Allied bank limited

Bahria Institute of Management Sciences
INTERNSHIP REPORT
NABIHA BASHIR 01-111062-101 BBA 8-C

2010

Table of Contents
Table of Contents....................................................................................................... 2 EXEECUTIVE SUMMARY...............................................................................................5 INTRODUCTION...........................................................................................................6 Central background information..............................................................................6 Vision....................................................................................................................... 6 Mission.................................................................................................................... 6 Values...................................................................................................................... 6 Company background.................................................................................................7 The Pre Independence History (1942 to 1947)........................................................7 Independence History (1947 to 1974).....................................................................7 Allied Bank (1974 to 1991)......................................................................................8 Allied Bank (1991 to 2004)......................................................................................8 (2005 to date).........................................................................................................8 CREDIT RATING...........................................................................................................9 Board of directors.....................................................................................................10 Management......................................................................................................... 10 MANAGEMENT SYSTEM OF ABL.................................................................................12 Allied Bank Management.......................................................................................12 Bank’s Information.............................................................................................12 MANAGEMENT HIERARCHY.......................................................................................14 2.11 FUNCTIONAL HIERARCHY...............................................................................15 STRUCTURE OF ABL LIMITED.................................................................................15 BRANCH NETWORK................................................................................................16 COMPANY’S ANALYSIS..............................................................................................18 OPERATION ANANLYSIS.........................................................................................18 SERVICES OF ALLIED BANK Ltd..............................................................................19 All-Time Banking................................................................................................ 19 Allied Umrah Aasan............................................................................................19 Master Cards.....................................................................................................20 Allied Tahafuz Deposit Scheme..........................................................................21 2

Allied Karzas Scheme (No Interest/Markup).......................................................21 Other Products:.................................................................................................. 22 Role of ABL in Banking Sector...............................................................................24 Financial Analysis..................................................................................................... 28 BALANCE SHEET STATEMENT................................................................................28 ANALYSIS OF BALANCE SHEET ..............................................................................32 CASH FLOW ANALYSIS...........................................................................................34 Analysis of Profit and Loss Account.......................................................................35 Vertical Analysis For year 2008.............................................................................36 RATIO ANALYSIS....................................................................................................... 38 INTERPRETATION OF RATIOS FOR 2008.................................................................39 OVERVIEW OF FINANCIAL ANALYSIS:.....................................................................43 CURRENT FINANCIAL OVERVIEW 2009..................................................................45 Human resource assessment....................................................................................46 Employee relationships.........................................................................................46 Recruitment Phases:..............................................................................................46 Marketing analysis....................................................................................................49 Marketing Policies..................................................................................................49 Promotional Policies.............................................................................................. 49 Public Relations:.................................................................................................... 50 Publicity:................................................................................................................50 ENVIRONMENTAL ANALYSIS......................................................................................52 INDUSTRY AND MARKET ANANLSYSIS....................................................................52 Major product lines market segments:...............................................................52 Growth rate for the entire industry....................................................................53 Competitor Analysis..................................................................................................55 Major competitors:................................................................................................ 55 Their market shares:.............................................................................................55 There Goals and Strategies:..................................................................................56 Technology analysis.................................................................................................59 TECHNICAL METHODS THAT AFFECT THE INDUSTRY.............................................59 INNOVATION..........................................................................................................60 DEPARTMENT WORKED IN AND MY CONTRIBUTIONS...............................................61 3

......................................................................61 NEW KNOWLEDGE ACQUIRED:.....................70 WEAKNESSES: ...................................71 OPPORTUNITIES: ........................................................62 HOW EXPERIENCE IMPACTS MY CAREER:...........................................................................................................................................67 IDENTIFICATION OF PROBLEM..................................................... 72 RECOMMENDATIONS..................... 73 CONCLUSION...............................................................75 APPENDIX ....................................68 FINDINGS........................................................................................ 77 4 .........70 STRENGTHS: ............................................................................................................................................................................................................Duties and accomplishment:...........71 THREATS: .................................................................................................................................................................................70 SWOT ANALYSIS: .............................................................................................................................................................................................................................................................

It offers universe banking services. because of capital reconstruction. The Bank Allied Bank Limited was the first bank to be established in Pakistan. the Bank’s ownership was transferred to a consortium comprising Abraham Leasing Limited and Abraham Group. It started out in Lahore by the same Australasia Dank before independence in 1942. In August 2008. Today . 5 . was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. the Rank has built itself a foundation with a strong equity. 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. The role played by its human resources is highly valued. both in terms of their skills and dedication in implementing uniq1o banking services.EXEECUTIVE 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. assets and deposit base. with its existence of over 60 years.

while placing major emphasis on retail banking. the Bank has built itself a foundation with a strong equity. Vision To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers.INTRODUCTION Central background information Allied Bank Limited was the first bank to be established in Pakistan. In August 2004. with its existence of over 60 years. It offers universal banking services. 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. It started out in Lahore by the name Australasia Bank before independence in 1942. 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. and reward dedicated team members To play a proactive role in contributing towards the society Values • • • • Integrity Excellence in Service High Performance Innovation and Growth 6 . Today. was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. because of capital reconstruction. the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. efficiency and diversity for all stakeholders To provide a challenging work environment. assets and deposit base.

Rawalpindi. Jhang.673 million and deposits raised to Rs 7.5 billion. Allied Bank's paid up Capital & Reserves amount to Rs. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. New branches were opened in Karachi. However. He decided to step-up to that challenge and takes the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab. played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession. commitment. it was severely hit by the riots in East Punjab. the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. the network spread to Multan and Quetta as well. At the time of independence all the branches in India. Gujranwala and Kasur.Company background Allied Bank was the first Muslim bank to have been established in Pakistan.12 million under the Chairmanship of Khawaja Bashir Bux. 0. Sargodha. The initial equity of the Bank amounted to Rs 0. 0. The Bank was identified with the Pakistan Movement. At the time. deposits exceed Rs. and by the end of 30th June 1947 capital increased to Rs. 170 billion. Sialkot. The Bank’s journey has been about dedication. The Pre Independence History (1942 to 1947) In the early 1940s. Delhi and Angra (Agra)) were closed down. Ludhiana. Banking. 1947. The Bank financed trade in cloth and food grains thus. (Amritsar. the Bank attracted deposits equivalent to Rs. 50. It is these factors that have made it a Bank the rest look up to.431 million in its first eighteen months of business. It was particularly upsetting for Khawaja Bashir Bux to hear that “Muslims could not be successful bankers”. 0. 7 . Hindus had established a commanding presence in the areas of industry. Peshawar. leading to its immense growth and stability. Despite the difficult conditions prevailing and the substantial set back in the Bank’s business in India. professionalism and adapting to environmental changes.728 million. 0. the Bank’s total assets amounted to Rs. 143 billion and total assets equal Rs.572 million. 10. Batala.5 million by the end of the first year of operation. Independence History (1947 to 1974) Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th. Today. 0. which was raised to Rs. trade and commerce and were especially dominating in the Sub-continent area. which was to become Pakistan in December 1942. Later. Since the late 1880s. in particular. Jalandhar.000 during 1947-48.12 million. Australasia Bank made a profit of Rs.

as a result of capital reconstruction.525 billion. Deposits rose from Rs. 1. 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. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made.038 billion. It also opened three branches in the U. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.34 billion to Rs. Today. 1. Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. Branches increased from 353 in 1974 to 748 in 1991. 10 million. the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank. The first year was highly successful. Unfortunately. 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. the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. 1080 million for the first time in the banking history. profit exceeded Rs. and became the world’s first bank to be owned and managed by its employees.46 billion and Advances & Investments from Rs.By the end of 1970 it had 101 branches. In 1993 the “First Allied Bank Modaraba” (FABM) was floated. ALL the shareholders were issued ABL shares instead of the all shares held by them. Allied Bank became one of the premier financial institutions of Pakistan. 1460 million. giving it a strong equity. deposits rose by over 50 percent and approached Rs.536 billion and deposits to Rs. the Bank stands on a solid foundation built over 63 years of hard work and dedication. 22 billion during this period. an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. 116 new branches were opened during 1974 and the Bank started participating in the Government’s spot procurement agriculture program. ABL was formally listed and the Bank’s share trading began on the following dates: 8 . Allied Bank’s capital and reserves were Rs. it lost 51 branches in the separation of East Pakistan. Allied Bank (1991 to 2004) As a result of privatization in September 1991. Allied Bank entered a new phase. (2005 to date) In May 2005. After privatization. its assets amounted to Rs. 87. Those seventeen years saw a rapid growth for the Bank. 76. Investments rose by 72 percent and advances exceeded Rs. In August 2004. 1. Allied Bank (1974 to 1991) In 1974.K.

the Pakistan Credit Rating Agency assigned the long term credit rating of Allied Bank to AA (double A) and short term rating to A1+ (A one plus). AA ratings denote a very low expectation of credit risk. with its existence of over 60 years.605. Today ABL has: Total customers Employees Total branches Utility booths Airport booths 4. Today. sound capital structure and an improving asset quality. The bank leads the way by having the largest network of 450 ATM’s in more than 145 cities and towns across Pakistan. A1+: Obligations supported by the highest capacity for timely repayment.• Islamabad Stock Exchange 8th August 2005 • Lahore Stock Exchange 10th August 2005 • Karachi Stock Exchange 17th August 2005 Today. assets and deposit base. all Allied Bank Limited shareholders can trade in the Bank’s shares at their will.000 6. They indicate very strong capacity for timely payment of financial commitments. Currently ABL possesses 932 and position in the world. while placing major emphasis on retail banking.747 735 34 1 CREDIT RATING In today’s world: ABL is now one of the largest banks in Pakistan with a network of 757 in over 300 cities and towns offering real time online banking. the Bank has built itself a foundation with a strong equity. 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. the Management intends to withstand in an increasingly competitive environment through achieving diversification in loan book and leveraging the extensive outreach to expand its retail universe both for credit expansion and low cost deposit mobilization. The rating reflects ABL’s good performance prospects emanating from its extensive outreach. This capacity is not significantly vulnerable to foreseeable events. While seeking to strengthen its infrastructure and control environment. 9 • . PACRA: Based on its impressive financial performance and significant improvement in areas of risk management and corporate governance. The management has a vision to move forward and to be one of the world’s leading banks. • AA: Very high credit quality. It offers universal banking services.

Consumer & Personal Banking) Fareed Vardag(Chief Risk Officer) Iqbal Zaidi(Group Chief. Special Assets Management) Mohammad Aftab Manzoor(Chief Executive Officer) Muhammad Jawaid Iqbal(Group Chief. Akhtar (Director) • • • • • • • • • • Management • • • Asim Tufail(Group Chief. Noorani (Director) Sheikh Jalees Ahmed (Director) Nazrat Bashir(Director) Mubashir A. Audit & CRR) • • • • 10 . Compliance) Mohammad Abbas Sheikh(Group Chief.Board of directors • Mohammad Naeem Mukhtar(Chairman) Mohammad Aftab Manzoor(CEO) Pervaiz Iqbal Butt (Director) Mohammad Waseem Mukhtar (Director) Farrakh Qayyum (Director) Sheikh Mukhtar Ahmed (Director) Abdul Aziz Khan (Director) Tasneem M. Corporate & Investment Banking) Muhammad Shahzad Sadiq (Group Chief.

Operations) Waheed ur Rehman(Company Secretary) Zia Ijaz(Group Chief. Commercial & Retail Banking) • • • • • • 11 . Core Banking Projects) Tahir Hassan Qureshi(Chief Financial Officer) Tariq Mehmood(Group Chief.• • Muhammad Yaseen(Group Chief. Human Resources) Khawaja Mohammad Almas(Head. Treasury) Mujahid Ali(Group Chief. Information Technology) Shafique Ahmed Uqaili(Group Chief.

They may supervise these officers. and the servicing of such deposits. are also the board of directors. Mohammad Saleem Sethi. that is the acquiring of deposits. Saleem Shaikh. Sherwani is the chairman and Mohammadi Yaqoob is secretary of ABL. Voting is cumulative. are performed. a) The manner in which the functions of banking. that is. 12 . ABL’s other directors are M. and the government for the well being of their institutions. Athar Mahmood Khan. the investing or converting such deposits into earning assets. The boards may format major policies and select officers to execute them.MANAGEMENT SYSTEM OF ABL Successful and profitable banking management depends on two principal factors. The government selects all or some of directors of ABL. Directors: Mr. b) The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities. review their act.A. Khalid A. creditors. I. Management of ABL are given as follows: Bank’s Information 1. Usmaini. S. Stockholders elect the directors for a term of one year and they are eligible for re-election. each shareholder has the right to vote the member of shares owned by him. Jauhar Husain. Allied Bank Management Banks are managed by board of director or similar group of men who are responsible to the owners. Raja Raza Arshad.

I. 3. Salim Shaikh. M. A. Saleem Khan Durrani. This work is often subject to little supervision by the board of directors. The Chief duty of the chairman is to lend the bank's funds. Sherwani (president). Khalid A. Shariqe Umar Farooqi (secretary). Chief Officer (Rashid M. Naveed Masud.2. Saleem Sheikh. 13 . M. to dominate the bank's policies as well as its administration. They are in a position. Jauhar. Officers: Officers are selected by the directors to manage their banks. Jauhar Husain. Usmain. S. Bilal Mustafa. Executive Committee Executive Committee consists of Mr. Chaudary) of ABL is known as Chairman. Ashfaq Hassan Qureshi. Senior Executive Vice President (M. S. An officer’s relationship to the board is that of an employee to an employer. They are also members of the board of director and are large shareholders.).

However.1 Management hierarchy 14 . President Senior Vice President Vice President Executive Vice President Senior Executive Vice President [rosodmemtPresident Regional General Manager Managerxecutive Vice President Branch Manager Figure 2. this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority and grades.MANAGEMENT HIERARCHY The management hierarchy represents the different positions and designations in the hierarchy of the ABL.

11 FUNCTIONAL HIERARCHY The functional hierarchy represents the reporting order in the hierarchy of ABL. The hierarchy has president and directors at top management level and officers Grade I. Any person in the hierarchy above the branch manager can be appointed as RGM and controller operations. The middle level management consists of regional general Manager and Regional Controller of Operations. II and other lower Staff Figure 2.2.2 Functional hierarch STRUCTURE OF ABL LIMITED 15 . These positions are not fixed. President and CEO Board of Director Head of Departments Regional General Manager Controllers of Operation Branch Manager Office G-I. II and Grade III at the lower level management of ABL.

Manager heads branches. Regional Chief heads this office. is functionally organized into divisions and divisions are further divided into department and sections. Karachi (Sind). Arrangements with large number of Correspondent Banks/Exchange Companies. The bank has regional office under head office in major areas of the country. Executive vice president heads the divisions and departments are further headed by OGI (Officer of Grade I). Large number of branches for Rupee Travelers Cheques Branch Setup 16 . BRANCH NETWORK There are Four Provincial Headquarters of Allied Bank Limited situated at Lahore (Punjab). The region Consist of many zonal offices with a zonal chief. To whom they give the item or function after finishing it. Peshawar (NWFP & Azad Kashmir) and Quetta (Baluchistan). which is controlled by the president of the Bank. What they are supposed to do with the work after they receive it. Large number of branches for Inland Remittances. Over 200 branches for Foreign Currency Accounts.No bank can be expected to operate efficiently unless all employees within a department. When they are supposed to do work. To perform the functions efficiently the bank has its Head Office in Karachi. perform the operation. There are many branches in a zone to carry the functions effectively and performing customer services locally. • • • • • • 800 domestic branches. division or section know: A) B) C) D) E) From whom they are to receive the work they are to do. Over 70 branches for trade finance. Every province has its own regional office and zonal offices. ABL Ltd. How they are supposed to handle the operation of item.

MANAGER General Banking Advance Department General Banking Token Current Remittanc e Account Clearing NON-CLERICAL STAFF 17 .

COMPANY’S ANALYSIS OPERATION ANANLYSIS PRODUCT LINE The following is list of Product line of Allied Bank Limited • Internet Banking (Online Banking) • ATM Network • Deposit Account • SME • Agriculture • Corporate Leasing Corporate Banking • Project Finance • Long Term Financing • Short Term Financing • Trade Finance Investment Banking • Project Finance • Syndication • Advisory Financial Institution • Cash Management • Home Remittances 18 .

000/. In order to obtain Allied Cash+ Card. for ease of understanding. Using this scheme family. The customer will now have the convenience of withdrawing cash from any of ABL’s ATMs (Auto Taller Machine) conveniently located in major cities at any time of the day or night even on closed days/holidays. This topic is further explained in chapter 4. Non-account holders would first have to open an account with Allied Bank to have access to this facility. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in monthly installments. The dullyfilled form should be handed over the Manager of the Branch where the customer is maintaining his account. the customers simply have to fill out prescribed Application form available at selected Allied Bank Branches in Karachi and Lahore. Graphical representations have been employed. Aazmeen from Lahore and Islamabad will have to pay an extra Rs.SERVICES OF ALLIED BANK Ltd All-Time Banking Allied Bank has introduced the Allied Cash last year also referred to as ATM card. The charges include Airline return ticket. relatives and household servants can be sent for Umrah. • • • • 19 . who cannot afford to incur the lump sum expenses for Umrah. Around 2500 Aazmeen are to be sent for Umrah every month. Lucky winners of the draw are duly informed by their respective branches. Other services include customer being able to inquire about the balance of his/her account or printing an abbreviated (mini) statement showing the most recent eight transactions up to the previous working day. Total package for Aazmeen from Karachi is being Rs. The Customer can feel absolutely safe his Allied Cash + Card because it can only be used with the Personal identification Number (PIN). Umrah packages are of 10 days duration. 3. 45. which is given to him by the bank.000. Allied Umrah Aasan This unique scheme facilities those persons. Its salient features are: • • It is free of interest and markup.for Airline fare. where appropriate.

500/membership fee + Rs.A. 1. The customer has been an account holder with the Allied Bank to apply for the Allied Bank – Master Card that is available to the customer for an initial fee of Rs. he/she will given a refund of all money deposited through installments till that time. Makka to Madina and Median to Jeddah).S. 20 . issues its Master Card to anyone meeting the eligibility criteria. Petrol Pumps and hundreds of other establishments which display the familiar Master Card sign throughout Pakistan and abroad.annual fee).(Rs. 2. The Allied Bank Master Card helps the customer pay without the complications of cash or checks. Supermarkets. Rest of the money is to be deposited through monthly installments of Rs. family accommodation and traveling within Saudi Arabia (Jeddah to Makka.000 per person as first installment. restaurants.000/. Allied Bank under license from Master Card International. It doesn’t cost the customer anything if he pays in full within the due date. the customer signs a voucher and that’s it he is not required to take extra troubles. Application for whole Family/Group can be filed through a single Application Form. he simply presents it at Shops. Nursing Homes. At the time of submitting the application Aazmeen has to deposit Rs.000/. U. Defaulters will not be included in the draw. Allied Bank – Master Card is safer than cash and simpler than checks. Due to any reason if Umrah Applicant needs to withdraw his/her application. With the Allied Bank Master Card the customer is assured of a service meeting the highest international standards maintained by Master Card.500/. Once purchases are made. Applicants have to deposit the monthly installment using deposit slips still 5th of every month. Every month the customer receives a statement showing details of transactions. Aazmeen have to submit a copy of their NI Cards and Passports with the application. All applicants of a family/group are sent for Umrah even if only one member of that family/group is declared successful in the draw. 2. If an Applicant wins in the draw he/she is required to pay the balance amount through monthly installments on returning from Umrah. but if he decides to spread the payments over several months a service charge @ 2. Hotels. 2.50% per month is charged. Pharmacies.• • Fee Visa. • • • • • Master Cards The customer can now become the holder of a true Credit Card here in Pakistan.person on every 5th day of the month. Once the customer obtains his card.

Allied Karzas Scheme (No Interest/Markup) Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas Scheme. Insurance cover up to .000. Minimum deposit period.outstanding and the minimum amount due. Premium shall be paid by the bank.000/.000/. automatic renewal on face value. As Competitive rate profit. it is essential that a least minimum payable amount of the bill be paid regularly. 50. Eligibility Age – 18 to 64 years. 100.and multiples thereof. Life insurance up to 5 times of the customer’s deposit amount with no extra cost. 500. the card is activated after receipt of overdue payment only. In case the required payment is not received the operation of the Master Card is automatically. 5. The features of this scheme are: • • • • • • • Prospective client who will maintain a return free deposit for at least 3 months shall eligible to avail interest free/mark-up free finance. Payment of profit on monthly basis. Allied Tahafuz Deposit Scheme Brings the customer unparalleled life insurance covers along with attractive monthly profit. suspended by the system. Full payment of claim in case of – Death – Permanent total Disability. 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 • Prospective client will maintain a return free deposit for at least 3 months shall be eligible to avail interest free/mark-up free finance. The statements also give the last date for payment so the customer can avoid paying service charges. 3 months with automatic rollover facility.Rs. No medical examination for: o Deposit up to Rs. Minimum Deposit amount – Rs.000/.000/. In such case. 21 .and age up to 60. In order to avoid disruption in use of the card.or multiples thereof. • • Deposit amount Rs.

a. 12 months from the maturity of deposit. • Hajj Services The Bank serves the intending pilgrims by helping them in performing this religious obligation. Maximum period of finance. Minimum deposit period for eligibility of finance. undertakes to provide safe and instant payment of remittance from expatriates. o Same amount of finance for half the period of deposit or o Same period of finance for half the amount of deposit. The Hajj forms and other related services are provided by the bank. each year. 3 months. • Every month (30 days) completed by the deposit shall be taken into account for calculation of entitlement of finance. immediately after the Hajj policy is announced by the Government of Pakistan. • Finance proposal processing fee Rs. Hajj applications are available with all branches during Hajj season. routed through designated foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard._ to be placed in charity A/C. 6 months. Other Products: • Home Remittances The Bank having a network of 755 branches all over Pakistan.055% per day (20. the terms and conditions for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj Policy announced by the government. Maximum period to avail finance. Through the Allied Express Services.(non-refundable) plus documentation cost on actual basis. However. 100/. without any penalty/charge. • In case of default/delay in repayment @ 0. 22 .075% p.• • • • Premature encashment allowed. ABL ensures that beneficiaries’ Accounts in ABL branches are credited with in 48 hours of receiving home remittance information from overseas. • Formula for calculation of entitlement of finance.

• Allied Bank Rupee Travelers Checks Carrying cash to strange alien location can prove to be risky as a single incident can render one without monetary backup of any sort. Locker holders need not have an account in the Bank. For convenience of the customers.• Utility Bills All branches of the Bank collect utility bills of electricity. factory including social forestry and fisheries (inland and marine excluding deep sea fishing). poultry. Medium and Large on a yearly fee. Non-farm credits are allowed for livestock (goats. Utility Bills are collected by the branches during banking hours and also in he evening banking on all working days. farm and non-farm credits. Bills can be paid through cash or checks. medium and long term. • Seasonal Finance 23 . The farm credits are extended for production (inputs) and development purposes. Hence banks introduce traveler’s checks in order to protect against any contingency. • Import Export Business/Trade Finance ABL Provides highly efficient trade finance services for import/export business for our clients/customers through large number of authorized branches where trained and motivated staff is available to handle the business on behalf of customer. gas and telephones. sheep and cattle). • Agricultural Finances Bank under Agricultural Financing Schemes envisaged by he State Bank of Pakistan extend short. • Lockers Allied Bank Lockers are available in three different sizes Small. Consumers may drop bills with crossed checks into a drop box available at the branches under “Checks Drop-in” system.

At the time of independence when Pakistan was in intense need of banking services and expertise. The delivery of goods is made against payment. • Commitment to Serve the Customers ABL used novel methods of customers service instead of conventional ways of the day. 24 . ABL rose to the occasion and rendered all its expertise at best for the development of the newly born state. the commitment to serve the customers. radical and personalized style of banking differed significantly for the conventional business patterns of the period. The running finance account can be operated and daily sale proceeds can be deposited into the account. biannual or annual.o Running Finance is a short-term loan allowed by the bank for a period of one year. Cash Finance is allowed against pledge of goods. The markup is recovered on the products of daily outstanding balance. It did not take long for Allied to grow into one of the leading bank in the country overtaking the several other banks which were its competitors were established earlier. which was market oriented and appealed to if customers. Demand Finance is disbursed in lump sum or in accordance with the agreed disbursements schedule and it is repayable as per the agreed installments. quarterly. The running finance is suitable for meeting day-to-day financial needs of the business. o o Role of ABL in Banking Sector ABL is one of the most dynamic and progressive bank in the banking industry of Pakistan. This is due to its impressive growth and development. ABL’s dynamic. which it achieved during sixty years of its existence. which could be monthly. • Contribution Before/At the Time of Independence ABL was established as a response to the cal of Muhammad Ali Jinnah for having a Muslim representative bank in him Sub Continent. In fact every feature and aspect ABL’s behavior reflected highlighted those differences most significantly.

When Allied Bank challenged the major banks of the time they began evaluate their policies and were surprised to find that they had a lot to change before long. They began to change and adopt a more modern and relevant strategy. ABL has launched a number of successive drives for improving the deposit base of the Bank. A competitive environment was instrumental in introducing a thorough going professionalism. The management decided to broaden the geographical coverage so besides the cities. At present the number exceeds 819 branches. farmer’s craftsmen and other persons of limited means. An essential part of each drive was to popularize the banking habit among the people both rural and urban. Until 1942. industrial workers. The continuously rising importance of deposit money in total money supply underscores the contribution of commercial banks in this direction. clients were naturally attracted to the bank. only few branches had been opened. less development and unbaked areas of fulfill its social responsibility. The branches in small town and villages have been vital help to the small industrialists and business. the growth of banking comprised the phases of laying the foundation of the banking structure. This was the phase competition with the already established giants. which in the ultimate analysis transformed the entire outlook of the industry. and to bring a large number of customers into its orbit. 1973. the bank branched out into small towns & the far-flung. 25 . Incentives and awards were given to promote efficiency and better service to customers. The establishment of ABL has started a new era in the banking system. • Modern Banking Policy The expansion and growth of he banking sector in Pakistan has been remarkable.• Better Working Environment ABL has provided its employees a better working environment and salary structure and facilities. The bank had extended its network to more than 650 by the end of Dec. From its inception. • Deposit Mobilization The banking sector as a whole and ABL in particular has played an important role in helping to mobilized savings. which provided better and quicker banking services. • Branch Expenses Soon after commencing business by the end of June 1942. Banking underwent a complete metamorphosis.

And finally the process of transaction from interest base to non-interest banking was completed. 26 . both of theoretical and practical significance. Since the banking companies are not allowed to accept deposits (excluding foreign currency deposits) except on the basis of Profit & Loss sharing. began as early as in 1950’s the bank also took the lead in introducing computers in banking operation in Pakistan and now ABL is connected to its branches through online banking. • Interest Free Banking The Islamization of economic system in Pakistan began from July 1979. • Computerization While mechanization in ABL. The division has conducted research and has been able to add to the literature on Islamic banking. electricity and telephone bills. • Utility Booths The bank has 34 utility booths throughout of country to accept payments.• Home Remittances Handled The Bank contributions in handling home remittances by over seas Pakistanis have also been commendable. The bank’ achievement in the area is really commendable. Interest free modes of financing had been introduced. In Jan 1981 the PLS banking was launched. and in the first half of 1985 a number of measures over taken for complete charge over of the whole system of domestic banking to non interest basis. both in the morning and in the evening against utility bills. A separate department at the head office was set up which was later on upgraded into a fullfledged Islamic banking division apart from supervising the Islamic banking operations. The bank also issues television licenses. • Foreign Trade The bank has always played key role in the promotion of foreign trade especially in financing of exports. such as gas. as it has not only to compete with the domestic banks but with the large international financial agencies as well.

three bonuses were awarded in a single year to recognize and reward to services and achievements of its employees. . • Obligation to Serve Society ABL also plays it part in the development of society.• Prize for Success in Banking Diploma Examination The bank instituted prizes for those securing highest position in bank diploma examinations. 27 . It has established public libraries in many cities and towns. In 1993.

Financial Analysis BALANCE SHEET STATEMENT 28 .

PROFIT AND LOSS STATEMENT 29 .

Million 30 .PERFORMANCE COMPARISON OF ABL in Rs.

CASH FLOW SUMMARY 31 .

ANALYSIS OF BALANCE SHEET Vertical Analysis 32 .

33 .

83) 40.175 ( 14.CASH FLOW ANALYSIS HORIZONTAL & VERTICAL ANALYSIS Allied Bank Limited Sheet of Dec 31. M (50.75 34 .75 14.35 Cash and balances with treasury bank Balances with bank Investments Advances Other Assets Operating fixed assets Deferred tax net Total Assets Liabilities Bills payable Burrowing from financial institutions Deposit (0.40 147.36 7.50 (20.72) (0.29 I5.0) 16. 2008 Horizontal Analysis ASSETS Increase (decrease) 2007 2008 115 2.22 0.31) (3.00 19.87 (2.79) 2.55) 20.89) (29.67) 22.35 7.67 62.

40) 24.74 82.41) 132 48.20 (28.79 S4.16 (11.20 ) (23.52) 83.32 (40. 2008 ITEMS Increase (decrease) 2006-2007 % age Murk up Interest return earned Mark up Provisions Non mark upMnlerest Int:omd Non mark up Interest expensed Profit before Taxation Taxation Profit after Taxation Earning per share (10.72) 12.61 2007-2008 % age 10.49 84 Allied Bank Limited Profit and Loss Account Vertical Analysis 35 .85 82.76) (17.38) Analysis of Profit and Loss Account As on Dec 31.39 (84.22) 93.55 16.75) (34.77) (2.77) 107 139 82.Shareholder equity Share Capital Capital reserves Accumulated loss Surplus on revaluation of fixed assets 45.34 (0.97 (4.35 16.

185.310.385.476 100 Vertical Analysis For year 2008 Expenses Mark up Expenses Provisions Admin Expenses Other Charges 2006 Rs. % age 49.102.98 3.871 & Brokerage Gain on 1.947 1.159 Taxation Total 2.896 117.000 0.77 72.48 Other Provisions Writes (62.4-8 1.971.41 4.31 28.61 17.795.58 31.22 0.792 75.381 0.00 32.110. % % age (000) (000) age Interest 11.49 1.51 100 1 1.222.55 8.955 100 36 .066 7.17 3.51 3.244 0.80 1.23 038 6.144.471 31.446 27.01 12.22 0.00 100 2007 Rs.813.(000) % age 26.44 37.324 385. 2007 Rs.21 3.364.061 0.707 8.47 6.342 3.126 3 4.738.94 2.00 1.Income 2006 Rs.445 100 2008 (000) Rs.912 1.69 12.151.52 0.213 5.135.071.722 1 42.636.207 S.807.98 5.72 Other In tome 1.512.271.35 2.013 465.20 15.343 2.02 0.892 1.55 100 7 31.361. 544 434.751 30.44 4.522 1. 2008 (000) Rs.80 4.350 24.112.761 55. 41.924 0. % age Markup 23.04 68.054.542) off Staff Welfare Fund 215.855.96 5.(000) %age 79.685 1. Investment Income Dealing Dividend Income Venture Total from 1.144.531 38.096.453.42 0. 43 580.509.724.099.80 3.92 1.00 11.956714 earned Fee Commission 2.845 82.

37 .

RATIO ANALYSIS 2003 2008 2004 2005 2006 2007 38 .

INTERPRETATION OF RATIOS FOR 2008 CURRENT RATIO: 39 .

951 Debt Ratio for 2007=0. so it is good for the bank to meet its liabilities and the Bank is more liquid in 2008 as compared to 2007. greater the amount of other people’s money is being used to generate profit. DEBT RATIO: It shows the proportion of total assets financed banks/firm’s creditors. EARNING PER SHARE: This ratio shows the amount earned on behalf of each share. Higher this ratio. Current ratio= current assets current liabilities Current ratio for 2008= 3. The ratio shows that the bank has financed almost 95% of its assets with debts. It does not show actually distributed among the share holders.88 Interpretation As the current ratio is increasing.16 Current ratio for 2007=1.95 Interpretation The debt ratio for both the years is approximately same. the amount Earnings per share= Earnings available for common stock holders Number of outstanding shares 40 . Debt Ratio= Total Liabilities Total Assets Debt ratio for 2008=0.It is used to check the ability of a bank to meet its short term obligations.

EPS for 2008=1.63 EPS for 2007=3.16 Interpretation EPS is subjected to downfall in 2008 as compared with 2007. It shows that less profit is distributed to the shareholders in 2008.

RETURN ON EQUITY: This ratio shows the returned earned on the stockholders investment in the bank/firm. ROE = Net Income Shareholder equity ROE for 2008=41% ROE for 2007=36% Intrepretation Returns are higher in 2008 and is well for the customers and owners. DEBT TO EQUITY RATIO: This ratio shows loans of a firm as compared to its equity. Debt to equity ratio = Total Debt Total Equity Debt to equity ratio for 2008= 22.35 Debt to equity ratio for 2007= 19.27 Interpretation This shows that the bank has taken more loans from creditors in 2008 than 2007. This situation is not good for the bank as this situation may lead to insolvency.

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RETURN ON ASSETS: It is also called return on investment. It measures the overall effectiveness of the management in generating profits with its available assets. ROA = Net Income Total Assets ROA for 2008=1.7% ROA for 2007=1.8% Interpretation Greater the return on assets, the better is the situation. ROA has fallen in 2008 showing the mismanagement of total assets.

NETWORKING CAPITAL RATIO: Net working capital is basically difference between currents assets and current liabilities. Networking capital ratio = current assets – current liabilities Total assets Networking capital ratio for 2008=0.106 Networking capital ratio for 2009=0.068 Intrepretation The ratio has shown an increasing trend from 2007 to 08, indicating the increase in current assets of the bank. Hence it’s a favorable situation. OPERATION CASH FLOW RATIO: A measure of how well current liabilities are covered by the cash flow generated from a company's operations.

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OCF ratio for 2008=00075 OCF ratio for 2007=0.083 Intrepretation The operating cash flow ratio can gauge a company's liquidity in the short term. Using cash flow as opposed to income is sometimes a better indication of liquidity simply because, as we know, cash is how bills are normally paid off. The ratio is less in 2008 than 2007, indicating less liquidity.

PRICE EARNING RATIO: It is a valuation ratio of a company's current share price compared to its per- share earnings.

PRICE EARNING RATIO 2008= 6.74 PRICE EARNING RATIO 2007= 3.33

Interpretation
A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. 2008 P/E is higher suggests that higher growth in future.

OVERVIEW OF FINANCIAL ANALYSIS:
As the current ratio is increasing, so it is good for the bank to meet its liabilities and the Bank is more liquid in 2008 as compared to 2007.

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It shows that less profit is distributed to the shareholders in 2008. It attracts the attention of the investors. ROA has fallen. as we know. cash is how bills are normally paid off. 44 . indicating less liquidity. The operating cash flow ratio can gauge a company's liquidity in the short term. The above mentioned sentences depict the overall analysis of bank fiscal years. Returns are higher so better for customers. EPS is subjected to downfall in 2008 as compared with 2007. Bank has taken more loans which it must avoid in future in order to save itself from markups. Higher P/E ratio shows higher investments will be taken up by the company in the near future. EPS is subjected to a downfall showing loss in share prices too. 2008 P/E is higher suggests that higher growth in future. Greater the return on assets. OCF ratio is less in 2008 which indicates less liquidity. Bank must grab the market in order to ensure rising EPS and so will increase its shareholders. This situation is not good for the bank as this situation may lead to insolvency. Now these clearly show bank assets are more liquid so bank must invest cash and cash equivalents into the business. This shows that the bank has taken more loans from creditors in 2008 than 2007. which means that bank is not utilizing its assets properly. Debt ratio is same but bank must use less risky debts. the better is the situation. The ratio shows that the bank has financed almost 95% of its assets with debts. ROA has fallen in 2008 showing the mismanagement of total assets. Using cash flow as opposed to income is sometimes a better indication of liquidity simply because. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. The ratio is less in 2008 than 2007.The debt ratio for both the years is approximately same. Returns are higher in 2008 and are well for the customers and owners.

on all PLS deposits coupled with the staggered increases of 500 basis points in the SBP’s Discount Rate during year 2008. Non mark-up expenses increased by 28% during 1H09. thereby reducing reliance on costly deposits. The share of Current and Savings Deposits in the total deposits has increased from 50. net mark-up income for 2009 was able to grow by 41%. though the Discount Rate was cut by 100 basis points by the SBP in April 2009. the EPS for six months period ended June 30. Non mark-up income grew to Rs. 2009 compared to Rs. 2009 as compared to Rs. as Allied Bank focused on its strategy to consolidate. Allied Bank is effectively pursuing its strategy of consolidation for the year 2009 and remained focused on the improvement in the quality of assets and achievement of a more favorable deposit mix in terms of cost.777 million at June 30. This growth was led by improved capital market results. 3. 2. which rose by 50% over the corresponding period last year.061 million during half year ended June 30. The Balance Sheet size of Allied Bank stands at Rs. Allied Bank was able to restrict increase in its cost of funds. While.1% registered during corresponding period of last year. 4.2% to reach at Rs.636 million as at June 30. 3.5% at December 31. Mark-up income grew by 53% during 1H09 over the corresponding period last year. with mark-up expense rising by 59%. increased foreign currency gains and investment banking fee income.4 % during 1H09. 26. Allied Bank was able to achieve this growth despite State Bank of Pakistan’s (SBP) regulation of paying profit at a minimum of 5%. Deposits of Allied Bank increased to Rs. 45 . The net mark-up income increased by 45% led primarily by improved deposit mix.CURRENT FINANCIAL OVERVIEW 2009 Under the current challenging circumstances. 2009 stands at Rs. Allied Bank has been able to increase its pre-tax profit by 21% to Rs. 2009. The interest rate spread rose to 6. Allied Bank continued to align its risk management framework to improve asset quality and remained prudent in lending . while the equity of Allied Bank registered a growth of 18. 2009. 2008 to 55. 2008.419 million.508 million in the corresponding period last year. reflecting a growth of 22%.627 million and after tax profitof Rs. these have been contained during 2009 to 11% over the corresponding period of last year. 2008. 385.30 compared to Rs.4.2% at June 30.2% during 1H09 from 5. The loan book maintained the same level attained in December 2008. In line with this strategy. 297. the mark-up income during 2009 increased by 46%. Resultantly. with average balance increasing by around 14. Resultantly. 3.53 in the comparative period last year.475 million at December 31. effective June 1. however. 312. 363 million or 82% over the corresponding period of last year.

thus ensuring greater self-fulfillment and progression in the organization. Askari continue to offer opportunities for people to develop their knowledge. requisite training and merit based reward system. So that it can select the best one from them.Then the interested candidates apply through email or mail and send their Cvs to the address given. The date of entry test is mentioned in that letter along with the roll number slips. Recruitment Phases: Recruitment strategy and method: ABL recruits the most deserving and talented people for the service.ABL announces its selection tests by giving advertisements in newspaper. professional grooming. Employee productivity enhancement is organized through extensive in-house and external training programs. It recruits those candidates who really have passion and talent. where each relies on the strength of the other and together they achieve common objectives. The basis requirements are mentioned in that.Human resource assessment Employee relationships "Unusual effort on part of the employees who are apparently ordinary workers is one of the key indications of a superior enterprise" Askari bank’s staff is its most valuable asset. skills etc.Then the recruitment staff shortlist the candidates and sends the letter of being short listed to the most deserving and capable candidates. car buy-back facility and home loan insurance have added new dimensions to the staff-care policy and motivated them to out-perform askari competitors. The candidates scoring above 3 Gpa in business administration or commerce or any related field are proposed to apply and come forward. The human resource philosophy at askari bank focuses on multi-talent hiring. percentage of . a cohesive teamwork. New initiatives like hospitalization plan. Bank lays great emphasis on the development and nurturing of "Askari Culture". Selection strategies and methods: 46 .marks . skills and personalities. means the requirements for capable candidates are mentioned in the add. Staff welfare has always been a priority. those who can serve the banking sector the most. Like the minimum requirement of years of education.

computer science . And after a month when result is prepared the short listed candidates are given the date for interview. insurance policies together become the factors of motivation for the employees. bonuses according to daily performance of employees. car leasing loans. special exams and test are arranged to evaluate employees. the role of the service 47 . so this training is almost equivalent to job. the routine work done in banks and many more. Interviewsare taken by the senior staff of ABL. To put this in effect. Bonuses are also given on every Eid that is equivalent to the basic salary of every employee. and selects the most brilliant candidates who really deserve to be selected. and all those who score above 90% get the promotion to MG 10 after 3 months of working in bank where as the remaining ones are all appointed on MG11 at the time of end of training. Incentives. Training: All the candidates are given training of basic banking for about three months. The process of performance evaluation keeps on going in banks.ABL’s selection committee checks the papers very care fully and honestly. The most efficient bankers and teachers are appointed to train all of them. as well as the long hours of working. The selected candidates are sent appointment letter within 5 to 8 days. English . And the daily performance evaluation is also done by seniors. Whereas all the non achievements of these factors become the demotivating factors for the employees. The aim of the Service Quality Group is to create Service Awareness across the bank where every individual has the willingness to help both internal and external customers and provide prompt services while adopting a personalized approach. so that those employees who really perform well are given promotions every year. Those candidates who reply Yes in reply of this letter are selected and given training. The most interesting point in this training are that all the candidates are given salary which is almost 20. Service quality training: Allied bank is focusing on quality customer services to deliver the best customer experience. the sensitivity of work. motivating and demotivating factors: All the increments given after every 6 months.000 rupees%. At the end of the training all the candidates have to go through an exam . accounting. This procedure of selection takes almost a month. Increment and performance evaluation: All the employees of ABL are given an increment of 10% after every 6 months of period. In this training program all the students or employees who have come from different institutions and backgrounds are taught banking courses and all those subjects whose basic awareness is important in the field of banking like finance . and to work by sitting on a seat all the time really de-motivate the employees. and all the bonuses on Eids. house building loans.

the bank invest the acquire funds. The participants were the CSO’s. and Lahore) at their Management Development Centers and the facilitator was their Training Manager of Service Quality Group. Branch Managers. the service quality group conducted inhouse training in March 2008 on Customer Services for branch staff where Customer Support Officers (CSO’s) were placed. which would be conducted across the customer touch points. PROCUREMENT POLICIES Procurement policies are more concerned with manufacturing organizations. The involvement of individuals within the dimensions of service culture was emphasized through various team building games and role plays. The Group Head of Service Quality along with the respective Group Heads of CRBG were also present at each session. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. After the acquisition of funds. as already mentioned in the above paragraph the major sources of funds for a bank are the deposit of the general and the other sources of income includes interest or markup charges received for various services offered by the bank to its clients. securities etc. which would consequently build trust and confidence in ABL’s customers.quality group is to conduct service oriented training programs. TOPICS COVERED IN THE TRAINING: • • • • • ABL vision How to create the best customer experience How to communicate with your customer Service Quality dimensions and objectives Business dressing and grooming This initiative was the first step taken by the Service Quality Group towards strengthening customer relationship and building upon customer loyalty. It involves attracting and holding the funds of the depositors. This training was conducted in all three regions (Karachi. CSM and Tellers. A bank tries to attract maximum no. The aim of this training was to develop the skills and knowledge of our frontline staff on delivering consistent courteous behavior. Of accounts so that it can increase its deposits and these lending ability. Islamabad. of accounts the staff of the bank must be 48 . In this regard. One alternative is to lend its money and earned interest markup or invest in govt. In order to get maximum no.

Promotional Policies Public relation and advertising has assumed a great importance in the modern banking business.efficient as compared to the other banks and the manager of the branch must take personal interest in attracting deposits. The bank marketing must be consumer oriented. It is necessary for the managers to keep in touch with consumers. • • These policies can be implemented by providing the right product and service to the customer at the right place. observe their needs and develop products. Allied bank establishes its purpose through: • Direct contact with customers. Marketing for a bank would mean: • • Creation of new product and services. which meet their needs. Good quality of the service is the key to success. The main objective of bank is to inform the existing clients and other people about its new products or change in the existing services. Development of products for the customers. Giving good services and maintaining good relations with the customers. at the right price. Marketing analysis Marketing Policies Marketing policies are also one of the most important policies because they are related to the growth of the organization. at the right time. 49 . Following are the marketing policies of the Allied bank: • Keeping the track of latest developments in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers.

A Musical evening was also arranged for those children. over 4000 special and underprivileged children from over 65 local schools and institutes gathered to enjoy the 9th annual Children’s Benefit Concert.ABL is one of the largest commercial banks in Pakistan. The successful initiative by the bank showcases its desire to be an active partner in the passion for cricket shared by the people of both India and Pakistan. On March 12. ABL strives to contribute and bring about positive changes in the communities it operates in. The love and encouragement given to those children will live on in many hearts that were touched in a special way that day. Publicity: ABL Co-sponsored India Pakistan cricket series 2006: ABL is proud to co-sponsor the India-Pakistan cricket series 2006.• • Relation with business organizations. comprising the 3 test Allianz Cup and the 5 one day International Hutch Cup. Public Relations: As part of its corporate social responsibility (CSR) program. was an unforgettable day they will remember for many months to come. ABL is also presenting Catch of the match award throughout the test and ODI series. ABL outdid a number of Indian banks that were in the line to sponsor the India Pakistan series_ one of 2006’s most important events in the cricket calendar. the bank has taken upon the task of nourishing the sports talent of the country by sponsoring the sports events. With its new vision and new look. presented by Pakistan’s very famous compares and also featured FESF’s own show team. This event was a team effort in which the role of ABL was also very prominent and it was really great to see that what is possible when people join hands together and reach out to those who are less privileged. organized by the Family Education Services Foundation (FESF) and partly sponsored by Allied bank. Community relations. By signing the sponsorship deal. In this way ABL performed its social responsibility. The program. many other items were presented by volunteers of FESF’s. 2008. This musical event. With this deal ABL has entered the sponsorship of global sporting events. most of those students never had an opportunity to participate in any such lively event. in order to bring out the best talent on the sporting frontiers of 50 . who made audience really enjoy a lot. so called concert for them. Seating 4000 children was not so easy but more than 100 volunteers did an excellent job of making the children feel like they were the special VVIP guests for the day.

tournaments and life achievement awards for the players. These remarks would pertain to various aspects of the branch operations such as front entrance. when that individual would be the STEWARD in the branch.Pakistan. waiting area. In this connection. tellers area. ABL organized a men’s mini marathon held on 19th august 2005. It will be his responsibility to upgrade the quality of services. behavior and punctuality. ABL has introduced a unique concept called STEWARD OF THE DAY. MEN’S MINI MARATHON: On the occasion of Pakistan Independence Day celebrations.ABL believes that the sports promotional activities are not only a source for a healthy environment in the country but they also build a healthy generation. in Lahore. The bank focuses on the national and international sports promotional activities. The checklist or form will be submitted to the Branch Manager at the end of the day. who will keep a record of the same in a separate file. Since every individual has an opportunity to play the STEWARD and make the branch appearance checks. customer service area. 51 . all the members of each branch are collectively involved in monitoring and ensuring the branch is presentable.. and provides principal and partial sponsorship. He or She would be responsible to go through a checklist of various functions and activities of the branch and remark accordingly in the morning before banking hours. i. ATM’s and over all staff presentation. The management allocates an extensive budget in term of sponsorship of the sports events.The brief of this concept is that the Branch Managers assign each member of its branch a particular day of the week (in case of smaller branches) or a particular date (in case of bigger branches). ABL is phenomenal and the one to be followed and admired by each and every sports lover of the country. to convert poor into good by taking appropriate measures and to maintain the same throughout the business day. The greatest legends of sports have always been un-precedently motivated by the bank. 2008. which has been put into practice from 17th of March. STEWARD OF THE DAY: (UPLIFTING THE SERVICE AT BRANCH LEVEL) In order to further improve the customer experience at branches.e.ABL looks forward to the bright future of the sports wholeheartedly and ready to set an example to facilitate the sports activities in all good manners. the splendid history of the bank shows that ABL is the pioneer bank to prop up the sports financially and morally.

52 . Now. middle sized customers. Small and Medium Enterprises (SMEs) and agriculture sector. Consumer & Personal Banking In line with the bank’s policy to provide complete suite of products and services to its customers. Allied Bank will be faced with increased competition from several other banks offering the same products. In 2008. cash management. corporate advisory. conferred the “Deal of the Year 2008 – Pakistan”. Corporate and Investment Banking Corporate book is a major component of our loan portfolio. superior technology platform and a huge customer base. Although. corporate finance products and customer services on all bank related matters through the concept of relationship management. Corporate and Investment Banking Group offers a wide range of financial services to medium and large sized private and public sector entities. The bank played a key role in the economic growth of Pakistan by financing all the major sectors of the economy. trade products.ENVIRONMENTAL ANALYSIS INDUSTRY AND MARKET ANANLSYSIS Major product lines market segments: Commercial and Retail Banking This segment is catering to the needs of individuals. Allied Bank is one of the Leading investment banks in the country because of its role in the major investment and corporate banking transactions. substantial ground work was done to establish our consumer banking business. It provides to its customers with integrated financing and investment options and offers various deposits solutions including speedy funds transfer through its extensive online network. your bank is one of the leading corporate lending Institutions in the country. underwriting. These services include providing and arranging term financing. Other consumer products will be launched in a phased manner. we are confident to benefit from leveraging our largest network of online branches. the Consumer Banking re-branded Visa Debit Card. The Corporate and Investment Banking has been awarded “Corporate Finance House of the Year (Banks)” for the second consecutive year by CFA Association of Pakistan and received international recognition when “The Banker” magazine UK. This segment is overseen by four geographical groups and is further divided into 27 regions in order to effectively service its customers’ needs.

with a paid up capital of Rs. The company was incorporated in October 2007 and also received its license for Asset Management and Financial Advisory.9 billion during July-May FY09 against an increase of Rs 360. Foreign Exchange.9 billion (December 2008) as compared to Rs 2. 208 Khushali Bank. Treasury Marketing and Capital Market. By the year end. investments in securities and capital markets with the objective to provide support to other businesses of the bank as well as to the customers. 2. The Fund size grew close to Rs.8 billion during July-May FY09 as compared to Rs 369.4 billion in the corresponding period of FY08.6 billion (December 2008) from Rs 53 . The company launched its mutual fund in 2008.6 billion in the same period last year.1 billion during the first ten months of the current fiscal year to May 9th. ABL Asset Management Company Limited. 500 million. At the same time. posting an annualized return of over 15 percent since its inception.8 billion during the corresponding period last year. 2008 at a time when the Asset Management Industry posted a decline of over 50 percent in Funds Under Management and had the distinction of being the only Income Fund in Pakistan to post increase in Assets during September-December 2008 period Growth rate for the entire industry Net Foreign Assets (NFA) of the banking system recorded a decline of over Rs 227. The weighted average lending rate has risen by 210 bps during the same period accompanied by 180 bps addition in the deposit rates. disbursed loans amounting Rs 1. Allied Bank launched its asset management company. The Group has dynamic and experienced professionals who have specialized expertise in treasury functions. The share of all other microfinance banks in loan disbursement increased to Rs 2. Government borrowing from the central bank has been dampened since December 2008 in line with the target set under the macroeconomic stabilization programmed as part of the IMF Stand-By Arrangement. the Group also ensures that all regulatory requirements are being complied with. ABL Asset Management To provide a wide array of investment products. During July-December. Credit to private sector grew by Rs 21. The Group is divided into desks of Money Market.Treasury Treasury Group is actively involved in managing funds through interbank market.000 million by December 31. Government's budgetary borrowing from the banking system decreased by Rs 339. ABL – Income Fund became the best performing fund among all Income Funds in Pakistan.

3 billion in July-March FY08.9 billion.4 billion as compared to Rs 12. 54 . Microfinance Institutions have also disbursed amounting to Rs 10.2.

But among its major competitors who it has to cope up on major level are: MCB • Askari Bank Limited • United Bank Limited • Citi Bank Limited • National Bank Of Pakistan Their market shares: Allied Bank has many competitors in Government sector as well as some of private banks located in private sector.Competitor Analysis Major competitors: Allied bank faces a lot of competition from other banks. MCB • 25% Askari Bank Limited 20% 15% 10% 20% 10% 55 • United Bank Limited • Allied Bank Limited • • National Bank of Pakistan Other banks . The comparisons of market share of Allied Bank with its some major competitors are given as under.

after its nationalization in 1971. MCB Bank was awarded the Euro money Award for the ‘best bank in Pakistan’. Askari Bank 56 . developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.There Goals and Strategies: United Bank Limited UBL was established in 1959. In 2006. however after its privatization in 2000. UBL has introduced innovative products in the banking sector to facilitate the general public. It was one of the very first banks to introduce internet and SMS banking to its customers. which shows its commitment of changing the way you bank. To achieve its goal. The vision of MCB is’ Challenging and Changing the Way you Bank. the whole face of UBL has been changed. Today UBL stands on a solid network of more than 1000 branches nationwide and 15 overseas branches and with an experience of 46 years its main goal is to become the leading bank of Pakistan. utilizing its extensive branch network.’ The main strategies of the bank have concentrated on growth through improving service quality. the bank became an inefficient enterprise. It has divided its banking into three divisions. MCB was privatized in 1991. Its long term credit rating is ‘AA+9 MCB Bank In 1974. to provide banking facilities to the nation. Eventually. each having customized products to satisfy the needs of that particular division: • • • Consumer: for individual customers Commercial: for small and medium enterprises Corporate: for large national and multinational companies These strategies have helped UBL to raise its image in the banking sector. MCB was nationalized along with all other private sector banks. investment in technology and people. This led to deterioration in the quality of the Bank’s loan portfolio and service quality.

Some of the innovative products introduced by Citi Bank or the very first time in the Pakistani Banking sector are as follows: • • • • • Citi Gold Priority Banking Photo Credit Card First to launch Personal Loans in Pakistan First foreign bank to launch MasterCard in Pakistan Complaint Tracking System (CTS) launched National Bank of Pakistan One of the largest nationalized Bank in Pakistan operating since 1949. Project management of developing and commissioning of operations and management of Consumer Assets products. with the vision of maintaining excellent standards of banking quality and service. Every customer is served by a versatile team of relationship managers who ensure in-depth knowledge of trends and opportunities while synchronizing their financial activities. and also developed technical and operational manuals for each module of the system. so as to serve its customers better.every time. Citi Bank Citi Bank was established in Pakistan in 1990 and since then has been using its international roots and knowledge to make a name in the Pakistani banking sector. With time Askari Bank has also changed its identity. Its main vision is to provide right financial solutions . including new asset management product launched under the micro finance initiative taken by NBP. It also developed a wide variety of products for the ‘Ksaans’ or farmers of Pakistan. all the time and to fulfill their vision Citi Bank has used its ability to identify market needs and develop products which are unique in concept and fulfill customer requirements. changing its name to a shorter ‘Askari Bank’.Askari Commercial Bank was established in 1992. a new logo and a new slogan ‘Ask Us’. Askari Banks long term rating of ‘AA+’ by Pakistan Credit Rating Agency Limited (PACRA) also shows its commitment of developing excellent standard of products and services for its customers. Askari bank was also the first bank in Pakistan to introduce ATM machines on a third party basis. Askari Bank has a wide variety of product and services that cater to need of all type of customers. It has a network of 1226 branches over all the country and has branches in 17 countries across the globe. 57 . a segment of Pakistani’s neglected by the banking sector of Pakistan.

Development of complete product factory parameterized to the extent of defining lines with variable business rules and functions performed and up gradation of the existing systems and innovatively structured it to improve customer satisfaction and retention and massively enhanced profitability. 58 . Business continuity solution for Consumer Assets Product. which would enable NBP to undertake end to end business process in offline mode for avoiding business redundancy and continuity in case of net working or any other unforeseen incidents.

These technological initiatives along with effective implementation of core banking solution will enable the bank to improve customer centricity and enhance efficiency. The bank is gaining more and more recourses by spreading its network throughout Pakistan. This provision of timely credit increases the productive capacity of the Pakistan economy. The bank is bringing a rapid growth in various sectors of the Pakistani economy by their efficient. The Allied Bank of Pakistan provides the opportunities to the businessmen to invest their money in new enterprise where the bank's financial analyst guides them about which sector suite them. This will enable the bank to use the latest technology to service its customers all across the globe. Few of its roles are: 1. effective and disciplined mechanism in banking systems. a state of the art core banking solution has been acquired and is presently under implementation and will be entering the roll out phase in 2009. New Investment Opportunities: Businessmen usually hesitate to invest their money in new enterprises.Technology analysis TECHNICAL METHODS THAT AFFECT THE INDUSTRY Your bank has always strived to adapt the latest technological advancements. customer segmentation and behavioral scoring to meet the sophisticated data management and reporting requirements under Basel II. Your bank has signed a contract to host its credit card issuing and data management. The solution is a cutting edge analytical tool for risk management. In line with its technological upgrade plans.000 branches in the country's rural and urban areas. and it has over 7. 2. For adopting new technologies and production method. An agreement has been signed for Sales Tracking System which will be used at the outbound telesales call center for cross selling purposes to all customers of the bank. The bank has initiated the process of deploying a suite of Risk Management Solutions from one of the leading global firms. Allied Bank of Pakistan plays an important role in the economic development of Pakistan. Rising Financial Resources: The bank encourages its customers' saving habit by giving various types of incentives on their savings. The bank is also supporting the business community which makes use of resources for productive purposes in Pakistan's economic development. The bank acquired a state of the art interactive voice response system for convenient self banking system to the customers round the clock. 59 . the bank also provides shortterm and medium-term loans on very low interest rate along with financial assistance.

your bank has launched Visa Debit Card. To rectify their difficulties. trade and production in the country. During the last year. The ATM network is also being expanded to provide round the clock service. etc to revolutionized both national and international trade. bank demand draft. Promotion Of Trade Of Industry: The bank always seeks to promote the country's trade and industry by providing many facilities such as allied online. your bank is committed to provide quality customer services and better facilities across the network. The bank's management understands the demand of global customers. foreign currency account. Introduction of innovative deposit products have contributed towards substantial growth in deposits. they introduce online banking services along with latest information network into international banking. allied bank master card. The bank has also changed its credit card association from Master to Visa. better facilities and personalized services to all our customers across the country. They provide information about general trade and economic condition of the country and government policies about customers' interest both inside and outside. claques over drawn facility. In Corporate. The bank helps the government transfer the surplus capital from one region to another by announcing different schemes. and this process will continue in the future. Then traders and industrialists of less developed region are able to get adequate capital for meeting their business needs. Investment and Retail banking. Value added initiatives are translating into profitable relationships. increases investment. To achieve this objective. 4. 5. Your bank is strengthening the existing relationships and building new ones by diversifying focus more towards SME and Agriculture sectors. Export Promotion Cell: The bank set up its export promotion cell to increase the country's export. in return. These newly remodeled branches will help us to provide improved ambience. This will further enrich the customer experience with new features and improved service. the growth momentum continues and it remains the core of the bank’s loan portfolio.3. most of the branches of the bank have already been renovated and re branded. This. 60 . facilitating the customers to take their bank account with them all around the globe. bill of exchange. Development of Different Regions: It plays a key role in development various regions in Pakistan. INNOVATION With a view to strengthen the long term relationship with the customers.

My duties are mentioned as follows. But my duties were always supervised by the employees of ABL so that I do not make any major mistake. and which documents are required for opening the account. as most of the customers do not know that how to fill the cheques and deposit slips ( mostly the labor class and others who do baking by giving just thumb impressions). • • I learned to fill the deposit slips of current and saving account in this department. But still I had to deal with all the matters of the bank under their supervision. My supervisor used to tell me that how to fill the form of account opening. the information’s and all. I also learned to fill the cheques in this department.DEPARTMENT WORKED IN AND MY CONTRIBUTIONS Duties and accomplishment: My duties at the bank were of different types. I learned to make OBC’s I learned to make Demand drafts AND I also learned to enter the daily inward and outward proceedings in the record • • • • ONLINE TRANSFER OF MONEY: 61 . I also learned to do clearing of inward and outward cheques. so that I could get the exposure of different tasks in a bank. CLEARING DEPARTMENT: I also spent two weeks in clearing department. as all the employees of ABL get before joining the bank. But I didn’t have the opportunity to enter the accounts opened on daily bases in the software system because it’s a very sensitive issue and I was not so much trained that’s why I used to only fill the forms and do stamping on them. as I was an internee and didn’t go through the training of three months. During my training in that department I was taught that how to open the account of the customers in the bank. ACCOUNT OPENING: During my first two weeks in the bank I did work in account opening department. I was rotated in different departments in different weeks. That whenever a customer comes how he should be explained about the types of accounts and the benefits provided in each account.

It was also my duty to explain him the working procedure. do stamping. means if any customer had any query about any procedure or if he wanted information regarding any account then I had to explain him all the procedure. NEW KNOWLEDGE ACQUIRED: ISSUENCE OF CHEQUE BOOK: Whenever a person opens an account with ABL.that’s why it kept me very busy all the week. And I also learned to issue them the ATM card. I had to perform some other duties as well. It’s manual checking of the record produced by the computer pertaining encashment. write date of issuance. 62 . in the last week of my internship. I also had to do customer care service. I learned to send ATM request. matches sign with sign card and then provide him his card and cheques book. I couldn’t get a chance to transfer money myself online because this is a very sensitive issue. It was also my duty to issue lockers. to tell them about this facility and solve any of their quires. CHEQUE BOOKS AND LOCKERS: I also spent two weeks in this department. that if any customer used to come to take any locker . I also had to do arrange the cheques in the evening. then he is issued a cheque book which is free of cost. cheques books and to operate lockers. which comes from Karachi. so that if any customer had any query in his mind he could ask me the details. One of my duties was also to do phone calls to customers to remind them about their ATM cards and cheque books. DIVERSE DUTIES: Apart from the duties mentioned above. it was my duty to let him operate his locker and note the operating time of his locker. There are two types of cheque books: • The first type of cheque book has 50 leaves. transfer and collection of cheques and other instruments like deposit slips and online slips. ATM’S. But for his purpose he has to fill a requisition slip. That’s why I was assigned the duty of filling the online slips of the customers. Calling was one of those duties.In this department I learned to make transfer slips and see the online transfer of money from one branch of ABL to another. I also used to tell them about the rents and security of the lockers. cheques book and lockers request of the customers. cheques book then I used to take his sign on the record register. and then after about four days of opening of account he gets his cheque book. Whenever any customer used to come to collect his or her ATM. I spent one week in this department. As online transfer facility is the point on which ABL really has comparative advantage that’s why a lot many people used to come for online transfer of money every day and as it’s a new service and people used to have many queries and I had to solve them .

One the person completes these forms then his account is opened. the first one which he has done on his NIC and the other one which he has done in his account opening form. Undertaking for: This form contains the request of the customer to change his signature and both signatures. which is used for the purpose of reissuance of a new cheque book if the leaves of first cheque book start finishing. which has to be deposited by the customer at the time of account opening. There is written the title of account holder. • 63 . the stamp of Allied bank and the signatures of the authorized person on every page of cheque book and also on the requisition slip. and gives the Requisition slip and ATM request form to the officer responsible for issuance of Cheque book and ATM. the account opening officer gets this form signed by CSM officer and the Manager of the bank. And attaches a Letter of thanks with the remaining forms and now the person is an account holder of the bank. ACCOUNT OPENING: Account opening is one of the most interesting things which I have learnt in ABL. To open the account of any person an account opening form is made fill by him. If the customer wants to change his signature on the account opening form then he has to fill another form. He also scans the Signature card. they can give their Thumb impressions instead of Signatures. The minimum amount of money for opening account is Rs: 100.• The second type of cheque book has 25 leaves. There is also another requisition slip inside each cheque book. his account number. This form contains: • • • • • • • • A signature card Requisition slip The main account opening form Acknowledgement Know your customer profile ATM application form These all forms will be filled by the customer and following things will be required from the customer to attach with this form: A copy of NIC A copy of job evidence or contract or student ID card copy (house wives do not need to submit this). Then the account opening officer enters the account opened in the software system. Those people who are not literate do not need to do a sign.

NIFT has a clearing house.But those people who do signature in Urdu or give thumb impressions instead of sings are not issued ATM cards and they also have to submit a photograph during account opening as well. After a few days the Bank sends or mails another copy of Letter of thanks to the customer as well. CLEARING DEPARTMENT: There are two types of clearing: • • • Inward clearing Outward clearing OBCs CLEARING CHEQUES This department receives the cheques and other negotiable instruments drawn on local branches of other banks. in which cheques and other negotiable instruments are brought by each local bank representative and the claims of each bank on other is offset and a settlement is made by the payment of difference. Clearing system is helpful for both the customers and bank in saving money. ZAKAAT: The deductions of Zakaat from the account of Muslims are made on the 1st Ramadan according to the Islamic rate. they have to provide an affidavit on a prescribed format provided by the bank. through whom branches forward/receive-clearing cheques along with a schedule conducts clearing. But the people who do not want the bank to deduct Zakaat and want to disburse it at their own. PROCEDURES The cheques and drafts come to branch from different banks. They enter the particulars of the cheques on a register. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheques. After this process the balance with total drafts and total amount are given to the representative. which he receives by the clerk on that day and sends these cheques to the checking 64 . ABL works under the rules and regulations prescribed beef State Bank of Pakistan (SBP) and has an account with SBP. but those ladies which do Pardah need not to submit the photograph. The clearinghouse of SBP (NIFT). time and labor.

Representatives’ banks collect these cheques. These types of cheques are known as collection cheques or the other name we gave them is OBC 65 . The settlement of book entries e. a credit advice will be sent to the branch returning the cheque. SBP will debit this amount from ABL account and credit of ASKARI BANK account. which we have cleared for our customers when some of our customers receive the cheque that is of some other city. if any. endorsement stamp and branch special crossing stamp. Checking officer passes these cheques and vouchers by his initials. 2 Million to ASKARI BANK and ASKARI BANK has to give Rs. Clerk posts the contra entries of these vouchers in the clearing register.g. which are drawn on their banks. COLLECTION CHEQUES OR OBCs The collection cheques/OBCs are the cheques. In this way mutual cross debiting and crediting in the books of SBP settle obligation of banks.M. If any cheque is returned unpaid. Copies of all advices will be sent to the head office.. PAK ACCOUNT All the inter-bank adjustments will be affected through head office account called Pak account. The NIFT will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered to or received from the branches. In case of cheques drawn on one branch and collected by another branch for the credit of its constituents. representatives of all local banks and foreign banks exchange their cheques. INTER-BRANCH CLEARING AND COLLECTION Branch receives the cheques and other negotiable instrument drawn on other branches of the same bank. It will be essential for the branch to advise Pak account of each transaction so that they may also pass the necessary entries in their books. The head office will similarly send advice to the branches of the returns.1 million to ABL then ABL will draw a cheque of 1 Million in favor of ASKARI BANK. The same clearing cheque procedure will be adopted in the transfer deliveries except in case when the facility of SBP is not availed. Main branch of ABL handles the transfer and delivery of cheques.officer. if ABL is to give Rs. Next day at 8:30 A. The amount of the advice will agree with the total amount appearing in the schedule of cheque delivered/received. the branch delivering the cheques will send a consolidated debit advice. The clearinghouse debits/credits the payee/receipt branch with the total amount of the cheques paid on their behalf.

The fee charged for this service for within city is Rs: 120/.PROCEDURE OF COLLECTION On the cheque there is written that the person To Whom It May Concern can cash it from the certain branch of the bank in favor of which it’s drawn. Every OBC is entered in that register on daily basis. we take it back as a return but after that we call the concerned person and we also write name of the person. If OBC is not cleared due to whatever fault. date. • • • • • • • • Name and code of remote branch Title of the remote account Account number of remote account Applicant’s name Amount to be transferred in words Amount to be transferred in numbers If cheque is submitted then the number of cheque A copy of NIC (only if the person is not the account holder of the bank) 66 . sending and receiving branches’ codes.from one branch of ABL to another branch of ABL can transfer the amount within minutes. The customer presents the cheque to his branch.to 500. ONLINE TRANSFER: Online transfer is a very interesting department as well. ABL sends the cheque to its own branch if available for collection from the payer’s bank otherwise the OBC is directly sent to other bank. The clearing department of the receiving bank follows a prescribed procedure and credits the amount to sending bank through a central account maintained by each bank with SBP.and inter city is 315/-. which sends a document called “OBC” to the bank that has to make the payment.The only thing which I had to do was to fill the slip of online transfer in which the most important coloums were.000/. MAINTAINING REGISTER for OBCs We have a register in which we have the serial no for OBCs with other details like amount. Any person who wants to transfer some amount from minimum 500/.

Because of this experience now I can decide well that should I opt to join banking field or should go for another one. I have learnt the meaning of responsibility. I used to hesitate in the beginning but with the passage of time I also gained that much confidence and a little knowledge that I could interact with them more sense ably. This experience will also help me in getting a good job in near future because now at least I have some experience of work. which I didn’t found so easy. because whenever I used to talk or deal with those bankers who are in banking sector from more than a decade they used to give me a lot of knowledge to deal with daily routine matters of banking sector. The real thing which I gained by doing this internship was the confidence and knowledge. as I have got the experience of General banking during my student life in my vacations from university. which was really different from the experience of student life. and professionalism. 67 .Then the person submits the cash and slip on the counter and the cash is transferred to the remote account within seconds by entering the data in the software system. This is what I have learned in the online transfer department. the confidence and knowledge which we gain from our student life is far more different from this one. In the beginning really it was very difficult for me to interact and work with such formal people in such a formal environment but as I said that I really leant to work with them and talk to them with the passage of time and now I think I will not find any difficulty in at least understanding the environment of organizations and offices when I will start my job in nearby future. By doing internship I really gained the knowledge of banking sector. I also feel that I have also understood the basic culture and environment of professional life which is very important to understand for doing any kind of job. time management. HOW EXPERIENCE IMPACTS MY CAREER: By doing internship for eight weeks in Allied bank limited I have gained a lot of practical experience of doing work. Whenever I used to interact with such highly professional bankers. Now I really feel that the knowledge which I got by working n ABL for eight weeks will be really helpful to me in future.

is only available in banking hours whereas the ATM facility is a 24 hour automated service. ATMs provide the latest services with modern technology. whether it is small. Problems in ATM machines hamper growth and do not leave a positive feeling about the banking service. I suggest that the branch. The problems are taking place on a regular basis resulting in closed operations of the ATMs nowadays. ATM machines are old and there are long queues seen outside the bank. No real attention is paid to critical matters and customers are very much disappointed. especially with regards to the one link suspension. Therefore. The HR department carry’s out the new recruitment for the different branches of the Allied bank. provide the ATM facility to the customer so that it also a relief to the customer and also to the bank itself because the cheque book or traditional way of making payment is more time consuming. We all know that ATM transactions have become very important these days and have almost 68 . I also find myself in charge of the department that has to deal with accounts and clearing department along with the remittance department. I was surprised to see the reactions and behavior of the management of the bank because no attention whatsoever was paid in this regard and no serious efforts are being made to fix the problem.IDENTIFICATION OF PROBLEM OVERLOAD OF WORK & SHORTAGE OF EMPLOYEES: The bank management is well experienced and has lots of professional skills to deal with the difficulties in banking and complaints of the customers. Many complaints are filed each day regarding the same problem and the reputation of the bank is at great stake. The small branches are completely ignored by the higher level management in providing ATM facility. In the bank. the one link system of the ATM operations has been suspended for the last twelve months or so. In my opinion. Due to a big fraud in ATM transactions made at the ABL ATMs in 2007-08. This problem is a great concern for the customers of other banks because they have to find another ATM to make a transaction. The bank in recent years takes initiative for hiring MBAs for different posts of the bank. In my bank. This is the only department of the bank where I have seen the typical bureaucratic style of doing business which is so common in Pakistan. The new hiring process takes a long time and in doing so the management may be entirely changed or their work period is ended. One link suspension means that no bank account holder other than the Allied bank can make a transaction with his ATM card at the ATMs of ABL. this is not the only case that hampers the performance of the employees but the overload of duties is also not a good sign for the smooth functioning of banking process. UNAVAILABILTY OF ATM MACHINE & JAM SERVICE: The other analysis is the management failure of Allied bank is the not proper running of ATM machines. The network is also not properly divided around the city. employees have to control more than one department at a time and in doing so it might disturb the performance and intensity of work of the staff.

replaced the cheque withdrawals. 69 . But the one link suspension and out of order ATMs of Allied bank are making it difficult for the customers to gain the services in true sense.

ABL has an umbrella of products to offer their customers as LC (letter of credit) of ABL is acceptable all over the world. It has the highest profit among the largest banks of Asia. One very interesting thing that I have observed it that ABL is having an edge over other banks in case of salary account. Here SWOT Analysis of Allied bank of Pakistan is made to understand the positioning of the bank better. All depositors of ABL are in relief as their money security is guaranteed by government of Pakistan. which ABL is offering are: Retail banking Business banking ABL online facility Personal loans. I have find out that most of the small companies prefer nationalized bank like ABL only because of this low cost factor. ABL has extensive branches located all over Pakistan. housing loans and other financial loans ABL help line centre o Insurance o Cash Card facility o o o o o • • • • • ABL is one of the largest financial institutions of Pakistan.FINDINGS SWOT ANALYSIS: SWOT analysis is done for a company. Many of the companies are having their salary account with ABL even if their current account is with any other Bank. Bank charges low cost for its transactions. to find out its overall strengths. Some products and services. weaknesses. ABL has a diversified portfolio as the bank provides a large number of products and services which help it to extend the relationship with existing customers. It acts as an agent of central bank wherever the State Bank does not has its own branch. STRENGTHS: • • ABL is working as the right arm of the government of Pakistan as it is responsible for all the claims of the government for recovery as well as payment. The bank also has presence in international locations. This is mainly because of huge network of ATMs and branches of ABL. 70 . The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. opportunities in order to gauge the competitive potential of the company.

This is leading to deterioration of the standard of service and a decrease in the customer base. efficient and quick services saving the time and cost of customers and fortunately ABL is among those few banks which is already reaping the benefits of electronic transactions. Such practices are a black spot on the face of the bank and results in big losses. which are not producing any income but keep on adding to the overall expenditure.• • • The revolution in banking in the form of electronic banking operations has opened avenues of excellent. Favoritism is rampant. The management of the bank believes in customer focus banking rather than product oriented banking. The out-of-order ATMs of ABL are making it difficult for the customers to gain good service in a true sense. Comprehensive training programs have been developed to upgrade the core banking skills of the existing staff as well as integrating high quality hiring. Well experienced and quality staff is present at all times. The products and the services designed by the bank are specifically tailored to the individual needs of its customers. increasing the number of employees accordingly. Reorganizing efforts going on in ABL has opened many opportunities for ABL to grow. ABL’s current management has a broader vision. Each department in the bank is fully allowed to take adequate decisions of its own. With its aggressive marketing campaign. using government property for their own needs. They have taken steps to improve current services. merit has no importance in hiring of employees. Steady increase in customer deposits. A large amount of foreign investment is attracted. and streamlined internal procedures. especially the lower levels of management. In ABL. ABL is rapidly increasing its customer base. considers their work as a burden. They are not however. ATM transactions have become very important these days and have almost replaced the cheque withdrawals. OPPORTUNITIES: • • • • • • Management offer specialized services to major corporations including advisory and debt syndication. WEAKNESSES: • • • • • • ABL’s staff. Customers have to follow long lengthy procedures for opening accounts as well as applying for debt which discourages people from investing in ABL. They are reluctant to accept change brought by the latest restructuring efforts. The general outlook and interior lay-out of branches are not required according to modern banking. 71 . To improve the motivation of staff a merit – based culture is being promoted. saving time and helping in achieving objectives. They usually waste time in other tasks instead of performing their duty. most of the time. ABL is bearing a large burden in running those branches.

These actions taken or in process of being taken by the current management provide a great opportunity for ABL for making its future prosper. • • • 72 . Unstable political environment and uncertain economic conditions. automobile finance lending to small individual consumers and purchases of automobiles. housing and consumer goods are generally made on cash basis. Expanding branches to remote areas. They are causing another threat and if not countered. Changing consumer preferences. will result in significance loss of customers. THREATS: Major threats that ABL is facing is from its competitors include: • Retail banking and consumer banking results in products such as credit cards. Action taken by competitors.• • Sharp increase in imports and exports.

The bank is in process of computerizing its records which is a good sign.RECOMMENDATIONS After spending six weeks at different departments of the bank. This will help in increasing efficiency of the work done. ABL has to make extensive efforts to give outstanding services of retail and consumer banking. getting their views. resulting in customer satisfaction. Focus should be on acquiring and using the latest technology in banking. so that people are aware about the services of the bank. will definitely improve a few of the weaknesses observed in the bank by me. decreasing the stationary cost and increase in profits. • To attract customers in the future. One way is through extensive and eye catching promotion efforts. I have come up with following suggestions that in my view. observing the organizational structure and design. To remain in the market the bank needs to be vigilant in the eyes of customers. • • • • • • • 73 . The employees in the organization should be assured about their job security so that there is no pressure on employees while performing their tasks. Obtaining services from the bank must be made easier and should not involve long and difficult procedures for carrying out simple tasks. Computerization must be done as soon as possible. ATM services must be provided all over the country as this service is becoming very popular with bank customers. interacting with the employees. Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourages hard workers and honest employees. The current system used by the bank is very slow in processing so my view is that the bank should try to adopt some other but more effective form of processing technology in order to provide to the needs of customers as well as the staff. ABL is in the process of providing the services of Automated Teller Machine properly in order to contend with other banks.

• 74 .• The bank should place emphasis on the organization of effective training and development programs for its new as well as existing employees. The bank should adopt flexible policies. Extra counters should be brought in order to facilitate during the rush hours and avoid the difficulties faced by the customers as well as staff.

Allied bank views specialization and service excellence as the cornerstone of its strategy. The bank should be adopting flexible policies. As competition is growing day by day. Latest reorganizing efforts are necessary to make it cost effective and also updating its facilities according to modern banking needs. creativity. 75 . reliability. evaluation of the employees otherwise the high turnover observed in the bank will continue to create problems for the bank now and in the future. The fresh hiring should be made permanent so that they are secured of their future. lights.CONCLUSION At present there is no such organization in the world that is free from problems and challenges.The employees in the organization should be insured job security so that there is no pressure on the employees while performing their tasks. Every organization has to strive and struggle a lot to be more profitable and to gain more competitive edge. The focus would be to constantly seek out growth opportunities through increased quality assets and by offering a wider range of products and services to their esteemed customers. Further the allowances and perquisites attached with the permanent jobs will also increase the motivation level of the employees. UPS and electric generators should be provided to the branch while the existing equipments should be fully utilized. distribute their products and services through the most efficient and high-tech means. They are committed to enhancing the shareholder’s value and look forward with greater optimism towards a prosperous future. The bank should place emphasis on the organization of effective training and development programs for its new as well as existing employees so that these are gradually updated regarding the recent developments in the field of banking. ABL continues to develop new products like it has been doing in the past. As the business and economic conditions remain uncertain. An objective appraisal system should be introduced to motivate employees. There are significant growth opportunities for Allied bank and they are confident in their ability to make the most of them. customized services and their execution are the key ingredients for their future growth. ABL states that they will invest in modern tools and substantial allocation of resources will be made to achieve this objective during the current year. especially in the areas of the recruitment. ABL is also applying new ways to raise their value in the eyes of customer and also adopt new ways of innovation. They are aware that they have stepped into the 21st century and that they must meet its challenges by acquiring superior technology. They will thus be able to accelerate their services. promotions. For the people of bank innovation. New equipments such as computers. Bank management has to put all its efforts to change the prevailing culture of the bank. The management of ABL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. ABL’s major fault is that it was not keeping pace with the ongoing changes in the banking industry unlike other banks. New deposit schemes have been introduced and an action plan to maintain revenue growth in the future.

The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them. as it would result in increase in the number of customers of the bank. The rates for the various charges provided by the bank should be brought down a bit. The current system used by the bank is very slow in processing so my view is that the bank should try to adopt some other but more effective form of technology in order to provide comfort to the customers as well as the staff. It would result in improvement in uplifting the morale of the employees. 76 . The higher authorities should form team-based management rather than centralized management. They will be more motivated and involved in all their operations resulting in overall effectiveness of the organization.

APPENDIX 77 .

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