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First and foremost all praise to Almighty Allah to give me the courage and patience to carry out this responsibility successful. I also wish to tender grateful acknowledgements with profound respect and gratitude respect to my teachers of department of Management Sciences of NUML, Islamabad for affording me an excellent opportunity to explore myself in the internship program. I am indebted to my family who always support me to complete this job. I also thanks to all the respected staff of Allied Bank who gave me very effective guidance to make this work successful.
Internship is an integral part of MBA program. For the sake of internship the most initial thing is to have a practical experience. This effort may get a student to get a practical experience if right organization is selected. During this internship, a student comes to particle knowledge. He/she learns what he has so far studied. As a MBA student I have also done my internship in Allied Bank Limited Multan. During my internship I am able to learn practical aspect of business, and get good working experience of learning and working with people. On the very first day of my internship I reported to Operation Manager Mr. Shoukat Babar. He gave me small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated among the bank’s departments and so was I. This rotation is done in order to have general concept regarding bank’s functions, operations and policies. In this rotation the stay in department is usually a week. First of all I will tell you about Bank then I will tell operations of different department
TABLE OF CONTENTS
S. No. Topics History of Banking History of Allied Bank About Allied Bank Board of Directors CH-2 Product/Services Consumer products Financial Products ABL Services Car Leasing Home Financing CH-3 Work Experience Worked in different Departments. Pay order Maintance of Cheque Books Verification of CNIC through NADRA Mailing 13 14 15 15 17 18 19 19 19 19 20 Page No. 01 01 09 09 10
CH-4 Financial Analysis Vertical Analysis Horizontal Analysis Ratio Analysis SWOT Analysis of Bank Conclusion &Recommendation Bilbo Grapy Annexure References 3
22 23 24 27 28 46 47 48 49
Ancient Greece holds further evidence of banking. By the time of Hammurabi's Code. In Egypt. who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C. saving the client the danger of carting coinage with him on his journey. a slave. agricultural implements. Deposits initially consisted of grain and later other goods including cattle. There is evidence too of credit. whereby in return for a payment from a client. in the form of easy-to-carry compressed plates. temples presented an extra deterrent to would-be thieves. Pythius. conducted financial transactions such as loans. gaining his freedom and Athenian citizenship in the process. grain had been used as a form of money in addition to 6 . is the first individual banker of whom we have records. Temples and palaces were the safest places to store gold as they were constantly attended and well built. Banks probably predated the invention of money. currency exchange. became the wealthiest and most famous Greek banker. The fourth century B. and were probably established sometime during the 3rd millennium B. from early times. deposits. Many of the early bankers in Greek city-states were “metics” or foreign residents.C. As sacred places. banking was well enough developed to justify the promulgation of laws governing banking operations.C. Greek temples. and eventually precious metals such as gold. and validation of coinage. Around 371 B.. as well as private and civic entities. a moneylender in one Greek port would write a credit note for the client who could "cash" the note in another city.. Pasion.HISTORY OF BANKS The first banks were probably the religious temples of the ancient world. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants.C. saw increased use of credit-based banking in the Mediterranean world.
When Egypt fell under the rule of a Greek dynasty. but also because financial market conditions were buoyant and. the Ptolemies (330-323 B. and information centres all over the world. Consequently it was natural that the bank of Delos should become the model most closely imitated by the banks of Rome. 7 . Global banking and capital market services proliferated during the 1980s and 1990s as a result of a great increase in demand from companies. In the late third century B. centralized in Alexandria where the main accounts from all the state granary banks were recorded. GLOBAL BANKING In the 1970s. governments. became a prominent banking center. indicating that governments of industrial countries around the world found private-sector solutions to problems of economic growth and development preferable to state-operated. on the whole. the numerous scattered government granaries were transformed into a network of grain banks. the importance of Delos increased. This banking network functioned as a trade credit system in which payments were effected by transfer from one account to another without money passing. With the defeat of its main rivals. This spurred a trend that was already prevalent in the business sector. known for its magnificent harbor and famous temple of Apollo.C. a number of smaller crashes tied to the policies put in place following the depression.). the barren Aegean island of Delos. large companies becoming global and dealing with customers. Carthage and Corinth. and state granaries functioned as banks. manufacturing. and financial institutions. cash transactions were replaced by real credit receipts and payments were made based on simple instructions with accounts kept for each client. suppliers.. As in Egypt. resulted in deregulation and privatization of government-owned enterprises in the 1980s.precious metals. semi-socialist programs. by the Romans.C.
Such profitability priorly restricted to the nonbanking industry. Treasury notes to about 5% during the 20-year period. stock market by far into the largest in the world. Such growth rate would have been lower. and financial assets grew then at a rate approximately twice the rate of the world economy. Although they shouldn't be expected to finance revitalization programs single handedly. they should be considered as essential to success. were it not for the profound effects of the internationalization of financial markets especially U. In recent years.. As a result.S.S. thus. Hence. Interest rates in the United States declined from about 15% for two-year U. as the distinct financial instruments are being explored and adopted by both the banking and nonbanking industries. in the last twenty years. particularly from Japan. transforming the U. 8 . but also helped finance the federal government. the process of financial innovation has advanced enormously increasing the importance and profitability of nonbank finance. who not only provided the funds to corporations in the U. they have looked for investments which provide the highest rate of return.S. In an increasingly focused effort to satisfy their stockholders. Foreign investments. THE ROLE OF BANKS IN ECONOMIC DEVELOPMENT Often overlooked is the importance of banks to revitalization efforts.bullish.S. diversifying banks' business as well as improving banking economic health. Yet banks and other local financial institutions have largely ignored local improvement efforts in recent decades. the distinction between different financial institutions is gradually vanishing. has prompted the Office of the Comptroller of the Currency (OCC)to encourage banks to explore other financial instruments. Financial institutions in a community can form the core of economic development.
Are long-term loans available? Are the loan terms practical for smaller businesses struggling through growth pressures? Is the bank.their investment money has gone elsewhere. Local banks need to be reacquainted with their need to be locally involved. and downtown leaders should feel comfortable including them as integral members of revitalization programs. often they have ignored their responsibilities to the local community in which they are based. In doing so. 1 there are at least four ways in which bank practices can be examined against community goals and objectives. Downtown organizations should include local bankers. actively involved in promoting the growth of existing local businesses. it may be hampering the long-run economic health of its home community. through its loan policies. Where is the commercial bank using the dollars generated in the community? If the local bank is using a relatively large share of its available funds for nonlocal investments. to other regions of the country or even to other parts of the world. As described by Shaffer. How are local banks using community funds? Commercial loans to Main Street merchants are likely to be the source of continued employment oppertunities for the community. the formation of new local businesses. and from which comes most of their business. and the attraction of new businesses? Are the types of services offered which promote downtown revitalization? Does it provide financial counselling? Does it "redline" deteriorated areas of the city in its lending policies? Does it have a development officer to help local businesses? What type of relations does it have with other local financial institutions? Has it worked with other banks on major community projects? Has it worked with state and federal agencies to help provide financing for projects? 9 .
while 13 Hindu banks all the 13 locally incorporated banks except the 10 . It was discharging the role of commercial bank as well as the central bank of India until an independent Central Bank i. Imperial Bank of India was the largest India bank. At the time of independence there were 487 offices of schedule banks in the territories now constituting Pakistan. The oldest bank operating from 1883 in this part of the world was chartered bank while another bank namely Grindlays bank was also working simultaneously from 1883. or whether pressure should be put on them to be more responsible to their client community. So by 30th June 1948. two days before independence.These questions help clarify whether local banks and lending institutions are actively involved in local efforts. There was two Muslim banks in Pakistan. the number of the offices of the scheduled banks in Pakistan declined from 487 to only 195. it inherited a poor and weak system of banking. Before independence. Therefore the banks transferred their registered offices from Pakistan to India. at the time of independence of Pakistan in 1947. that most of the important sectors of the economy including banking were controlled by non-Muslims. Reserve Bank of India was established in 1935. Among the contemporaries.e. and should be considered a key ingredient of any revitalization effort. The banning services in Pakistan were seriously suffered. The financial leveraging which banks can provide gives an invaluable resource to local efforts. that were to stay there. the financial sector of Indo-Pak was in the hand of foreign banks some of them were British by origin. after the announcement of the independence plan. which has started its operations in 1919. BANKING IN PAKISTAN Like many other institutions. There was a serious usually rush on banks for transferring funds and accounts. It was due to the fact.
specialized financial institutions like IDBP. In 1974. NDFC. Bank of Khyber etc are established. Moreover. agriculture and housing. HBFC were also created to help and finance the particular sectors of the economy like industry. because of the new thinking and for the improvement of performance. 11 . SBP in addition to its normal duties as central bank played a very important role in the development. 1973 total scheduled commercial banks operating in the country were stood fourteen.Australasian Bank were destined to move out or where already moving. of which many new banks like Indus Bank. More Pakistan scheduled banks continued to establish and by Dec. New banks like NBP etc were established while already existing banks like UBL extended their network of branches through out the country and even outside the country. Faysal Bank. the banks are in the process of privatization. ADBP. all the commercial banks including SBP were nationalized. has allowed the establishment of new private banks. After 1990. The network of banking branches now covers a very large segment of national economy. In June 1948 West Pakistan had only 81 offices of scheduled banks. Muslim Commercial Bank and Allied Bank Limited are already privatized and 26% shares of united Bank Limited are privatized and 74% shares are with shareholder that’s why united Bank limited is termed as private limited. controlling and modernizing of the banking system of the country. Union Bank. with its head office at Karachi. Due to the continuous to flourish and now it coves a very large segment of national economy. But by June 1993 their number has increased to 7100 in every nook and corner of Pakistan The state bank of Pakistan was established on 1st July 1948. Govt. PICIC. having their branches almost in all important cities of the country.
constantly attended. development financial institutions.The banking system in Pakistan now comprises commercial banks. now undertake financial transactions. Private entrepreneurs. But it lies idle there. there are records of loans made by the priests of the temple. commitment to professionalism. They even engage in book transactions. it is a solid building. They take deposits. HISTORY OF BANKING In early civilizations a temple is considered the safest refuge. as well as temples and public bodies. with a sacred character which itself may deter thieves. while others in the trading community or in government have desperate need of it. change money from one currency to another and test coins for weight and purity. Today these banks under the guidance and supervision of SBP are taking active part in the economic development of the country as well as in serving the people of Pakistan. in the 18th century BC. 12 . make loans. Moneylenders can be found who will accept payment in one Greek city and arrange for credit in another. In Egypt and Mesopotamia gold is deposited in temples for safekeeping. leasing companies and modarabas. adaptation to changing environmental challenges resulting into an all-round growth and stability. The concept of banking has arrived Banking activities in Greece are more varied and sophisticated than in any previous society. avoiding the need for the customer to transport or transfer large numbers of coins. In Babylon at the time of Hammurabi. foreign commercial banks. HISTORY OF ALLIED BANK The Allied Bank's story is one of dedication. envied and aspired by many. investment banks.
Allied Bank began its operations as a public sector financial institution. Experience gained during this period proved to be of great benefit in enabling the Bank to impart financial knowledge and develop banking expertise at a time when Pakistan suffered from a severe shortage of these skills. the bank will be well poised to handle large volumes of business. were nationalized.4 billion and deposits to over Rs. Accordingly the Management of Allied Bank of Pakistan LTD and Allied Bank LTD agreed to incorporate a joint venture Bank named "Allied Allied International Bank PLc" whose initial paid-up capital is 25.3 billion with 747 branches network (Figures are for 10-09-1991. 1974 all the scheduled banks. In 1971 the eastern part of the country was separated. During the 17years(1974-1991)the value of total net assets rose to Rs. 13 . 54. It began life as a Lahore based Muslim bank in a financial world which was predominated by other communities. 1. assets had risen to Rs. Australasia Bank lost more than 50 branches and deposits worth Rs. the new entity was renamed as the Allied Bank of Pakistan Limited.The Bank's history may be divided into several distinct phases. During 25 years of united Pakistan the Bank advanced forward in all areas of its activities. Allied Allied International Bank PLC Financial Services Authority was desirous to form a UK incorporated independent subsidiary by all the Pakistani Banks or a joint subsidiary of two Banks. the date the Bank. 24. With a network of 10 branches located in all big cities of UK. including Australasia Bank.444 million.25 billion and deposits to Rs. particularly of the Asian community. Three small provincial banks were merged into Australasia Bank and on 1st July 1974. 849 million. On 1st January. Nevertheless. growth remained steady and by the close of December 1973. The 1970s was a difficult decade for all Pakistani banks.21.00 million pound sterling.
the Bank’s ownership was transferred to a consortium comprising of Ibrahim Leasing Limited and Ibrahim Group.ABOUT ABL Allied Bank of Pakistan Limited (formerly Australasia Bank Limited) has witnessed and experienced political. Abdul Aziz Khan Mr. Sheikh Jalees Ahmed 14 . VISION To be the world class bank with world class people providing world class services. The Bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches. Mohammad Naeem Mukhtar (Chairman) Mr. Mohammad Waseem Mukhtar Mr. financial and technological changes that have taken place in the South Asian Region since its incorporation in 1942 at Lahore. economic. MISSION There mission is to serve all corporate needs and ensure your full satisfaction through product innovation personalized banking and to north services and establishes a competitive advantage and enhances profitability. Today the Bank stands on a solid foundation of over 63 years of it’s existence having a strong equity. Sheikh Mukhtar Ahmed Mr. BOARD OF DIRECTORS Mr. assets and deposits base offering universal banking services with higher focus on retail banking. to become the first Muslim bank established in the territory that became Pakistan In August 2004 as a result of capital reconstruction.
Farrakh Qayum CHAPTER#02 PRODUCTS/SERVICES 15 . Mr.
All Pakistani nationals residing in Pakistan and outside Pakistan can also open Foreign Currency Accounts. Accounts can be opened in US Dollar. and Japanese Yen at designated branches. Pound Sterling. 16 . Resident Firms. Companies including Investment Banks can open Accounts. The following products are available for customers Consumer Products Rupees Deposit Accounts Foreign Currency Accounts Allied Bank Rupee Traveler Cheques All Time Banking Master Card Debit Card Online Bankingli Financial Products Seasonal Finance Agricultural Finance Import Export Business/Trade Finance Running Finance Demand Finance Consumer Products FOREIGN CURRENCY ACCOUNTS Allied Bank offers the highest rate of return on Foreign Currency Deposits in the Country.Allied bank offers a wide range of products geared towards the customers. Deutsche Mark.
you should keep this number absolutely 17 . Deutsche Mark. Non-account holders would first have to open an account with Allied Bank to have access to this facility. You will now have the convenience of withdrawing cash from any of our multiple ATMs ("All-Time Banking" locations) conveniently located in major cities like Karachi and Lahore at any time of the day or night even on closed days/holidays. you simply have to fill out the prescribed Application form available in all Allied Bank Branches. Companies including Investment Banks can open Accounts. DEBIT CARD Now you can use your existing ABL ATM Card as DEBIT Card at over 2500 outlets of network. How To Obtain: In order to obtain an AlliedCash+ Card. As a security measure.ALLIED BANK RUPEE TRAVELER CHEQUES Allied Bank offers the highest rate of return on Foreign Currency Deposits in the Country. and Japanese Yen at designated branches. Pound Sterling.. 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. Accounts can be opened in US Dollar... All Pakistani nationals residing in Pakistan and outside Pakistan can also open Foreign Currency Accounts. ALL TIME BANKING Allied Bank is now introducing the AlliedCash+ card also referred to as ATM card. Resident Firms. The duly filled form should be handed over to the Manager of the Branch where you are maintaining your account. You can feel absolutely safe about your AlliedCash+ Card because it can only be used with the Personal Identification Number (PIN) which is given to you by the bank.
Inserting the Card: Please insert your AlliedCash+ Card in the Card Slot located at the front of the machine. Menu Selection: Most of the options available on ATM screens are to be selected by using the eight Menu keys located on the sides of the screen. you would be asked to key in your existing PIN once. You will notice that options appear on the screen by dividing the screen into boxes. A precaution to keep in mind is that the Key Pad should not be directly visible to any other person when you enter your PIN. Entering your PIN: The PIN has to be keyed in using the Key Pad located just below the screen. and new PIN twice to ensure that you did not make a mistake while entering your new PIN. For selecting the desired option. Choosing Cash Withdrawal. for ease of understanding the following simple guidelines would also be useful. The Card must be inserted with its face up as indicated on the machine. Fast Cash and Cash Withdrawal: Fast Cash option allows you to select predetermined amounts for withdrawal by simply using a Menu Key.Confidential. will permit you to specify the exact amount (in multiple of Rs. This is easily accomplished by positioning yourself in such a way that you stand close to the machine directly in front of the Key Pad Changing your PIN: When changing your PIN. Please note that the PIN is not displayed on the screen as it is keyed in. press the Menu Key next to the appropriate box. on the other hand. This is to keep the PIN confidential from onlookers. How To Use: The instructions appearing on the screen of ATMs have been designed to help the customer in using the facility. where appropriate. 500 up to 18 . or on each side. Graphical representations have been employed.
a particular ATM may be out of service. insufficient cash in the machine. however. ATMs are programmed to capture the card if the customer forgets to take it back after a transaction. Similarly. Also any cards unrecognized by the ATM may be captured. Typical time for recapture of the card/cash is 20 seconds. 25.000) by using the key Pad below the screen. In case your Card is captured. the machine will capture the card. ATM services will not be made available.00.maximum of Rs. Various factors could cause this condition. 10. power shutdowns. 19 . etc. Similarly. Card Capture: ATMs automatically capture cards that have been duly reported as lost or have been cancelled. You should. be careful to take both your card and the cash before moving away from the machine as it cannot be guaranteed that the machine will recapture them before they are taken away by the next user or a passer by. For this purpose.000. Out of Service: Occasionally. please proceed to the nearest available ATM for service. This would be indicated on the screen displaying the status of the machine. ATM cash withdrawal limit is Rs. if you fail to enter your correct PIN in 3 repeated attempts. if you forget to take the cash within a pre-set time limit. the Branch Manager must be notified in writing immediately. which includes telecommunication problems. In all such cases. the machine will take it back. the matter should invariably be bought to the notice of the Bank personnel as soon as you discover the loss. please contact the manager of bank branch where the Card has been captured Time Out: In order to provide added security. If you encounter an out of service ATM. hardware breakdowns. Loss of Card: In case you lose your AlliedCash+ Card or the Card is stolen.
International Card Rs. Allied Bank under license from Master Card International.S. With the Allied Bank . prestige and convenience await you with the ABL-MasterCard .000+ establishments in Pakistan and over 17 million retailers across the world.MASTER CARD You can now become the holder of a true Credit Card here in Pakistan.A issues it's Master Card to anyone meeting the eligibility criteria. Quick Processing Time: With our automated processing systems and simplified application procedures.at no extra cost. status. you deserve a life unrestricted by cash limitations. 20 . 1000/ per year. That’s why the ABL-MasterCard is now available for you – with a set of unique features. we promise delivery of the ABL-MasterCard at your doorstep in record time.5000/. Being a successful individual. a simple application procedure and the fastest processing time! Accepted at 16. The New ABL-MasterCard: For You! We at ABL are of the view that the time has come to bring about a radical change in the Pakistani credit card industry.per year and supplementary card are free for Lifetime. 1. you deserve a reliable credit line. you deserve the best – you deserve the ABL-MasterCard! Luxury. the ABL-MasterCard is your ticket to complete financial independence.Master Card you will be assured of a service meeting the highest international standards maintained by Master Card. U. No Annual or Joining Fee!: No annual or joining fee is applicable for the first year of operations of the card after 1st year for Local Card Rs.
Gulberg III. Trade Tower. Allied Bank of Pakistan Limited. Credit Card Islamabad Operations. 21 . 4th Floor. LAHORE. but is also the first free credit card launched by a completely Pakistani owned financial institution. 7-E/III. Phone: 051-2272341 051-2272306 Fax: 051-2272568 Manager Operations.Pioneer in Credit Cards: Not only is ABL-MasterCard a pioneer in the credit card industry. Main Boulevard. Allied Bank of Pakistan Limited. 2nd Floor. Credit Card Lahore Operations. ABL Plaza. Phone: 042-5757970 5756971 Fax: 042-5756957 Manager Operations. Abdullah Haroon Road. 5684902 Fax: 5680656 Manager Operations. Blue Area. Addresses for Credit Card Centers: Credit Card Wing. Karachi Phone: 5657925. Credit Card Faisalabad Operations. ISLAMABAD. Allied Bank of Pakistan Limited.
farm and non-farm credits. The delivery of pledged stocks/goods is made against appropriate cash payment. poultry.. sheep and cattle). ONLINE BANKING Online Banking facilities are available to customers maintaining accounts at all online branches across the country... Financial Products SEASONAL FINANCE Seasonal Finance facility is allowed against pledge of produce of Cash Crops harvested in that particular crop season. FAISALABAD.2nd Floor Regency Plaza. RUNNING FINANCE 22 . Non-farm credits are allowed for livestock (goats. factory including social forestry and fisheries (inland and marine excluding deep sea fishing). 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. AGRICULTURAL FINANCE Bank under Agricultural Financing Scheme envisaged by the State Bank Of Pakistan extends short. The farm credits are extended for production (inputs) and development purposes. medium and long term. The Mall.
Through the Allied Express Service. DEMAND FINANCE It is disbursed in lump-sum or in accordance with the agreed disbursement schedule and it is repayable as per the agreed installments. routed through designated foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard. ABL ensures that beneficiaries' Accounts in ABL branches are credited with in 48 hours of receiving home remittance information from overseas 23 . The running finance account can be operated and daily sale proceeds can be deposited into the account.It is a short term loan allowed by the bank for a period of one year. biannual or annual ABL SERVICES You can rely on allied banks friendly staff that is eager to assist their customers as best as possible. quarterly. which could be monthly. undertakes to provide safe and instant payment of remittance from expatriates. The running finance is suitable for meeting day to day financial needs of the business. The mark-up is recovered on the products of daily outstanding balance. Allied Bank offers the following services to its customers: Home Remittances Inter Branch Remittances Hajj Services Utility Bills Lockers HOME REMITTANCES The Bank having a network of 735 branches all over Pakistan.
UTILITY BILLS All branches of the Bank collect utility bills of electricity. Telegraphic transfers can also be made abroad in Foreign Currency. each year. gas and telephones.INTER BRANCH REMITTANCES Allied Bank can transfer funds to the remotest part of the country for payment/credit to the customer himself or a third party. However. Medium and Large on a yearly fee. For convenience of the customers. the terms and conditions for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj Policy announced by the government. The Hajj forms and other related services are provided by the bank. Bills can be paid through cash or cheques. Locker holders need not have an account in the Bank COMMODITY OPERATIONS 24 . Hajj applications are available with all branches during Hajj season. HAJJ SERVICES The Bank serves the intending pilgrims by helping them in performing this religious obligation. immediately after the Hajj policy is announced by the Government of Pakistan. through Telegram/Telex/Telefax for payment/credit on the same/next day. Consumers may drop bills with crossed cheques into a drop box available at the branches under "Cheque Drop-in" system LOCKERS Allied Bank Lockers are available in three different sizes Small. Utility Bills are collected by the branches during banking hours and also in the evening-banking on all working days.
we are pleased to announce that ABL has enhanced ATM services by joining the "1-Link Switch" which has following members Banks ABN Amro Allied Bank Bank Alfalah AlBakara Islamic Banking AlliedBank Limited Askari Bank Bank Al Allied National Bank PICIC Commercial Bank Union Bank United Bank Soneri Bank The card holders of our bank will thus be able to access member banks ATMs for balance inquiry and can withdrawal simultaneously vice versa.It is a Cash Credit Financing to Government Department for procurement of various commodities. as per allocation of the limits by SBP on Government of Pakistan Guarantee. 25 . The card holder's member banks will access our bank ATMs. with the country wide network of 735 branches. ATM NETWORK In continuation of ALL TIME BANKING services.
of Account.392(m) during the year with a major upsurge of more than 22% in low cost deposits. branch. 26 .56.53.4. branches.Every ATM which is connected with "1-Link Switch" has a Logo which indicates that "1-Link Switch" member can access the ATM.830(m) in 2003 to Rs.051 (m) in 2004 Le and increase of 12%.868(m) in 2003 to Rs.407(m) in 2004 ie.765(m) in 2004. According to the Annual Accounts.824(m) in 2003 to Rs.. an increase of 15% Profit before tax and provisions increased from Rs.3.218(m) to Rs.114. The performing advance.154(m) in 2003 to Rs.2.126. the deposits of the Bank increase by 11% from Rs. Your browser does not support inline frames or is currently configured not to display inline frames ONLINE BRANCH NETWORK Online Banking facilities are available to customers maintaining accounts at all online branches • • • • Cash Remote Instant Remote across the country. Net interest income increased from Rs.1.72.853(m) in 2004.) portfolio of the Bank substantially increased by 67% from Rs. account holders of all online branches can obtain ABL's Allied Cash+ Card for use at ATMs as well as at Debit Card POS terminals. for The following credit from any facilities to any 2 are available: branch. Deposit Cheque Funds immediate Encashment remote online online Transfer between and Balance Enquiry Statement In Addition to the above.32. The foreign trade handled by the Bank increased by 28% from Rs.
If we see the UBL which is recently privatized has been started the different moods of financing and it has gaining very high profit In last year. From our point of view it is because of low financing in up coming fields the on of them is CAR FINANCING almost 90% banks are providing such facility to their loyal customers. it is the kind of credit in which banks receive down payment which is the % of total amount of car and remaining will receive in small installments and bank pay the whole amount to the dealer. HOME FINANCING: Home is the basic need for human being each and every person wishes that he should have his own house. it does not appear on the balance sheet. these banks also having high performance and productivity. A financing lease does appear on the balance sheet. Car leasing is the process in which banks provide finance for the purchase of cars.The Bank has chalked out a comprehensive strategy to take full advantage of the opportunities created by the changing environment CAR LEASING: this is a form of financing that avoids the down payment usually required for the purchase of equipment. Because leased equipment is not owned by the company. Allied Bank of Pakistan is the oldest bank of Pakistan but its performance is not very good as compare to other commercial banks. So if Allied Bank start to give the car finance to their customers it may gain high profit because it is already having large number of customers. Home financing is another way of credit which banks use to full fill 27 .
This bank is working from several years it has the very large number of customer so it has the potential to compete in home financing market. Allied Bank is also lacking in the field of home financing as I mentioned that it is a very old bank but it is very away from current financing strategies due to this it is not performing like the other Pakistani commercial banks. funding and gapping areas. There is lot of local . The Strategic Planning and Balance Sheet management responsibilities include: 1. Overseas Branches Treasury and Capital Markets. to develop synergies amongst our various treasuries. We plan to integrate the treasury activities for all overseas branches. TREASURY The UBL Treasury & Capital Market (TCM) has developed a reputation as a proven market leader in converting innovative ideas into profitable ventures for the bank and for its customers. in it banks finance the home for their customers. 2. As our core business in these markets continues to develop. foreign and other financial institutions are providing home finance. It like the car financing.the needs of those people who want to buy or purchase a house. Liquidity Management for the domestic balance sheet This unit is the focal point for all branch related liquidity issues and will also be responsible for day to day management of liquidity for UBL. 28 . we expect significant opportunities to arise in the trading.
Staff has been reduced and branches have been cut down. Comparison of UBL and its Competitors UBL have a market share of 9% in the market. AlliedBank Limited (HBL) and Muslin Commercial Bank have 10 % market share . Keeping in view the need of the bank.3. NBP and MCB are also included in the main competitors of UBL. After Privatization. S ANALYSIS Major competitors The major Competitors of UBL are National Bank of Pakistan (NBP). The management is trying to intrtoduce changes. 29 . COMPETITOR. MCB have 11% market share and the rest of the share is of other banks in market. which would help the bank in exceeding in the market. HBL has stabilized its position and has a strong image in the minds of many customers. They have also secured a large part of market share. HBL have 20 % market share. Research providing market research for internal and external and external clients in order to support the sales and trading effort. the bank has gone through many changes.
CHAPTER# 03 WORK EXPERIENCE 30 .
joint a/c. company a/c etc For individual a/c minimum Rs 500 up to Rs 10000 required to open account. My internship started on 16th june 2008 . This department.INTERNSHIP EXPERIENCE This internship has no doubt been a great learning experience for me. Ahmad Saad ullah . I learnt the various functions carried out by the account opening department and got an opportunity to help in the daily activities. As part of my rotation I was assigned to work in the different department of ABL. During my internship I worked under his supervision 31 . etc Major Tasks Learnt I was placed in account opening department. I was placed under the supervision of Mr. This department is made for the convenience of customers having dealings of PAK rupees. BRIEF DESCRIPTION OF THE DEPARTMENT WORKED IN ACCOUNT DEPARTMENT Account Opening and Maintenance FUNCTIONS This department deals in account opening. The account opening department is handed by Mr. For company a/c minimum Rs 1000 required to open account. Rashid Mehmood. s deals to open account of the department or customers are in the Pakistan. It makes easy for account whether it is individual a/c. It also deals to make following a/c Individual a/c Partnership a/c Proprietorship a/c Proprietorship a/c.
supervisions of signs on the checks and up dating. department card etc Letter of banks and opening letters are also sent to the customers and introducers of a/c holders. To check the account serial numbers which are daily allotted to customers. The SS Card is scanned on daily basis in computer. 32 . job letters. This department is made for the convenience of customers having a/c in the ABL. DEPOSIT DEPAARMENT FUNCTIONS.Daily Activities. It make easier to get information about balance of accounts or depositing. A/C opening forms are checked and stamped duly signed. Closing and activation of accounts are also made by this department. The A/c opening forms are authorized by BHM and supervisor by depositing in charge after being feed in the computer. This department also deals with the issuance of certificate. Filling of account opening forms are maintained on daily basis. All funds of collection A/C are made by this department. statement of accounts. Deals with the customers guide them about the functions of account in ABL. Issuance of check books. student card. Supporting documents are also checked such that CNIC. This department deals the depositing. After feeding of a/c opening form are filed in the A/C opening files of current A/C or saving a/c in the serial numbers.
issued by the branch of the drawer bank i. then the DD is sent to other bank. 33 . If two banks are involved. Check books are issued to the customers on daily basis. E. payable at some other place (branch) of the same bank. Accounts are closed and activated by this department. I learnt various functions carried out by the department and got an opportunity to help in the daily activities. All funds of collection accounts are also transferred to different accounts are made on daily basis. Check received and clearing are also deposited by deposited by deposit department They maintain and look after the account opening files of the costumers’ Statements of account holders are also up to dated from this department. During my internship I also worked under their supervision. Changes in addresses or costumers missing CNIC and changes in SS cards are also checked. Daily Activities Debit and credit vouchers are posted pertaining to customer deposit. The depositing department handled by two officers. DEMAND DRAFTS It is an instrument payable on demand for which value has been received. Signatures of the customers are also up to dated from this department.MAJOR TASKS LEARNT I was placed in the depositing department. 50000 are supervised by deposit in charge. Vouchers having amount more then Rs. Accounts are closed and activated by this department.
It is normally referred to as banker. Then it is signed by officer of remittance department and operation manager and then D this given to the customer. s branch. If he fills the tax exemption from. speedy and reliable way to transfer money. Then cashier counts the amount and signs the DD application and enters it in the register. can purchase a Demand Draft from any bank. After the pay order receipt is filled. Vouchers are given for posting and the entry in the register is closed DD payable is nil. cannot get it back it is non refundable. After proper checking and charging bank commission according to the schedule of charges. he can purchase ABL s Demand Drafts at very reasonable rates. Vouchers are prepared and posted and advises are printed and mailed to the concerned branch. Any person whether an account holder of the bank or not. It is issued in a manner that form is given to the customer. If the customer is looking for a safe. Then bank apply some charges such as commission. The order is then handed 34 . he fills and signs it. Important point cancel it but the one who has deposited money once. DD can be issued by filling application from the customer. s Cheque. After checking properly. the cash amount stamped and handed over to the applicant as a receipt. excise duty according to the schedule of charges. concerned officer signs it. an entry is made in the pay order issue register. tax is not charged. When DD is received there are some tests number issued which are then matched and the payment is made..Procedure of issuance and payment is like. PAY ORDER It is an instrument that is issued if the payment is to be made in the same city or if you want to send money in the same city then you will make PO. When the bank receives DD and its advice. and entry is made on the DD payable register and the vouchers are made. Pay order issued from one branch can only be payable from the same branch. DD credit advice is attached with the vouchers and given for posting to the computer.
When the pay order receipt is presented two authorized officers of the branch sign the receipt. I also made the Cheque books. Time for receiving new one is one week. The procedure of maintaining the Cheque books is that if account is newly open then the Cheque book requisition slip is filled by the customer. there is clearly mentioned the leaves of the Cheque book. 35 . the charges for this service are extremely competitive. After the issuance there comes payment step. A voucher is also made and posted at the computer. When Cheque books are made in the Karachi Head office then these are send back through NIFT. Then the amount is credited to the account of the customer. MAINTENANCE OF CHEQUE BOOKS Cheque books are maintained on daily basis. If Cheque book is not collected within 60 days then it is destroyed automatically. Then that Cheque book requisition slip is send through NIFT to Karachi Head Office. PROCEDURE FOR ISSUING NOW CHEQUE BOOK When Cheque book requisition slips are received. Daily number of customers gives request for new Cheque book. PO entry is made in the PO issue register. on the same date the account numbers and name of the customers should write in the Cheque book register. If customer has an old Cheque book then he / she will fill the Cheque that is present in the Cheque book and give it to the Cheque book issuance counter. And .over to the applicant after obtaining his signature on the PO Form. UBL provide another reason to transfer your money. Then PO is posted at the computer. Pay order is a secure and easy way to move your money from one place to another.
In case a customer gets compensation for permanent disability and he eventually dies. In case of joint account. No benefit will be given in case of temporary disability. Insurance is for the permanent disability and permanent partial disability. 75. All staff of ABL and subsidiaries are eligible for insurance coverage under this scheme. only the primary account holder will be offered insurance coverage. if customer does not make payment against the cheque book then account is automatically Ddr by Rs. Customers pay cash against the Cheque Book then there will be no deduction in the account of the customer. based on the stipulated eligibility criteria. There is no Cheque book charges for the ABL Staff is free of cost. Customers having more than one account with the bank shall be offered single insurance coverage.3 per leave. Rs. Cheque books mostly contains of 25 leaves. 50000/. The policy is non transferable and non saleable.Charges for Cheque Book The amount is R S. 36 . CERTIFICATE OF INSURANCE This scheme is introduced for all ABL account holders. Information relating to next of kin in the account opening form shall be constructed as beneficiary information. Closure of the account. where the reason is other than death of the customer.will be given in case of temporary permanent partial disability. will result in automatic cancellation of the policy. Policy renewal shall be on a monthly basis. The policy shall only cover the account holder. the customer shall not be entitled for multiple claims.
saying “It is mandatory for the Banks to get the CNICs verified from NADRA. A. the CNIC is verified through NADRA. Procedure : Branches will receive the validated CNIC data for new account holders VIA email will be auto generated and will be sent to Branch Managers under cc to Area Operation managers in case of on line branch. I also prepared the letter of thanks to the new account openers and the introducers of the new account openers. and in case of off line spokes. to Hub E Coordinators.S new remittance service. Guidelines for using special purpose software for CNIC verification To implement prudential Rules and Regulations as per SBP. after this stamp of CNIC verified and signatures are done by the person who checks the CNIC. Clearing of Tezreftar cheques which are ABL. for their Customer Accounts. user would require special purpose software that must be installed on the designated as per above workstations. Once the letters are prepared they are mailed through TCS. - MAILING Computer work: sending mails. pertaining to CNIC verification. TezRaftaar offers all overseas Pakistanis the fastest and the most convenient delivery of their money 37 . HBMs under cc to Ams and AOMs In order to open/ read the validated file. After that NADRA send back the original the original CNIC of the customers with there account numbers. s Circular dated july 08. All the account numbers and CNIC of the customers are sending to NADRA. 2006.VERIFICATION OF CNIC THROUGH NADRA When account are opened . preparation of remittance messages. B. These are then matched by the CNIC that are attached with the account opening foam. filing.
Free doorstep delivery by authorized courier. not 38 . Tez Rafaar is completely cost free and is available at all Delivery of remittance with in 24 hours from any foreign country . The service is completely free of charge. Open to all including those who are ABL account holders. Complete confidentiality of all transactions.to their beneficiaries in Pakistan. Best of all .
CHAPTER#4 COMPANY ANALYSES 39 .
It is conducted by setting consecutive balance sheet. turnover is expressed as 100% and every item in the income statement is expressed as a percentage of turnover (sales). Thereafter. The most important item revealed by comparative financial statement analysis is trend. the assets as well as the liabilities and equity are each expressed as a 100% and each item in these categories is expressed as a percentage of the respective totals. Such percentages are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year statement.INDEX ANALYSIS: This technique is also known as comparative analysis. for example. Restating amount of each item or group of items as a percentage does the horizontal financial statements analysis. • In the balance sheet. COMMON SIZE ANALYSIS: Vertical/Cross-sectional/Common size statements came from the problems in comparing the financial statements of firms that differ in size. speed and extent of a trend(s). • In the common size income statement. the amounts of similar items or groups of items in prior or subsequent financial statements are expressed as a percentage of the base year amount. A comparison of statements over several years reveals direction. The resulting figures are called index numbers or trend ratios. income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. 40 .
025 7.902 8.939 9.031 18.449 4.090 17.227 (1.550 12.263 5.155 Net Mark -up/Return/Interest 3.694 2.306 127.681 Profit before provisions 1.506) (5.721 6.883 7.465 103.490) 895 12.264) 4.867 1.156 119.835 8.665 1. Provisions against diminution invest.636 540 273 5.926 126.470 196 273 4.672 342 203 192. Total assets-net of provision LIABILITIES Customer deposits Inter bank borrowing Bills payable Other liabilities Net assets/liabilities Equity-Tier I Share capital Share premium Reserves Un-appropriated profit/(Loss) Surplus on revaluation of assets net tax 2003 2004 2005 2006 2007 11.761 11.964 2.587) 954 Taxation 518 (568) Profit / (Loss) after taxation (1.230 4.065 409 112.673 392 117.471 14.987 2. commission.520 65 155 3.410 2.659 7.537 3.423 1.069) 386 UNITED BANK LTD 41 5. In Millions 18.793 10.866 151.657 69.269 47.175 57.890 337 154. brokerage & income 723 617 Dividend income & Capital gain 477 1.278 7.397 .773 2.608 1.732 1.801 201.705 2.552 7.869) 1.289 7.745 5.688 16.516 114.620 17.543 15 (694) 4.914 4.377 2.574 252.594) (151) 482 (290) 192 9.483 1.153 10.216 6.534 3.985 Mark-up/Return/Interest expensed 3.744) 3.245 794 4451 1.205 (3.830 Fee.050 45.575 259.949 2.760 121.361 41.206 10256 9448 4405 10640 717 (6314) 808 Rs.705 4.001 54.794) (4.035 24.538 2.777 19.834 (3.817 5.839 34.596 7.063 558 (6.811) 1.834 (1.292 Donations Provisions-(expense)/reversal (3.581 9.063 481 (6.458 PROFITABILITY Mark-up/Return/Interest earned 7.205 15.December 31 ASSETS Cash in balances with treasury banks Lending to Financial Institutions Investments-Gross Advances.316 1.126 49.222) (870) Additional charge for employee benefit (70) (468) Profit/(Loss) before taxation (1.770 3.947 4.410 9.500 166.032 2.400 3.489 4.267) 1.892 2.Gross Operating fixed assets Other assets Total assets-Gross Provisions against non-performing adv.027 161.636 206.198 Other income 272 328 Operating expenses 3.472 10.489 4.392 12.583 9 (913) 6661 (2.907 10.320 16.316 1.218 2.727 1.445 7.
76% 100% 23.22% 0.30% 0.52% 7.21% 100% 81.56% 100% 49.18% 22.41% 0.85% 0.47% 79.58% 100% 39.14% 1.00% 42.32% 7.54% 9.01% 6.87% (17.58% 42.64% 30.90% 3. commission.84% 6.98%) (0.177% 100% 83.20% 2.50% 3.03% 6.84% 107.58% 73.90% 0.12% 3.55% 18.15%) 25.46% 4.83% 12.06% 0.76% 43.54% (21.71% 50.03% .55% 6.052% (5.24% 2.98% 1.00% 2.17% 76.00% 0.93%) 2004 9.82% 7.63% 47.00% 35.45% 60.78% 108.49% 0.19% (5.39%) 14.52%) 0. Total assets-net of provision LIABILITIES: Customer deposits Inter bank borrowing Bills payable Other liabilities Net assets/ Liabilities Equity-Tier I Share capital Share premium Reserves Un-appropriated profit/(Loss) Surplus on revaluation of assets net PROFITABILITY: Mark-up/Return/Interest earned Mark-up/Return/Interest expensed Net Mark -up/Return/Interest Fee.00%) 48.080% 100% 81.43% (6.64% 4.21% 45.28% 103.46% (30.99% 23.66% 5.36% 100% 92.152% (7.63% 2.86% 1.72% 2.14% 84.33% 2.03% 1.33% 100% 97.02% 0.84% 45.29% 9.61% 6.39%) 2005 7.63%) (31.09% 56.20% 6.71% 1.53% 14.00%) 1.38% 24.9% 10.71% 60.58% 30.74% UNITED BANK LTD 42 .52% 100% 15.70% (13.95% 75.27% 1.24% 2.45% 4.75% 7.42% 0.09% 2.53%) 3.26% 7.58% 8.6% 4.21% 108.98% 2.86% 28.04% 0.45%) (9.98% (17.50% 2.47% (5.30%) 38.023% 7.36% 2.43% 1.20% 2.94% 0.23% 0.50% 62.44% 37.71% 0.14% 1.78% 1.86% 0.10% 104.07% 0.2% 2.70% 2. brokerage & income Dividend income & Capital gain Other income Operating expenses Profit before provisions Donations Provisions-(expense)/reversal Additional charge for employee benefit Profit/(Loss) before taxation Taxation Profit / (Loss) after taxation 2003 10.69%) 19.09% 1.2% 7.88%) 9.23% 48.20% 9.36% 3.91% (11.67% 2006 9.24% 0.72% 44.40%) (2.50% 2.85% 100% 20.36% 6.56% 4.COMMON SIZED ANALYSIS For the Period Ended December 2003 to2007 December 31 ASSETS: Cash and balances treasury banks Lending to financial institutions Investments-Gross Advances-Gross Operating fixed assets Other assets Total assets-Gross Provisions against non-performing Provisions against diminution invest.61% 1.53% 13.42% 8.56% 8.24%) 2007 9.74$ (42.00% 6.13% 6.64% 6.27% 2.
84% 166.61% 49.40% 104.98%) 2006 157.57% 129.33% 246.98% 112.75% 422.46% (92.80% 229.32% 41.31% 95.72% 120.63% 69.21% 53.00% 198.55% 181.34% 123.40% 171.62% 171.00 (95.43% (27.70%) 45.75% 82.65%) 43 2005 107.52% 83.00% 85.28% 40.26% 165.75% 9.67% 203.09% 100.14% 84.42% 100% 116.11%) (109.23% 121. commission.57% 83.60% 336.96% 21.37% (55.19% 224.11% 92.90% 131.52% 325.26% 276.40% 0.95% 92.72% (437.36% 120.00% 162.06% 210.30% 377.55% 174.11% .63% 106.07% 130.00%) (668.34% 251.77% 227.50% 422.33% 208.54%) 304.95% 54.59% 104.67% 167.63% 56.INDEX ANALYSIS For the Period Ended December 2003 to2007 December 31 ASSETS: Cash and balances treasury banks Lending to financial institutions Investments-Gross Advances-Gross Operating fixed assets Other assets Total assets-Gross Provisions against non-performing Provisions against diminution invest.64% 88.29%) 50.26% 120.06%) .57%) (60.28% 113.15% 120.30% 213.30% 286.95% 35.70% 280.00% 101.33% 82.70% 95.62% 136.30% 133.47% 226.82% 66.84% 104.23% 155.47% (215.00% (238.93% 139.30% 118.61% 126.23% 13.68% 2007 215.34%) 419.21% 100.70% 175.75%% 138.71%) 30. brokerage & income Dividend income & Capital gain Other income Operating expenses Profit before provisions Donations Provisions-(expense)/reversal Additional charge for employee benefit Profit/(Loss) before taxation Taxation 2003 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2004 97.38% 129.50% 31.51% 91.50% 109.00% 100% 414.88% 69.67% 141.53% 444.46% 90.71% 237.14% 221.23% 169.36% 149. Total assets-net of provision LIABILITIES: Customer deposits Inter bank borrowing Bills payable Other liabilities Net assets/ Liabilities Equity-Tier I Share capital Share premium Reserves Un-appropriated profit/(Loss) Surplus on revaluation of assets net PROFITABILITY: Mark-up/Return/Interest earned Mark-up/Return/Interest expensed Net Mark -up/Return/Interest Fee.64% 182.07% 134.40% 149.15% (21.52% 90.13% 82.59% 85.
set by management as desirable for the business 4. which represents the target. Such a standard may be either the ratio. 3. which represents the typical performance of the trade. Significance of Using Ratios: The significance of a ratio can only truly be appreciated when: 1. This assistance in decisionmaking reduces reliance on guesswork and intuition and establishes a basis for sound judgment. From this ratio. This means that for every 1 monetary values of current liabilities there are 2 of assets. The analysis is used to provide indicators of past performance in terms of critical success factors of a business. whether it carries too much or too little working capital. However each business is different and each has different working capital requirements. or the ratio. It is compared with the same ratio in previous financial statements (trend analysis). Note: A ratio on its own has little or no meaning at all. or industry. we cannot make any comments about the liquidity of the business. Consider a current ratio of 2:1.RATIO ANALYSIS: Is the mathematical relationship between two quantities in the form of a fraction or percentage? Ratio analysis: Is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. Liquidity Ratios: 44 . It is compared with other ratios in the same set of financial statements. It is compared with a standard of performance (industry average). 2.
Short term creditors are normally interested in this ratio. Failure to do this will result in the total failure of the business.10X The ratio indicates the ability of the enterprise to pay its current obligations out of current assets. 1. 45 .06X 2004 127743 118656 11.08X 2005 167328 141464 1.• Liquidity refers to the ability of a firm to meet its short-term financial obligations when and as they fall due.18X 2006 197948 173553 1.14X 2007 250611 226719 1. • The main concern of liquidity ratio is to measure the ability of the firms to meet their short-term maturing obligations. However the amount of working capital itself may carry little meaning unless it is measured in relation to current assets and current liabilities. as it would be forced into liquidation. CURRENT RATIO 2003 119818 112766 1. Adequate working capital (current assets –current liabilities) is necessary for interrupted operations of an entity.
10 due to the increased payments of customers in short term loans but when we compare the liquidity position then we find that overall current ratio trend increasing. Continuous expansion in Pakistan’s economy.06 to 1. reflecting a growth of 28% with our market share increasing by 80 basis points to 6. 206 billion from last year’s Rs.4 billion.18 but from 2006 to 2007 it decreased by 1. growth in per capita income and rising interest rates for time deposits were the main reasons for the continued increase in the deposits. The total deposits increased to Rs.Current Ratio 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1 2 3 4 5 Series2 Series1 ANALYSIS From 2003 to 2005 the current ratio increased by 1.9%. Deposits continued to be our major source of funding as we maintained an extensive customer base. 46 . The growth was achieved despite stiff competition for deposit mobilization during FY06.161.
10 2007 17216 252027 7.20 2005 5245 154926 3.50 2004 4985 117516 4. Asset Management Ratio 2014 2012 2010 2008 2006 2004 2002 2000 1998 1996 1 2 3 4 5 Series2 Series1 47 .00 In asset management ratio is very low. to increase the assets the bank should make proper plan and therefore used to assess how active various assets are in the business. ASSETS MANAGEMENT RATIO: 2003 7497 112465 6. investors in the business would rather take their money and place it somewhere else.2.30 2006 9892 192574 5.
It is calculated by dividing the firm’s sales by its net fixed assets as follows: Generally.67 The fixed assets turnover ratio measures the efficiency with which the firm has been using its fixed assets to generate sales. Basic Earning Power Ratio 2003 7497 2004 4985 2005 5245 48 1 2 3 4 5 2006 9892 2007 17216 . high fixed assets turnovers are preferred since they indicate a better efficiency in fixed assets utilization.FIXED ASSETS TURNOVER RATIO 2003 7497 2835 2.09 2007 17216 6445 2.05 2006 9892 4721 2.64 2004 4985 2596 1.92 2005 5245 2552 2. Fixed assets Turnover Ratio 2010 2008 2006 Series2 Series1 2002 2004 2000 1998 3.
In 2003 EPS was 6.12% 49 2006 3090 192574 1.83 Earning per share is perhaps the most widely used of all accounting ratios.24 154926 3. This consistent growth shows better policies and utilization of available resources Basic Earning Power Ratio 2014 2012 2010 2008 2006 2004 2002 2000 1998 1996 Series2 Series1 4.112465 6. RETURN OF ASSETS RATIO (ROA) 2003 1069 112465 0. The EPS share is encouraging for the investor.13 252027 6.38 192574 5.75% . The trend is earning per share and the expected earnings in future periods are major factors affecting the market value of a company’s share.83.67 117516 4.33% 2005 192 154926 0.67 and in 2007 it becomes 6.60% 1 2 3 4 5 2007 4397 252027 1.95% 2004 386 117516 0.
86% 50 . It was 0.75 in 2007.87% 2006 3090 14550 21. The return on total assets also showing healthy growth in last 5 years.95 in 2003 and reaches to 1.71% 2005 192 10256 1.50% 2004 386 3974 9.250% 1 2 3 4 5 2007 4397 17688 24. This trend should be maintained to be competitive in the market Return on Assets Ratio 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Series2 Series1 5. It indicates that bank is utilizing its assets in a professional way.The return on total assets measures the efficiency with which management has utilized the assets under its control regardless of whether these assets were financed with debt or equity. RETURN ON EQUITY RATIO (ROE) 2003 1069 3506 30.
investors in the business would rather take their money and place it somewhere else.55 2004 1115 1063 1.45 2007 6793 4489 1. to increase the equity the bank should make proper plan and therefore used to assess how active various assets are in the business.513 Profitability is the ability of a business to earn profit over a period of time.In asset return on equity ratio is very high. Although the profit figure is the starting point for any calculation of cash flow. Return on Equity Ratio 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1 2 3 4 5 Series2 Series1 6.80 2006 2025 4489 0. profitable companies can still fail for a lack of cash 51 .05 2005 794 4405 1. as already pointed out. RETURN ON CAPITAL EMPLOYED (ROCE) 2003 3770 1063 3.
46% This is a widely used measure of performance and is comparable across other banks. .54% 2007 6793 17216 39.14% 2006 2025 9892 26.29% 2004 1115 4985 22.Return on Capital Employed (ROCE) 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1 2 3 4 5 Series2 Series1 PROFIT MARGIN RATIO 2003 3770 7497 50.37% 2005 794 5245 15. The fact that a bank works on a low margin profits. 52 .
Profit Margin Ratio 2060 2050 2040 2030 2020 2010 2000 1990 1980 1970 1 2 3 4 5 Series2 Series1 53 .
600. For this purpose . to be successful service provides companies need 54 . additional business.the UBL management.RECOMMENDATIONS In order to improve that staff efficiency and avoid further rise in delinquency trend I have Proposed the following recommendations to . And when the due date is passed the customers or label to pay penalty of Rs . More over the employees should be provide chance for giving suggestion to the higher management in these session 6) Customer Complains One other step to improve staff efficiency is to reduce customer to grate extent since customer are vary valuable for the bank and hence they should be kept fully satisfied with the service 7) Improving Employee efficiency Thought Education Provide superior customer services is a fundamental goal of every successful business.at branch level seminars. and briefing session should be conducted for updating that employees as will as there management other then the formal way of reporting. but also to attract. 3) Improve the Courier Services Most of the employees have face a great deal of embarrassment while calling the customer since the customer scolds the collection officers because he does not receive the cradet card bills intimae due to the terrible courier services. Department wise so as to discipline that work according to the policies and procedures devised. The manner in which employees provide value-added service is key not only to maintain.hance the irritated customers clams an explanation from the collection officer who are much degraded at that moment 5) Communication Gap As new plan are prepared by the higher management should be will explained to lower level management.
to focus on variables such as improving employee efficiency and productivity thought focused training and education programs. sometimes referred to as the project management methodology approach 1. the goal is to develop an extensive. Assess what needs to thought 2. Test by running the program 4. Evaluation after implementation Hence staff inefficiency caused due to a number of reasons which all directly have an impact on the delinquency rates and hence this is the reason why the performance of the collections department especially the credit cards department is worsening day by day 55 . Implementation of the program once the revisions are established 5. multi-faceted process of training employees that enables them to grow with the confidence that they have the knowledge to meet the challenges they face each day. developing a successful training process includes five major phases. Identify and develop the training material 3.
The deposit staff has been suffering high turnover absenteeism. reason of that is in banks offer better salary package and during my internship I had seen three employees resigning due to better opportunities in bank such as ABN Amro and stand red chartered. I have observed during my internship that resource are available put these are not will utilize by the management. If the above recommendation are applied that it can play a significant roul and improving the performance of UBL consumer product put the main things is to meet the demands of the customer and to full fill the requirement in the competitive situations. due to this relationship output of UBL increases and it can easily archive its goals. Only after a year employees are kept permanent on the basis of their of dedication to work and their achievements 56 . All employees are hired on contracts that expire after a year. Human Resource of every department plays a primary role in conducting any activity. lack of skilled profession etc. Proper training should have customer service center having UAN number as well as there should be proper check and balance of each employee.CONCLUSION UBL is one of the banks performance has been improving day by day. Hence if the human resource is not will trained and efficient then this will affect the entire organization productivity. It has been offering unique services such has its recent campaign of free insurance for all UBL account holder. car replacement plan etc. During my internship I found that staff efficiency and motivating the employees has a deep relationship. Most of the employees are just first graduate who are unaware of practical knowledge. The company invests on them by giving them proper training but later an win they see on growth opportunities that live the bank which proves a waste for the bank.
Extension D.Lindner . Mc Enru. M. “Understanding employees motivation . M. 4. “Complex problem solving Using Labor Manager partnership” public Employee Relation Journal California state University 57 .REFERENCES 1.A Lexington Books.J(1999). 3.P (1989) The Perceived fairness of managerial promotion practices Human Relation . Research and Extension Association. Ohio State University 2. By james R. “Improving Employee efficiency thought education “ by Anthony D Albanese.
O. Muscat Offshore Banking Unit Export Processing Zone. Chandigarh Road. I . Atif R. Box No: 4306. UK (joint venture with NBP) Associated Company Oman United Exchange Company. Switzerland United National Bank Limited. Karachi. EPZ Branch. Pakistan Head Office State Life Insurance Corp. 15 Overseas Branches Representative Offices Tehran and Cairo Subsidiary United Bank AG Zurich. 1959 Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan Deputy Chairman Sir Mohammad Anwar Pervez OBE President & CEO Mr. Pakistan P.I. Bokhari Branches 1056 Domestic. Building #1. Phone: (92-21 – 111-825-111) 58 . Karachi.ANNEXURE November 7.
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