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

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

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

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

000 during 1947-48. (Amritsar. 0.12 million under the Chairmanship of Khawaja Bashir Bux. the Bank’s total assets amounted to Rs. 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. professionalism and adapting to environmental changes. deposits exceed Rs. which was to become Pakistan in December 1942. was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession. It is these factors that have made it a Bank the rest look up to.5 million by the end of the first year of operation. trade and commerce and were especially dominating in the Sub-continent area.572 million. However. 1947. Later. Batala. Australasia Bank made a profit of Rs. 50. the Bank attracted deposits equivalent to Rs. commitment. Independence History (1947 to 1974) Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th. The Bank financed trade in cloth and food grains thus.728 million. Today. Sialkot. The Bank was identified with the Pakistan Movement. 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.5 billion. It was particularly upsetting for Khawaja Bashir Bux to hear that “Muslims could not be successful bankers”. 170 billion. Rawalpindi. At the time. Peshawar. Allied Bank's paid up Capital & Reserves amount to Rs. leading to its immense growth and stability. Gujranwala and Kasur. Despite the difficult conditions prevailing and the substantial set back in the Bank’s business in India. played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. Jalandhar. Jhang. the network spread to Multan and Quetta as well. Sargodha. Hindus had established a commanding presence in the areas of industry. 0. The Bank’s journey has been about dedication. 7 . Delhi and Angra (Agra)) were closed down. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. The Pre Independence History (1942 to 1947) In the early 1940s. Since the late 1880s. 143 billion and total assets equal Rs.673 million and deposits raised to Rs 7. and by the end of 30th June 1947 capital increased to Rs. Banking. At the time of independence all the branches in India. 0.12 million. 0. 10. 0. which was raised to Rs.Company background Allied Bank was the first Muslim bank to have been established in Pakistan. Ludhiana. in particular. The initial equity of the Bank amounted to Rs 0. New branches were opened in Karachi.431 million in its first eighteen months of business.

1080 million for the first time in the banking history. After privatization. 1. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan. an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. 1460 million. ALL the shareholders were issued ABL shares instead of the all shares held by them. In August 2004. deposits rose by over 50 percent and approached Rs.34 billion to Rs. it lost 51 branches in the separation of East Pakistan. as a result of capital reconstruction. its assets amounted to Rs. Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited.536 billion and deposits to Rs. Deposits rose from Rs. giving it a strong equity. ABL was formally listed and the Bank’s share trading began on the following dates: 8 . 22 billion during this period. 10 million. In 1993 the “First Allied Bank Modaraba” (FABM) was floated.By the end of 1970 it had 101 branches.525 billion. the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank. Branches increased from 353 in 1974 to 748 in 1991. 1. It also opened three branches in the U. Allied Bank (1974 to 1991) In 1974. (2005 to date) In May 2005. Allied Bank’s capital and reserves were Rs. 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. 76.038 billion. Investments rose by 72 percent and advances exceeded Rs. and became the world’s first bank to be owned and managed by its employees. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches. Allied Bank (1991 to 2004) As a result of privatization in September 1991.K. 1. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made. The first year was highly successful. the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. 116 new branches were opened during 1974 and the Bank started participating in the Government’s spot procurement agriculture program. the Bank stands on a solid foundation built over 63 years of hard work and dedication.46 billion and Advances & Investments from Rs. Allied Bank entered a new phase. Those seventeen years saw a rapid growth for the Bank. Today. Allied Bank became one of the premier financial institutions of Pakistan. 87. Unfortunately. profit exceeded Rs.

The rating reflects ABL’s good performance prospects emanating from its extensive outreach. PACRA: Based on its impressive financial performance and significant improvement in areas of risk management and corporate governance. The bank leads the way by having the largest network of 450 ATM’s in more than 145 cities and towns across Pakistan. assets and deposit base. all Allied Bank Limited shareholders can trade in the Bank’s shares at their will. 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 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. Today. It offers universal banking services. They indicate very strong capacity for timely payment of financial commitments. While seeking to strengthen its infrastructure and control environment. sound capital structure and an improving asset quality.• Islamabad Stock Exchange 8th August 2005 • Lahore Stock Exchange 10th August 2005 • Karachi Stock Exchange 17th August 2005 Today. • AA: Very high credit quality.605. A1+: Obligations supported by the highest capacity for timely repayment. with its existence of over 60 years. 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).000 6. This capacity is not significantly vulnerable to foreseeable events. AA ratings denote a very low expectation of credit risk. while placing major emphasis on retail banking. the Bank has built itself a foundation with a strong equity. 9 • . Today ABL has: Total customers Employees Total branches Utility booths Airport booths 4. The management has a vision to move forward and to be one of the world’s leading banks. Currently ABL possesses 932 and position in the world.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.

Special Assets Management) Mohammad Aftab Manzoor(Chief Executive Officer) Muhammad Jawaid Iqbal(Group Chief. Akhtar (Director) • • • • • • • • • • Management • • • Asim Tufail(Group Chief. Corporate & Investment Banking) Muhammad Shahzad Sadiq (Group Chief. Consumer & Personal Banking) Fareed Vardag(Chief Risk Officer) Iqbal Zaidi(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. Audit & CRR) • • • • 10 . Noorani (Director) Sheikh Jalees Ahmed (Director) Nazrat Bashir(Director) Mubashir A. Compliance) Mohammad Abbas Sheikh(Group Chief.

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

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

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

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

The hierarchy has president and directors at top management level and officers Grade I. II and other lower Staff Figure 2.2 Functional hierarch STRUCTURE OF ABL LIMITED 15 . The middle level management consists of regional general Manager and Regional Controller of Operations.11 FUNCTIONAL HIERARCHY The functional hierarchy represents the reporting order in the hierarchy of ABL. Any person in the hierarchy above the branch manager can be appointed as RGM and controller operations. These positions are not fixed. II and Grade III at the lower level management of ABL.2. President and CEO Board of Director Head of Departments Regional General Manager Controllers of Operation Branch Manager Office G-I.

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

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 .

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

• • Fee Visa. 2. but if he decides to spread the payments over several months a service charge @ 2.S. Allied Bank – Master Card is safer than cash and simpler than checks. If an Applicant wins in the draw he/she is required to pay the balance amount through monthly installments on returning from Umrah. the customer signs a voucher and that’s it he is not required to take extra troubles. Rest of the money is to be deposited through monthly installments of Rs. It doesn’t cost the customer anything if he pays in full within the due date. 2. family accommodation and traveling within Saudi Arabia (Jeddah to Makka. Supermarkets. restaurants.000/. Once the customer obtains his card.000 per person as first installment. • • • • • Master Cards The customer can now become the holder of a true Credit Card here in Pakistan. Makka to Madina and Median to Jeddah).000/. Aazmeen have to submit a copy of their NI Cards and Passports with the application.annual fee). U. he simply presents it at Shops. 1. At the time of submitting the application Aazmeen has to deposit Rs. 20 . The Allied Bank Master Card helps the customer pay without the complications of cash or checks. With the Allied Bank Master Card the customer is assured of a service meeting the highest international standards maintained by Master Card. Pharmacies.person on every 5th day of the month. he/she will given a refund of all money deposited through installments till that time.(Rs.A. Applicants have to deposit the monthly installment using deposit slips still 5th of every month. Application for whole Family/Group can be filed through a single Application Form. 2. Hotels. Allied Bank under license from Master Card International. 500/membership fee + Rs.500/. Nursing Homes. 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. Due to any reason if Umrah Applicant needs to withdraw his/her application.50% per month is charged. Once purchases are made. Defaulters will not be included in the draw. Every month the customer receives a statement showing details of transactions. 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. Petrol Pumps and hundreds of other establishments which display the familiar Master Card sign throughout Pakistan and abroad. issues its Master Card to anyone meeting the eligibility criteria.

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

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

• Seasonal Finance 23 . • Lockers Allied Bank Lockers are available in three different sizes Small. Hence banks introduce traveler’s checks in order to protect against any contingency. The farm credits are extended for production (inputs) and development purposes. farm and non-farm credits. Medium and Large on a yearly fee. Utility Bills are collected by the branches during banking hours and also in he evening banking on all working days. Bills can be paid through cash or checks. medium and long term. • Agricultural Finances Bank under Agricultural Financing Schemes envisaged by he State Bank of Pakistan extend short. poultry.• Utility Bills All branches of the Bank collect utility bills of electricity. Non-farm credits are allowed for livestock (goats. sheep and cattle). For convenience of the customers. factory including social forestry and fisheries (inland and marine excluding deep sea fishing). gas and telephones. Locker holders need not have an account in the Bank. Consumers may drop bills with crossed checks into a drop box available at the branches under “Checks Drop-in” system. • 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. • 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.

Cash Finance is allowed against pledge of goods. radical and personalized style of banking differed significantly for the conventional business patterns of the period. biannual or annual. The delivery of goods is made against payment. Demand Finance is disbursed in lump sum or in accordance with the agreed disbursements schedule and it is repayable as per the agreed installments. which was market oriented and appealed to if customers. • 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. The running finance is suitable for meeting day-to-day financial needs of the business. In fact every feature and aspect ABL’s behavior reflected highlighted those differences most significantly. quarterly. The markup is recovered on the products of daily outstanding balance. which could be monthly. This is due to its impressive growth and development. ABL’s dynamic. 24 . At the time of independence when Pakistan was in intense need of banking services and expertise. ABL rose to the occasion and rendered all its expertise at best for the development of the newly born state. o o Role of ABL in Banking Sector ABL is one of the most dynamic and progressive bank in the banking industry of Pakistan. 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. • Commitment to Serve the Customers ABL used novel methods of customers service instead of conventional ways of the day. which it achieved during sixty years of its existence.o Running Finance is a short-term loan allowed by the bank for a period of one year. The running finance account can be operated and daily sale proceeds can be deposited into the account. the commitment to serve the customers.

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

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. Since the banking companies are not allowed to accept deposits (excluding foreign currency deposits) except on the basis of Profit & Loss sharing. both of theoretical and practical significance. as it has not only to compete with the domestic banks but with the large international financial agencies as well. 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. Interest free modes of financing had been introduced. And finally the process of transaction from interest base to non-interest banking was completed. • Interest Free Banking The Islamization of economic system in Pakistan began from July 1979. • Foreign Trade The bank has always played key role in the promotion of foreign trade especially in financing of exports. 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. • Computerization While mechanization in ABL. 26 . The bank’ achievement in the area is really commendable. both in the morning and in the evening against utility bills.• Home Remittances Handled The Bank contributions in handling home remittances by over seas Pakistanis have also been commendable. In Jan 1981 the PLS banking was launched. The division has conducted research and has been able to add to the literature on Islamic banking. electricity and telephone bills. such as gas. • Utility Booths The bank has 34 utility booths throughout of country to accept payments. The bank also issues television licenses.

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

Financial Analysis BALANCE SHEET STATEMENT 28 .

PROFIT AND LOSS STATEMENT 29 .

PERFORMANCE COMPARISON OF ABL in Rs. Million 30 .

CASH FLOW SUMMARY 31 .

ANALYSIS OF BALANCE SHEET Vertical Analysis 32 .

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55) 20.31) (3.CASH FLOW ANALYSIS HORIZONTAL & VERTICAL ANALYSIS Allied Bank Limited Sheet of Dec 31.35 7.175 ( 14.67 62.89) (29.0) 16.40 147.83) 40.79) 2. M (50.75 14.87 (2.35 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 (0.22 0.75 34 .29 I5.50 (20. 2008 Horizontal Analysis ASSETS Increase (decrease) 2007 2008 115 2.67) 22.72) (0.36 7.00 19.

41) 132 48. 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 (10.40) 24.32 (40.35 16.77) 107 139 82.38) Analysis of Profit and Loss Account As on Dec 31.20 ) (23.72) 12.75) (34.20 (28.39 (84.52) 83.85 82.22) 93.77) (2.55 16.74 82.34 (0.61 2007-2008 % age 10.16 (11.79 S4.97 (4.Shareholder equity Share Capital Capital reserves Accumulated loss Surplus on revaluation of fixed assets 45.49 84 Allied Bank Limited Profit and Loss Account Vertical Analysis 35 .76) (17.

94 2.522 1.066 7.685 1.724.80 4.213 5.00 11.126 3 4.47 6.761 55.912 1.61 17.159 Taxation Total 2.955 100 36 . 41.385.151.58 31.96 5.096.636.4-8 1.110. 544 434.31 28.22 0.80 1.099.02 0.476 100 Vertical Analysis For year 2008 Expenses Mark up Expenses Provisions Admin Expenses Other Charges 2006 Rs.871 & Brokerage Gain on 1.054.20 15.51 100 1 1.795.144.361.112.845 82.512.185.80 3.55 8.707 8. 43 580.135.013 465.751 30.310.722 1 42.55 100 7 31.98 3.00 100 2007 Rs.04 68.381 0.00 1.(000) % age 26.35 2.00 32.896 117.22 0.102.49 1.21 3. % % age (000) (000) age Interest 11. 2008 (000) Rs.531 38. % age Markup 23.071.51 3.445 100 2008 (000) Rs.207 S.222.271.(000) %age 79.Income 2006 Rs.144.42 0.542) off Staff Welfare Fund 215.41 4.350 24. Investment Income Dealing Dividend Income Venture Total from 1.509.342 3.813. 2007 Rs.72 Other In tome 1. % age 49.947 1.44 37.364.77 72.324 385.061 0.792 75.956714 earned Fee Commission 2.52 0.000 0.892 1.44 4.98 5.446 27.48 Other Provisions Writes (62.855.971.738.807.69 12.92 1.471 31.924 0.343 2.17 3.453.01 12.23 038 6.244 0.

37 .

RATIO ANALYSIS 2003 2008 2004 2005 2006 2007 38 .

INTERPRETATION OF RATIOS FOR 2008 CURRENT RATIO: 39 .

It does not show actually distributed among the share holders. DEBT RATIO: It shows the proportion of total assets financed banks/firm’s creditors. greater the amount of other people’s money is being used to generate profit.95 Interpretation The debt ratio for both the years is approximately same. EARNING PER SHARE: This ratio shows the amount earned on behalf of each share. Higher this ratio. so it is good for the bank to meet its liabilities and the Bank is more liquid in 2008 as compared to 2007. 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.88 Interpretation As the current ratio is increasing. Current ratio= current assets current liabilities Current ratio for 2008= 3.16 Current ratio for 2007=1. the amount Earnings per share= Earnings available for common stock holders Number of outstanding shares 40 . The ratio shows that the bank has financed almost 95% of its assets with debts.951 Debt Ratio for 2007=0.

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

While. however. with mark-up expense rising by 59%. the EPS for six months period ended June 30. In line with this strategy. 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. Mark-up income grew by 53% during 1H09 over the corresponding period last year. Deposits of Allied Bank increased to Rs. The interest rate spread rose to 6. 4. as Allied Bank focused on its strategy to consolidate. Allied Bank continued to align its risk management framework to improve asset quality and remained prudent in lending .CURRENT FINANCIAL OVERVIEW 2009 Under the current challenging circumstances. while the equity of Allied Bank registered a growth of 18.636 million as at June 30. net mark-up income for 2009 was able to grow by 41%. Non mark-up income grew to Rs.419 million.2% during 1H09 from 5. 2008.30 compared to Rs. Allied Bank was able to restrict increase in its cost of funds. 385.475 million at December 31. 2009 compared to Rs. 297. 3.508 million in the corresponding period last year. 45 .1% registered during corresponding period of last year. 26.2% to reach at Rs. though the Discount Rate was cut by 100 basis points by the SBP in April 2009. 3. 2008 to 55. 2009 stands at Rs. 312.061 million during half year ended June 30. 2009. The loan book maintained the same level attained in December 2008.4. The share of Current and Savings Deposits in the total deposits has increased from 50. This growth was led by improved capital market results. Non mark-up expenses increased by 28% during 1H09.5% at December 31. 363 million or 82% over the corresponding period of last year. these have been contained during 2009 to 11% over the corresponding period of last year. on all PLS deposits coupled with the staggered increases of 500 basis points in the SBP’s Discount Rate during year 2008.2% at June 30.4 % during 1H09. effective June 1. thereby reducing reliance on costly deposits.627 million and after tax profitof Rs. 2009 as compared to Rs. with average balance increasing by around 14.53 in the comparative period last year. Resultantly. 3. Allied Bank was able to achieve this growth despite State Bank of Pakistan’s (SBP) regulation of paying profit at a minimum of 5%.777 million at June 30. Allied Bank has been able to increase its pre-tax profit by 21% to Rs. the mark-up income during 2009 increased by 46%. Resultantly. 2009. which rose by 50% over the corresponding period last year. reflecting a growth of 22%. 2008. increased foreign currency gains and investment banking fee income. The net mark-up income increased by 45% led primarily by improved deposit mix. The Balance Sheet size of Allied Bank stands at Rs. 2.

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

Incentives. so that those employees who really perform well are given promotions every year. car leasing loans. so this training is almost equivalent to job. as well as the long hours of working. This procedure of selection takes almost a month. Interviewsare taken by the senior staff of ABL. And the daily performance evaluation is also done by seniors. The most efficient bankers and teachers are appointed to train all of them. 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. The selected candidates are sent appointment letter within 5 to 8 days. 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. At the end of the training all the candidates have to go through an exam . and all the bonuses on Eids. computer science . house building loans. motivating and demotivating factors: All the increments given after every 6 months. The process of performance evaluation keeps on going in banks. Bonuses are also given on every Eid that is equivalent to the basic salary of every employee. the role of the service 47 . The most interesting point in this training are that all the candidates are given salary which is almost 20. insurance policies together become the factors of motivation for the employees. and to work by sitting on a seat all the time really de-motivate the employees.ABL’s selection committee checks the papers very care fully and honestly.000 rupees%. To put this in effect. And after a month when result is prepared the short listed candidates are given the date for interview. Those candidates who reply Yes in reply of this letter are selected and given training. accounting. Training: All the candidates are given training of basic banking for about three months. Whereas all the non achievements of these factors become the demotivating factors for the employees. the sensitivity of work. bonuses according to daily performance of employees. the routine work done in banks and many more. and selects the most brilliant candidates who really deserve to be selected. Increment and performance evaluation: All the employees of ABL are given an increment of 10% after every 6 months of period. special exams and test are arranged to evaluate employees. Service quality training: Allied bank is focusing on quality customer services to deliver the best customer experience. English . 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 .

of accounts the staff of the bank must be 48 . The Group Head of Service Quality along with the respective Group Heads of CRBG were also present at each session. securities etc. 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. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. Branch Managers. 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. After the acquisition of funds. This training was conducted in all three regions (Karachi. A bank tries to attract maximum no. The participants were the CSO’s. In this regard. The aim of this training was to develop the skills and knowledge of our frontline staff on delivering consistent courteous behavior. In order to get maximum no. Islamabad. which would be conducted across the customer touch points. and Lahore) at their Management Development Centers and the facilitator was their Training Manager of Service Quality Group. Of accounts so that it can increase its deposits and these lending ability. 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 consequently build trust and confidence in ABL’s customers. The involvement of individuals within the dimensions of service culture was emphasized through various team building games and role plays. the bank invest the acquire funds. CSM and Tellers. One alternative is to lend its money and earned interest markup or invest in govt. PROCUREMENT POLICIES Procurement policies are more concerned with manufacturing organizations. It involves attracting and holding the funds of the depositors.quality group is to conduct service oriented training programs.

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

• • Relation with business organizations. most of those students never had an opportunity to participate in any such lively event. 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. in order to bring out the best talent on the sporting frontiers of 50 . The love and encouragement given to those children will live on in many hearts that were touched in a special way that day. Public Relations: As part of its corporate social responsibility (CSR) program. over 4000 special and underprivileged children from over 65 local schools and institutes gathered to enjoy the 9th annual Children’s Benefit Concert. 2008. The program. so called concert for them. who made audience really enjoy a lot.ABL is one of the largest commercial banks in Pakistan. By signing the sponsorship deal. This musical event. ABL is also presenting Catch of the match award throughout the test and ODI series. many other items were presented by volunteers of FESF’s. ABL strives to contribute and bring about positive changes in the communities it operates in. organized by the Family Education Services Foundation (FESF) and partly sponsored by Allied bank. 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. the bank has taken upon the task of nourishing the sports talent of the country by sponsoring the sports events. 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. With this deal ABL has entered the sponsorship of global sporting events. comprising the 3 test Allianz Cup and the 5 one day International Hutch Cup. Community relations. presented by Pakistan’s very famous compares and also featured FESF’s own show team. On March 12. With its new vision and new look. Publicity: ABL Co-sponsored India Pakistan cricket series 2006: ABL is proud to co-sponsor the India-Pakistan cricket series 2006. was an unforgettable day they will remember for many months to come. In this way ABL performed its social responsibility. A Musical evening was also arranged for those children. 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.

The checklist or form will be submitted to the Branch Manager at the end of the day. i.. It will be his responsibility to upgrade the quality of services. all the members of each branch are collectively involved in monitoring and ensuring the branch is presentable.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. which has been put into practice from 17th of March. tellers area. Since every individual has an opportunity to play the STEWARD and make the branch appearance checks. 2008. The management allocates an extensive budget in term of sponsorship of the sports events. The bank focuses on the national and international sports promotional activities. 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. STEWARD OF THE DAY: (UPLIFTING THE SERVICE AT BRANCH LEVEL) In order to further improve the customer experience at branches. 51 . These remarks would pertain to various aspects of the branch operations such as front entrance.Pakistan. and provides principal and partial sponsorship. ABL has introduced a unique concept called STEWARD OF THE DAY. The greatest legends of sports have always been un-precedently motivated by the bank. tournaments and life achievement awards for the players. to convert poor into good by taking appropriate measures and to maintain the same throughout the business day. In this connection. customer service area. when that individual would be the STEWARD in the branch. waiting area. in Lahore. behavior and punctuality.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 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. who will keep a record of the same in a separate file. ABL is phenomenal and the one to be followed and admired by each and every sports lover of the country.e. the splendid history of the bank shows that ABL is the pioneer bank to prop up the sports financially and morally. MEN’S MINI MARATHON: On the occasion of Pakistan Independence Day celebrations. ABL organized a men’s mini marathon held on 19th august 2005. ATM’s and over all staff presentation.

Allied Bank will be faced with increased competition from several other banks offering the same products. 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. Other consumer products will be launched in a phased manner. Allied Bank is one of the Leading investment banks in the country because of its role in the major investment and corporate banking transactions. superior technology platform and a huge customer base. cash management. corporate advisory. your bank is one of the leading corporate lending Institutions in the country. 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. 52 . Corporate and Investment Banking Corporate book is a major component of our loan portfolio. middle sized customers. In 2008. Small and Medium Enterprises (SMEs) and agriculture sector. 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. These services include providing and arranging term financing. trade products. corporate finance products and customer services on all bank related matters through the concept of relationship management. underwriting. Consumer & Personal Banking In line with the bank’s policy to provide complete suite of products and services to its customers.ENVIRONMENTAL ANALYSIS INDUSTRY AND MARKET ANANLSYSIS Major product lines market segments: Commercial and Retail Banking This segment is catering to the needs of individuals. the Consumer Banking re-branded Visa Debit Card. substantial ground work was done to establish our consumer banking business. Although. conferred the “Deal of the Year 2008 – Pakistan”. This segment is overseen by four geographical groups and is further divided into 27 regions in order to effectively service its customers’ needs. we are confident to benefit from leveraging our largest network of online branches. Now.

The share of all other microfinance banks in loan disbursement increased to Rs 2.9 billion (December 2008) as compared to Rs 2. The Fund size grew close to Rs. The Group is divided into desks of Money Market. 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. Foreign Exchange. Allied Bank launched its asset management company. posting an annualized return of over 15 percent since its inception.9 billion during July-May FY09 against an increase of Rs 360. the Group also ensures that all regulatory requirements are being complied with. 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. ABL – Income Fund became the best performing fund among all Income Funds in Pakistan. investments in securities and capital markets with the objective to provide support to other businesses of the bank as well as to the customers. with a paid up capital of Rs. ABL Asset Management Company Limited.Treasury Treasury Group is actively involved in managing funds through interbank market. disbursed loans amounting Rs 1. Credit to private sector grew by Rs 21. ABL Asset Management To provide a wide array of investment products. By the year end. 2.000 million by December 31. The company launched its mutual fund in 2008.4 billion in the corresponding period of FY08.6 billion (December 2008) from Rs 53 .1 billion during the first ten months of the current fiscal year to May 9th.8 billion during July-May FY09 as compared to Rs 369. At the same time. 500 million. Treasury Marketing and Capital Market. The weighted average lending rate has risen by 210 bps during the same period accompanied by 180 bps addition in the deposit rates. During July-December. The company was incorporated in October 2007 and also received its license for Asset Management and Financial Advisory.6 billion in the same period last year. Government's budgetary borrowing from the banking system decreased by Rs 339. The Group has dynamic and experienced professionals who have specialized expertise in treasury functions.8 billion during the corresponding period last year. 208 Khushali Bank.

54 . Microfinance Institutions have also disbursed amounting to Rs 10.4 billion as compared to Rs 12.3 billion in July-March FY08.9 billion.2.

Competitor Analysis Major competitors: Allied bank faces a lot of competition from other banks. The comparisons of market share of Allied Bank with its some major competitors are given as under. 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. MCB • 25% Askari Bank Limited 20% 15% 10% 20% 10% 55 • United Bank Limited • Allied Bank Limited • • National Bank of Pakistan Other banks .

It was one of the very first banks to introduce internet and SMS banking to its customers. Askari Bank 56 . to provide banking facilities to the nation. the bank became an inefficient enterprise. 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. 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. The vision of MCB is’ Challenging and Changing the Way you Bank. which shows its commitment of changing the way you bank. This led to deterioration in the quality of the Bank’s loan portfolio and service quality.’ The main strategies of the bank have concentrated on growth through improving service quality. however after its privatization in 2000. To achieve its goal. MCB was nationalized along with all other private sector banks. In 2006. Its long term credit rating is ‘AA+9 MCB Bank In 1974. developing a large and stable deposit base and managing its non-performing loans via improved risk management processes. investment in technology and people. It has divided its banking into three divisions. utilizing its extensive branch network. MCB was privatized in 1991. Eventually. after its nationalization in 1971.There Goals and Strategies: United Bank Limited UBL was established in 1959. MCB Bank was awarded the Euro money Award for the ‘best bank in Pakistan’. the whole face of UBL has been changed. UBL has introduced innovative products in the banking sector to facilitate the general public.

Project management of developing and commissioning of operations and management of Consumer Assets products. 57 . 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. 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. Its main vision is to provide right financial solutions .every time. Askari bank was also the first bank in Pakistan to introduce ATM machines on a third party basis. It has a network of 1226 branches over all the country and has branches in 17 countries across the globe. a segment of Pakistani’s neglected by the banking sector of Pakistan. with the vision of maintaining excellent standards of banking quality and service. 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. a new logo and a new slogan ‘Ask Us’. Askari Bank has a wide variety of product and services that cater to need of all type of customers. changing its name to a shorter ‘Askari Bank’.Askari Commercial Bank was established in 1992. With time Askari Bank has also changed its identity. so as to serve its customers better. 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. 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. and also developed technical and operational manuals for each module of the system. It also developed a wide variety of products for the ‘Ksaans’ or farmers of Pakistan. including new asset management product launched under the micro finance initiative taken by NBP.

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. 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. 58 .

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

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

as I was an internee and didn’t go through the training of three months. But my duties were always supervised by the employees of ABL so that I do not make any major mistake.DEPARTMENT WORKED IN AND MY CONTRIBUTIONS Duties and accomplishment: My duties at the bank were of different types. I also learned to do clearing of inward and outward cheques. 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 . and which documents are required for opening the account. ACCOUNT OPENING: During my first two weeks in the bank I did work in account opening department. • • I learned to fill the deposit slips of current and saving account in this department. My duties are mentioned as follows. so that I could get the exposure of different tasks in a 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. That whenever a customer comes how he should be explained about the types of accounts and the benefits provided in each account. I also learned to fill the cheques in this department. I was rotated in different departments in different weeks. as all the employees of ABL get before joining the bank. My supervisor used to tell me that how to fill the form of account opening. 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). During my training in that department I was taught that how to open the account of the customers in the bank. the information’s and all. CLEARING DEPARTMENT: I also spent two weeks in clearing department. But still I had to deal with all the matters of the bank under their supervision.

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

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

but those ladies which do Pardah need not to submit the photograph. After this process the balance with total drafts and total amount are given to the representative. PROCEDURES The cheques and drafts come to branch from different banks. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheques. through whom branches forward/receive-clearing cheques along with a schedule conducts clearing. 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. which he receives by the clerk on that day and sends these cheques to the checking 64 . time and labor. Clearing system is helpful for both the customers and bank in saving money. 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.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. They enter the particulars of the cheques on a register. ABL works under the rules and regulations prescribed beef State Bank of Pakistan (SBP) and has an account with SBP. After a few days the Bank sends or mails another copy of Letter of thanks to the customer as well. ZAKAAT: The deductions of Zakaat from the account of Muslims are made on the 1st Ramadan according to the Islamic rate. But the people who do not want the bank to deduct Zakaat and want to disburse it at their own. The clearinghouse of SBP (NIFT). they have to provide an affidavit on a prescribed format provided by the bank. NIFT has a clearing house.

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

date. Any person who wants to transfer some amount from minimum 500/. sending and receiving branches’ codes. Every OBC is entered in that register on daily basis. MAINTAINING REGISTER for OBCs We have a register in which we have the serial no for OBCs with other details like amount. ONLINE TRANSFER: Online transfer is a very interesting department as well. The customer presents the cheque to his branch.The only thing which I had to do was to fill the slip of online transfer in which the most important coloums were. 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.and inter city is 315/-. which sends a document called “OBC” to the bank that has to make the payment. • • • • • • • • 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 . 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.from one branch of ABL to another branch of ABL can transfer the amount within minutes.000/.to 500. The fee charged for this service for within city is Rs: 120/. If OBC is not cleared due to whatever fault. we take it back as a return but after that we call the concerned person and we also write name of the person.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.

By doing internship I really gained the knowledge of banking sector. 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.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. The real thing which I gained by doing this internship was the confidence and knowledge. 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. 67 . Whenever I used to interact with such highly professional bankers. time management. Because of this experience now I can decide well that should I opt to join banking field or should go for another one. 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. 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. 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. which I didn’t found so easy. and professionalism. This experience will also help me in getting a good job in near future because now at least I have some experience of work. as I have got the experience of General banking during my student life in my vacations from university. 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. This is what I have learned in the online transfer department. I have learnt the meaning of responsibility. which was really different from the experience of student life. the confidence and knowledge which we gain from our student life is far more different from this one.

the one link system of the ATM operations has been suspended for the last twelve months or so. Problems in ATM machines hamper growth and do not leave a positive feeling about the banking service. Therefore. In the bank. We all know that ATM transactions have become very important these days and have almost 68 . I suggest that the branch. 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. 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. 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. UNAVAILABILTY OF ATM MACHINE & JAM SERVICE: The other analysis is the management failure of Allied bank is the not proper running of ATM machines.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. 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. The network is also not properly divided around the city. Due to a big fraud in ATM transactions made at the ABL ATMs in 2007-08. No real attention is paid to critical matters and customers are very much disappointed. whether it is small. The problems are taking place on a regular basis resulting in closed operations of the ATMs nowadays. 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. especially with regards to the one link suspension. is only available in banking hours whereas the ATM facility is a 24 hour automated service. The bank in recent years takes initiative for hiring MBAs for different posts of the bank. ATMs provide the latest services with modern technology. In my bank. This problem is a great concern for the customers of other banks because they have to find another ATM to make a transaction. ATM machines are old and there are long queues seen outside the 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. The HR department carry’s out the new recruitment for the different branches of the Allied bank. I also find myself in charge of the department that has to deal with accounts and clearing department along with the remittance department. Many complaints are filed each day regarding the same problem and the reputation of the bank is at great stake. In my opinion. The small branches are completely ignored by the higher level management in providing ATM facility. The new hiring process takes a long time and in doing so the management may be entirely changed or their work period is ended.

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.replaced the cheque withdrawals. 69 .

I have find out that most of the small companies prefer nationalized bank like ABL only because of this low cost factor. 70 . The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. 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. ABL has an umbrella of products to offer their customers as LC (letter of credit) of ABL is acceptable all over the world. to find out its overall strengths. 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. The bank also has presence in international locations. It has the highest profit among the largest banks of Asia. 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. weaknesses. Here SWOT Analysis of Allied bank of Pakistan is made to understand the positioning of the bank better. Some products and services. It acts as an agent of central bank wherever the State Bank does not has its own branch. This is mainly because of huge network of ATMs and branches of ABL. All depositors of ABL are in relief as their money security is guaranteed by government of Pakistan. opportunities in order to gauge the competitive potential of the company. which ABL is offering are: Retail banking Business banking ABL online facility Personal loans. ABL has extensive branches located all over Pakistan. One very interesting thing that I have observed it that ABL is having an edge over other banks in case of salary account.FINDINGS SWOT ANALYSIS: SWOT analysis is done for a company. 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.

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

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

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

• 74 . 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. The bank should adopt flexible policies.• The bank should place emphasis on the organization of effective training and development programs for its new as well as existing employees.

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

It would result in improvement in uplifting the morale of the 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 technology in order to provide comfort to the customers as well as the staff. 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. 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 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.

APPENDIX 77 .

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