allied bank of pakistan

COMSATS Institute of Information Technology

COMSATS Institute of Information Technology, Lahore

Allied Bank of Pakistan,Multan Cantt. Branch, Multan

AdvisorMadam Sarosh Haneef

Presented by

Muhammad Asad AminCIIT/FA05-MBA-007/LHR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, JINNAH CAMPUS DEFENCE ROAD OFF RAIWIND ROAD, LAHORE

COMSATS Institute of Information Technology, Lahore 2

DEDICATION

I dedicate my efforts to my parents who pray for me every minute, my brothers who

guide me at every step of my life, my classmates and my group fellows who stand by

me whenever I need them and to all those who help and encourage me whenever I find

hurdles in my life.


ACKNOWLEDGEMENT

I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the

Most Considerate and the entire source of all knowledge and wisdom. I thank

ALMIGHTY, ALLAH, who gave me the aptitude to do this project efficiently and

successfully . I faced a lot of difficulties during this period of developing internship

report. But Allah gave me a lot of patience and due to the continuous

encouragement of my teachers and other people concerned, I was able to complete

this work. I offer my humblest respects to the HOLY PROPHET HAZRAT

MUHAMMAD (Peace Be upon Him) who is, forever a torch of guidance and

knowledge for humankind as a whole.

It’s not very easy for me to find the right words to express my gratefulness to our

praiseworthy advisor Madam Sarosh Haneef, her enthusiastic interest, in time and

useful suggestions, continuous encouragement, vivacious supervision and kind

behavior throughout my internship period.

Apart from my respectable advisor, there are many other people who have been very

helpful to me right from the beginning .I’d like to mention Mr. Akhlaq Ahmad

Siddiqui, Manager ABL Multan Cantt., Mr. Abdul Sattar, Head of Online Section

ABL Multan Cantt, Mr. Aziz Ahmad Khan, AVP at ABL Regional Office Multan, Mr.

Zia, EVP at ABL Regional Office Multan. I also pay my regard to all others whose

names can not be included due to the scarcity of space and time.

At the end I’d like to thank Mr. Muhammad Shakeel Asghar, my class fellow and

my internship colleague as well, whose company was a cause of support and

motivation, because without naming him this acknowledgement will be incomplete.


TABLE of CONTENTS

Executive Summary 02

Vision, Mission and Core Values 03

History of Allied Bank of Pakistan 04

Board of Directors 08

Organizational Structure 09

Competitive Strategy 10

Business Process Analysis 13

Learning as an Internee 24

New Knowledge Acquired 26

Problems Encountered 32

How Experience Impacts My Career 33

SWOT Analysis 34

Recommendations 41


Executive Summary

My Internship at Allied Bank Limited Multan Cantt Branch started on July 20, 2006 and

completed on August 30, 2006. During my stay at the bank I learnt a lot as the practical

knowledge of the banking sector is concerned. I was rotated in different departments

including clearing, online transfer, and customers’ services foreign exchange and

advances departments. I learnt the basics of operations performed in each department.

I undertook some assignments that helped me apply the learnt techniques. I faced

some problems during this course, but I got full attention from the concerned persons

and they always encouraged me for asking any kind of question that rose during the

course of my work. I have been sending the reports of my progress on weekly basis to

my internship advisor. On the last day, the manager gave his comments and evaluation

of my work on the prescribed form provided by the institute and also certificate of

internship.


Vision, Mission & Values

Vision

To become a dynamic and efficient bank providing integrated solutions

In order to be the first choice bank for the customers.

Values

Integrity

Excellence in service

High performance

Innovation and growth

Mission

To provide value added services to our customers

To provide high tech innovative solutions to meet customers

requirements.

To create sustainable value through growth, efficiency and diversity

for all stakeholders

To provide a challenging work environment and reward dedicated

team members according to their abilities and performance

To play a proactive role in contributing towards the society


History of Allied Bank of Pakistan

ABL was established in Lahore before independence in 1942 Allied Bank Limited is one

of the largest banks in Pakistan with more than 700 Branches connected to an online

network. In August 2004 the Bank was restructured and the ownership was transferred

to Ibrahim Group.

OverviewAllied Bank is the first Muslim bank to have been established on the territory that

became Pakistan. The bank has seen many phases of changes since it came into

being.

Established in December 1918 with the name “Australasia Bank” at Lahore with a paid-

up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the

Bank had attracted deposits equivalent to Rs. 0.431 million in its first eighteen months

of business. Total assets then amounted to Rs. 0.572 million. Today Allied Bank's paid

up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and

total assets equal Rs. 170 billion. The Allied Bank's story is one of dedication,

commitment to professionalism, adaptation to changing environment resulting into all

round growth and stability, envied by many.

The Pre Freedom History

In the early 1940s the Muslim community was beginning to realize the need for the

active participation in the field of trade and industry. The Hindus had since the late

1880s established a commanding presence in industry, trade and commerce in the

undivided Sub-continent. Banking, in particular, was an exclusive enclave of the Hindus

and it was widely believed, and wrongly so, that Muslims were temperamentally

unsuited for this profession.

It was particularly a hard thing to swallow for Khawaka Bashir Bux to hear that “Muslims

could not be successful bankers”. He decided to respond to the challenge and took lead


in establishing this first Muslim bank on the soil of Punjab that was to become Pakistan

in December 1918; by the name of Australasia Bank Limited.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5

million by the end of first full year of operation, and by the end of 30th June 1947 capital

increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.

Australasia Bank

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on

August 14, 1947.It was severely hit by the riots in East Punjab. The bank was identified

with the Pakistan Movement. At the time of independence all the branches in India,

(Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Agra) were closed down. New

Branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang,

Gujranwala and Kasur. Later its network spread to Multan & Quetta. The Bank financed

trade in cloth and food grains and thus played an important role in maintaining

consumer supplies during riot affected early months of 1948. Despite the difficult

conditions prevailing and the substantial set back in the Bank’s business in India,

Australasia Bank made a profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the

separation of East Pakistan. The bank did well despite losing lot of its assets. By the

end of 1973 the bank had 186 branches in West Pakistan.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and with the union of

Lahore Commercial Bank and Sarhad Bank it was renamed as Allied Bank. The first

year was highly successful one: profit exceeded the Rs 10 million mark; deposits rose

by over 50 percent and approached Rs 1460 million. Investments rose by 72 percent

and advances exceeded Rs 1080 million for the first time in bank history. 116 new

branches were opened during 1974 and the Bank started participation in the spot

procurement agriculture program of the Government. Those seventeen years of the


Bank saw a rapid growth. Branches increased from 353 in 1974 to 748 in 1991.

Deposits rose from Rs 1.46 billion, and Advances and investments from Rs 1.34 billion

to Rs 22 billion during this period. It also opened three branches in UK.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered in a new phase of its

history, as the world’s first bank to be owned and managed by its employees. In 1993

the “First Allied Bank Modaraba (FABM)” was floated.

After privatization, Allied Bank registered an unprecedented growth to become one of

the premier financial institutions of Pakistan. Allied Bank’s capital and reserves were Rs.

1.525 (Billion), assets amounted to Rs. 87.536 (Billion) and deposits were Rs 76.038

(Billion). Allied Bank enjoyed an enviable position in the financial sector of Pakistan and

was recognized as one of the best amongst the major banks of the country.

In August 2004 as a result of capital reconstruction, the Bank’s ownership was

transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today the Bank stands on a solid foundation of over 88 years of its existence having a

strong equity, assets and deposits base offering universal banking services with higher

focus on retail banking. The bank has the largest network of online branches in Pakistan

and offers various technology-based products and services to its diversified clientele

through its network of more than 700 branches.

2005 to Onward

In May 2005 Ibrahim Leasing Limited (ILL) was amalgamated and vested in Allied Bank

Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares held by

them. Application for the listing of ABL shares in all the Stock Exchange Companies of

Pakistan was made.

ABL was formally listed and trading of the shares of the Bank commenced W.E.F. the

following dates.


Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005

Karachi, Stock Exchange 17th August 2005

Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their

free will.


BOARD OF DIRECTORS

Mr. Mohammad Naeem Mukhtar Chairman

Mr. Sheikh Mukhtar AhmedDirector

Mr. Mohammad Waseem MukhtarDirector

Mr. Sheikh Jalees AhmedDirector

Mrs. Nazrat BashirGovernment Nominee Director

Mr. Abdul Aziz KhanDirector

Mr. Farrakh QayyumGovernment Nominee Director

Mr. Khalid A. SherwaniPresident & CEO

Organizational Chart



CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

CHAIRMAN

SENIOR VICE PRESIDENT (SVP)

EXECUTIVE VICE PRESIDENT (EVP)

SUPPORTING STAFF

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

COMPETITIVE STRATEGY

Allied Bank strongly believes that the customers can be attained and retained only by

providing them the services they want. Allied bank’s competitive strategies are focused

on making their existing customers loyal because they believe that it is their existing

customers who attract new customers. Allied Bank uses KYC (Know your customer)

forms to have complete acquaintance with their new customers.

TARGET MARKET

Allied Bank’s main focus is not on the retail banking but on the corporate banking rather.

In the retail banking they target salaried individuals, housewives, retired individuals and

anyone who has the potential of providing legal deposits to the bank.

Corporate customers being the main target of the bank get handsome packages of loan

and other financial services. The bank’s main source of revenue earning is also the

corporate sector customers.

VARIETY in PRODUCTS Allied bank has skillfully crafted their products to use them as their core competencies

and also as their tools for competitive strategy. The products include Agricultural

Finance, Import Export Business/Trade Finance, Running Finance, and Demand

Finance. These products serve multiple purposes to bank.

SERVICES as COMPETITIVE TOOLS

Same is the case with the services offered by Allied Bank. Services are the main tool

through which the bank acquires new customers and retain them. These services are

not merely ment to earn profit, but also to keep pace with the changing needs of the

customers and modern day’s banking trends. These services include Home

Remittances, Remittances, Hajj Services, Utility Bills, Lockers and Commodity

Operations. Along with these core services provided by the bank, online banking and

Internet banking serve as supplementary services.


These products and services are mainly directed towards customer satisfaction and

ABL uses it for the customer satisfaction as their competitive strategy. Some of the

many benefits availed by the customers are mentioned as follow in bank’s own style.

ONLINE FACILITY

Now the bank gives you the absolute convenience of instant access to a host of banking

facilities and personalized services 24 hours a day, 7 days a week, 365 days a year.

Simplify the way you bank and experience a higher level of convenience.

ONLINE FEATURES

By Allied bank Online you can;

1 Check your account balances

2 Transfer funds between your own accounts and to a third party account

3 You can use your card for loan account payments

4 Check transaction history of your accounts

5 Get your account statement through fax

6 Receive information on various Allied bank products and services

7 Find out status of your card or loan application

8 Request balance or reference certificate

9 Get currency exchange rates

10 Issue stop payment instructions

11 Report loss of your cheque book

12 Request change in address and telephone numbers

CONVENIENCE

Why visit the bank when you can better use your precious time to meet other

commitments? With ONLINE, our special discounted charges also offer you substantial

savings.


Give yourself the advantage of breakthrough innovation and cutting edge and get time

on your side.

TOLL FREE NUMBER

Connect to Allied bank ONLINE by dialing from anywhere within Pakistan. Your call

costs you nothing because it is toll free. This just goes to show that we at Allied bank

always put your interests first.

Dial now to discover just how Allied bank can make you’re banking experience even

more enjoyable and rewarding.

By offering all of the above ABL makes its way through the tough competition of the

day. This helps the bank to keep pace with growing needs of its customers and

anticipate their future needs and manage them accordingly in time thus to make sure

that the quality is not compromised and the customers get what they want


Business Process Analysis

PRODUCTS OF Allied bank

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


ACCOUNTS

RUPEES DEPOSIT ACCOUNT

The following accounts are the parts of rupee deposits accounts:

Current Account

Saving Account

Allied Term Deposit Account

Allied Monthly Income Scheme

CURRENT ACCOUNT

Allied Bank offers Current Account facility for individuals as well as for institutions and

commercial customers.

There are free services for the depositors who maintain minimum balance of Rs. 0.1 (M)

in previous month.

BENEFITS

Free Online Transactions

Free issuance of Payment Orders

Free issuance of Demand Drafts

SAVING ACCOUNT

Allied Bank offers PLS Savings Account facility to its customers with the following

attractive features.

Attractive return up to 5.00% per annum

No service charges on active accounts

Complementary ATM cards

For depositors maintaining a minimum balance of Rs. 0.5 (M) in the previous month.


BENEFITS

Free Online Transactions

Free issuance of Payment Orders

Free issuance of Demand Drafts

Free Issuance of Deposit at Call Receipts

ALLIED TERM DEPOSIT ACCOUNT

Allied Term Deposit Account is a profit bearing checking account with the payment of

profit on a fixed term basis. The estimated rate of profit is given below.

Rs 0.5(M) to less than Rs 1 (M) 6.50%

Rs 1 (M) to less than Rs 5 (M) 7.50%

Rs 5(M) & above 8.00%

SALIENT FEATURES

The applicable profit rate would be based on slab of amounts maintained on

average term basis

There is no restriction for maintenance of any minimum balance in the account

Individuals, Companies, Schools, Hospitals, Charitable Organization etc, are free

to open their account in this scheme

ALLIED MONTHLY INCOME SCHEME

Allied Monthly Income Scheme is a unique product with attractive returns. It provides an

opportunity for a regular monthly income. The period of deposit under this scheme is 3

years.

Minimum Amount Rs 100,000 (with increments of Rs 10,000/-)

Profit Payable on monthly basis


Projected profit rates Rs 850 per month on a deposit of Rs 100,000/- @

10.20% per annum

Eligibility All individuals & institutions other than Financial Institutions

Period 3 years

SPECIAL BENEFITS

The Scheme Provides The Following Special Benefits:

Complementary ATM card for depositor and spouse

Profit to be credited in the depositor’s PLS saving A/C and can be withdrawn

through ATM free of charge

Complementary credit card with approved credit limit

Free transfer of monthly profit to any branch of ABL all over the Pakistan

Loan facility against deposit

ADDITIONAL BENEFITS for DEPOSITORS of Rs 0.5 (MILLION) & ABOVE

Free online transaction

Free Issuance of Pay Orders

Free Issuance of Demand Drafts

Free Issuance of Deposit at Call Receipts

Allied Cash+ CARD

Allied Bank ATM Card, also referred to as "Allied Cash+", can also be used as a debit

card at merchant locations/service outlets having ORIX POS Terminals and displaying

the ORIX logo.

ONLINE BANKING

Allied Online is a unique service offering by Allied Bank Limited. Through Allied Online,

your account is available to you from any of our branch countrywide. No matter where

you are in the country and in which branch your account is maintained, you can have


your cheque encashed at any of our over 735 branches located in 250 cities. Similarly

account-to-account Funds Transfer facility is also available for instant remittance. Other

services available to accountholders are Balance Enquiry and Account Statement at

remote branches.

Allied Online provides a secure, efficient and convenient facility for making payments to

beneficiary accounts from any of our branches countrywide. Corporate customers

requiring funds collection or disbursement facility can use it for cash management

services.

INTERNET BANKING

Banking at consumer fingertips! Allied Direct Internet Banking offers the customers

convenience to manage and control his banking and finances - when he wants, where

he wants! It's Simple, Convenient, Secure and Faster. So, just by clicking one can enjoy

this facility.

Features of Allied Direct

Simple and Convenient Easier navigation and help provided at every step, so

the customers can have most out of this service. With Allied Direct convenience

is just a click away.

Secure and Faster Secured & encrypted with latest tools and technologies,

Allied Direct is the choice for secure and fast Internet Banking.

24x7 Access The customers now have access to your account 24 hours a day, 7

days a eek. They can transfer funds or even pay bills even if it's a holiday.

To use Allied Direct Internet Banking, consumers should be a registered Allied Bank

Account holder with a valid ATM Card. If some one does not have an account, he may

visit any of the nearest branch and open his account and obtain an ATM Card. Our

friendly branch staff will help him open his account quickly.


CREDIT CARDS

The customer can now become the holder of a true Credit Card here in Pakistan. Allied

Bank under license from Master Card International, U.S.A issues it's Master Card to

anyone meeting the eligibility criteria. With the Allied Bank - Master Card the consumers

will be assured of a service meeting the highest international standards maintained by

Master Card.

THE NEW ALLIED BANK-MASTER CARD

Allied Bank is of the view that the time has come to bring about a radical change in the

Pakistani credit card industry. Being a successful individual, customer deserves a life

unrestricted by cash limitations, he deserves a reliable credit line, deserves the best.

Luxury, status, prestige and convenience await him with the Allied Bank-MasterCard - at

no extra cost. That’s why the Allied Bank-MasterCard is now available for customers –

with a set of unique features, a simple application procedure and the fastest processing

time! Accepted at 16,000+ establishments in Pakistan and over 17 million retailers

across the world, the Allied Bank-Master Card is the ticket to financial independence.

ADVANCES/CREDIT DEPARTMENT

SEASONAL FINANCE

Seasonal Finance facility is allowed against pledge of produced Crops harvested in that

particular crop season. The delivery of pledged stocks/goods is made against

appropriate cash payment.

AGRICULTURAL FINANCE

Bank under Agricultural Financing Scheme envisaged by the State Bank Of Pakistan

extends short, medium and long term, farm and non-farm credits. The farm credits are

extended for production (inputs) and development purposes. Non-farm credits are


allowed for livestock (goats, sheep and cattle), poultry, factory including social forestry

and fisheries (inland and marine excluding deep sea fishing).

TRADE FINANCE

Allied Bank provides highly efficient trade finance services for import/export business to

his clients through large number of authorized branches where trained and motivated

staff is available to handle the business on behalf of customer.

RUNNING FINANCE

It is a short-term loan allowed by the bank for a period of one year. The running finance

account can be operated on daily basis. The mark-up is recovered on the products of

daily outstanding balance. The running finance is suitable for meeting day-to-day

financial needs of the business

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, which could be monthly, quarterly,

biannual or annual.

CORPORATE FINANCE

Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim

Leasing Limited. Facilities include leasing for machinery, commercial vehicles and

equipments. The Bank provides lease facilities for balancing, modernization,

replacement and expansion schemes to corporate and commercial clients in all

industrial enterprises.

Leasing is a popular mode of financing due to its distinctive features like tax shield,

preserve working capital, easy documentation and less processing time.

Lease applications are entertained at all Bank branches in Pakistan.


SERVICES

Any one can rely on Allied banks friendly staff that is eager to assist their customers as

best as possible. Allied Bank offers the following services to its customers:

Remittances

Hajj Services

Utility Bills

Lockers

Remittances

1-Link ATM

Business Account

Foreign Currency Account

UTILITY BILLS

All branches of the Bank collect utility bills of electricity, gas and telephones. For

convenience of the customers, the branches collect Utility Bills during banking hours

and also in the evening banking on all working days. Bills can be paid through Cash or

Cheques. Consumers may drop bills with crossed Cheques into a drop box available at

the branches under "Cheque Drop-in" system.

Utility Bill payment facility – can also be availed through any of the ATMs without having

to wait in long queues outside the branch.

REMITTANCES

Allied Bank can transfer funds to the remote part of the country for payment/credit to the

customer himself or a third party, through Telegram/Telex/Tele fax for payment/credit on

the same/next day. Telegraphic transfers can also be made abroad in Foreign Currency


HAJJ SERVICES

The Bank serves the intending pilgrims by helping them in performing this religious

obligation. The bank provides the forms and other related services. However, the terms

and conditions for accepting the Hajj forms from intending pilgrims are in accordance

with the Hajj Policy announced by the government, each year. Hajj applications are

available with all branches during Hajj season, immediately after the Government of

Pakistan announces the Hajj policy

LOCKERS

Allied Bank Lockers are available in three different sizes Small, Medium and Large on a

yearly fee. Locker holders need not have an account in the Bank.

SET-UP of ATM

Allied Bank has vast network of ATM's presently consisting of 100 ATM's installed in

over 40 cities which is undergoing expansion.

In addition, Allied Bank has a member of 1-LINK ATM sharing switch comprising of over

600 ATM's nationwide. Consequently, the Bank's ATM cardholders can avail services of

Allied Bank's own or 1-LINK ATM's.

LINK NETWORK

In continuation of ALL TIME BANKING services, with the country wide network of 735

branches, ABL has enhanced ATM services by joining the "1-Link Switch" which has

following member Banks:

ABN Amro Bank

Allied Bank

Bank Alfalah

Habib Bank Limited

Askari Bank


Bank Al Habib

National Bank

PICIC Commercial Bank

Union Bank

United Bank

Soneri Bank

Meezan Bank

The cardholders of our bank will thus be able to access member banks ATMs for

balance inquiry and cash withdrawal simultaneously. The cardholder's member banks

will access our bank ATMs.

BUSINESS ACCOUNT

It’s the easiest current account, which gives the facility to businessman to have

transaction there where his business takes him. Business Account presents you the

safe way to transact amount because of which the businessman have no problem to

take cash and travelers cheques with him.

EASY TO DEPOSIT AND WITHDRAW

Because of online real time technology all over Pakistan, the clients can easily deposit

or withdraw money from any of the branch of ABL.

PAY ORDER AND DEMAND DRAFT

In Pakistan where ever the customer is, business account holder can easily get the pay

order and demand draft from any of the Allied Bank branch.

CLEARING PROCEDURE


Because of online real time technology cheques process, and funds transfer work so

fast that it never happened before.

ACCOUNT INFORMATION

Wherever the customer is in Pakistan, he can get any information about his account.

The information may be about accounts balance and account statements.

FOREIGN CURRENCY ACCOUNTS

Allied bank deals in following foreign currencies.

US Dollars

Great Britain Pound

Euro

Japanese Yen


Learning as an internee

DUTIES and ACCOMPLISHMENTS

My duties at the bank during my internship were of the diversified nature. I was rotated

in the different departments of the bank. I was also assigned with some responsibilities

of the minor level. They gave me some assignments as well to give me the true

exposure of practical work environment. So my duties can be categorized department

wise as under:

CLEARING DEPARTMENT

In this department I spent about 3-4 days. I observed the procedure carried down here.

Based on my observation and briefing from the staff I was asked to prepare advices for

collection of demand draft amount, Outward Bill for Collection (OBC), fill in the deposit

slips presented by the customers, enter the proceedings in concerned registers.

ONLINE FACILITY PROVIDER DEPARTMENT

Online banking is a wide spreading concept in banking sector. This department mainly

performs the basic operation of fund transfer and other functions facilitating the transfer

and enquiries. I observed the basics of the department.

I didn’t have the opportunity to seek the details because the online department is a

sensitive area and also electronic based.

I prepared online transfer slips foe the customers. I also informed the customers of their

account balance, account status and about other queries available online.


CUSTOMER CARE DEPARTMENT

This department serves as the front representative of the bank. Multiple tasks are

executed in this department. I was asked to observe different complaints received by

the bank by its customers. I maintained the sundry account register, suspense account

register. I put the applications received for the ATM cards in the register. I also had to

maintain the register maintained to record the receipt of new account opening forms

along with the register kept for recording those ATM cards, which have been delivered.

FOREIGN EXCHANGE DEPARTMENT

This is the department with a very vast scope and a variety of dimensions. There, I had

to maintain the record of some Letters of Credit (LCs). I was liable for making drafts of

outgoing SWIFT messages. I also made the entries of incoming SWIFT messages in

the register. I was asked to enter the particulars of I-form (Import form) and E-form

(Export form) in their respective registers.

ADVANCES AND CREDIT DEPARTMENT

In this department I was given some files to study, which were about the applications of

credit to be approved. The person in charge of there briefed me about the term and

conditions on which the bank accepts or rejects an application foe the credit. In this

department, like the online department, I didn’t have an opportunity to practically handle

the work due to the sensitive nature of the work.

DIVERSE DUTIES

Apart from the duties mentioned above, I had to perform some other duties as well. The

prominent amongst them is called “Calling” in the banking jargon. It’s manual checking

of the record produced by the computer pertaining encashment, transfer and collection

of cheques and other instruments like deposit slips and online slips. I had to work with

the person responsible of keeping the record of DD payable. I was assigned with the

duty of keeping the record of DD payable of a given period.


NEW KNOWLEDGE ACQUIRED

CHEQUE BOOK ISSUING PROCESS

If some one opens a new account and become the client of the Allied bank of certain

branch then he gets the requisition slip on which cheque book is issued

Normally people use two types of accounts

1 Current Account

2 Profit and loss account or PLS Account

3 Term Deposit Account

Current account cheque book has 50 leaves and it cost RS.100

Profit and loss account or PLS account cheque book has 25 leaves and it

cost RS.125

Term deposit account cheque book has also 25 leaves and it also cost RS.50

In every cheque book there is also a requisition slip available for the purpose of reissue

of a cheque book, if the first cheque book has no more leaves. There is written the title

of account holder, his account number, the stamp of Allied bank and the signatures of

the authorized person on every page of cheque book and also on the requisition slip.

CLEARING AND COLLECTION

There are two types of clearing/collection cheques

1 Inward clearing/collection

2 Outward clearing/collection


OBCs

CLEARING CHEQUES

This department receives the cheques and other negotiable instruments drawn on local

branches of other banks. NIFT has a clearing house, in which cheques and other

negotiable instruments are brought by each local bank representative and the claims of

each bank on other is offset and a settlement is made by the payment of difference.

Clearing system is helpful for both the customers and bank in saving money, time and

labour.

PROCEDURES

The cheques and drafts come to branch from different banks. They enter the particulars

of the cheques on a register. After this process the balance with total drafts and total

amount are given to the representative. ABL works under the rules and regulations

prescribed byf State Bank of Pakistan (SBP) and has an account with SBP. The

clearinghouse of SBP (NIFT), through whom branches forward/receive-clearing

cheques along with a schedule conducts clearing. The clerk of forwarding branch

prepares the schedule and vouchers of all the clearing cheques, which he receives by

the clerk on that day and sends these cheques to the checking officer. Checking officer

passes these cheques and vouchers by his initials, endorsement stamp and branch

special crossing stamp. Clerk posts the contra entries of these vouchers in the clearing

register. Representatives’ banks collect these cheques. Next day at 8:30 A.M.

representatives of all local banks and foreign banks exchange their cheques, which are

drawn on their banks.

The clearinghouse debits/credits the payee/receipt branch with the total amount of the

cheques paid on their behalf. The settlement of book entries e.g., if ABL is to give Rs. 2

Million to UBL and UBL has to give Rs.1 million to ABL then ABL will draw a cheque of


1 Million in favour of UBL. SBP will debit this amount from ABL account and credit of

UBL account. In this way mutual cross debiting and crediting in the books of SBP settle

obligation of banks.

PAK ACCOUNT

All the inter-bank adjustments will be affected through head office account called Pak

account. It will be essential for the branch to advise pak account of each transaction so

that they may also pass the necessary entries in their books. The NIFT will send a

consolidated debit/credit advice to the branches in respect of clearing cheques

delivered to or received from the branches. The amount of the advice will agree with the

total amount appearing in the schedule of cheque delivered/received. The head office

will similarly send advice to the branches of the returns, if any. Copies of all advices will

be sent to the head office.

INTER-BRANCH CLEARING AND COLLECTION

Branch receives the cheques and other negotiable instrument drawn on other branches

of the same bank. Main branch of ABL handles the transfer and delivery of cheques.

The same clearing cheque procedure will be adopted in the transfer deliveries except in

case when the facility of SBP is not availed. In case of cheques drawn on one branch

and collected by an other branch for the credit of its constituents, the branch delivering

the cheques will send a consolidated debit advice. If any cheque is returned unpaid, a

credit advice will be sent to the branch returning the cheque.

COLLECTION CHEQUES OR OBCs

The collection cheques/OBCs are the cheques, which we have cleared for our

customers when some of our customers receive the cheque that is of some other city.

These types of cheques are known as collection cheques or the other name we gave

them is OBC


PROCEDURE OF COLLECTION

On the cheque there is written that the person to whom it may concern can cash it from

the certain branch of the bank in favour of which it’s drawn. The customer presents the

cheque to his branch, which send a document called “OBC” to the bank that has to

make the payment. The clearing department of the receiving bank follows a prescribed

procedure and credits the amount to sending bank through a central account

maintained by each bank with SBP.

ABL sends the cheque to it’s own branch if available for collection from the payer’s bank

otherwise the OBC is directly sent to other bank.

MAINTAINING REGISTER for OBCs

We have a register in which we have the serial no for OBCs with other details like

amount, date, sending and receiving branches’ codes. Every OBC is entered in that

register on daily basis.

If OBC is not cleared due to what ever fault, we take it back as a return but after that

we call the concerned person and we also write name of the person.


ACCOUNT OPENING

I learnt how to open a new account. The person willing to open an account has to

complete the account opening forms, which has several particulars pertaining to

personal information of the person. The bank makes sure that all the information

provided by the person is authentic. Along with the information given by the person

himself, bank requires introduction of an already existing account holder of the same

bank but preferably of the same branch. The bank also requires account no. and copy

of the introducer’s NIC.

Bank also requires a copy of the NIC from account opening person. He will also have to

provide two samples of his specimen signatures for any withdrawal of amount. In case

of illiterate person, he will provide the bank with his left thumb impression along with two

photographs. In case of a Pardah Observing lady, the bank prefers not to open an

account but if so, it will require her to provide impressions of her both thumbs.

After all this formality, the bank after a few days sends a letter of thanks to the address

of the person disclosed in the AOF. When the letter is received, the person may come

to bank and collect his cheque book.

The bank also informs its head office about the new accounts and also charges nominal

amount at first time.

MATTER of ZAKAAT

The deductions of Zakaat from the account of Muslims are made on the 1st Ramadan

according to the Islamic rate. But the people who do not want the bank to deduct Zakaat

and want to disburse it at their own, they have to provide an affidavit on a prescribed

format provided by the bank.


ONLINE TRANSFER

The department providing online facility to the customers, I liked the most. I learnt

different procedures regarding this department. I learnt the process of online transfer.

The whole this process need is filling of a slip, and cheque or cash. In the slip the name

of remote branch and account number of the remote person must be entered. If the

person is not an account holder of the bank then he has to attach his NIC copy with the

slip for his identification. The person availing this facility submits the cash on the cash

counter and then gives the slip to the host person at the department, who then enters

the data in the computer. In this way the money is transferred to an account through

PAK account, which is the central account of the bank and all the inter branch

transactions has to go through this process.

LEARNINGS in FOREIGN EXCHANGE and ADVANCES DEPARTMENT

As an internee I learnt many things some of which I have described above. The

remaining few include the processes involved in the foreign exchange and advances

department. Now a day, both of these departments are considered to be the backbone

of any bank. Foreign exchange department brings foreign reserves. Mostly import and

export business takes place through foreign exchange department.

Advances/Credit department is equally important. This department gives the bank a real

business. The bank gives money to the borrowers on interest and earns a lot in this

way. The bank lends money against some guarantee or pledges some property for this

purpose. So that in case the customer cannot pay back money, the bank can meet over

come its expenditures.


PROBLEMS ENCOUNTERED

NEW ENVIRONMENT

Initially I had difficult time in mixing with organization members and felt uncomfortable in

that new place with new people. However, after some time, I became a part of it just like

everyone else and felt completely comfortable.

The other major problem was the hectic routine of the bank. It made me uneasy at first

but with the passage of time I became used it. I had to face a great difficulty in

understanding bank’s terminology by the knowledgeable guidance of the staff I was able

to overcome the problem to a satisfactory level.

The real problem I faced in the bank was the difference between what I had learnt from

the books and what was being practiced. Practical application of the theories learnt

during academic sessions was a great challenge, which I overcame by the cooperation

of the staff.


HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of practical life. Now I feel

that I am better prepared to enter the world of professional work. I have come to know

and been appreciated by a number of professionals who are lending their services to

the banking sector for more than a decade. I feel honored that I have worked with such

experienced professionals. I must admit that such interaction in this respectable

professional community will help me in seeking out good job opportunities in the near

future.

Each task I performed was a different experience in itself. By the end of it, I must say I

realize my potentials, I have realized that practical life is not so easy after all, it takes a

lot of hard work and devotion, and not to forget time. And I now know that if I want I can

make things possible, and I also know how good it feels to having accomplished

something and being appreciated for it. I definitely have learnt things, which will impact

my career and my character.

The overall experience of my internship was very good; I have learnt the sense of

responsibility in its literal meaning. I am now capable of dealing with different sort of

customers, and how to be patient while doing so. Besides this I also gained knowledge

about banking which I previously lacked and many more products being offered by the

bank. So in a nutshell, this internship gave me the experience, which would no doubt

boost my confidence to work in future.


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.


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.


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 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 it’s 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

INCREMENT IN WORKFORCE’S 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 employee’s 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 it’s 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:

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 bank’s 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

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 this branch 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.


allied bank of pakistan

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