest and loan. The investing of such funds in loans and bonds. The servicing of such funds, such as providing of checking/saving facilities, and the collection of draft, notes and checks. These functions, while differing in detail of operation, follow the same principles established hundreds of years go by money lenders and exchangers. Bank Definition “Banks are institution that enjoys the public money doing nothing for the public.” According the banking ordinance 1962 sec (6), “Banks mean the acceptance of deposit for the purpose the lending or the investment of deposit of money from the public repayable on demand or otherwise withdraw able by cheques, drafts, orders, and otherwise”

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5 Bankers

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Banker owl odes a body of persons whether incorporated or not who carry on business of banking. Customer Customer is defined as one who has account with the bank. The word customer signalizes a relationship in which duration is not of the essence. A person whose money has been accepted by he Bank on the footing that they undertake to honor cheuqes up in the ai000tit standing to this credit is a customer of the Rank in the sense of the situate, irrespective of whether his connection is of short or long standing. All the city branches accounts arc computerized.

TYPES OF BANKS
Today the principal banking and financial facilities available to serve commercial are providedand made available in them through five types of banks. 1. 2. 3. 4. 5. Commercial Banks Trust companies Saving Banks Saving and Loans association Finance, companies

COMMERCIAL RANKS Commercial banks may he defined as “moneyed” corporations, authorized by law to receive deposits and pay such funds to others on order discount and negotiate promissory notes, drafts, bills of exchange, and oilier evidences of debt: he lend money on real or personal security; to make collectives; and conduct such other moneyed transactions as are not inconsistent with its charter or the law under which it operates.

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Overview of the Organization
At the time of independence in 1947 the banks services were very badly affected and by June 10. 1948, the number of offices of scheduled banks came down to only 81 in the territories comprising Pakistan; but the by December 31. 1973 there were down scheduled Pakistani commercial banks with 3323 offices all user the Pakistan and 74 offices in foreign countries. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. National Bank of Pakistan Habib Bank Limited Habib bank (Overseas) Limited United Bank Limited Muslim Commercial Bank Limited Commerce Bank limited Standard hank Limited Australasia bank limited Bank of Bahawalpur Limited Premier bank Limited Pak Bank Limited Sarhad Bank Limited Lahore commercial banks limited Punjab Provincial Cooperative Bank Limited The facts that commercial banking has made tremendous progress and achieved a phenomenal growth since independence and that the commercial banks have duly played
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a vital role as a mobilize of peoples saving to the most important source of financing in country economy. However it was kit that these bank failed to ensure that the resources so mobilized by them flow in those sectors of economy where they would produce the goods and services needed badly by a very large number of people in Pakistan,

History of Allied Bank Ltd
ABL is the first Muslim Bank established on territory that later on became Pakistan, It was established on December 3, 1942 as Australasia Bank at Lahore with capital of 0.12 million. At that time the chairman was Kh. Bashir Baksh. ABL’s story was one of the dedication, commitment to professionalism and adaptation to changing environmental changes. The bank’s history is divided into many phases. During 25 years a! united Pakistan the bank advanced forward in all areas of its activities. I970a were a difficult decade for all Bunks of Pakistan. In 1971 East Pakistan was separated and Australasia Bank lost its 50 branches and a lot of capital as well. Nevertheless the growth remained steady. In 1974 all the Ranks were nationalized including Australasia Bank. The small provincial Banks were merged into Australasia Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan Limited. That , it started its operations as Public sector financial institution. Different Phases of ABL Bank is as Follows:

THE PRE INDEPENDENCE PERIOD (1942-47)
Australasia Bank had the unique distinction of being closely identified with sonic of the country’ most Prominent leaders of the freedom, moment. Such as Mian Mumtaz Daultana (Board of directors). Mian Iftikhar Hussain and Maulana Zafar Ali Khan. The bank originally started its operation in the garage of Khawaja Bashir Baksh’s bungalow (who was the chairman) near the Lahore Railway Station . But the success of

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Bank enforced the directors to open its another branch in Anarkali on 1st March 1944. Kh. Bashir was the chief executive. He was the person who was really working in its development. His sincerity of purpose can be judged from his great moments Another branch was opened at Amaratsar in 1945. In June 1946, the bank earned the status of scheduled bank. During 1946-47 many other branches were opened at Mcleod Road Lahore. Jallandhar, Ludhiana, Agra and Delhi. At independence the industrial and commercial sectors were underdeveloped but ABL contributed a lot in the development of these sectors.

AUSTRALASIA BANK IN PRIVATE SECTOR (1947-74)
It was the only full functional Muslim, Bank on the land of Pakistan, On August 14. 1947 bank was identified with Pakistan moment. Many of its Board of Directors Were prominent Muslim League leaders. Jallandhar and Ludhiana branches were attacks by rioters because of Muslim staff appointed in these branches of bank. But when the Pakistan flags wee hoisted on the branches then all the banks in India were closed down. With this, the bank lost a lot of capital and its deposits and almost 6 branches. During 1948 new branches were opened at Karachi, Rawalpindi. Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. But later on its branches were spread to Multan and Quetta. At that time, the bank financed trade in cloth and food grains and thus maintained consumer’s supplies during the riot effected early month of 1948. Australasia Bank made a profit of Rs.50.000 in l947-48. In August 1948 Australasia Bank became the first Pakistani Bank to-successfully negotiate and open L/C for a Sialkot based importer of books. So it also made correspondence relation, with Midland (U K), Chase Manhattan (USA) and Lloyds (India). During the treasury functions of Federal Govt. of Pakistan and it also acted as Banker to several local Govt. Bodies and to the Punjab University during this period. Treasury functions were taken by National Bank of Pakistan in 1949. In 1950-51 Chairman was replaced with his brother Kh. Sharif Bakhsh.

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During 1955-56. Mr Naseer A. Sb. became the Chairman of Board and close working relationship was forged between the new Chairman and Managing Director. This partnership proved in modernizing its operations and consolidating its financial position. In 1963 Bank had 29 branches in various cities. And deposits were 89 million and advances were 6 million. Hank was mainly concerned with general banking and trade financing (including foreign exchange transactions). It helped a lot in development of small and medium sited business houses. These were Muslim, Crescent, Haroon traders, Takht Bhai Sugar, Insaf, Punjab Soap, Pak Fruit and Saboor Oil Mills etc. In 1984, 13 new branches were opened including 3 in East Pakistan. In 1965, 17 new branches were opened and over 83% of gross profit for the year was earmarked fur development expenditure in connection, with opening of new branches. In 1966 bank opened 26 new branches and doubled its reserved funds. For the first time in history, its advances were increased to Rs. 160 million cm deposits raised by almost 58% exceeding Rs. 232 million. In 1966, central Office was built in Karachi but Head Office remaining at Shah Chiragh Building, Lahore. 16 new branches were opened in 1967 and 20 in 1968. Respectively their funds were increased gradually. 21 new branches were opened in 1971. But separation time the SI branches were lost by the bank which was a big toss.

ALLIED BANK: PUBLIC SECTOR YEARS (1974-91)
Under the Nationalization Act of 1974, 14 scheduled banks were taken over by the Government. Australasia Bank’s Board of Directors was dissolved and the hunk was renamed as Allied Bank of Pakistan Limited. Sarhad Bank. Lahore Commercial Bunk and Pakistan Rank Limited were merged into Australasia Bank. At time of migrate ARI, was scud highest among all the banks Nationalized in 974, Allied Banks first Executive Board was constituted of Mr. Iqbal A. Rizvi as President, Mr. Ajmal Khalil as Joint President and Mr. Khadim Hussain Siddique as it s1974 Mr. ID. Junejo and Mr. Safdar Abbas Zaidi joined the Board later. 116 new branches were opened In 1974 and 1.1 started participation in commodity Operation program of Government.

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In 1970’s Bank played an important part of agricultural area loans and other loans In 1976 Mr. Ajmal replaced Mr. Rizvi as Chief Executive and President. During 1974-77, 361 new branches were opened and 230 of these were located in villages and small towns, It also opened its foreign branch in London, near the Bank of England. In 980 the Bank of England granted Allied Bank recognition as a lull fledge Bank wider the U.K. Banking Act. In 1981, President was changed, in 1984, again new president was come 10 know. He tries to increase the international business. It also initiated a 01 major counter program. In 1985, mainframe computer was installed and effective management system was developed. During this period profitability was increased. New President Mr. Maqbool introduced different schemes in 1987-88. In 989, 13 branches were installed. Over 1991. 745 branches were there in all over the Pakistan.

A NEW BEGINNING
In November! December 1990, the Government announced its commitments to the rapid privatization of the Banking sector. Allied Bank’s management under the leadership of Mr. Khalid Latif decided to react positively to this challenge. In September 1991, ABL entered in a new era of its history as world’s first bank to be owned and managed by its employees. The 850 executives and 7200 staff members spread over 800 branches throughout the Pakistan established a high degree of cooperation and family feelings.

Allied bank Objectives
Allied bank has following objectives: i) ii) Main objective of Allied bank is to earn profit. To provide services to their customers and assistance in the development of commerce and trade, Allied bank also have another responsibility to give service

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to their communities. It watches the growth and development of his community especially the commerce timid business of the area.

Allied Bank Mission
To provide quality financial services with an edge of technology to businesses particularly small and medium sized interprises through a motivated Imman resource endeavoring to achieve customer satisfaction.

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COMPETITORS
Nationalization of banks in the seventies was a major upset to domestic banking industry of the country, which changed the whole complexion of the banking industry, with irrational decision at the top all the commercial banks were mode subservient to the political leadership and the bureaucracy. Specialized banking institutions were already working in the public sector. The new accountability paradigm closed the business ethics in the banking industry, and with this change stoned the disaster. Nationalization of banking industry was accompanied by violent changes in the internal aloe of rupee. The commercial banks thus lost their assets management equilibrium in time and growth momentum. They ceased to the a loaning concern and became big bureaucracies. This was accompanied by indiscreet loaning under political pressure. They suffered from three commercial diseases: non-performing loans: higher intermediation cost: and loss of initiative and entrepreneurship. The rise Labor Unions arid Officers Associations made life tough and working conditions ugly to honest dedicated and industrious workers in the realms of domestic banking industry. The era of nineties was the climax of privatization, deregulation and restructuring in the domestic banking industry and financial institutions, The Muslin, Commercial Bank was the first bank to private. Followed by Allied Bank limited, United Bank Limited and now the Habib Hank Limited have been privatized. One thing good for that particular period was the recruitment of fresh officers in the domestic banking industry through well-organized policies of Banking Council. With the decay of Banking Council there was flood of insincere, nonprofessional, incompetent candidates directly appointed/ recruited in all the domestic banks of the country. Public Sector Commercial Banks National Bank of Pakistan First Women Bank Limited The Bank of Khyber NBP FWB KB

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13 The Bank of Punjab BOP

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The government of Pakistan permitted small private sector banks to operate, which indulged in doubtful policies to promote business. The public sector banking. which constituted the backbone, thus continued to suffer because of their approach, sizes and carried over liabilities. Mehran Bank is the prime example of that kind of lax banking in the country, which ultimately merged into National hank of Pakistan i.e. last resort of domestic banking industry. Local Private Banks My Bank Limited Bank Al-Falah Limited Bank Al Habib Limited Askari Bank Faysal Bank Metropolitan Bank Limited Prime Commercial Bank Limited Saudi Pak Commercial Bank Limited PICIC Commercial Bank Limited Soneri Bank Limited Muslim Commercial Bank Limited Allied Bank of Pakistan Atlas Bank Faysal Bank

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In the meanwhile, western banks started into the business. They, with the support of ruling elite, concentrated on the big business, leaving the routine business to the local banks. This reduced the profitability of the local banks. Foreign Banks ABN Amro Bank Al-Baraka Islamic Bank American Express The Bank of Tokyo Mitsubishi CITI Bank Credit Agricole Indo Suez Deutsche Bank Doha Bank Habib Bank A.G. Zurich Corporation Mashreq Bank PJSE Oman Bank Rupali Bank Standard Chartered Bank

Specialized Banks

Zari Tarqiati Bank Limited

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Industrial Development Bank of Pakistan Punjab provincial Cooperative Bank Limited

Product Line
The following is the list or Product line of Allied Bank Limited • • • • • • • Internet Banking Online Banking ATM Network Depott Account SME Agriculture Corporate Leasing

Corporate Banking • • • • Project Finance Long Term Financing Short Term Financing Trade Finance

Investment Banking

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16 • • • Project Finance Syndication Advisory

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Financial Institution • • Cash Management Home Remittances

ORGANIZATIONAL STRUCTURE
MANAGEMENT SYSTEM OF ABL
Successful rind profitable banking management depends on two principal factors, a) The manner in which the functions of banking, that is the acquiring of deposits. the investing or converting such deposits into enrolling assets, and the servicing of such deposits, are performed.

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The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities, Allied Bank Management Banks are managed by board of director or similar group of men who are

responsible to the owners creditors, and the government for the well being in their institutions. The government selects all or some of directors not ABL. Management at ABL are given as follows;

Directors

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Board of Directors
Left to Right Pervaiz Iqbal Butt (Director) Farrakh Qayyum (Director) Abdul Aziz Khan (Director) Sheikh Jalees Ahmed (Director) Mohammad Aftab Manzoor (CEO) Mohammad Naeem Mukhtar (Chairman) Mohammad Waseem Mukhtar (Director) Sheikh Mukhtar Ahmed (Director) Tasneem M. Noorani (Director) Nazrat Bashir (Director) Mubashir A. Akhtar (Director)

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Management

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A sim T ufai l (Group Chief , Consumer & P ersonal Ban king) Iqbal Zai di (Group Chief , Comp liance) Mohammad Aftab Man zoo r (Chief Ex ecutiv e Of ficer) Muhammad Shahzad Sadi q (Group Chief , A udi t & CR R) Mujahid Al i (Group Chief , Inf ormat ion Techno logy) Kha waja Mohammad Almas (Head , Cor e Banking Projects) Tari q Mehmood (Group Chief , Oper ations) Zia Ijaz (Group Chief , Commercia l & R eta il Ban king)

Fareed Vardag (Chief Risk Of fic er)

Mohammad Abbas Sheikh (Gr oup Chie f, Spec ial Assets Mana gement) Muhammad Ja wai d Iqbal (Gr oup Chie f, Cor por ate & Investment Ban kin g) Muhammad Y aseen (Gr oup Chie f, Treasury)

Shafique Ahmed Uqail i (Gr oup Chie f, Human Resour ces) Tahi r Ha ssan Qur eshi (Chief Financial Of fice r)

Waheed ur R ehman (Compan y Sec retary)

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STRUCTURE OF ABL LIMITED
No bank can be expected to operate efficiently unless all employees with in a department, division or section know • • • • • From whom they are to receive the work they are to do, What they are supposed to do with the work after they receive it, How they are supposed to handle the operation of item. When they are supposed to do work, perform the operation. To whom they give the item or function after finishing it.

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To perform the functions efficiently the hank has is Head Office in Karachi. which is controlled by the president of the Bank. The hank has regional office under head office in areas of the country. Regional Chief heads this of 15cc. The region Consist of many zonal offices with a zonal chief. There are many branches in a Zone to cavity the functions effectively and performing customer services locally. ABL Ltd. is functionally organized into divisions and divisions are further divided into department and sections. Every province has its own regional office and zonal offices. Executive vice president heads the divisions and departments are further headed by OCT (Officer of Grade l, Manager heads branches.

BRANCH NETWORK
There are Four Provincial headquarters of Allied Bank Limited situated at Lahore Punjab Karachi (Sindh), Peshawar (NWFP & And Kashmir) and Quetta (Baluchistan). 800 domestic branches Arrangements with large camber of Correspondent Banks/ Exchange Companies Over 200 branches for Foreign Currency Accounts Over 70 branches for trade finance. Large number of branches for Inland Remittance Large number of branches for Rupee Travelers Cheques

PROVINCIAL HEADQUARTERS
Punjab: 196/Upper Mall, Lahore Sindh: Jubilee Insurance House, II. Chundrigar Road. Karachi

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23 NWFP: 1st floor, State Life Building, The Mall. Azad Kashmir: Peshawar Cantt, Baluchistan: C.C, & Building, Zerghoon Read, Quetta.

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Now with its network of over 800 branches located in the urban and rural areas throughout Pakistan, Allied Bank is positioned to provide personalized banking services to its customers at locations convenient to the customers. ARL has invested extensively in branch automation. 560 branches out of a total of $19 branches are computerized Mr. Khatid A. Sherwani. took, over as President of Allied Bank on 18th October 20(X) The President gave policy guide tines and the strategy to rim the affairs of the Bank in the light of changed requirements of the banking Industry. He emphasized that the flank Executives, officers & staff must work fearlessly and put in nil-out effort to ensure steady growth of the Bank. He emphasized that customers have to be given the best possible service as it is they who are the source of our growth & success,

TRAINING ACADEMIES
Allied bank Limited has five training academies. two in Lahore. Two in Karachi. and one in Islamabad, In these training academies the new as well as the existing staff get training. When a new employee comes in ABL then most often he is sent to any of these academies for training. The training period may be minimum of one-month upto maximum of one year. The training period depends upon the nature of the job. During the training the new employees are acquainted with all the necessary information about their jobs. When any change occurs in the policies of the Bank, then the seminars are held in these academies in which employees as well it’ executives participate to get information
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about the new policies of the Bank. For example if the Bank policy regarding the financing schemes change when the Managers of the Advances Section are invited it, these seminars, They learnt about the new changes and then implement these changes in their branches. In these academies it permanent staff is present for the training of employees. However if requires subject specialists are invited to deliver lectures on certain subject. For example the bank has a contract with Saijad Associates which send its executives to deliver lectures on project financing. Exams are also held in these training academics.

Branch Working
The Branch of ABL Ltd. is responsible to provide all services to its customer. This branch is located in Green Town Lahore.

FUNCTIONS OF BRANCH OF ABL LTD
There are following functions which are performed by Allied bank Limited Branch. The Bank provides deposit facility to its customers. The types of deposits are: a) PLS Saving Account In this type the depositor shares profit and loss with the bank. b) Fixed Deposits They bear high profit, but these can only be withdrawn after a fixed period of time C) Current Accounts No profit is paid on these deposits but amount could be withdrawn without any restriction.

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Branch Hierarchy

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Plan of Internship Programme
I have worked in General Banking Departments and following are the departments where I worked and their detail is given below Duration Timing 4 weeks 9:00a.m to 5:00p.m

General Banking where I worked General banking is one of the major departments of Allied Bank, Ltd. it consists of sub department, which are following 1. 2. 3. 4. 5. Current department Token department Remittance deparment Clearing department Accounts department

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Cash Department
Naeem Qadri Cash Officer MG-11

Following are the main work responsibilities but not limited to: • • Receipts Cash management (To ensure the availability of sufficient cash in all denominations for payments and transit excess cash to chest branch) • Preparation of cash related books/ statements (Cash in out, prize bonds sale purchase, excess cash, cash sorting stmt, cash received/ sent to chest Br. Etc.) • • Custodian strong room, cash vault keys Any other activity assigned from BOM/ BM

Muhammad Noman

Teller

MG-12

Following are the main work responsibilities but not limited to: • • • • • Payments Custodian offsite ATM key & FC cash vault key Maintenance of fresh notes issuance record as per SBP requirement Sorting of cheques Any other activity assigned from BOM/ BM

Adnan Nabeel Awan

Teller

MG-11

Following are the main work responsibilities but not limited to:

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28 • • • • • • • Utility bills collection and timely dispatch of stubs Proper record of utility day end

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Monthly dispatch of LESCO/ SNGPL statements to respective companies Collection of AIOU/ NTS fee etc Custodian onsite ATM key and utility draw key Voucher numbering Any other activity assigned form BOM/ BM

Bisma Nasir

Officer

MG-11

Following are the main work responsibilities but not limited to: • • • • • • Posting (inward clearning, transfer vouchers, online) Utility bills through FBP Custodian onsite ATM and combination key Sorting of credit voucher Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/BM

Usman Ali Khan

Officer

MG-10

Following are the main work responsibilities but not limited to: • Incharge assets portfolio (advances/ credit)

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Preparation of statements related to advances (classification, PDO, watch list, NPL markup receivable, LG’s Basel-II, quarterly, yearly, etc)

• •

Timely renewal of R/F limits & LG’s Timely recovery of markup, installments (if any) and eCIB, credit processing, LG commission, Legal charges, etc

• • • • • • • •

Custodian offsite ATM and combination key Supervision of scanned CNIC’s and check card status Vouching inward advices Maintenance of leave record register and staff personal files Balancing of stamps in hand/ LG cash margin Branch security officer Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/ BM

Muhammad Umair

Officer

MG-10

Following are the main work responsibilities but not limited to: • • • • Issuance of cheque books Issuance of PO/DD/DAC Balancing of PO, DAC, DD Payable, FOBC and cheque books FC incharge (daily/ weekly/ monthly & SBP returns). FOBC, FTT

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Custodian acct. test keys, FC cash vault, security stationary & IBS books Maintenance of missing/ lost security instruments information and duplicate walk in customer file

• •

Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/ BM

Amber Rizwan

Officer

MG-11

Following are the main work responsibilities but not limited to: • • • • • • • • • Collection of cheques through clearing (Local/ intercity), OBC Inward outward DAK Issuance of ATM cards Maintenance of captured ATM card record as per SBP requirement Handling other than own machines disputed transaction cases Calling customer ledger (51 No. Stmt) Balancing of OBC Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/ BM

Shareena Ehsan

Incharge Banking

MG-11

Following are the main work responsibilities but not limited to: • SOD (Start of day starting of unibanking system)

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31 • • • •

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Supervision of all types of vouchers/ cheques including online transactions Supervision of SS cards Preparation and reconciliation of Pak A/C extract Maintenance of IBR, Dr. Clearing. CHQ return Stop payment, standing instruction, ATM cash replenishment & duplicate walk in customer file

• • • • •

Deduction of charges/ commission as per SOC Custodian strong room, cash vault, lockers room keys Arranging of sorted vouchers Updating old accounts personal information in unibanking (63 option) Supervision & monitoring of cash department in respect of parallel banking, picketing of commission, KYC, AML and to provide complaint free counter service

Re-allocation/ assignment of duties within cash department for equal work load, keeping customer tendency during month at particular counter to reduce rush

• •

Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/BM

Shireen Rasheed

Officer

MG-11

Following are the main work responsibilities but not limited to: • • Incharge liabilities portfolio (deposits) detail Account opening filling and completion of formalities
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32 • • • • • Letter of thanks issuance & SS cards scanning Calling IBR and general voucher (90 No. Stmt) Locker operations and balancing of lockers key deposit

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Balancing of deposit heads (ABBS, AMIS, MMS, RTDS, AADS, MPP, etc) Letters sent to dormant accounts (month wise), unclaimed accounts (there AI) notices annually) and TDR/ fixed deposit holders at maturity.

• • • • • • • • • •

ICU/ audit compliance Incharge project accounts (Hajj/ IPO etc) Processing of day end & daily backup weekly rotation basis Any other activity assigned from BOM/ BM Letters to TDR holders on maturity Letter of thanks SS cards & scanning Calling IBR & general A/C opening documentation Locker operations

Usman Arshad

BOM

MG-10

Following are the main work responsibilities but not limited to: Customer Services

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33 • • • • • Account opening in unibanking

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Issuance of TDR/ certificates etc. and pre mature encashment Issuance of ATM PIN codes Handling disputed transaction cases of branch own ATM’s Customer services (Dormant A/c, Sundry claim, signatures/ address change etc)

Operations • • Overall supervision of branch operations and internal controls Custodian strong rooms, cash vault and lockers room keys, manager test keys and security stationary • • • • • • • Preparation weekly/ Monthly statements CNIC scanning/ accruals/ maintain budgetary limits/ stationary consumption Balancing of sundry/ stock of stationary Regional office correspondence/ statements Audit compliance/ rectification Calling stmt no. 27, 50, 600 & security printout Any other activity assigned from ROM/BM

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Training Program
Current Department This department maintains all formalities of the accounts and accounts holder, like accounts name, account holders name, code No., and full address. Different cheques debit and credit voucher come from different departments like Token. Clearing. Remittance, Cash, and Foreign Exchange. Advance and posted against different accounts. A working Journal called Manual is prepared daily which shown the balance accounts of all parties. Mark-tip and profit are calculated daily. That would he debited or credited front or to Account holders account after specific period of time, Mark-up is debit from the account after every three month and profit is credited to accounts the every 6 month. New accounts are also opened in this department Total function perform by this department is shown by block diagrams, These diagrams show the sequence of activities, These are simplified diagram of what is actually being done in current department and what happen to a customer department to open an account in the branch, Following art the three accounts, which are maintained by this department, 1. 2. 3. Current Account Saving Account Fixed Account

TOKEN DEPARTMENT

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In token department, token are issues for the encashment of cheques Demand draft. Telegraphic transfer. Mail transfer and miscellaneous expenses voucher of bank before issuing term we check the following 1. 2. 3. 4. Date should be current or previous not advance Specimen Signature of account holder should there Signature of hearer should on backside of cheques Amount should be tame both in figure and words In case of DD, checking sign Of authorized officer of bank if there is any discrepancy in above-mentioned point, no token would be issued, Before issuing taken, we stamped on backside of cheques and write the- no of token both front and backside of cheques, etc. After -all the process, the entry of cheques would be posted on the given register, which includes token no., Code no. and amount. After taking hours total amount on register would be mall at the cash department amount, that which has paid Any cheques that returned front the current department because of any a debited that the total amount on the register an token department.

CASH DEPARTMENT
Cash department deals with the cash, which either comes in the Bank or goes Outside the bank. Cash can be in any form of currency.

SOURCES OF THE CASH
There are different sources through the cash inflows the Bank These sources are as follows.

DEPOSITS

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This is the major source of the cash inflow. When someone deposits the cash in the Bank in any currency, it means that the cash is coming in the Bank.

1.

DEMAND

DRAFT

AND

TELEGRAPHIC

TRANSFER

COMMISSION
These are the second major sources of the cash inflow of the Bank. When the bank issues the DDs and TTs on the behalf of customer then the Bank lakes certain charges as commission. These DDs and the TTs can be issued in any currency on the demand of the customer,

2. PRIZE BONDS. FEUCS, NDSCS ETC
Prize bonds, FEBCs and NDSCs ore other sources of cash. These instruments are sold to the general public and cash is received form them. Though this cash is ultimately transferred to SKI’ but still the Bank has to manage this cash.

MANAGEMENT OF CASH
It is necessary for every branch to maintain a specific amount of cast, with it 9’ any rinse. so that when a customer comes to get cash, he may get it promptly. If a branch tot able to main Lain Soc Ii appropriate level f cash then it will have a bad effect on repute and it will not be able to fulfill the customer expectations. So, effective management of cash is very necessary for every think. ABL has pat an appropriate limit on its branches that they should keep that minimum levels of casts wit them at any time. This limit is different for main branch and other sub-branches.

TREATMENT OF SURPLUS CASH
The surplus cash means the cash, which is over and above the limit of any particular branch, It may happen that a branch may have the surplus cash with it, If a sub branch has surplus cash with it than that of limit, then it will transfer the surplus money to head office in Karachi through the SBP, If these surplus funds remain with there main branch, they will be of is use and will act as like money because they are change no
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profit. So these funds are remitted to the head office, where they are invested and will earn profit for the Bank. The main branch earns the profit on the funds which it returns to the head office. Currently this rate of profit is 13%. The-re is no profit given or, the funds which she sob-branches which they transfer to the main branch.

TREATMENT OF CASH DEFICIT
As surplus of the cash occurs, similarly the deficit can also be there in the Bank. It moans that the cash shortage is there in the branch. To cover this shortage the patterns are followed. If shortage is there in sub-branch, then it any take the cash from the main branch. If the main branch has the shortage of cash, then it may take the foods from the head office. The head office charges certain rate of profit, which is 13% on the funds, which it remits to the main branch. There is no profit charged by the main branch on the lands provided to the sub-branches.

CASH IN TRANSIT
The cash, which is transferred from any sub-branch to Main branch or From main branch to SBP is called cash in transit, There is limit of cash in transit on main branch, This limit is of Rs. 20 millions i.e. main branch can take the cash from any sub-branch or can transfer the cash to SBP up to the limit to the 20 millions.

INSURANCE OF CASH
All the cash al the Bank is insured. The major companies, which insure the cash include Adamjee Insurance Corporation, General Insurance Company and East West Insurance Company. The Central Office pays all the expenses of the insurance of cash.

SECURITY ARRANGEMENTS

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Pew years earlier, the bank has its own guards for the transfer of the cash Irons main branch in slip or from sub-branch to the main branch. But now the Bank has hired a security company for the reference of cash. This company is Brink. The commission which is charged by the Brinks Company varies from place to place and is different for different amounts of cash,

CLEARING DEPARTMENT
Introduction The Bank is the member of the Clearing House and receives Cheques demand drafts and other negotiable instruments for presentation of its payment by the branch of a drawee bank located within the city other then ABE.. The proceeds of the clearing instruments arc credited into the account of the customer. The clearing facility is ‘available on all working days. Wherever the clearing facility is both available or the drawee institution is not the member or clearing house the Bank receives Cheques demand draft or negotiable instruments for collection and upon receipt of payment from the drawee the same is credited into the account of the customer. Clearing may be outward or inward.

OUTWARD CLEARING
Suppose a customer deposits cheque in ABL HASSAN ARCADE BRANCH, drawn on Habib Bank Lahore Cantt branch. Then the representative of ABL. HASSAN ARCADE BRANCH will take this cheque to the Clearing house in SBP, where representatives of all banks gather daily. Now In fist clearing this cheque will be exchanged with the representative of Habib Bank Muttan Cant branch. In he second

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entering, if the cheque is honored, he will tell it to the ABL representative and so the SUP credits (lie account of ABL HASSAN ARCADE BRANCH and debits the Habib Rank Multan Cant branch through the clearing account. This is called Outward Clearing.

INWARD CLEARING
Suppose a person deposits a cheque in Habib Bank Mulian Cant branch, drawn on any AaL Moltan brunch: Let it be the ABL main bninch Cant. The representative of HBL will exchange this cheque with the ABLs representative in the first clearing in Clearing House. If the cheque is honored by the ABL main branch then SBP will debit and Qereshi the respective accounts. This is called Inward Clearing.

TRANSFER DELIVERY
The clearing between the ABL's own branches within one city is called Transfer Delivery. During this clearing Pak Account is not involved. In ABL, it is done twice in a week. The Bank charges no commission from its customers for this transfer delivery.

BILL/ REMITTANCE DEPARTMENT
Bills far collection means the Cheque or DDs/TTs/POs which are received from or sent to other branches outside the eit4 for collection, drawn on any other Bank. Bills the collection may be inward or outward. Remittances means, the transfer of cash from one price to other place through paper transaction. Remittances nay be inward and outward,

BILLS FOR COLLECTION
There are two types of bills for collection. 1. 2. Inward bills for collection (inland & foreign) Outward bills for collection (inland & foreign)

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INWARD BILLS FOR COLLECTION
Suppose a customer of ABL Mall Branch Lahore deposits a cherub drawn in the name of Habib Bank Multan Cant Branch. Now the ABE Mall Branch Lahore will send this cheque to ABE Main Branch of Multan for collection front Habib Bank Branch, New ABL Main Multan branch will collect this cheque from Habib flank Branch through clearing, and will remit the amount to the ABL Mail Branch Lahore. This is called Inward Bills for Collection (inland) for ABL Main Branch Multan. It wilt he recorded in Inward Bills Collection Register, In the same way if the cheque is received for collection drawn in any other Batik From Foreign Branch of ABL. then this ill he called as Foreign Inward Bills for Collection. It wilt also he recorded in Inward Bills Collection Register.

OUTWARD BILLS FOR COLLECTION
When any branch of API, sends a cheque Or DD/TT/PO to main branch ABL in another city for collection from any other bank, then it is known as Outward Bilk for Collection, Suppose a person deposits a cheque in ABL Samnabad Lahore branch draw a on Habib, Bank total Now A 131. Samanabad branch is will send cheque branches for to a Habib branch Lahore Lahore will collect his cheque through clearing Hahib Bank branch through clearing and will remit the amount to ABL Samanabad branch Multan. This is called Outward Bills for Collection (inland) and it will be recorded in outward Bills Collection Register. In the same way, if ABL Green Town branch sends any cheque or DD/TTIPO to its foreign branch for collection irons any other Bank, then if will be called as Foreign Outward Pills for Collection and will also be recorded in Outward Bills Collection Register.

COMMISSION
The rate of commission for both Inward and Outward Bills for Collection is .25%. with a limit of minimum of Rs 20 plus courier charges.

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REMITTANCES
The remit lances can he made through the following mode of transference. 1. 2. 3. 4. Demand Draft (DD) Telegraphic Transfer (TT) Payment Order (PO) SEP Cheque

DEMAND DRAFT
It is a kind of cheque which is issued by the ABL to the other hunks or other branches of the Alit. on the demand of the client, On the Demand & Draft there are different heads mentioned on that. Such as he amount to be sent, the name of the person It, which it is to he sent. It is very convenient and safe method of sending the money rum one face to another. The businessman to transfer or send the money from one place to another usually uses it. If one person issues the DO in the name of other person, then it can be transferred to the account of the second person easily DD can be in Pakistani Rupee or in arty Foreign Currency. When DD is issued, it is given to the person, who wanted to make it. At that time Bank will have no concern with that DD but an advise is sent to the concerned branch that we have issued the DD of such amount and on the name of this person, and you will pay him on the demand of the client. This DD can be closed before the issuing the contacts. On issuance the DD, Bank take some commission.

TELEGRAPHIC TRANSFER
It is also a way of sending the money from one place to another. Like DD certain forms are to be filled. In this the message sill not be sent through the paper but with the help of the fax or things like that.

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PAYMENT ORDER
It is an order issued by the Bank and payable on itself, through this client can easily transfer the money from one person to another within the same city. It is a written document on which the certain commission is to be paid and certain documents are filled by the client. For this certain amount is needed to deposit with the Bank.

PROCESS FOR REMITTANCE
All branches of ABL deal with each other through a central account named as Pak Account”.

PAK ACCOUNT
Pak Account is maintained Central Office Karachi. In Central Office there is an account of every branch and all these accounts of all branches ac maintained through this Pak Account, In Paks Account, a specific code has been allotted to every branch account. These Pak Acceptant controls all the remittances made by different branches. Remittances may be outward or inward.

REMITTANCES OUTWARD
Suppose a permit comes to the ABL HASSAN ARCADE BRANCH and asks to make a Demand Draft (DD) of Rs. 50,000/- in the name of beneficiary whose Bank is ABL Mall Branch Lahore. Now the ABL Multan branch will receive the cash and prepare the DD of Rs.50, 000/- and will send it to the ABL Lahore branch. At the same time it will also prepare an advice and send it to the Central Office. In this advice, the ABL Multan branch will tell the Central Office that it has sent a DD of amount Rs. 50000/- to the ABL Mall Branch Lahore, so make its account debited by Rs. 50000/ and make the account of ABL Mall Branch Lahore credited with the same amount This is called “Remittances. Outward”

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REMITTANCES INWARD
Similarly when the ABL Mall Branch. Lahore sends a UD/TI/PO or cheque to A141. Multan Cant Branch then it will be remittances inward fur his branch. This type its account will he credited by central office in Pak-Account and the account of ABL Mall Branch. Lahore will be debited.

REMITTANCE IN TRANSIT
Suppose the ABL Main Branch. Multan Wants to send the surplus fund It, the central office Karachi. This branch will first deposit the funds in the State Bank of Pakistan, which will transfer these funds to central police. Karachi - Here she SW acts as a cash account. Now the ABL Lahore, Branch will send an advice to central office. Karachi that ii had remitted that many amounts through SB? This is called Remittance in Transit, Now the SB? Lahore, Branch will remit this fund to the SB? Karachi. Branch and from (here. lands will be ultimately transferred to the central office. In the shine way when ABL Lahore Branch requires the funds then Central Office will remit these funds through SB? and will send not advice to the ABL Lahore, Branch. The funds will be ultimately transferred 1mm SBP Lahore, Branch to AEL Lahore, Branch, This is also Remittance in Transit.

FOREIGN BILLS AND REMITTANCES
These can be 1. 2. Foreign Currency Telegraphic Transfer Foreign Currency been and Draft Allied hank can transfer funds to the remotest of the country for payment/credit to the account or the customer himself or a third party, through Telegraph Transfer for lie payment on he same or next day.

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The Bank also issues the Demand draft for remittance of fund by customer. The demand draft can be issued in favor of the purchaser himself or a third party. It is secured and convenient to send/carry, instead of cash.

TELEGRAPHIC TRANSFER
In this case the authority is given to one bank lion, another bank on the behalf of the customers through telecommunication to debit their inter office account with them and credit his/her or pail vs account mentioned in telegraphic transfer (T.T.) This is the fustiest way of transfer money from one place to another within the country as well as out side the country. As we know that when flank issues a T.T. it is given some service to the customers. so service charges for issuing T;T’S, credit vouchers are prepared. Crediting the cable charges and a debit advice is made for the party telling them that s.’ much services charge have been deducted from your account with us, All the TT’S are serially numbered. There ale two types of VT’S, 1. 2. Incoming TT’S Out-going TT’S So far both type of TT’S separate registers are maintained. While issuing a VU a confidential code no. called the lest numbers is also being given to VT by two authorized officers and this code number is only under stood by the two other authorized officers in the receiving bank. By this lest some multiplications ‘C done which confirm the instructions in the body of TX.

MAIL TRANSFER
As it is clear from its name that in this ease the transfer of money (in the shape of a document) takes place through mail. The procedure is like TT. That is instructions are given in the receiving bank that inter office account should be debited and edited to the mentioned party’s account, It is slower as compared to the TT. Records are maintained in

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the same way as of telegraphic transfer commission is also charged in the same manner hut at a different rate.

ACCOUNT DEPARTMENT
Every Transaction, which takes place is recorded in the computer. Transaction takes place through different vouchers which are finally posted to computer. As I already wrote that total branch was computerized so all transaction in different dept would be macleon computer. Each dept prepare a summary of daily transaction ‘at is forwarded to Account dept. Since all voucher tram differ-it dept. also forwarded to current dept. So this dept. will tally such transaction wash current dept after maintaining the ledger each dept. The dept take care about bookkeeping maintains ledger and current accounts of different dept. Following are the different functions performed by this department. 1. Preparation of monthly, quarterly, semiannually and yearly balance sheet of the branch. 2. 3. Ta maintain all accounts of different department. Calculation of profit of different investment schemes.

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46 4. 5. 6. 7. Calculation of markup of different advances.

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Preparation of different type of reports far state bank of Pakistan. Preparation of daily position report of cash and every account. The most important function is the checking and to living daily summaries of different departments with ledger’s balance

DEPOSITS SCHEME
Deposits to the tank arc as cite backbone to the body of main it is lifeblood of a hunk. The hank borrows money him general public by accepting or by au offering suitable rate of lit on them, or simply promise to repay on demand. When the hank receives the deposits it becomes the debator and client assents position of creditor. At ABL the main thrust is on customer satisfaction. The Bank provides many opportunities to place the funds in variety of deposit accounts including foreign currency deposit account and offer a wide range of facilities and services tailored to suit he personal as well as domestic and foreign baldness requirements of its customers. The different deposit schemes offered by ARL ore as follows:

1. Current Deposit Scheme
Purpose The purpose of this account is provide the facility to the account holder that he can deposit or withdraw any amount of money from his balance at any time. Deposit of Funds
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Funds can be credited into the current deposit account in the ferns or cash, Cheques and other financial instruments drawn on any other Bank or any other branch of ABL. Minimum & Maximum Balance This account can be opened with a minimum balance of Ks. 100 und there are no maximum limits on balance.

Mark- Up No Murk-u p is gives to the current deposit account holders. Furthermore the current accounts are exempted from Zakat.

2-PLS Saving Bank Deposit
Minimum & Maximum Balance Profit and Loss sharing Bank account can be opened with a minimum of Rs. 100. There are no I nuts on the maximum balance. Deposit of Funds Funds can be deposited into this account through Cash, Cheques and other financing instruments drawn on any Bank or any other branch of ABL. The Bank will take care of to see that the credit and debit entries are correctly recorded in the accounts of the account holders but in case of any error, the Bank shall be responsible make the correct adjusting entries without noticing the account holder and recover any nnou,n due from the account holders.

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Profit
The profit is given utter every sis months and the rate of ph>lit is announced semi annually. The overall profit of Bank for six months is determined and on that basis the rate of profit on this account is calculated, The profit is given to the account holder on the month wise product it is determined on the mininlum balance of account from 7th to 3lsL of every month. The PLS saving rate announced by AUL on 31st June. 2008, far the next six months is 2.5%. Eligibility for Sharing profit/ loss of the Bank PLS saving account having a matting minimum credit balance of Rs. 01). would be eligible for sharing profit 055 of the 13 an k the ton of the profit loss into Ac etcH shall he determined by the Sank in its sole and he hank decision shall he final and huiding on the PLS Account holder. The Bank shall be within its rights to make investment of credit ablates/deposits In PLS Saving Account in any manner at its sole discretion and to make use of the funds to the best of its judgment in the banking business under the P1_S system.

Withdrawals
Account holder can only withdraw suits from his account by means of Cheques supplied to him, by the Bank for that particular account. Cheques should be signed as per specimen signature supplied to the Bank and if there is any alteration in the signature of the drawer then it must be authenticated by the drawers Cult signatures. Post dated and stale Cheques shall not be paid. Withdrawals front PLS saving sickouts are allowed not more than eight times in a month and a total amount not exceeding Rs. 25.000. For withdrawal of larger amount, seven days notice is required lobe given

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STRUCTURE OF THE FINANCE DEPARTMENT

Central Departmentalization

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Branch Departmentalization

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FINANCE DEPARTMENTALIZATION
Following divisions arc there in finance departments

ADVANCES DEPARTMENT
• • • Introduction Securities Types of advances

INTRODUCTION
The function of advances department is to lend money in the form at clean advances, against promissory notes, as well as secured advances against tangible and marketable securities, 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 arc as under Securities 1. Guarantees When an application fur advance cannot after arty tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant. 2. Mortgage A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or Is’ be advanced by way of loan, and existing or future debt or the performance of an engagement which may rise to a pecuniary liability. The transfer is called a mortgagor, the transference a mortgage.

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When property in the shape of goods is charged as security for loan form he bank the ownership and possession is left with the borrower. the goods are odd to he Hypothecated The essence of hypothecation is that neither the property in the goods not the possession of theta are possession is -left with the borrower, the goods are, said to he Hypothecated the essence of hypothecation a that neither the property in the goads not the possession of them are possessed by the lender but the security is granted by means of letter of hypothecation which usually provides for a banker’s charge on the hypothecation goods. 4. Pledge In a pledge the ownership remains with pledge, hot the pledge has the exclusive possession of property until the advance is repaid in full. White in case at the pledge has the power of sale after giving due notice. 5. Promissory Note Sometimes promissory note is also accepted as a security, ‘A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker, to pay on demand or at a fixed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument.” A promissory note is incomplete until ha’ been delivered to payee or the bearer. Moreover, the stain promised in a promissory note may be made by two or more makers who may be liable there on jointly and severalty.

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TYPES OF ADVANCES
The advances which are given by Allied Bank Limited are as under:

1.

DEMAND FINANCE (Ordinary Loan)
Demand Finances arc those advances which are allowed in lump sum for a fixed

period and are repayable lump sum or gradually in installments.

TYPES OF ADVANCES
• • Demand Finance (Packing Credit) Scheme introduced by St-aft Bank of Pakistan for exploiter of carpet surgical instruments at ten’ percent rule or interest. While banks provides al confessional rate of interest. • • Loan ordinary (Demand Finance to Students) Qarz-e-Hasuna Scheme Loans are allowed to (he students, teachers without ally interest or mark up with the recommendations of the MPA or MNA • • • • • Demand Finance (Staff) Loans are offered to the staff of the following four categories House Building Loans against mortgage of property Loan for purchasing vehicles Loan equivalent to months salary

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RUNNING FINANCE (Overdraft)
Running finance (oh! name overdrafts are advances, which are generally, given to meet temporary requirements of the customers. A good customer use the banks running finance limit as a mean of protecting his credit in the market and its a line of security meet his commitments.

TYPES OF RUNNING FINANCE
Unsecured Under such type of overdraft the hank pay upon the personal security of the customers mentioned on the customers account, Secured Under this type of overdraft the bank allows his customer to withdraw more than his deposits after giving security against the amount overdrawn. The securities against which they given are: Share certificate, Saving certificate Deposits Mortgage of properly Guarantee of person

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CASH FINANCES (Commercial Loans Inward)
This type of loans are given against following • • • • • Against locally manufactured goods. Cash finance against Rice and Paddy Against pledge Against commodities Besides advances against the above commodities parties for advances against other commodities like tobacco, oil, may approach bank. To obtain adjustment of an overdue account or to facilitate the borrower to self the pledged good it is some times necessary to deliver a portion of the goods, against the trust receipt and promise from she harrower to despoiled the sale proceeds with die bank.

Small Loans Loan is allowed to contractors clearing and forwarding agents,

FINANCE AGAINST THE FOREIGN BILLS (FAFB)
The advance facility is allowed both to local foreign bills and is classified as finder FAFB (Local) advance against Railway receipts and truck receipt accompany of exchange and invoices, are given under this head.

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FAFB (Foreign) advances against foreign bill, covering bills of exchange bills of lading airway bills of exchange hills of lading airways bills etc.

AGRICULTURE LOANS
Loan to the farmers with holding up to 25 acres for meeLing their short terms and long terms Agricultural production requirements, such as: Agricultural inputs Tube wells Live Stock Framing Land improvement

INDUSTRIAL LOANS
Besides the short-term loans which play a part in working capital tedium and long-tern, loans ape also to industrial sector for purchase of machinery and other capital nut ate goods..

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FOREIGN EXCHANGE DEPARTMENT
International trade is growing and with the development of international trade it has become more imperative. For countries to devote more and more attention to the complicated mechanism of Foreign Exchange. It is more important in case of developing countries. It is need of time, that a country should conserve its foreign exchange resources,

MEANING OF FOREIGN EXCHANGE
The foreign exchange term refers ho the principles that determine the rate of exchange. Ii covers following three senses: The mechanism or system by which international obligations or indebt edits lire tilled. The currency to one country is exchanged for that of another. The principles on which the people of the word settle their debts to one another.

FOREIGN EXCHANGE TRANSACTIONS
The foreign exchange transactions are usually of two types. i. Merchandise Transaction

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These consist of risible imports and exports, i.e. the purchase of goods for abroad and sale of goods to abroad. ii. Service Transaction These represent inward and outward payments in respect of shipping, insurance, banking and travel services. It includes payments in respect of (merest, dividends, rails and profits etc. iii. Unrequited Transfers In indicates the payments and receipts from of reign countries in shape of suet, items as home remittances by workers abroad, gifts, aids etc.

iv.

Capital Account Transactions These are further divided into two classes:

i.

Long Term Capital Transfers Those transfers whereby residents of one country acquire securities (stocks and

bounds) and tangible asset. (land etc.) in foreign countries with the purpose of earning profits in future. ii. Short Term. Capital Transfers Those transfer which more relatively quickly from country to country; Fore speculative purposes To take advantages of differences in interest rates As balancing items where a country has a debit or credit balance on current accounts. The Important examples art: Money Gold, and

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59 Holdings of commercial credit, bills, cheques etc. Transactions with I.M.F.

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BILLS DEPARTMENT
Bills department performs the following functions. Inward Bills for Collection (IBC) Outwards Dill for Collection (OBC)

INWARD BILLS FOR COLLECTION (IBC)
These are halls or cheques etc which are collected locally. They are received from outstation branches banks and parties. -

DEMAND DRAFT
If refers to the payments of money on demand of the holder of draft. Demand draft includes DO issues and DD payable.

OUTWARDS BILL FOR COLLECTION (OBC)
CLEAN BILLS These are negotiable instruments, drawn on outstation branches, hills sent for collection on behalf of the customers i.e. cheques drafts or treasury bills etc.

DOCUMENTARY BILLS
These are hills accompanied by documents such as R.R ‘FR l3ills of landing etc. having title to goods collected by the bankers on behalf of their customers,

PAY SLIP
Pay slip is an instrument in receipt issued by the bank in the following cases:

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60 On account of expenditure incurred by the bank.

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On account of refund of a payment to a persons under certain circumstances.

PAY ORDER
Pay order is issued to oilier banks for collection of make the payment as said.

ACCOUNTS DEPARTMENT
Usually Accounts are maintained iii two ways: Journal System Vouchers System Journal system is adopted by some commercial industrial institution. In journal system entries are reported in journal books and then posted to ledger. Voucher system is used for every transaction Voucher has so be prepared either in cash or in transfer or in clearing, the Sheet upon which these vouchers are announced transactions-wise and consolidated into a figure is called supplementary. Types of Supplementary Debit Supplementary Credit Supplementary Debit supplementary is used for debit voucher and credit supplementary is used for credit voucher banks and registered maintained by hank are as follows: General ledger Statement of daily affairs, Cash hook or Cash cum day hook, Transfer book Income and expenditure ledger etc. Income Includes Brokerage (A bank sells and buys share, stocks, debentures, other securities and receives payment for these services).

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61 Discount Service Charges Rent (On building) Commission (from utility services)

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EXPENDITURES INCLUDES
Salaries, allowances and provident fund Rent, taxes, insurance, lighting etc. Profit paid on deposits and borrowings Postage. telegram and stamps: Stationary, printing and advertisement charges etc. Auditor’s fee and legal charges.

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Functions of the Finance Department
CASH COLLECTION Cash department deals with the cash, which either comes in the Bank or goes out side the Bank. Cash can be in any form currency. SOURCES OF THE CASH There are different sources through the cash inflows the Bank. These sources are as follows. DEPOSITS This is the major source of the cash inflow. When someone deposits the cash in Urn Bank in any currency, it means that the cash is coming in the Bank. 1. DEMAND DRAFT AND TELEGRAPHIC TRANSFER COMMISSION These are the second major sources of the cast, inflow of the Bank, When the Bank issues the DDs and 1’Ts on the behalf of customer then the Bank takes certain charges as commission. These DDs and the’rfs can be issued hi any currency on the demand of the customer. 2. PRIZE BONDS, FEECS, NDSCS ETC Prize bonds, FEBC’s, and N’DSCs are other sources of cash, These instruments art sold to 11w general public and cash to received front them. Though this cash is ultimately transferred to SUP of still the Bank has to manage this cash.

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MANAGEMENT OF CASH
It is necessary for every branch to maintain a specific amount of cash with it at any time, so that when a customer comes to get cash, he may gel it promptly. If a branch is not able to maintain such appropriate level cash then it will have a bad effect on its repute and it will not be able to fulfill the customer expectations. So, effective management of cash is very necessary for ever Bank. AUL has pull an appropriate limit on its branches that they should keep that minimum levels of cash wit them at any time, This limit is different for main branch and other sub-branches.

TREATMENT OF SURPLUS CASH
The surplus cash means the cash, which is over end above the limit of any particular branch. ft may happen that a branch may have the surplus cash with it. If a sub surplus has cash with is than that is limit en is wilt transfer, it to the main hr inch is daily has. It be main branch has the surplus limit then he will transfer the started money to head office in Karachi through the SBP. If these surplus funds remain with the main branch, they will be of no use and will act as idle money because they the earning no profit. So these funds are remitted to the head office, where they are invested and will earn profit for the Bank. The main branch earns the profit on the funds, which it remiss to the head office. Currently this rate of profit 1s13%. There is no profit & even on the funds which the sub-branches which they transfer to the main branch.

TREATMENT OF CASH DEFICIT
As surplus of the cash occur, similarly the deficit can also be there its the Batik. It means that the cash shortage is there in the branch. To cover this homage the patterns are followed. If shortage is there in sub-branch then it may take the cash front the main
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branch. If the main branch has the shortage of casts, then it may take the funds from the head office. The head office charges certain rate of profit, which is 13% on the hinds, wit id, it remiss to he ‘‘lain branch. There is no profit charged by the main branch on the fu tied to be sub-branches.

CASH IN TRANSIT
The cash, winch is transferred 1/nm any sub-branch to Main branch or from main branch to SBP is called cash in transit. There is limit of cash in transit on main branch. This limit is of Rs. 20 millions i.e. main branch can take-the cash Irons any sub-branch or can transfer the cash Iii SRI’ op to the limit to the 20 millions,

INSURANCE OF CASH
All the cash of Lilt Bank is insured, The major companies, which insure the cash include Adam jee Insurance Corporation, General Insurance Company and Last West Insurance Company. The Central Office pays all the expenses of the insurance of cash.

SECURITY ARRANGEMENTS
Few years canter, the Bank has its has guards lot- the transfer of the cash front branch to SRI’ or from tub-branch to the main branch. Bus now the Batik has hired a security company for the transference of cash. This company is ‘Brinks”. The commission which is charged by the Brinks Company varies from place to place and is different for different amounts of cash.

CLEARING FUNCTION
Introduction The Bank is the member of the Ceasing House and receives Cheques, demand drafts and other negotiable instruments for presentation of us payment by the branch of a drawee hank located within the city other then ABL. The proceeds of the clearing

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instruments are credited into (be account of the customer. The clearing facility is available on all working days. Wherever the clearing facility is hot available or the drawee institution is not the member of clearing house the Bank receives Cheques demand draft or negotiable instruments the collection and upon receipt the payment [coin the drawee the same is credited into the account of the customer. Clearing may be outward or inward,

OUTWARD CLEARING
Suppose a customer deposits cheque in ABL HASSAN ARCADE BRANCH. drawn on Habib Bank Multan Cans branch. Then the representative of ABL HASSAN ARCADE BRANCH will take this cheque to the Clearing house in SEP. where representatives of all bank; gather daily. Now in first clearing this cheque will be exchanged wish the representative of Habib Bank Multan cant branch. In the second clearing, if the cheque is honored, he will tell it to the AEL representative and so the SUP credits the account of ABL HASSAN ARCADE BRANCH and debits the Habib Bank Multan Cant branch through the clearing account. This is called Outward Clearing.

INWARD CLEARING
Suppose a person deposits a cheque in Habib Bank Mulman Cant branch, drawn on any ABL Mulman branch: let it he ihe ABL main branch Cant. The representative of bill will exchange this cheque with time ABL’s representative in the first clearing in cleaning Hr use if the cheque is honored by the A 81. main branch then SB P will debit arid credit the restrict accounts. This is called onward Clearing.

TRANSFER DELIVERY
The clearing between the ABL8 own brandies within one city is called Transfer Delivery. During this clearing Put Account is not involved. In ABL. It is done twice in a week, The Bank charges no commission irons its customers or this transfer delivery.

BILL REMITTANCE FUNCTION
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Bills for collection means the Cheques or DDs/TTsIPOs which are received from or sent to other branches outside the city for collection, drawn on any other Bank. Bills for collection may he inward or outward. Remittances means, the transfer of cash from one place to other place through paper transaction. Remittances may be inward and outward.

BILLS FOR COLLECTION
There are two types of bills for collection Inward hills [or collection (inland & foreign) Outward sills for collection t inland & foreign,

IN WARD BILLS FOR COLLECTION
Suppose a customer of ABL Mall Branch Lahore deposits a cheque drawn in the name of Habib Bank Multan Cant Branch. Now the ARL Malt Branch Lahore will send this cheque to ABL Main Branch of Mulian for collection from Habib Bank Branch. Now ABL Main Multan branch will collect this cheque from Habib Bank Branch through clearing, and will remit the amount to the ARL Mall Branch Lahore. This is called Inward Bills or Collection (inland) for AEL Main Branch Multan. It will be recorded in Inward Bills Collection Register. In the same way if the cheque is received for collection drawn on any other Bank from- Foreign Branch of ABE, then this will be called as Foreign Inward Bills for Collection. It will also be recorded in Inward Bills Collection Register.

OUTWARD BILLS FOR COLLECTION
When any branch of ABL sends a cheque or OD/TT/PO to main branch ABL in another city for collection from any other Bank then it is known as outward Bills for Collection. Suppose a person deposits a cheque in ABL Rashidahad Multan branch drawn on Habib Bank Lahore branch. Now AB.sL Rashidabad branch will send this cheque to A13L main branch Lahore for collection from Habib branch Lahore branch. ABL main

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branch Lahore will collect this cheque through clearing from Habib Bank branch through clearing and will remit the amount to ABL Rashidahad branch Multan. This is calledi Outward Bills for Collection (Inland) and it will he recorded in outward Bills Collection Register. In he same way, if ABL Green Town branch sends ally cheque or DD/TT/PO) to is Foreign branch for collection any other Rank, then it will be called as Foreign Outward Bills for Collection and will also be recorded in Outward Bills Collection Register.

COMMISSION
The rate of commission for both Inward and Outward Bills for Collection is 25%. with a limit of minimum of Rs,20. plus courier charges.

REMITTANCES
The remittances can be made through the following mode of transference. Demand Draft (DO) Telegraphic Transfer (17) Payment Order (PO) SBP Cheque

DEMAND DRAFT
ft is a kind of cheque which is issued by the ARL to the other banks, or other branches of the ARL on the demand of the client. On the Demand Draft there are different heads mentioned on that. Such as the amount to be sent, the name of the person to whom it is to he scote, It is very convenient and sale method of sending the money from uric place in another, The businessman to transfer or send the money from one place to another usually uses it. 11 one person issues the DO in the lame of other person, then ii can he transferred to the account of the second person early. DO can be in Pakistani
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Rupee or in any Foreign Currency. When DO is issued, it is given to the person, who wanted to make it, At that time Bank will have no concern with that DO but an advise is sent to the concerned branch that we have issued that DD of such amount and on the name of ibis person, and you will pay him on the demand of the client. This DO can be closed before the issuing the amount. On issuance the DO Bank take some commission

TELEGRAPHIC TRANSFER
It is also a way of sending the money 1mm one place to another. Like DD certain farms are to be filled. In this the message sill not be sent through he paper but with the help of the fax or things like that.

PAYMENT ORDER
It is an order issued by the Bank and payable on itself, through this client can easily transfer the money from one person to another within the same, city it is a written document on which the certain commission is to he paid and cert documents are filled by the client, For this certain amount is needed to deposit with the Bank

PROCESS FOR REMITTANCE
All branches of ABL deal with each other through a central account named as “Pak Account”.

PAK ACCOUNT
Pak Account is maintained in Central Office Karachi. In Central Office there is an account of every branch and all thc3e accounts of all branches are maintained through the Pak Account. In Pak Account, a specific coil has been allotted to every branch’s account. These Pak Account controls all the remittances made by different branches. Remittances may be outward or Inward.

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REMITTANCES OUTWARD
Suppose a person conies to the Al-HASSAN ARCADE BRANCH and asks to flake a Demand Draft 1)1)1 of Rs.50.)/- in the name of beneficiary when is AHI. Ni all B ranch Lahore. Now I he ABI. Multan branch will receive the cash and prepare the Dl) of Rs.50. 00W- and will send it to the ABL Lahore branch. At the same Lime it will also prepare an advice and send it to the- Central Office, In this advice, the ABL Multan branch will tell the Central Office that it has sent a DE) of amount l(s. 50.0001- to the ABL Mall Branch Lahore. so make its-account debited by Rs. 50.0001- and make the account of ABL Mall Branch Lahore credited with the same amount. This is called “Remittances Outward”

REMITTANCE INWARD
Similarly when the ABL Mali Branch Lahore sends a DD/Tt/PO or cheque to A, Multan Cant Branch then it will be remittances inward for this branch. This type its account will be crediLed by centrai office in Pu-Account and the account of AEL Mall Branch. Lahore will be debited.

REMITTANCE IN TRANSIT
Suppose the AIIL Main Branch, Multan wants to send the surplus lurid to the central office Karachi. This branch will first deposit the funds In the State Bank of Pakistan, which will transfer these funds to central office. Karachi. Here the SEP acts as: a cash agent. Now the ABL Lahore, Branch will send an advice to central office. Karachi [hat 1 had remitted that many amounts through SBP. This is called remittance in Transit. Now the SEP Lahore, Branch will cash this fund to the SBP Karachi Branch and from (here. funds will be ultimately transferred to (he central office, in the same way when ABI. Lahore. Branch requires (he funds then Central Office will recruit these funds through SBP mid will send an advice Lu the ABL Lahore, Branch. The funds will be ultimately transferred from SEP Lahore, Branch In ABL Lahore, Branch. This is also Remittance in Transit.

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FOREIGN BILLS FUNCTIONS
These can be 1. 2. Foreign Currency Telegraphic Transfer Foreign Currency Demand Draft Allied bank can transfer funds to the remotest fart of the country Fur payment/credit hr the account of the customer himself or a third party, through Telegraph Transfer for the payment on the same or next day. The Bank also issues the Demand draft for resonance of fund by customer. The flirt and draft can be issued in favor of the purchaser himself or a third pans’. It is secured and convenient to secondly, instead of cash.

TELEGRAPHIC TRANSFER
In this case the authority it given to one hank front another hank on (he behalf of the customers through telecommunication to debit their inter office account with then and credit his/her or party account ,mentioned in telegraphic transfer (FT.) This is the fastest way of transferring money from one place to another within the country as well as out side the country. As we know that when a bank issues a T.T. it h given some service to the customers, so service charges for issuing Ti’s, credit vouchers are prepared. Crediting the cable charges and a debit advice is made for the any telling them that so much services charge have been deducted from your account with us. All the TT’S are serially numbered. There are two types of TT’S, 1. Incoming TTs. 2. Out-going TT’s

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So far both type of TT’S separate registers are maintained. While issuing a TI a confidential code no. called the test numbers is also being given to Ti’ by two authorized officers and this code number is only under stoped by the two other authorized of listen in the receiving lank. Charged test some commission ‘C’ done which compared the is true in t lie body of T.T,

MAIL TRANSFER
As it is clear from its name that In this case the transfer of money (in the shape of a document) takes place through mail. The procedure is like Ti’. that is instructions are given to the receiving hank that inter office account should be debited and ‘edited to the mentioned party’s account. It is slower as compared to the ‘FT. Records are maintained in the sate way as of telegraphic transfer, commission is also charged it the same other but at a different rate. Every Transaction, which sakes place, is recorded in the computer. Transaction takes place through different vouchers which are finally posted 10 computer. As I already wrote that total branch was computerized sc> all transaction iii different dept. Would be made same computer, Each dept prepare a summary of daily transaction tat is forwarded to Account dept. 5inct all voucher from stiffer-it dept. also forwarded to current dept. So this dept. will tally it such transaction with current dept titer maintaining the kedgeree dept. The dept take care about bookkeeping, maintains ledger and current accounts of different dept. Following are the different functions performed by this dep4trttnent. 1. Preparation of monthly, quarterly, semiannually and yearly balanace sheet of the branch. 2. To maintain alt accounts of different department.

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72 3. 4. 5. 6. 7. Calculation of profit of different investment schemes. Calculation of mark-tip of different advances.

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Preparation of different type of reports for stale bank of Pakistan. Preparation of daily position report of cash and every account. The most important function is the checking and tallying daily summaries of different departments with ledge balance

DEPOSITS FUNCTIONS
Deposits to the bank arc as the backbone to the body of man it is lifeblood of a trade the hank borrows money from general public by accepting or by an offer suitable rate of lit on them, or simply promise to repay on demand. When the batik receives the deposits it becomes the debtor and client assumes position of creditor. At ABL the main thrust is on customer satisfaction. The Bank provides may opportunities to place the funds in variety of deposit accounts including foreign currency deposit account and offer a wide range of facilities and services Lailored to suit the personal as well as domestic and foreign business requirements of its customers. The different deposit schemes offered by ARL are as follows:

1.

Current Deposit Scheme

Purpose The purpose of this account is a provide the facility to the account holder that he can deposit or withdraw any amount of money from has balance at any time, Deposit of Funds Funds can be credited into the current deposit account in the form of cash, Cheques and other financial instruments drawn on any other Hank or any other branch of ABL. Minimum & Maximum Balance

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This account can be opened with a minimum balance of Ra. 100 and there are no maximum limit on balance. Mark-Up No Mark-up is given to the current deposit account holders. Furthermore the current accounts are exempted front Zakat. 2. PLS Saving Bank Deposit

Minimum & Maximum Balance Profit and loss sharing Bank account can he opened with a minimum of Rs. 100. The are no limits on the maximum balance. Deposit of Funds Funds can be deposited into this account through Cash, Cheques and other financing instruments drawn on any Bank or any other branch of ABL. The Bank will lake care of to see that the credit and debit entries are correctly recorded in the accounts of the account holders but in case of any error, the Bank shall be responsible take the correct adjusting entries without noticing the account holder and recover any amount due from the account holders. Profit The profit is given alter every six months and the rate of profit is announced semi annually. The overall profit of Bank for six months is determined and on that basis the rate of profit on this account is calculated. The profit is given to the account holder on the month wise product. It is determined on the minimum balance of account from 7th to 31sT of every month. The P saving rate announced by ABL on 31st June. 2008 for the nest six months is 25%. Eligibility for Sharing Profit/Loss of the Bunk

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PLS saving account having a running minimum credit balance of Rs. 100. would he eligible for sliming profit/loss of the Bank the proportion of the profit or loss on as Saving Account shall be determined by the Bank in its sole discretion and the Bank decision shall be float and binding on the PLS Account holder. The Bank shall be within its rights to make investment of credit balances/deposits in PLS Saving Account in any manner at its sole discretion and to make ue of the funds It’ The best of its judgment in (he banking business under the PLS system. Withdrawals Account holder can only withdraw sums from his account by means of Cheques supplied to him by the Bank for that particular account Cheques should be signed as per specimen signature supplied to the Bank and if there is easy attention in the signature of tile drawer, then it must be authenticated by the drawer’s full signatures. Post dated and stale Cheques shall not be paid. Withdrawals front PLS saving accounts are allowed not more than eight times in a month and a total amount not exceeding Ks, 25.000. For withdrawal of larger amount, seven days notice is required to be given.

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CERTAIN OTHER FEATURES
Every account holder will be required to Give a specimen of his signature for record. If there is any, slightest doubt realized by the flank regarding the signature of the account holder. Bank is entitled to refuse payment of cheque drawn by the account holder. Each account will be given a number and account holder should always quote this number when writing to the Hank regarding his account or when making deposits or withdrawals. Any change in address of account holder should be immediately communicated to the Bank. Account may he transfer form one branch to another branch of the flank free not charge, without effecting the profit/loss account rig position of the account the account holder wishing to close the account must present the passbook and unused Cheques to the Bunk. in order to draw the balance amount. In ease of account fielder wishing to close the account within a period of six month front the date of its opening a charge of Rs. 5 on account of cost of passbook will he made. No credit facilities will be allowed against the balances in PLS Saving Accounts. The Bank has a right to close any account without giving any previous notice to the account holder, which in its opinion is not being satisfactory, operated upon.

PLS High Premium Account This account can he opened with the minimum of Rs, 2,50,0(X) and there is no timing on the maximum balance. Profit The profit is paid on the daily product, i.e., the minimum balance from 1st to 31st is calculated and on that balance the profit rate is applied. The rate of profit on this account as announced on 31st June 2t8 is 2%.
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Overseas Pakistan is can open this account by remitting the account Into this account. This account can be opened only when the Client remits his amount here from abroad. Deposit of Funds Funds can be deposited into this account through Cheques, DDs, ‘ITs and other financial instruments drawn on any Bank or any others branch of ABL. Profit To attract the overseas Pakistanis, ABL offers 2% higher rate of profit than the PLS tern, deposits fur Pakistani residents. The current rate of profit on this account as announced by Rank on 31st Dee, 2008 is 4.5%, Allied Super Premium Term Certificates The minimum balance for this account is Rs. 1,00,000 and no maximum limit. However die balance should he in multiples of Rs. I .00000), Maturity Period The maturity period of Allied Super Premium term Certificates in fixed and it to three years.

Profit There are three different categories for the payment of profit. For each category the profit rate is different. Normally the profit ranges from 3% to 4%. The profit may be paid quarterly, semi annually or annually. The rates of profit for these categories are as follows; Quarterly rate of profit Semi annually rate of profit 3% 3.5%

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Annually rate of profit

4%

When these certificates are issued to the customs, different profit coupon is attached with them. When the customer shows the coupon, the profit is paid to him. If the term certificate carries annually payment of profit then it will bear three coupons, one for each yearly payment. Similarly, a semi annually profit payment certificates will have six coupons and annually profit payment certificate will have twelve coupons. Suppose a client has yearly profit term certificate and he does not take his first year profit, then this profit will remain with the Bank and he can take it in the next in the next year with the second payment. gut no markup will be given on his previous profit, Allied Mahana Amadani Certificates Minimum investment in Allied Mahana Arnadani Certificates is Rx. 25.1)00. 11w maximum investment limit in the certificates is Rx. 1,000,000. The maturity period fur Mahana Amadani Certificates is live years. Investment can he made by Individual or jointly Proprietorship, Partnership concern or Corporate bodies in their names. It carries special attractions cot: Retired civil and Armed forest employees. Widows and California being brought up by guardian. Expatriates looking for per ornament monthly Income. Profit Profit on Mahana Amadni Certificate is given on monthly hoses. The estimates minimum rate of profit is 1.1% per month. The expected monthly profit on various amounts would be as follows.

TAX AND ZAKAT DEDUCTION
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Payment of profit is subject to deduction of Withholding Tax and Zakat as per roles, Exemption on Zakat it available as per Law. Mode of’ Payment Client will enjoy the facility of receiving the profit through Payment Order /Demand Draft/Postal Money Order, every month at his doorstep. At Client’s discretion he or his authorized representative can also receive the profit through Cash y Order/Demand Draft. Since the profit shall be payable by the Branch where Client will open his account under the ‘Allied Mahana Amadni. Schemes it can also be credited to his account every month Allied Young Saver Certificates This scheme has been offered specially for the children. This scheme has he maturity period of ten years. This schemes introduced, on the side footings as hat of National saving certificates, which are issued by National saving centers. The amount deposited its these Certificates becomes four tunes after she maturity period of 15 years. For example if a person deposits 500/- Rs in this account, their after maturity period this amount will he 20000.

Standing Instructions Batik extends the facility to its customer to give standing instructions to much financial obligations or commitment, such as payment of loan installment of. HBFC. payment of insurance premium, etc. The Bank provided there is a balance in the account or some other arrangements have been agreed upon between the Bank not customer carries not the standing instructions. Standing Instructions Fee

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Standing instruction fee will be recovered in addition to the usual charges on remittances, if any. The standing instruction feels Rs. 30 per transaction. Stop Payment Instructions If a client wants to stop the payment can the issued cheque, when it will conic for clearing to the bank, then he has to give an application, in this application the client has to give some seasoits because of which he wants to stop the payment on the issued cheque. This stop payment application to recorded in the atop payment register and a caution is marked on the account of the client so that when the issued cheque comes for clearing it may not he cleared. Allied Tahaffuz Deposit Scheme Brings you unparalleled life instance cover along with attractive monthly profit. Minimum Deposit amount - Its. 50,00/- or multiples thereof. Insurance cover upto Rs.5,000,000/- Competitive rare of profit. Payment of profit on monthly basis. Automatic renwal on face value. Life Insurance upto 5 limes or your deposit amount with no extra cost. Premium shall be paid by the bank Full payment of claim in case of - Death – permanent Total Disability Eligibility Age - 64 years. However, there are there days normally used so seem the account 1. Pledge 2. Mortgage 3. Hypothecation PLEDGE

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Pledge is a contract between the. borrower and the back whereby the goods are transferred into the bankers possession while the ownership remains in the possession of the borrower. This possession remains with the bunk until the payment of loan is dully and. It, case of default, the back can sale the goods after giving the notice, MORTGAGE Mortgage is a contract whereby the interest in any specified immovable progeny is transferred to the banker in order to give the security rot the payment of debts HYPOTHECATION Hypothecation is a term where goods are charged for die purpose of security. But the possession and ownership remains with the owner of the goods.

CATEGORIES OF ADVANCES
The bank can make the advances in the following three ways. 1. Overdraft 2. Loan 3. Cash Credit

1. OVERDRAFT Under such arrangement the customer is allowed to withdraw the amount excessive from his balance. But the limit of amount is sanctioned by the manager and given for a fixed period. 2. Loan

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When the bank make the advances in a lumpsum. to be repaid in lumpsom or in forms of instruments with interest at any future date, is known as loan. These loans may he of short and long term, 3. Cash Credit These advances tire made against the security of the goods which may be made like in the form pledge or hypothecation. The bank credits the borrowers account with the martini making as loan. The amount can not be withdrawn in lump sum. While interest is paid on the amount withdrawn from the bank.

LOANING FUNCTION
The flank provides the facility of two types of financing. • • • • Funds based Financing Non Funds based Financing FUNDS BASED FINANCING The type of Financing in which the funds of the Bank are directly Involved is called Funds based Financing. • • • • • • There are following types of Funds based Financing. Running Finance Cash Finance Demand Finance Demand Finance against Foreign Currency Account Demand Finance to Staff

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82 • • • • • • • • • • • • Finance Against Local Manufacturing Machinery Allied Equity Building Plan Un organized Sector Financing Scheme Housing Finance Agriculture Finance LDA Financing Consortium Finance Finance Under Small Business and Small Industries Overseas Employment Financing Scheme Finance against Trust Receipt Term Finance Certificates Finance for Government Operations

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NON-FUND BASED FINANCING FUNCTION
The type of financing in which the funds of the Bank are not involved is called Non Fund Based Financing. Under non-fund based financing, the following schemes arc available in Allied Bank Limited. • • • Letter Of Guarantee Performance Bonds Bid Bonds

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83 • Letter of Credit (Inland)

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INTRODUCTION
In the very beginning of this era people were not aware of foreign exchange. All the foreign money was kept at hand and this idle money did ‘lot contributed in the Pakistan economy at that time. But in 1991 foreign department introduced was introduced by the government of that time. After being introduced people deposited their currency in the Bank. It was the amount equal to the mini Pak Rupees that were in the circulation in the economy of Pakistan. After the foreign currency account were opened, the economy gradually upward because foreign currency contributed a lot. Before the facility of foreign currency accounts, nearly 60% foreign currency was held by the people as idle.

ABL FOREIGN CURRENCY ACCOUNTS
In Allied Bank Limited. Foreign Currency account can he opened in four major currencies. US Dollar Sterling Pound Japanese Yen Deutsche Mark

CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNT
There are not hard and fast rules for becoming the Foreign Currency Account holder, Bank wants only introduction, of the Client and very little about the background. I.D card is also Hot necessary. ii someone has; well and good, otherwise no restriction will he there being requirements are not also fixed F,C, Accounts. It can he operated by 10$ only. But other Banks may have some inns on minimum requirement.

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INCENTIVES TO FOREIGN CURRENCY ACCOUNT HOLDERS
The following incentives will be granted to the Deposit Holders who minimum a Foreign Currency Deposit with minimum balance of US. $50,000. or Japanese Yen 5,000.000/- pr P. Stgk.35, 000/-ar M 75.000!The brunches Authorized to deal in Foreign Exchange and maintain Foreign Currency Accounts will ensure that he following services will be rendered by the hank to the Foreign Currency Account Hoyden in above category, free of charge or reducing the commission in certain transactions as unenclosed against each item. Issuance of Foreign traveler Cheques to the Account-holders to the debit of there. Foreign Currency Accounts. Issuance of Balance Confirmation Certificates (free of charge.) Delivery of Cheque Books Re-Roistered Mail free of charge) insurance of Proceeds Realization Certificates (free at charge)

FEATURES OF FOREIGN CURRENCY ACCOUNTS
There will be legal protection for the account holders. According to foreign exchange rules and regulation every citizen of Pakistan, either within the Pakistan or outside the Pakistan can open the foreign currency account. Resident firms and Resident companies including investment Banks can open Foreign Currency Accounts. Mi foreign nationals and foreign Companies in Pakistan or abroad can open Foreign Currency Account.

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Opening of Foreign Currency Accounts in the joint names of residents/nonresidents is permissible. Foreign Currency can be deposited by: • • • • Remittance received irons abroad Traveler Cheques Foreign Currency Notes Foreign currency bearer Certificates There will be no restriction and questioning to him about the currency, which he wants to deposit that from where he got that money. No Zakat will be deducted on these accounts: no Income Tax deduction, no Wealth Tax deduction will be there. These incentives reinforce and motivated the people to invest in foreign currency accounts rather to keep the foreign currency idle. Foreign currency accounts can easily be transferred from one person to another, one place to another, with in the ABL Branches or in other flank. This facility is not available in Pak Rupee account. The account holder can transfer the funds freely, in any currency to any part of the world. Traveler Cheques can be issued for abroad to the account holders without any limit. Foreign currency accounts can be used for payment of purchases at Ditty Free shops. Foreign Exchange Bearer Certificates and U.S. Dollar Beaure Certificates can be purchased from Foreign Currency Accounts.

FOREIGN DEPOSITS SCHEMES
Deposit Schemes of Foreign Currency Accounts are very much related with Pak Rupees Accounts such as saving deposit, current deposit and fixed deposits.

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SAVING ACCOUNTS
In these accounts there is no Minimum limit for opening the account and the Bank after certain rates of interests on all Foreign Currency Accounts, RATE OF INTERESTS ON SAVING ACCOUNTS For Dollar. 2.5% rate of interest is offered For Sterling, Pound 4% rate of interest is offered For Deutsche Mark, 2.2% rate of interest is offered For Yen 1% rate of interest is offered

FIXED DEPOSITS PERIOD
Fixed deposit facility is also provided to clients. These deposits can be for three months, less darn six months, six months, less than twelve months, twelve months, two years three years, four years am] for five years. Rate of Interest Rates of Interests are different for different Currencies for different Periods.

CURRENT DEPOSITS
Multiple withdrawals of any part of balance can he made demand, Firth can he credited Intl the current deposit account in the form of cash. Cheques and other financial instruments drawn on any bank or other branch of ARL. The current account is soiled to meet both domestic and business requirements of the customer.

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The bank provides its customer various products & services, to cater there need of investments and other social or business requirements. These Product & Services offered by the hank are as follows;

TRAVELLER CHEQUES
Allied Sank issues Traveler Cheque both in Foreign currency and in Pak Rupees. The traveler Cheques issues in foreign currency are called ABL Traveler Cheques while those issues in Pak Rupees arc known as ABL Rupee Traveler Cheques

DENOMINATION
ARL Rupee Traveler Cheques are issued in the denominations o Rs 1.000, its. 5.000, Its 10,000 and Rs. 50.000.

REQUIREMENT
The Bank requires Identity Card o Urn Issuance of’ the Traveler Cheque,

VERIFICATION
Client makes one sign on the Traveler cheque when he is purchasing it and the other sign is made when he will cash the cheque.

LOCKER FACILITY
The list of Lockers is maintained in the register. In this register the name of locker holder is mentioned along with the locker number. The key is provided to the locker holder called the Normal or Ordinary key. The Bank keeps himself one key himself, When the locker holder wants to operate to the locker, then he will operate the locker firstly entering the name in the register along with the initial. The date and time of the

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transaction will also be recorded in the register. Then the leaving time will also be recorded in the register. Criteria for Acquisition of Locker There are certain criteria for acquiring the locker facility,

OPENING FORM
There are opening forms, which are Filled by the client that the locker facility. In this form the name is mentioned along with the signatures of the locket holder. In the locker number is also mentioned on the farm.

SECURITY
Certain security is kept by the while providing the locker facility. This security is of shape of the cash.

SIZES OF LOCKERS
There are tour sizes of lockers, small, medium, large, or extra large, on which certain security is made mad the locker holder pays the following amount of rent annually. Locker Size Small Medium Large Security Rs. 1500 Rs 3500 Rs. 50000 Rent Rs. 750 Rs. 1500 Rs. 2500

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The key, which is with the Bank, is called Master key and the key, which is kept by the holder, is cal led normal key A locker cannot be operated wish “tie single key. both the master and normal keys are required for operating the lockers, lithe key is lost Irons the locker holder, then the locker holder will pay the entire recovery fee and the client launches FIR. If person wants to operate the locker, he will operate it alone.

ALLIED BANK MASTERCARD
Customers can now become the bolder of a true Credit Card here in Pakistan. Allied Bank under license from Master Card International U.S.A. issues its Master Card to anyone meeting the eligibility criteria. With the Allied Bank Master Card you will be assured of a service meeting the highest international standards maintained by Master Card CONVENIENCE AT NO EXTRA COST The Allied Bank Master Card helps you pay without the complications of cash or cheques. It doesn’t cost you anything it’ you pay in full within the due date, but if you decide to spread you payments over several months a service charge @ 2.30% per month is charged. Your Allied Bank - Master Card is safer than cash and simpler than cheques.

HOW THE ALLIED BANK ‘MASTER CARD WORKS
You have to be an account holder with the Allied Bank to apply for the Allied Bank Master Card which will be Available to you for an initial fee of R. 2000)- (Rs. 500/. membership fee + Rs. 1500/- annual fee). Once you obtain your card, you imply present it at Shops, Supermarkets. Hotels. Pharmacies, Nursing Homes, Restaurants Petrol Pumps anti hundreds of other establishments which display the familiar Master Card sign throughout Pakistan and abroad. Once purchases are made you sign a voucher and that’s it.

BILLING IS EASY TOO

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Every month you will receive a statement showing details of transactions, outstanding and the minimum amount due. The statement will also give the last date for payment-so you can avoid paying service charges.

PAYMENT OPTIONS
Settle in full within 15 days of statement date. Pay just the minimum payment required. Service Charges are calculated on a daily product basis on extended credit (much like an overdraft) 250% per month.

MINIMUM PAYMENT REQUIREMENT
In order to a void disruption in use of the card - it is essential at least minimum payable amount of the bill is paid regularly. In case the required payment is out received the operation of the Master Card automatically, suspended by the system. In such case the card is activated after receipt of overdue payment only.

UTILITY SERVICES
The banks also provide its customers the non-banking services, such as Collection of Utility bills etc. Utility bills centre paid through cash or cheques drawn on my branch of the branches at their convenience under ‘Cheque Drop in system. The Bank main the bills alter payment to the consumer,

HAJ SERVICES
The Bank serves the intending pilgrims by helping them in performing this religious obligation. The Hajj forms and other related services are provided by the bank. However, the terms and conditions for accepting the Haj forms from Intending pilgrims arc in accordance with the Hajj Policy announced by the government, each year. l-lajj

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applications are available with all branches during Hajj season, immediately after the Haj policy is announced by the Government of Pakistan.

Home Remittances
The Bank having a network of X(X) branches all over Pakistan undertakes to provide sale and instant payment of remittance from expatriates, routed through designated foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard. Through the Allied Express Service. ABL ensures that beneficiaries Accounts in ABL branches are credited with in 4S hours of receiving home remittance information from overseas. Inter Branch Remittances Allied Bank can transfer funds to the remotest part of the country for payment/credit to the customer himself or a third party, through Telegrams/Tetex/Texa for payment/credit on the same onest day. Telegraphic transfers can also be made abroad in Foreign Currency Computerization and Automation Computerization and Automation remained one of the top priority areas of the management. During the year 1998, additional seven ATMs were installed and it becomes total of 211 ATMs available in almost all major cities of Pakistan at that time, Now ABL is connected with INET the biggest Chain of ATM machines installed with the joint cooperation of the major Banks in Pakistan. By the end of December 1996, computerized branches were 48 whereas work on 99 branches to be computerized off-line was underwear. In 1998 and 1999, many other branches have also been computerized in the country’s major cities. They aim to computerize all brunches within 7 years. Now near about 70% of the ABL, Sachet are computerized nod whereas 65 out of theta act online on experimental basis. It is expected that within 6 months all

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computerized Branches will become online bunking, In addition Allied Tee-banking Service was made available in Finance & Trade Center Branch. Karachi and Blue Area Branch, Islamabad.

ABL, ATM All-Time BANKING
Allied Batik is now introducing the Allied Cash also referred to as ATM card. You will now have the convenience of withdrawing cash from any of our multiple ATMs All Time Banking location conveniently located in major uses at any time of the day or night even on closed days/holidays. Other services include customer being able to inquire about the balance of his/her account or printing an abbreviated (mini) statement showing the most meant eight transactions up to the previous working day.

How to Obtain
In order to obtain an Allied Cash÷ Card, you simply have to till out the prescribed Application form available at sacred Allied Bank Branches in Karachi and Lahore, The duly filled form should be handed over In the Manager of 11w Branch where you are maintaining your account. Non-account holders would first have to open at account with Allied Bank to have access to this facility. You can feel absolutely sat about your Allied Cash Card because it can only be used with the personal Identification Number (PiN) which is given to you by the bank. As a security measure, you should keep this number absolutely Confidential.

ABL ONLINE
ABL offer online banking facilities to its customers through inter-branch connectivity at selected brunches. Initially 65 branches will be able to offer this facility through a darn communication network being established for this purpose. Subsequently,

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this number will increase as additional branches get connected to the network. Branches connected to the network will he referred to as ‘online’ branches. Under online banking facilities, customers maintaining accounts in online branches would he able to operate their accounts form any of the online branches specifically, an online branch wilt offer the following transactions to account holders of other online branches: Allied Karsaz Scheme (No Interest/Mark Up) Allied Bank moves a step forward towards interest free banking by introducing Allied Karsaz Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage of a real Riba Free economic environment and avail Interest Free and Mark-up Free Finance at the lime, of need to meet their business, trade and agricultural financial obligations. Prospective client who will maintain a return free deposit for at least 3 months shall be eligible to avail interest free/mark-up tree finance. Deposit amount, Rs. 100000/- and multiples thereof minimum a deposit period. 3 In nibs with Automatic rollover facility. Premature encashment allowed, without any penalty /charge Eligible depositors may avail finance individually or tiff the companies wherein they have financial interest/stake. Minimum deposit period for eligibility of finance, 3 months. Maximum period of finance 6 months, Maximum period to avail finance, 12 months from the maturity of deposit. Every month (30 days) completed by the deposit shall be taken into account for calculation entitlement of finance. Finance will be allowed to the eligible clients, only on providing adequate securities acceptable to the bank and fulfillment of other requirements.

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Finance proposal processing fee Rs. 1001- (non-refundable) plus documentation cost on actual basis. In case of default/delay in repayments, penalty @ 0.055% per day (20.075% p.a.) to be placed in charity NC. Formulae for calculation of entitlement of finance. Same amount of finance for half the period of deposit or Same pen id of finance fur half lit- am on oh of deposit

Loan Book
Loan portfolio (gross) of the Bank grew by 18% to Rs.179 billion compared toks.132 billion last year with corporate Loans and SME loans contributing 80%and 15% respectively of the loan book. With consumer financing on cards for FY08, loan portfolio is expected to further diversify among different products. Time growth was well diversified among Various segments and was achieved despite increased dependence or corporate sector on debt instruments. The management is also watchful impact of this growth on capital adequacy. On market share front, the Bank has managed to increase its market share by 40 basis points to 6.7% by the yearend (based on SBP’s provisional data).

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SWOT ANALYSIS
STRENGTHS • Allied Bank Limited has certain strengths which are different from the other Banks • ABL is the tint Muslim Bank of the world, which is owned and managed by its own employs. This is the biggest strength of the Sank. A feeling ownership is present in every employ which not only helps in increasing the productivity of employs bus also creates sincerity with the Batik to them. • Strength is the high motivation of employees to their work because they know that own benefit. They know that the profit, which they will earn, wilt be distributed among still the employees. So they work with high motivation and concentration. • Salaries are very reasonable, so the employees are not financially disturbed and they devote their selves fully to their work. • They have wide area network in till over the Pakistan, so that they cover a lot of portion of cash transactions and make customer satisfied. • The flank has very strict rules and regulations about the customers complaints. The customers are treated as very special persons in the Bank.

WEAKNESSES

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No entertainment facilities are available in the flank when customer goes lit the flank and wait for a longer that. These facilities can be the newspaper magazines etc.

• • •

Advertisement of Ash ‘is not such goods as of other banks. Out took of the ABL branches is not attractive to the people. As compare to other private commercial banks the limited branches of ABL are computerized.

OPPORTUNITIES
• 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 (be country, The ARL is very well praised to avail promising opportunities. • As a result of the different steps taken by the Government regarding the betterment of the economy, small borrowers are attracted to get the financing and stall small businesses. So the ABL has an opportunity to attract the Customers by giving them attractive schemes. • They have wide area network in all over (he Pakistan, if ABL can take it possible the fast delivery of fund from abroad through online banking, ii can cover the major market of Pakistan which still is capturing by Hundi.

THREATS
• First threat is that of political influence. Three boards of directors are of government. So that they can influence en the decisions or the ABL • The biggest threat has the banking sector is the continuous downfall of the country economy since the last few years. If this downfall remains for more

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few years then it may be the great hindrance in achieving the Banks objectives. • New Privates Bank coped with emerging new Technology of IT.

FUTURE PLANS AND SUGGESTION
Some future plans of ABL are as follows: • • Installation of ATMs in every major city of the country. Computerization of all the branches through out the country. In the first instance a target f t) branches has been set. Among them about, all the branches of Lahore and Karachi have been computerized. • Shares investment Scheme i.e. Bank will trade In shares of different renowned components to earn profit. • Purchase of Sick Units, rebuild them and make them profit earning institutions.

Suggestions
Following are some observations and suggestions during the internship. • When giving the loan, the flank must carefully analyze the past six months transaction history of the borrower, This will help in judging the dealing

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behavior and financial status of the client. In most cases, this thing is tint properly done and it is the major reason of default of many clients. • The flank should keep the proper cheque on stock which is hypothecated. A textile owner may ret the loan on saint 10.00 bales of cotton (rum checking system of the Bank. • The Bank should have the moving cameras in their branches be security purposes. • The Bank should try to give tenure loans to the saint borrowers as the past history show s that most of the loans given to the corporate borrowers have converted into had debts. • The Bank has a lot of financing schemes but there is very little advertisement of these schemes. So Bank should increase its advertisement. • When any one comes to operate the lockers, then the things which he keeps in locker should be checked through metal detector for security purposes. • All the Bank Branches should be getting online to provide the quality and speedy services to the eulogizers and also remain competitive in the market. • Most of tile bank employees are sticking to one sear only, with the result that they become master of one particular job and loose their job. On other banking operations, to toy opinion all the employees should bye regular job experience through job rotation. The promotion policy should be adjusted. • • The circle of ATM machines should extend in all the major cities of Pakistan. Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here More reading material should be brought / provided in the reference Room, it should be relevant ‘and its purpose should be to educate the employees with the

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advance studies in their kind. The employees should be provided the opportunity to attend and participate in seminars and lectures tin banking. • With the internship Letter should also be requested to provide us the financial reports. Because when we demanded the financial projects they said that this is continental and they art nut allowed to provide these statements to any trainee. • To create royalty in customers ABL should start the facility of online banking through Internet, so that customers can cheek their balances and make transfer of fund online.

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LAHORE COLLEGE FOR WOMEN UNIVERSITY,LAHORE

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