NATIONAL COLLEGE OF BUSINESS ADMINISTRATION

AND ECONOMICS

ALLIED BANK LIMITED (ABL)

PROGRAM:
BBA-I

SUBMITTED TO:
Ms. Khalida Naseem

SUBMITTED BY:
 Syed Muhammad Zargham Ali (2183184)
 Mashood Afaq (2183270)
 Usama Tariq (2183257)
 COMPANY PROFILE

 Type Public limited Company

 Industry Finance & Insurance

 CEO Tahir Hassan Quershi

 Revenue 75 Billion PKR

 Founded As "Australasia Bank", 1942.

 Website WWW.abl.IN

 Headquarters Lahore (Pakistan)

Overview of the ABL:

Allied BANK LIMITED is not an overnight success story. ABL is a Banking Company, which is
engaged in Commercial & Retail Banking and related services domestically and overseas.
Brief History:
Allied Bank Limited was the first bank, established in Pakistan. Before independence in 1942 it
started out in Lahore, the name of bank was Australasia Bank; in 1974 it was renamed to Allied
Bank of Pakistan Limited and later on Allied Bank Limited in 2005. In August 2004, the Bank’s
ownership was transferred to an Ibrahim Leasing Limited and Ibrahim Group because of capital
reconstruction. Today, with its existence of over 60 years, the Bank has built itself a foundation
with a strong equity, assets and deposit base. It offers universal banking services, while placing
major emphasis on retail banking. The Bank also has the largest network of over 800 online
branches in Pakistan and offers various technology based products and services to its diverse
clientele.

VISION

 To become a dynamic and efficient bank providing integrated solutions in order to be the first choice
bank for the customers.

MISSION
 To be a strong and stable financial institution offering innovative products and services while
contributing towards the national economic and social development.

OBJECTIVES

 To provide best services to its customers.

 To provide the facility of micro financing.
 To provide the facility of corporate financing.
 To strengthen the economy of Pakistan.
 To provide employment opportunities to people.

CORE VALUES
 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth
Number of Employees

ABL has over the years focused on streamlining its operations through closure of inefficient branches and
reduction in workforce. Over the last five years, ABL has closed down 150 branches and reduced its
workforce by about 2,600 employees. However, at the same time; ABL has invested in technology and is in
the process of implementing a core banking application, which is expected to be completed by 2007.

Years Employees
2006 11000
2009 10001
2012 15000
2017 19999

Departments of Organization

Allied Bank Limited having the aim of winning market is functioning with twenty departments at
Head office. Out of these sixteen departments every branch of Allied Bank Limited indifferent areas
of country is operating with eight to ten departments. Twenty departments at head office are the
Following:

 Administration
 Audit Branch
 Central Finance
 Central Operation
 Corporate Banking Group
 Credit Administration
 Customer Services & Quality
 Marketing
 Small & Medium Entp. Group
 Special Operation Management
 Division Treasury Operations
 Division Financial Institution
 Management Information System
 Small & Medium Entp. Group
 Treasury Operations
 Human Resource Division
Management Hierarchy Structure of ABL
The management hierarchy represents the different positions and designations in the hierarchy of the ABL.
However, this is not the reporting hierarchy but merely represents the positions and grades on the basis of
seniority and grades.

The poistion of the staff as is follow:

Information System in Allied Bank Limited

Allied Bank Limited is using information system since 2005-2006. Previously they was using core banking
solution UNION BANKING SYSTEM (UNI), and almost about one year ago bank starts another banking
solution named TEMENOS (T24).

Union banking Information System in Allied Bank

Previously management information system which allied bank used was UNI BANKING SYSTEM.
Language of that information system was UNIX, and in banking terminology this language was called
COBAL. This information system was MS DOS biased. With the help of this information technology allied
bank record the daily transactions that was of only one branch. It was decentralized database. Decentralized
means all transactions and processes are record in one place. All daily transactions were recorded and saved
into one server; every branch of allied bank had its own server which was not linked to any other branch of
allied bank. This information system was only being operated on LINUX OPERATING SYSTEM.

Benefits of UNI Banking System:

 Easy to use:
It was easy to use because people are expert they were using this operating system from many years. It was
most familiar to operators because it was user friendly and also not complicated.

 Safety:
This operating system was safe because its programming (coding) was very difficult, that’s why hackers
can’t hack information from this operating system. This information system was can only used on LINUX
operating system for that it was free of virus, so data was very safe.

 Low cost:
This system was low cost, because LINUX operating system was almost free of cost and easily available

Draw backs of UNI Banking System:

 Problem in system:
It was logical error, means missing numeric values; this operating system was full of problem in online
system. Sometimes during online working it was missing transactions and banker had no knowledge of that
missing transaction. Decentralized: It was decentralized database system not centralized; mean had not
relation with other branches.

 Difficult installation:
This information system was difficult to install, because it can only operated on LINUX.

 Difficult in troubleshoot:
Whenever there was a problem in “line code”, then it cannot be resolved by any one. For solution of that problem,
bank always called to special application developer from head office.

 DOS biased:
DOS is only biased on commands, and this operating system was DOS biased. So it was difficult to operate

Temenose Information System (T24)

Almost one year ago Allied Bank replaces UNI BANKING to TEMENOSE (T24). T24 is the latest
information system which is now a day mandatory from State Bank of Pakistan for every new bank. With
the help of new information technology Allied Bank Limited records the daily transactions, and that took
place from all over the Pakistan into a centralized database in real time and now there is no batch processing
is taking place in Allied Bank all over the Pakistan. Every bank branch is an online branch and is directly
connected to the centralized server to keep the data up to date to avoid any problems.

Now information system of Allied Bank makes thousands of transactions per day. And this information
system makes whole process more quick, reliable and simple. And employees can easily connect with other
branches; customer service gets improved, online banking emerged and lot of other benefits.
Management Information System At ABL:
Through TPS all routine information are collected in Allied Bank. All details of TPS’s HUBs go into
Management Information System. This information is then summarized in the form of reports for the
manager so that they can check whether the firm is working properly or not. If there are some flaws then
they take control measures to fix those flaws. In one branch all daily transactions are recorded and all reports
are prepared on daily basis. TEMINOS generate daily information report at the end of the day.

Transaction Procession System of ABL:

TPS is a type of information system. It collects, store, modify, and save the transactions of organization. One
transaction is an event that generates and modifies data that is eventually stored in information system. TPS
monitors transaction programs. Basic purpose of TPS program is that must be left in a consistent state. TPS
that Allied Bank is using is effective, that system’s process is fast and rapidly, to ensure the smooth flow of
data and the progression of processes

Payroll Transaction Process System

TPS in Allied Bank is for to get information and record of the employee payroll and calculate his/her annual
earning. It get information about the employee from the employee’s department and also from general ledger
and send it to payroll TPS. From where it links that information with the previous record and prepare a
report which is forwarded to management. Management takes notice of the record of the employee’s
efficiency to work and may declare bonus or incentive or demote him/her. This report is checked and
approved by the branch manager after which check is issued to the employee. And at the time of salary or
any incentive or benefits, when that check is cashed, the record is update in the general ledger as well as the
master payroll (HUB).
New Customer Identification
Allied bank is using TEMENOS banking system which is connected to NADRA. Bank’s information system
automatically verifies customer’s ID number, address, income, and city name. Which helps the management
to identify whether he/she is using his original ID card or not. Whenever new customer come for open an
account customer fill and form named “KYC”, abbreviation of KNOW YOUR CUSTOMER. Operational
manager enter all date of that form into system which contains actual worth and expectations of deposit and
after that manger enter his/her comment which he/she knows personally about that customer. “Customer due
diligence” named report related to that customer goes to Head office and State bank also have access to that
customer, through which State Bank knows the credit history of that customer

Employees Record
All employees having their personal login ID’s which allotted at the time of employment and they are
supposed to login when they enter the bank and logout on leaving. Their accounts are also connected with
the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has their
own setup which makes records of all the transactions made by an employee. All these help management to
monitor the working efficiency of an employee. Through this information system management also have
record of, how many customers served by whom employee. And they also have information through this
system that how many customers convinced to open an account by whom.
Real Time Banking
When a customer withdraws a sum of money from his or her account the transactions are processed and the
account balance updated as soon as possible, allowing both the bank and customer to keep track of funds.
When a customer goes to bank for withdraw or deposit the cash through cheque or cash then there are
certain steps. We will just describe withdraw transaction. First step on the time of withdraw through cheque
is, first cashier made entry of that cheque into information system (put cheque number, name of a/c holder)
and then cheque is scanned into FLATBED PRINTER. And after that information system configure
instrument number, amount in words & digits, and signature etc. If entered and scanned information will be
same then system will proceed to next step. If transaction is of less than Rs.25, 000 then it needs the
verification of just one person. And if cheque is of more than Rs.25, 000 then it needs the supervision of two
supervisors. In case of more than twenty five thousand rupees’ transaction, system of Allied Bank generates
one “supervision code”. One person made transaction and second supervises. And after configuration
transaction is done. TEMENOS system of Allied Bank shows option of debit and credit at the time of
transaction. And when transaction is made then the new transaction is send to Lane. Date and time of
transaction automatically entered when ever transaction made. The Lane enters the HUB where the specified
file is accessed. The updates are made entered there and finally the adjustment is done.
Automated Teller Machine Card (ATM Card)
Through ATM card customer can withdraw of cash easily. At the time of apply he/she give bio data, income
summary, company name, NIC. That data (NIC no. and bio data) send to system TEMINOS which directly
linked to NADRA. If information correct then it is forward to customer service centre and the issue of credit
card.
Relationship Between MIS & TPS
MIS reports and summarizes the organization’s basic operations and these reports come from the basic
transition processing systems. In case of our organization the TPS’s of ATM Cards, Payroll and Customer
identification etc. provide the basic information about the organization’s activities. These activities are then
summarized in the form of reports for the manager so that they can check whether the firm is working
properly or not. If there are some flaws then they take control measures to fix those flaws.
Role of Information Technology in Allied bank Limited
As IT is playing a vital role in this organization, the bank has state of the art IT infrastructure which is
working24/7 to ensure that everything is running smoothly and the bank systems are not exposed to the
outside world. IT Department itself is a huge department in Allied bank, having many sub departments
under its area. The IT department provides services, support to other departments as well as also acting as a
backbone of the Core banking system of Allied Bank. In broader terms the IT department is in charge of:

 All Communications throughout the branches & data centers, which includes Voice, Data, Fax,
 Monitoring the services of existing applications running inside the organization.
 Monitoring of Critical applications which need 99% uptime.
 Providing service to on production applications
 Networks and other connectivity mediums
 Security of existing & new applications

Hierarchy of IT Department

IT Department

Network & Service

Security & Risk
Communication management

Network & Communication

He department is responsible for managing all the network and communication that took place inside the
bank which includes Internet, Intranet, Extranet, Voice, Fax services. The core responsibilities of this
department is
 Managing existing data network.
 Managing the voice network.
 Managing the Fax network

Service Management
The department is responsible for providing services to the new as well as existing applications running
inside the organization. The department is also responsible for monitoring the application uptime and
providing maximum uptime to the critical applications to avoid any financial & service loss and assigning
the privileges to the employees

Security & Risk

The department is responsible for all the security issues that could happen in the existing system which
includes Internet Banking securities, network securities, external & local access etc.
SWOT Analysis of Allied bank Limited
SWOT is the abbreviation of four words these are “S” stands for strength “W” stand for weaknesses “O”
stands for opportunities and “T” stand for threats. Strength and weaknesses are the internal factors of the
organization and these are also known as the micro factors but the opportunities and threats are the external
factors and these are known as the macro factors. Micro factors are the controllable factors but the macro
factors are uncontrollable.
The easiest way to know about any organization is the SWOT analysis. So to reveal the hidden factors we
did a SWOT analysis of the Allied bank.

Strengths
ABL has always looked upon the customer’s demand and preferences while introducing new Islamic based
products. That is why it has some strong points that others don’t have as follows:-
 Bank is providing a high quality service to its customers.
 Large numbers of branches.
 The bank enjoys competitive profitability in the industry.
 ABL Bank has captured majority of potential customers in Pakistan.
 ABL Bank is Successive and Market oriented.
 In the list of banking industry the Allied bank is at number 5 in respect of its Balance Sheet
and overall its size.

Weakness
 Employee’s turnover is high.
 ATM machines are not always up to dated.
 Low motivational level; non-aggressive marketing.
 Employees’ dissatisfaction due to improper reward system.
 It is not providing the Islamic modes of financing to the customer.

Opportunities
 ABL can remove all the complaints of its customers.
 Can introduce the Islamic modes of financing to attract the more customers.
 Growth opportunities of ABL are very high as compared to other Banks.
 ABL has an opportunity to do aggressive marketing to increase its business.

Threats
 New banks are setting up their operations in the Pakistan more rapidly.
 Foreign banks are flourishing in field of consumer financing
 For the last of many years, Pakistan is facing economic instability, which is a big threat.
 Today’s government idea of nationalization is a big threat to the bank
Conclusion
A management information system is a system or a process that provides the information necessary to
manage an organization effectively. This report discus, all the activities that the Management Information
System performs in our selected organization “Allied Bank limited”. The report starts with the background
history of the bank such as when it establishes in Pakistan, the branches, pre and post era etc.

Our conclusion is that, how the transactions of TPS are made by the Allied Bank Limited, using of these
TPS from the new events such as account opening, new allowances etc and routine work including cash and
payments record, updating of records, and payroll. These TPS holds all the activities from the manager and
employees to the customers. The report discuss the inbound and the outbound logistics and relate all the
processes of TPS used in the bank with the MIS, enabling the bank to provide the quality and satisfactory
services to their customers. Also includes the inter relations, of all the entities in the database of the bank.

Suggestion
The bank is using the IS very efficiently and increasing its profitability, but still there are many things that
should be improved.

 With the increase in the technology, the bank should made its IS up-to-date for providing best
services to their customers and attracting more customers and increasing its productivity.
 The security of these system should be made
 Credit cards system should be improved providing the unique facilities to their customers which the
other banks has not yet introduce
 Proper training should be given to everyone about how to use the software efficiently.