allid bank limited report

8/9/2019 Allid Bank Limited Report

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Vision

To become a dynamic and efficient bank providing integrated solutions andthe first choice of bank for all customers.

Mission Statement

To provide value-added services to our customers

To provide high-tech innovative solutions to meet customerrequirements

To create sustainable value through growth, efficiency and diversity forall stakeholders

To create sustainable value through growth, efficiency and diversity for

all stakeholders To provide a challenging work environment, 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

History at a Glance

The bank was incorporated as Australasia Bank Limited in 1942, after theamalgamation of four banks in 1974; name of the bank was changed toAllied Bank Limited. It is one of the largest banks in Pakistan with more than700 Branches connected to an online network. In August 2004 the Bank wasrestructured and the ownership was transferred to Ibrahim Group.

Top Management and Organization Structure

Allied Bank has been divided into 16 regions, each under the control of aregional General Manger (RGM). The RGM is not any fixed designation in theorganizational hierarchy. The person appointed for its position can be a SEVPand EVP.


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Products & Services

Products

Allied bank offers a wide range of products geared towards the customers.The following products are available for customers:

Rupees Deposit Accounts

Foreign Currency Accounts

Allied Cash+ Card

Online Banking

Internet Banking

Credit Card

Advances/Financing

Services

Services

Anyone can rely on Allied banks friendly staff that is eager to assist theircustomers as best as possible. Allied Bank offers the following services to itscustomers:Remittances

Hajj Services

Utility Bills

Lockers

Remittances

1-Link ATM

Business Account

Foreign Currency Account

Marketing and Sales

ABL Bank has its decentralized marketing setup, as each department has itsown marketing plan and strategies. It prepares different schemes for itscustomers time to time in order to enhance the business of the bank. Atbranch level, the operations department follows marketing practices. At eachbranch of bank officers are available to provide marketing activities of theirproducts.


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They make customer calls and personally visit the potential customer toconvince them to invest in ABL.

Operations

Industry Analysis

Operations

SWOT Analysis

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.

Whenever the organizations come into a form, they have to know about their strength and

weaknesses. Then they have to find out their opportunities and then they come to know about

their threats but according to the latest theory the word SWOT is know as WOTS. According to

this theory, first of all the organizations know their weaknesses, then they get knowledge of their

opportunities that they have in the particular sector and then they have come to know about their

competitors and at the last they think about their strengths.

The easiest way to know about any organization is the SWOT analysis. So to reveal the hidden

factors I did a SWOT analysis of the Allied bank. It is not the SWOT analysis of ABL as a whole

but only of the branch where I worked. Many aspects are same almost in every branch of the

Allied bank.


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STRENGTHS

LARGE NUMBER OF BRANCHES

Allied bank has maximum number of branches in all over Pakistan. It has more than 735

branches connected to each other through an online network and most of the branches are

working at the main business points.

VARIETY in PRODUCTS

Allied Bank has many products for almost all type of customers. So, it depends on the customer

that which product he likes and in which sector he wants to invest depending on whether a

person is salaried one or a businessman. It also gives the companies the facilities of collection

accounts. ATM and Credit cards, online transfer, DD, TT, Rupee Traveler cheques are the main

products available for customers.

ONLINE FACILITY

Allied bank is providing the facility of online banking. This facility allows a customer to send or

deposit money through cash or a cheques to an account of any other branch of ABL. It also gives

the facility of balance inquiry and cash with drawl from a certain account of any other branch of

ABL through cheques.

SECURE BANKING

The online banking feature provides less chances of fraud. Because whenever some transactions

take place, they can be checked any time and their receipts are receipts are given to the

customers. Moreover, to prevent illegal acts, the person who transfers any amount submits his

copy of NIC to the bank.


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LOCKERS FACILITY

Many banks provide the facility of lockers but not in their all branches but Allied bank is the

only bank that provides the lockers facility to their customers at their all branches.

CUSTOMER CARE CENTER

Allied bank has customer care center for its customers. They have toll free numbers on which

customers can dial and they have not to pay any thing for it. This center also provides the facility

to the customers on spot and helps them whatever the matter is.

FOREIGN EXCHANGE

Allied bank provides the facility of foreign exchange to its customer. The customers may also

open their accounts in foreign currency. The bank provides the facility of letter of credit and

other export/import facilities to its customers. The customers may get the facility of money

exchange on the current rates. To get the latest rates, the head office provides them with the fax

facility of daily rates of foreign currency.

SAME ACCOUNT NUMBER FACILITY

At Allied bank the customers the person who has more than one account can have the facility of

the same account number only the suffix is changed. This facility provides the customer with

easy remembering of the account number.

PAID LEAVES

For employees the relaxation is that the employees may get the 36 medical leaves and 1-month

vacation in one year with their pay in case of some emergency.

SECURE ENVIRONMENT

Cameras are installed in all the branches of the bank to ensure security of its customers and

employees. Also security guards are available through out the day. Cameras are installed in front


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of the cash counters. These cameras are switched on all the time. The branch manager can see all

the activities while sitting in his office on a display monitor. If some thing goes wrong then the

manager can buzz the security alarm immediately.

ACCOUNT OPENING an EASY PROCESS

At Allied bank its very easy to open an account just an introducer and a copy of NIC is required.

Customer just needs to fill up account opening forms and can enjoy the facilities of any type of

account the want. This is the strength of Allied bank facilitates all of its customers.

EMPLOYEES REPLACEMENT

In every branch of Allied bank the back up of every employee is there in case of emergency if

some officer is not available at the bank, some other person will back him up. That person is

always well familiar with the responsibilities of that officer.

LOW RATE OF INTEREST

Allied bank offers loans to its customers on very low rates. This thing invites the customers to do

a business with ABL.

SUPPORTIVE ENVIRONMENT

The staff of the ABL is very much cooperative. This thing enhances its performance very much

by facilitating its customers and also by helping colleagues and sharing workload.

WEAKNESSES

INCENTIVE SYSTEM

Most of the staff in the Allied Bank is not completely satisfied with the inducements. This

dissatisfaction sometimes leads to less motivated employees in banking which in turn can effect

its business efficiency. Moreover, permanent staff is not given any performance related

incentives. As a result of this, an inefficient manager or employee is earning the same as an

efficient employee who is the real asset for the organization


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INCREMENT IN WORKFORCES PAY

The other main weakness of the Allied bank is that there are mostly no annual

increments to their employees salary. This thing leads to the dissatisfaction of

employees.

LATE PROMOTIONS

The other thing that for the employees point of view is a weakness in Allied bank is that

the employees are promoted after a big period against the schedules specified by the

bank.

LOW PRODUCT CREDIBILITY

Allied Bank has still not got the edge where the consumers become loyal to its products

and services. Mostly customers become its customers out of no reason than request

from a personal banker. And talking about consumer banking, though credit cards

awareness in our middle class society has gradually improved but not up to the point

where they can compare the features that one Bank is offering and other is not. Truth

must be said, most customers do not even know the points behind the term interest

free days. The point is, consumers do not know of the product being offered so how

can they rely on the product.

OPPORTUNITIES

The Allied Bank is having a great opportunity to emerge as the best bank of the country by

giving best possible services to its customers. The banking sector is improving day by day and

consumer banking is making great revolutions in the banking sector. Allied Bank is still working

in the corporate sector and its missing a big market share of consumer banking. If it enters this

market then this bank can become the biggest and the most efficient bank of Pakistan.

THREATS

COMPETITORS

Allied Bank has the threats from their competitors in the banking sector, from the Govt.

policies and from the current economic conditions of the country:


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The main competitors in the banking sector are the Bank-Alfalah, Faysal Bank, Muslim

Commercial Bank, Prime Commercial Bank etc Due to the tough competition the bank

is forced to sanction the loans at the reduced rates and other services at minimized cost

This reduces the profit margin which is a big hurdle in the way of innovation and

extended customer services.

GOVERNMENT POLICIES

Other threat which ABL: faces is the policies of the government. Tax charged on the

income of banking companies is much higher than on the income of other companies.

The strict regulations issued by the central bank, revenue authorities and other

concerned authorities are also a big threat to the bank. The Govt. revises the tax

policies on continuous basis, which often are not in the interest of the industry including

the banking sector.

POLITICAL CIRCUMSTANCES

Political conditions in Pakistan have been unstable since a very long period. Continuous

changes of regimes in the political affairs are great threat towards the healthy growth of

the whole industry.

TRADE and INDUSTRY CONDITIONS

Sudden rise and fall in the trade and industry conditions and stock exchange business

of the country also adversely affect the growth of banking sector. Unemployment,

unfavorable balance of trade, decreased per capita income; inflation and deflation,

recession and boom are the source to the handicapped progress of banking sector.

POLICIES of ABL

Another threat to the banks progress is its own policy. Bank is not concentrating on

improving its overall process. There is still lack of highly qualified staff in the bank. And

the employees are given promotions on reference basis, which causes frustration


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among employees and overall graph of the performance comes down. So ABL should

reconsider their policies so that the bank may remain in the race.

RECOMMENDATINOS and SUGGESTIONS

During my stay at ABL, I tried to observe the environment profoundly. I found some problems

that were creating problems in achieving targets and objectives

The bank is still depending on manual work to a great deal which causes slow

performance and increases the chances of mistakes. It should convert their system to an

automated one to better achieve its targets and also to take the advantage over its

competitors.

Approach towards employees is still bureaucratic and a lot is to be done in this regard.

Late promotions, shortage of training and development facilities, favoritism in appraisals

and lack of sufficient incentives are some problems that are arising dissatisfaction among

employees. Due to this overall performance of the bank also decreases.

Outlook of the branch I worked for was not good enough. The bank working beside thisbranch was attracting more customers due to this factor also. In the new era this feature

counts a lot to any organization. So the administration of the bank should think on this

aspect also and make these conditions better.


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Allied Bank Limited is engaged in commercial banking and retailed services.

The bank was incorporated as Australasia Bank Limited in 1942, after the amalgamation of four

banks in 1974; name of the bank was changed to Allied Bank Limited. Later on 2005, the bank

was listed on all stock exchanges in Pakistan. Extensive experience over the last 66 years of

operating in Pakistan, the bank has built strong equity, assets and deposit basis.

Allied Bank Limited is now one of the largest banks in Pakistan, operating through the network

of 766 branches in over 300 cities and towns offering real time online banking. The bank has in

place the largest ATM network in country with 502 ATMs in more than 145 cities and towns

across Pakistan.


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PACRA Rating.

Based on its financial performance and significant improvements in areas of Risk Management

and Corporate Goverance,the Pakistan Credit Rating Agency (PACRA) maintained long term

credit rating of Allied Bank Limited to AA (double A) and short term rating to A1+(Aone plus).

Corporate Governance Rating by JCR-VIS

CGR-8

Definition by JCR-VIS

High level of corporate governanc.


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Introduction

I have been working as a Branch Manger of

Allied Bank Limited,

Raiwind Road Branch, Lahore.

Tel. No. 042-5315670

Due to location of branch, it is covering following areas:

1 Commercial Area on Raiwind Road.

2 Commercial areas on Main Multan Road.

3 Residential societies nearest to Bank.

Being a Branch Manager

1 I want to live my mission and induce the same spirit in my team members.

2 To enhance corporate values that binds us together.

3 To play proactive role in contribution towards bank growth.

4 To meet my branch targets and to provide customized services.5 To retain my existing customer upto their entire satisfaction and to capture new

market.

6 Due to the residential area branch we have less portfolio of advances, now I will

increase this portfolio by introducing good customers of different industries.


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Core values which I consider as Manager:

1 Integrity.

2 Excellence in service.

3 High performance.

4 Innovation & growth.


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What we do

We offers full suite of banking products and services with the focus on service delivery through

technology.

Commercial & Retail Banking:

In this segment we are creating the needs of individuals; middle sized customers, small and

medium enterprises (SMEs).We provide our customer with integrated financing and investment

options and offer various deposit solutions including speedy funds transfer through its extensive

online banking.

Corporate and Investment Banking:

Corporate book is our major component of loan portfolio. Corporate and Investment Banking

offer wide range of financials sector to medium and large size private and public sectors entities.

These services provide

1 Term financing

2 Corporate advisory

3 Cash management

4 Trade products.

5 Corporate Finance Products.

And customer services on all bank related matters through the concept of relationship

management.


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Consumer and Personal Banking:

In 2008, the Consumer Banking re Branded Visa Debit Card, and we are in line with bank policy

to provide consumers banking to establish maximum relationship with our customer upto their

entire satisfaction.

Now we are also facilitating our customer with Visa Credit Card.

Payments and Collection:

This includes payments, collection, funds transfer, clearing and settlements with the customers.


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Business Concept

According to me success of my business depends on technology, concept or strategy on which

my business is based so I always emphasize on providing customer oriented services to retain my

customers in a long run and entire satisfaction of these customers can be used as a reference tools

for others to start their relationship with us.

I have done following analysis to raise my business portfolio, as my core focus is to introduce a

culture of collaboration intended to deliver world class customer services.

Customer Analysis:

Branch management is responsible to establish, maintain an adequate an effective system of

internal controls and procedures to attract and retain its customers.

The main factor which matter in customer analysis is geographical area where branch is

located .Todays customer is very sensible and well aware about the quality of the services and

best opportunities of the market so it is important to know their Real needs and handle it in

minimum span of time and to consider all the factors i.e. timely services, customer handling, face

reading of customer(first eye contact) which could be used as a marketing tool to motivate and

attract the customers toward our services and to provide maximum facilities/products offered by

our branch.

Recently we have introduced Loyalty Drive to capture and to keep in touch with our customers

who are not maintaining/ running their accounts for the last few months.


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Competitor Analysis:

Today is a time of competition specially in banking sonario so I did work to analyze my

competitors exist in same location and then accordingly capture target market..

My branch is situated at Raiwind Road, although this is a limited market for me to enhance

the branch business but I market the other areas near to my branch and even outside of this

market. My competitors are Bank Alflah, Standard Charted Bank, Habib Bank Limited,Faysal

Bank Ltd and Bank al Habib. We are doing our best to maximize our numbers of customers by

using our strong competitive edge i.e. largest no of online branch network and customized

services.


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SWOT Analysis

In any business it is very important to go through the SWOT analysis to know about real position

of business.

I have analyzed following important factors in SWOT analysis.

Strength:

The strength of our bank is to be one of the pioneer bank in banking sector of Pakistan through

our

1 High standards and customized services.

2 Large network of online branches.

3 ATM across the nation.

4 Location of my branch in residential area.

Weaknesses:

There are no weaknesses but sometimes situation is beyond our control i.e energy crises, online

failure, etc.

Opportunities:

We have stronger external opportunity


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Threats:

The main threat of our business is that as competition is increasing day by day as many

multinationals banks are existing in market and they are making efforts to make innovations in

banking sector so we have to keep this factor in mind to overcome threats.


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Compliance and Audit:

Compliance and audit is distinguishable component of banking for proper and smooth execution

of branch operations in accordance with policies and procedures given by State Bank of

Pakistan.

As a Manager, I consider it my prime responsibility:

1 To supervise all the internal operations of banking business.

2 To make reasonable measures for rectification of errors and to minimize risk related

transactions.

3 To provide proper guideline regarding procedures and policies to my team for

effectiveness and efficiency of branch operations.


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Conclusion

Through the edge of esteem organization and knowledge during the training conducted by IBP I

am sure that I will achieve all the targets given by the bank with the strong leadership qualities

and team work.


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Submitted By

(Branch Manager)

Aamer Masood

Allied Bank Limited,

Raiwind Road Branch,

Lahore

Phone No. 042-5315670

allid bank limited report

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