Computer Applications to Business-1

Prepared By: Wajeeh Abbas & Owais Ali Mirza

Instructor: Muhammad Khurram


First, we should like to thank Allah almighty, who gave us the strength to complete this difficult task. Secondly, we would like to thank our business application computer teacher Mr. Mohammad Khurram without his guidance this report would not have been possible. Then we would like to show our gratitude to all the staff members of Allied Bank limited who devoted to us their precious time and cooperation in accomplishing this task.


Iqra University Gulshan Campus is rapidly growing institute of higher Business studies in Pakistan. Iqra university is a center of excellence offering instructions of international standards with integrated programs dealing with the fast growing technologies of the world with courses design to produce well qualified personal of higher caliber specializing in new business technologies in developing countries. As the student of Iqra university we feel pride to be the students of such as institutions. We the students of 2nd semester our extremely thankful to our CAB teacher for motivating us to visit an organization using computer based information system report. He has helped us truly while guiding us throughout the semester in our course of CAB-1. Sir we are very much thankful to you for providing us so much information and giving your precious time to us. We the members of the group feel enormous pride that we visited ALLIED BANK LIMITED.


This project report is on business Applications of computers, exists as result of joint efforts put in by the two of us, namely: Wajeeh Abbas and Owais Ali Mirza. As obvious, we are the students of 2nd semester, in Iqra University Gulshan Campus. At personal level although we are newly to reporting a project but we think it·s something that brings the best out of us. It·s a sort of exciting plate form for us to express ourselves. We imagine it·s not easily achievable task by some guy-next-door. We seem it is essential that reports be creative, artistic, a little colorful and something that·s totally attractive. We believe is takes guts to be bold and daring to break the rules and therefore we tried our hands as it this time. I still humbly state that for us sky is no more the limit.

For a developing country, like Pakistan, a demand oriented workforce afire with professional excellence can bring about a knowledge revolution.The IQRA University is chartered by the Government of Sindh vide Sindh Government Ordinance No.VI of 2000 having Campuses in all the 4 Provinces and is having collaboration with foreign universities. IQRA UNIVERSITY offer a diverse range of graduate and post-graduate courses as well as PhD programmes of International level in Management Sciences, Computer Sciences and Engineering, Education and Learning Sciences, Media Sciences, and Fashion

Designing. Technologically equipped classrooms, with high-tech computer laboratories with internet facilities and rich Information Resource Centre are established at all the Campuses for comprehensive academic training. Special services, such as, placement, transport and housing, etc., are also provided to the students.

Feelings before starting the project:
When this project was assigned to us we were excited and looking forward for it. With the excitement of this project we were also much tensed due to the burden of other courses. Although this was a difficult task for us to visit an organization two or three times because we have five days booked for our classes in university and only we have one day to approach further for this project. But by the grace of Almighty ALLAH we got success in making this project.

OBJECTIVES: Information system development projects are usually carried out using the strategy of divide and conquer, in that way the project is split into two realms, the technical one and the organizational one. This separation institutes a division of labor between those people who build the system and those who used it. To practically observe the importance and role of information system and to recognize the information system functions in any organization was the main objective of this project. Hence, this assignment is titled as ´System Study project of an Organizationµ.

The system study project is beneficial at many dimensions i.e., at students, organization and university·s end. BENEFITS AT STUDENTS END:  Practically observe the role and working of information system in a firm or organization that is practical approach.  Develop interpersonal skills in a student.  Create an awareness of the work environment in an organization.

BENEFITS AT ORGANIZATIONS END:  Analyzing the organization information systems.  Documentation of existing systems. 
Understanding, managing and realizing benefits from major business process re-engineering programs.  Providing a focus on results to guide major organizational change programs.

IT introduces university in markets.  Student well mannered attitude reflects the atmosphere of the university.  Represents the educational standards and importance of practical Approach of theoretical concepts.  University·s performance in inter- university competition produce a good impact of the University.  Carrying out of research work.

System Approach and How did we applied for our project? We visited Allied Bank main branch to check whether it is suitable for us to proceed for our project or not. When we completed our analysis on all the departments of Allied Bank we took permission letter from the bank. And on next visit we started our work on the project.

The Organization we visited
The organization we visited is one the well known bank in Pakistan i.e., Allied Bank Limited.

About Allied Bank:
Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by the name Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. In August 2004, because of capital reconstruction, the Bank·s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 700 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.

History of Allied Bank:

Allied Bank was the first Muslim bank to have been established in Pakistan. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen months of business. At the time, the Bank·s total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion. The Bank·s journey has been about dedication, commitment, professionalism and adapting to environmental changes, leading to its immense growth and stability. It is these factors that have made it a Bank the rest look up to. The Pre Independence History (1942 to 1947) In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were

temperamentally unsuited for this profession. It was particularly upsetting for Khawaja Bashir Bux to hear that ´Muslims could not be successful bankersµ. He decided to step-up to that challenge and take the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab, which was to become Pakistan in December 1942. The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million by the end of the first year of operation, and by the end of 30th June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million. Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947. However, it was severely hit by the riots in East Punjab. The Bank was identified with the Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed trade in cloth and food grains thus, played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. Despite the difficult conditions prevailing and the substantial set back in the Bank·s business in India, Australasia Bank made a profit of Rs. 50,000 during 1947-48. By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the separation of East Pakistan. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.

In August 2004 as a result of capital reconstruction, the Bank·s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today the Bank stands on a solid foundation of over 63 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches.

Allied Bank (1974 to 1991)
In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank. The first year was highly successful; profit exceeded Rs. 10 million, deposits rose by over 50 percent and approached Rs. 1460 million. Investments rose by 72 percent and advances exceeded Rs. 1080 million for the first time in the banking history. 116 new branches were opened during 1974 and the Bank started participating in the Government·s spot procurement agriculture program. Those seventeen years saw a rapid growth for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion, and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It also opened three branches in the U.K. Allied Bank (1991 to 2004) As a result of privatization in September 1991, Allied Bank entered a new phase, and became the world·s first bank to be owned and managed by its employees. In 1993 the ´First Allied

Bank Modarabaµ (FABM) was floated. After privatization, Allied Bank became one of the premier financial institutions of Pakistan. Allied Bank·s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan·s financial sector and was recognized as one of the best amongst the major banks of the country. In August 2004, as a result of capital reconstruction, the Bank·s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches.

Allied Bank (2005 To date) In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them.

How did we schedule our visits? To be frank it was very hard for us to scheduling our visits due to the heavy burden of other courses but any ways it was important for us so we managed some how. We fixed our twice visits on Saturday because both of us have no classes on that day so it was bit easier to manage on Saturday and luckily we got appointment on both the occasions.

Specific Work:
Since ALLIED BANK LIMITED is a very vast organization so making a detailed report on this organization is not so easy. So we categorized our work in small tasks as follows: y Organization background We searched for background of organization

Identification of benefits

We identified what benefits we get if we choose a particular organization. y System approach and Implementation System approach we adopted is consisted of two phases .In the first phase we gathered all the resources. And in second phase we made ourselves materials we needed. y Visit of ALLIED BANK LIMITED We visited the information technology dept. of ALLIED BANK LIMITED ON 13TH AND 20TH OF December 2008.

We focused on overall process of the organization. But we mainly focus on ´Internet Bankingµ.

Internet Banking:
Banking is now at your fingertips! Allied Direct Internet Banking offers you the convenience to manage and control your banking and finances - when you want, where you want! It's Simple, Convenient, Secure and Faster. So, just get clicking! Some of the advantages of Allied Direct Internet Banking are: Simple and Convenient:

Easier navigation and help provided at every step so you can make full use of this service. With Allied Direct convenience is just a click away.
Secure and Faster:

Encrypted with latest tools and technologies, Allied Direct is the choice for secure and fast Internet Banking.
24x7 Access:

You now have access to your account 24 hours a day, 7 days a week. You can transfer funds or pay bills, even when it's a holiday. To use Allied Direct Internet Banking, you should be a registered Allied Bank Account holder with a valid ATM Card. If you do not have an account, please visit any of our nearest branches and open your account and obtain an ATM Card. Our friendly branch staff will help you open your account quickly.

Online Banking: Allied Online Banking is a unique service being offering from Allied Bank. Through this service, your account in Allied Bank is available to you from any of our branches countrywide. No matter where you are in the country and whichever branch your account is maintained at, you can have your cheque cashed at any of our 757 online branches located in 250 cities. You can also use the service, from any branch, to deposit cash for instant credit into your account or any other account in Allied Bank. Similarly, the account-to-account Funds Transfer facility is also available The Bank·s journey has been about dedication, commitment, professionalism and adapting to environmental changes, leading to its immense growth and stability. It is these factors that have made it a Bank the rest look up to. for instant remittance. Your cheque drawn from a remote branch for credit into a beneficiary·s account or encashment of a specified amount, can also be presented by a third person at any branch. What·s more, making a Balance Inquiry and getting an Account Statement are additional services available to Account holders from remote branches. Allied Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of our branches countrywide. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services.

Main Business Functions of the Organization:

The main business functions for the Allied Bank Limited are:              Internet banking Online banking Profit rates ATM network Unclaimed deposits Deposit accounts SME Agricultural Other services ( Hajj, Umarah Packages) Corporate leasing Home remittances Utility bills lockers

Chart for the department performing main business function

Allied Bank Limted

Internet Banking

Profit Rates

ATM Networks

Unclaimed Deposits

Deposit Accounts


Online Banking



Haj, Umrah Packages

Utility Bills

Corporate Leasing

Home Remittances

Hierarchy of the ( ATM Department)

This system component matrix is based on the conceptual framework of the model of Information System Components. The system component matrix is used by ¶Allied Bank Limitedµ as an information system framework for both system analysis and system design.

Departments of ABL
CORPORATE AND INVESTMENT BANKING: Corporate and Investment Banking Group (CRBG) offers a wide range of financial services to medium and large sized public and private sector entities. The financial services being offered include providing and arranging tenured financing, corporate advisory, underwriting, cash management, trade products, corporate finance products and customer services on all bank related matters through relationship management concept. CIBG has strategically placed its presence in all major corporate hubs of the country and presently enjoys a leading position in corporate lending in the country. The Bank played a key role in economic growth of the country by providing vast amount of fund in all the key sec tor of the economy. The Group maintains a well diversified corporate portfolio of about 400 corporate relationships. Allied Bank is ranked as one of top investment banks in the country because of its key role in the major investment and corporate banking transactions. In recognition of its achievements in this area, the bank was awarded ´The Corporate Finance House of the Year- Banks 200506µ by CFA Association of Pakistan. Along with Corporate and Investment banking business, we also focus on other corporate related businesses, namely Cash Management. This allows us to maximize on the business opportunities available in the corporate segment.


The Commercial & Retail Banking Group (CRBG) offers a variety of asset and liability-based retail products to its customers. The Group·s main focus has been on introducing various financing and investment products for its valuable clientele, and contributing to the steady growth of the financial industry. CRBG consists of 4 geographic groups and is further divided across 27 regions in Pakistan. Each region is responsible for providing a quality service to its own customer-base. In recent years, the Group has been working to find alternate ways to bank for customers, and has installed more ATMs to its already strong and largest ATM network. During 2007, CRBG also saw a phenomenal growth of 28 percent in liabilities. The Group launched effective campaigns and showed 13 percent growth in Current Accounts & Saving Accounts (CASA). Besides an addition of senior level resources to the team, more Management Trainee Officers were also hired into the Group to bring in more quality and skill. CRBG is consistent in lifting the Bank·s brand image by emphasizing on good customer services and developing commercial assets and a cost effective deposit base. CONSUMER AND PERSONAL BANKING: In line with the Bank·s aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer banking business. Furthermore, to achieve this

objective, professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments. The consumer portfolio, comprising the debit card, credit cards, auto loans, personal loans and mortgages will be established phase by phase. However, we are confident that our strengths, together with our largest network of online branches, a superior technology platform, a big customer base and the Consumer Personal Banking Group (CPBG), will take the Bank·s profitability to new heights. RISK MANAGEMENT: The primary objectives of Risk Management Group (RMG) are to understand the risk profile of various businesses, to initiate and propose risk policies, risk measurement methodologies and risk limits in order to aggregate and control credit, market and operational risks across the Bank. The risk Management Group (RMG) was established in June 2005 as an integral part of Allied Bank business activities, with key responsibility to identify,analyze,monitor and manage the principal risks to which the bank is exposed. The risk management process begins with the formulation of business objectives and strategies, and encompasses the identification, assessment and measurement, monitoring and control of credit, market and operational risk across the bank. In pursuance of these objectives, RMG has taken up the challenge to foster a proactive risk culture by creating the following risk management functions by business specialization: y Credit Risk: y Operational Risk: y Market Risk:

y Credit Administration: y Risk Architecture: y Portfolio Management: TREASURY: The Treasury group is actively involved in fund management through transaction in interbank market and management of investments in government securities and equities. The group is also responsible for managing regulatory reserve requirements. The group has qualified and experienced professionals who have specialized expertise in treasury functions which they utilize to maximize the returns. The group is divided into Money Market Desk, Foreign
Exchange & Treasury Marketing Unit and Capital Market Desk.

FINANCE: Finance Group plays a central role in strategic decision making, transparent financial reporting and enhancing the economic value of the Bank. It also provides support to the business groups in performance analysis and launching new products and initiatives. Planning and MIS arm of the Finance Group translates financial and operational data into strategic information for an efficient and effective decision making. It provides support in the formulation of corporate strategies and business plans. It plays a pivotal role in maintaining financial discipline and budgetary control. It also compares the performance of the Bank with peers. Taxation wing of the Finance Group manages the Bank wide tax matters and endeavors to bring tax efficiency while complying with the tax laws.

Corporate Affairs Group is responsible for compliance of all legal and statutory corporate requirements under Corporate and Banking laws and Regulations. Besides arranging Board Directors and Shareholders· meetings, it co-ordinates meetings of the Executive Committee of the Board, I.T. Steering Committee and Management Committee. Corporate affairs also manage the shareholders· matters and co-ordinates with the Shares Registrar for the transfer and issue of Bank·s shares. During the year 2005, Corporate Affairs Group coordinated a number of activities related to change in organizational structure, corporate identity and formation of committees of Board and Management. Financial and Regulatory Reporting arm of the Finance Group provides timely, relevant and reliable information to the shareholders, regulators and other stakeholders while following the statutory requirements and international best practices. Financial and Regulatory Reporting arm is actively involved in formulation of policies related to accounting and finance issues across the Bank and assists in their implementation. It also manages the records of fixed assets of the Bank.

AUDIT AND INSPECTION: In the context of changes in regulatory requirements, the role of internal audit has become very pivotal as a second line of defense against financial indiscipline and mismanagement besides an integrated system of internal control. As a part of good governance practice, the Audit and Inspection Group primarily performs its functions independent of the management and reports to the Audit Committee of the Board of Directors.

The Audit and Inspections group is expected to perform a wide range of audits, which interalia include the following: ‡ Financial Audit - to assess the reliability of the accounting system and information and of resulting financial reports. This also includes appraisal of the related systems of internal controls; ‡ Operational Audit - to assess the quality and appropriateness of other systems and procedures, to analyze the organizational structures with a critical perspective, and to evaluate the adequacy of the related methods and resources; ‡ Compliance Audit - to assess compliance with the laws, regulations, policies and procedures; ‡ Management Audit - to assess the quality of management·s approach to risk and control in accordance with the Bank·s objectives. Basically, it concentrates on control problems of high-level management, e.g. evaluation of the organizational structure and financial discipline, longrange plans and objectives, budgeting, profit planning, human and physical facilities etc.; ‡ Information System Audit - to assess the controls over Information Technology systems and their application. This covers the analysis of computer based information systems (including the aspects of Change Management, Disaster Recovery Planning, Integrity of information produced etc.), which is an essential part in the evaluation of the overall system of accounting and internal controls and assessing reliability of the processed data. COMPLIANCE AND CONTROL: Compliance and Control Group was formed to oversee the implementation of all the relevant laws, regulations and procedures of the Bank, besides, making the Internal Controls more effective so that

the branches operate within the framework of the internal and external rules and Regulations. The purpose of the compliance function is to assist the bank in managing its various risks, i.e. risk of legal or regulatory sanctions, financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with all applicable laws, regulations, and codes of conduct and standards of good practice. Compliance with laws, rules and standards helps to maintain the bank·s reputation with, and thus meet the expectations of, its customers, the markets and society as a whole. To achieve this, we plan to put in place the following key ´ingredientsµ. y Top class professionals y State of the art technology y Customer centric products y Best in class credit and risk management tools y Strong marketing and sales culture y Strong service environment

INFORMATION TECHNOLOGY: Allied Bank is committed to serving its clients with banking solutions based on state of art technology. Over the past few years, the Bank has taken strategic decision to concentrate on technology. Going into this direction the Bank has recruited highly experienced professionals to accomplish the Bank·s technology requirements. The Information Technology (I.T) group is responsible for meeting the automation needs of the Bank. Its core responsibilities include branch computerization and automation of processes at the controlling offices to make the operations more efficient and provide the management with accurate and timely information. Besides, IT Group is responsible for launching and managing technology based products and services for

the Bank·s customers such as ATM network, Debit card services, online inter-branch transaction services, Internet banking services, Help Line services, etc., and to ensure continuity of these services, some of which are available round-the-clock. The Bank has the largest on - line network of over 700 branches around the country, the benefits are being passed on to the customers in every nook and corner of the country. The Bank is able to offer remote cheque encashment, remote deposit of cash, transfer of funds, cash management services, etc., on an on-line, real-time basis to all its
account holders at all its branches in over 250 cities across the country. Through this network the Bank also offers ATM / Debit Card facility to all its customers.

OPERATION: Operations Group, apart from re-engineering the existing procedures to ensure safe and smooth conduct of Bank·s operational activities also focuses on supporting the field offices in pursuit of their business objectives and goals while maintaining adequate controls from a risk perspective. Group also assisted in launching of a variety of value added services facilitating bank·s account holders / customers by offering them a wider product range and efficient delivery. Operations Group is divided into the following five areas. ‡ Alternative Delivery Channels provides innovative and value added I.T. based solutions to the Bank·s clients. ‡ Branch Operations supports the field functionaries through procedural manuals, branches rationalization, fully automated inter branch & nostro accounts reconciliations. It also provides support in Hajj & Zakat matters. During 2005, it has developed a number of new procedural manuals including ATM, Allied Online, Remittances, Cash & Teller etc.

‡ Treasury Operations supports Treasury front office in settlement of its trading investment activities in Foreign Exchange, Money Market and Stock Market besides providing operational support in cash management to the branches and other business areas of the Bank. ‡ Establishment caters to the Bank·s requirements for printed stationary, operating and fixed assets, insurance, and security arrangements at the central office level. ‡ Engineering is responsible for the purchase of new properties and construction / renovation of the existing / newly hired premises.

HUMAN RESOURCES: Human Resources (HR) Group focuses on the objectives of developing, implementing, and supporting programs and processes which add value to the Bank·s human assets, leading to improved employee welfare, empowerment, growth and retention, while being committed to it' management and overall satisfaction for its customers, employees and shareholders. In line of these objectives, the Group is divided, with major functions, among following: ‡ Personnel ‡ Staff Finances and Salary ‡ Employees· Funds and Benefits ‡ Disciplinary Action Cases ‡ Management Development ‡ Planning and Performance Management

The Group has, during the year, developed and revised its HR policies interalia Pay Ranges, which is one of the most important factors in human capital motivation. In view of the Bank·s projected growth, the Group has been able to recruit quality personnel at various levels through out the Bank. In order for employees to remain updated and enrich their skills more, various in-house as well asex-house training sessions were arranged. To motivate and compensate employees for their performance, new performance evaluation system was also introduced. The HR Group, in year 2006, will maintain its focus on human capital development by bringing improvements in existing policies as well as by introducing new policies.

This system component matrix is based on the conceptual framework of the model of Information System Components. The system component matrix is used by ¶ALLIED BANK LIMITEDµ as an Information system framework for both system analysis and system design.


System component matrix basically views the information system as matrix of components that highlight how the basic Information System activities of input, process, output, storage and control are accomplished by Finance Department, and how the use of people, hardware, and software resources can convert data resources into information products.

Computer Based Information System

Allied Bank Limited


Oracle Based Applications

Temenous T-24

Gantt And Pert Chart

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