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ACKNOWLEDGEMENTACKNOWLEDGEMENT

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 ofdepartment 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.

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

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 banks departments and

so was I. This rotation is done in order to have general concept regarding banks

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

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TABLE OF CONTENTS

S. No. Topics Page No.

Chapter-1 Introduction 01

History of Banking 01

History of Allied Bank 09

About Allied Bank 09

Board of Directors 10

CH-2 Product/Services

Consumer products 13

Financial Products 14

ABL Services 15

Car Leasing 15

Home Financing 17

CH-3 Work Experience 18

Worked in different Departments. 19

Pay order 19

Maintance of Cheque Books 19

Verification of CNIC through NADRA 19

Mailing 20

CH-4 Financial Analysis 22

Vertical Analysis 23

Horizontal Analysis 24Ratio Analysis 27

SWOT Analysis of Bank 28

Conclusion &Recommendation 46

Bilbo Grapy 47

Annexure 48

References 49

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CHAPTER# 1 INTRODUCTION

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HISTORY OF BANKS

The first banks were probably the religious temples of the ancient world, and were

probably established sometime during the 3rd millennium B.C. Banks probably predated

the invention of money. Deposits initially consisted of grain and later other goods

including cattle, agricultural implements, and eventually precious metals such as gold, in

the form of easy-to-carry compressed plates. Temples and palaces were the safest places

to store gold as they were constantly attended and well built. As sacred places, temples

presented an extra deterrent to would-be thieves. There are extant records of loans from

the 18th century BC in Babylon that were made by temple priests/monks to merchants.

By the time of Hammurabi's Code, banking was well enough developed to justify the

promulgation of laws governing banking operations.

Ancient Greece holds further evidence of banking. Greek temples, as well as private and

civic entities, conducted financial transactions such as loans, deposits, currency

exchange, and validation of coinage. There is evidence too of credit, whereby in return

for a payment from a client, a moneylender in one Greek port would write a credit note

for the client who could "cash" the note in another city, saving the client the danger of

carting coinage with him on his journey. Pythius, who operated as a merchant banker

throughout Asia Minor at the beginning of the 5th century B.C., is the first individual

banker of whom we have records. Many of the early bankers in Greek city-states were

metics or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest

and most famous Greek banker, gaining his freedom and Athenian citizenship in the

process.

The fourth century B.C. saw increased use of credit-based banking in the Mediterranean

world. In Egypt, from early times, grain had been used as a form of money in addition to

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precious metals, and state granaries functioned as banks. When Egypt fell under the rule

of a Greek dynasty, the Ptolemies (330-323 B.C.), the numerous scattered government

granaries were transformed into a network of grain banks, centralized in Alexandria

where the main accounts from all the state granary banks were recorded. This banking

network functioned as a trade credit system in which payments were effected by transfer

from one account to another without money passing.

In the late third century B.C., the barren Aegean island of Delos, known for its

magnificent harbor and famous temple of Apollo, became a prominent banking center. As

in Egypt, cash transactions were replaced by real credit receipts and payments were made

based on simple instructions with accounts kept for each client. With the defeat of its

main rivals, Carthage and Corinth, by the Romans, the importance of Delos increased.

Consequently it was natural that the bank of Delos should become the model most closely

imitated by the banks of Rome.

GLOBAL BANKING

In the 1970s, a number of smaller crashes tied to the policies put in place following the

depression, resulted in deregulation and privatization of government-owned enterprises in

the 1980s, indicating that governments of industrial countries around the world found

private-sector solutions to problems of economic growth and development preferable to

state-operated, semi-socialist programs. This spurred a trend that was already prevalent in

the business sector, large companies becoming global and dealing with customers,

suppliers, manufacturing, and information centres all over the world.

Global banking and capital market services proliferated during the 1980s and 1990s as a

result of a great increase in demand from companies, governments, and financial

institutions, but also because financial market conditions were buoyant and, on the whole,

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bullish. Interest rates in the United States declined from about 15% for two-year U.S.

Treasury notes to about 5% during the 20-year period, and financial assets grew then at a

rate approximately twice the rate of the world economy. Such growth rate would have

been lower, in the last twenty years, were it not for the profound effects of the

internationalization of financial markets especially U.S. Foreign investments, particularly

from Japan, who not only provided the funds to corporations in the U.S., but also helped

finance the federal government; thus, transforming the U.S. stock market by far into the

largest in the world.

In recent years, the process of financial innovation has advanced enormously

increasing the importance and profitability of nonbank finance. Such profitability priorly

restricted to the nonbanking industry, has prompted the Office of the Comptroller of the

Currency (OCC)to encourage banks to explore other financial instruments, diversifying

banks' business as well as improving banking economic health. Hence, as the distinct

financial instruments are being explored and adopted by both the banking and

nonbanking industries, the distinction between different financial institutions is gradually

vanishing.

THE ROLE OF BANKS IN ECONOMIC DEVELOPMENT

Often overlooked is the importance of banks to revitalization efforts. Financial

institutions in a community can form the core of economic development. Although they

shouldn't be expected to finance revitalization programs single handedly, they should be

considered as essential to success.

Yet banks and other local financial institutions have largely ignored local improvement

efforts in recent decades. In an increasingly focused effort to satisfy their stockholders,

they have looked for investments which provide the highest rate of return. As a result,

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their investment money has gone elsewhere, to other regions of the country or even to

other parts of the world. In doing so, often they have ignored their responsibilities to the

local community in which they are based, and from which comes most of their business.

Local banks need to be reacquainted with their need to be locally involved. Downtown

organizations should include local bankers, and downtown leaders should feel

comfortable including them as integral members of revitalization programs.

As described by Shaffer, 1 there are at least four ways in which bank practices can be

examined against community goals and objectives.

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, it

may be hampering the long-run economic health of its home community.

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. Are long-term loans available? Are the loan terms practical for smaller

businesses struggling through growth pressures? Is the bank, through its loan policies,

actively involved in promoting the growth of existing local businesses, the formation of

new local businesses, 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?

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These questions help clarify whether local banks and lending institutions are actively

involved in local efforts, or whether pressure should be put on them to be more

responsible to their client community. The financial leveraging which banks can provide

gives an invaluable resource to local efforts, and should be considered a key ingredient of

any revitalization effort.

BANKING IN PAKISTAN

Like many other institutions, at the time of independence of Pakistan in 1947, it

inherited a poor and weak system of banking. It was due to the fact, that most of the

important sectors of the economy including banking were controlled by non-Muslims.

Before independence, the financial sector of Indo-Pak was in the hand of foreign banks

some of them were British by origin. 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. Among the contemporaries, Imperial Bank of India

was the largest India bank, which has started its operations in 1919. It was discharging

the role of commercial bank as well as the central bank of India until an independent

Central Bank i.e. Reserve Bank of India was established in 1935. At the time of

independence there were 487 offices of schedule banks in the territories now constituting

Pakistan, after the announcement of the independence plan. The banning services in

Pakistan were seriously suffered. There was a serious usually rush on banks for

transferring funds and accounts. Therefore the banks transferred their registered offices

from Pakistan to India. So by 30th June 1948, the number of the offices of the scheduled

banks in Pakistan declined from 487 to only 195.

There was two Muslim banks in Pakistan, two days before independence, that were to

stay there, while 13 Hindu banks all the 13 locally incorporated banks except the

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Australasian Bank were destined to move out or where already moving. More Pakistan

scheduled banks continued to establish and by Dec. 1973 total scheduled commercial

banks operating in the country were stood fourteen. Due to the continuous to flourish and

now it coves a very large segment of national economy.

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. 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, with its head office at

Karachi. SBP in addition to its normal duties as central bank played a very important role

in the development, controlling and modernizing of the banking system of the country.

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.

Moreover, specialized financial institutions like IDBP, ADBP, PICIC, NDFC, HBFC

were also created to help and finance the particular sectors of the economy like industry,

agriculture and housing.

In 1974, all the commercial banks including SBP were nationalized. After 1990, the

banks are in the process of privatization, because of the new thinking and for the

improvement of performance. 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 thats why united Bank limited is termed as private limited. Govt.

has allowed the establishment of new private banks, of which many new banks like Indus

Bank, Union Bank, Faysal Bank, Bank of Khyber etc are established, having their

branches almost in all important cities of the country.

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The banking system in Pakistan now comprises commercial banks, foreign commercial

banks, development financial institutions, investment banks, leasing companies and

modarabas.

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.

HISTORY OF BANKING

In early civilizations a temple is considered the safest refuge; it is a solid building,

constantly attended, with a sacred character which itself may deter thieves. In Egypt and

Mesopotamia gold is deposited in temples for safekeeping. But it lies idle there, while

others in the trading community or in government have desperate need of it. In Babylon

at the time of Hammurabi, in the 18th century BC, there are records of loans made by the

priests of the temple. The concept of banking has arrived

Banking activities in Greece are more varied and sophisticated than in any previous

society. Private entrepreneurs, as well as temples and public bodies, now undertake

financial transactions. They take deposits, make loans, change money from one currency

to another and test coins for weight and purity.

They even engage in book transactions. Moneylenders can be found who will accept

payment in one Greek city and arrange for credit in another, avoiding the need for the

customer to transport or transfer large numbers of coins.

HISTORY OF ALLIED BANK

The Allied Bank's story is one of dedication, commitment to professionalism, adaptation

to changing environmental challenges resulting into an all-round growth and stability,

envied and aspired by many.

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The Bank's history may be divided into several distinct phases. It began life as a Lahore

based Muslim bank in a financial world which was predominated by other communities.

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. During 25 years of united Pakistan the

Bank advanced forward in all areas of its activities. The 1970s was a difficult decade for

all Pakistani banks. In 1971 the eastern part of the country was separated. Australasia

Bank lost more than 50 branches and deposits worth Rs. 54.444 million. Nevertheless,

growth remained steady and by the close of December 1973, assets had risen to Rs. 1.25

billion and deposits to Rs. 849 million.

On 1st January, 1974 all the scheduled banks, including Australasia Bank, were

nationalized. Three small provincial banks were merged into Australasia Bank and on 1st

July 1974, the new entity was renamed as the Allied Bank of Pakistan Limited. Allied

Bank began its operations as a public sector financial institution. During the

17years(1974-1991)the value of total net assets rose to Rs. 24.4 billion and deposits to

over Rs.21.3 billion with 747 branches network (Figures are for 10-09-1991, the date the

Bank.

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. 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 25.00 million pound sterling. With a network

of 10 branches located in all big cities of UK, the bank will be well poised to handle large

volumes of business, particularly of the Asian community.

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ABOUT ABL

Allied Bank of Pakistan Limited (formerly Australasia Bank Limited) has witnessed and

experienced political, economic, financial and technological changes that have taken

place in the South Asian Region since its incorporation in 1942 at Lahore, to become the

first Muslim bank established in the territory that became Pakistan

In August 2004 as a result of capital reconstruction, the Banks ownership was

transferred to a consortium comprising of Ibrahim Leasing Limited and Ibrahim

Group.

Today the Bank stands on a solid foundation of over 63 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 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.

VISION

To be the world class bank with world class people providing world class services.

MISSIONThere 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.

BOARD OF DIRECTORS

Mr. Mohammad Naeem Mukhtar (Chairman)

Mr. Sheikh Mukhtar Ahmed

Mr. Mohammad Waseem Mukhtar

Mr. Abdul Aziz Khan

Mr. Sheikh Jalees Ahmed

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Mr. Farrakh Qayum

CHAPTER#02 PRODUCTS/SERVICES

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

Consumer Products

Rupees Deposit Accounts

Foreign Currency Accounts

Allied Bank Rupee Traveler Cheques

All Time Banking

Master Card

Debit Card

On line 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. Accounts can be opened in US Dollar, Pound Sterling, Deutsche Mark, and

Japanese Yen at designated branches. All Pakistani nationals residing in Pakistan and

outside Pakistan can also open Foreign Currency Accounts. Resident Firms, Companies

including Investment Banks can open Accounts.

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ALLIED BANK RUPEE TRAVELER CHEQUES

Allied Bank offers the highest rate of return on Foreign Currency Deposits in the

Country. Accounts can be opened in US Dollar, Pound Sterling, Deutsche Mark, and

Japanese Yen at designated branches. All Pakistani nationals residing in Pakistan and

outside Pakistan can also open Foreign Currency Accounts. Resident Firms, Companies

including Investment Banks can open Accounts.

ALL TIME BANKING

Allied Bank is now introducing the AlliedCash+ card also referred to as ATM card. 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. 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.

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, you simply have to fill out the

prescribed Application form available in all Allied Bank Branches. The duly filled form

should be handed over to the Manager of the Branch where you are maintaining your

account. Non-account holders would first have to open an account with Allied Bank to

have access to this facility. 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. As a security measure, you should keep this number absolutely

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Confidential.

How To Use: The instructions appearing on the screen of ATMs have been designed to

help the customer in using the facility. Graphical representations have been employed,

where appropriate, for ease of understanding the following simple guidelines would also

be

Inserting the Card: Please insert your AlliedCash+ Card in the Card Slot located at the

front of the machine. The Card must be inserted with its face up as indicated on the

machine.

Entering your PIN: The PIN has to be keyed in using the Key Pad located just below

the screen. Please note that the PIN is not displayed on the screen as it is keyed in. This is

to keep the PIN confidential from onlookers. 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. 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, you would be asked to key in your

existing PIN once, and new PIN twice to ensure that you did not make a mistake while

entering your new PIN.

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, or on each side. You will

notice that options appear on the screen by dividing the screen into boxes. For selecting

the desired option, press the Menu Key next to the appropriate box.

Fast Cash and Cash Withdrawal: Fast Cash option allows you to select predetermined

amounts for withdrawal by simply using a Menu Key. Choosing Cash Withdrawal, on the

other hand, will permit you to specify the exact amount (in multiple of Rs. 500 up to

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maximum of Rs. 10,000) by using the key Pad below the screen. ATM cash withdrawal

limit is Rs. 25,000.00.

Card Capture: ATMs automatically capture cards that have been duly reported as lost or

have been cancelled. Similarly, if you fail to enter your correct PIN in 3 repeated

attempts, the machine will capture the card. Also any cards unrecognized by the ATM

may be captured. In all such cases, ATM services will not be made available. In case

your Card is captured, please contact the manager of bank branch where the Card has

been captured

Time Out: In order to provide added security, ATMs are programmed to capture the card

if the customer forgets to take it back after a transaction. Similarly, if you forget to take

the cash within a pre-set time limit, the machine will take it back. Typical time for

recapture of the card/cash is 20 seconds. You should, however, 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

Out of Service: Occasionally, a particular ATM may be out of service. This would be

indicated on the screen displaying the status of the machine. Various factors could cause

this condition, which includes telecommunication problems, hardware breakdowns,

power shutdowns, insufficient cash in the machine, etc. If you encounter an out of service

ATM, please proceed to the nearest available ATM for service.

Loss of Card: In case you lose your AlliedCash+ Card or the Card is stolen, the matter

should invariably be bought to the notice of the Bank personnel as soon as you discover

the loss. For this purpose, the Branch Manager must be notified in writing immediately.

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MASTER CARD

You 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 you will be assured of

a service meeting the highest international standards maintained by Master Card.

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. Being a successful individual, you deserve a life

unrestricted by cash limitations, you deserve a reliable credit line, you deserve the best

you deserve the ABL-MasterCard! Luxury, status, prestige and convenience await you

with the ABL-MasterCard - at no extra cost. Thats why the ABL-MasterCard is now

available for you 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 ABL-MasterCard is your ticket to complete

financial independence.

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. 1000/ per year, International Card

Rs. 1,5000/- per year and supplementary card are free for Lifetime.

Quick Processing Time: With our automated processing systems and simplified

application procedures, we promise delivery of the ABL-MasterCard at your doorstep in

record time.

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Pioneer in Credit Cards: Not only is ABL-MasterCard a pioneer in the credit card

industry, but is also the first free credit card launched by a completely Pakistani owned

financial institution.

Addresses for Credit Card Centers:

Credit Card Wing, 2nd Floor, Trade Tower,

Abdullah Haroon Road, Karachi

Phone: 5657925, 5684902 Fax: 5680656

Manager Operations,

Credit Card Lahore Operations,

Allied Bank of Pakistan Limited,

7-E/III, Main Boulevard,

Gulberg III,

LAHORE.

Phone: 042-5757970 5756971 Fax: 042-5756957

Manager Operations,

Credit Card Islamabad Operations,

Allied Bank of Pakistan Limited,

4th Floor, ABL Plaza,

Blue Area,

ISLAMABAD.

Phone: 051-2272341 051-2272306 Fax: 051-2272568

Manager Operations,

Credit Card Faisalabad Operations,

Allied Bank of Pakistan Limited,

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2nd Floor Regency Plaza.

The Mall,

FAISALABAD.

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. 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).

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.

RUNNING FINANCE

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

account can be operated and daily sale proceeds can be deposited into the account. The

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

ABL SERVICES

You 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:

Home Remittances

Inter Branch Remittances

Hajj Services

Utility Bills

Lockers

HOME REMITTANCES

The Bank having a network of 735 branches all over Pakistan, undertakes to provide safe

and instant payment of remittance from expatriates, routed through designated foreign

exchange companies and correspondent banks with whom special arrangements have

been made in this regard. Through the Allied Express Service, ABL ensures that

beneficiaries' Accounts in ABL branches are credited with in 48 hours of receiving home

remittance information from overseas

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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, through Telegram/Telex/Telefax 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 Hajj forms and other related services are provided by the bank. 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

Hajj policy is announced by the Government of Pakistan.

UTILITY BILLS

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

convenience of the customers, Utility Bills are collected by the branches 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

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

COMMODITY OPERATIONS

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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.

ATM NETWORK

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

branches, 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. The card holder's

member banks will access our bank ATMs.

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Every ATM which is connected with "1-Link Switch" has a Logo which indicates that

"1-Link Switch" member can access the ATM.

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 across the country. The following facilities are available:

Cash Deposit for immediate credit to remote branch.

Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Enquiry and Statement of Account.

In Addition to the above, 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.

According to the Annual Accounts, the deposits of the Bank increase by 11% from

Rs.114,218(m) to Rs.126,392(m) during the year with a major upsurge of more than 22%

in low cost deposits. The performing advance;) portfolio of the Bank substantially

increased by 67% from Rs.32,154(m) in 2003 to Rs.53,853(m) in 2004.

The foreign trade handled by the Bank increased by 28% from Rs.56,868(m) in 2003 to

Rs.72,765(m) in 2004. Net interest income increased from Rs.3,830(m) in 2003 to

Rs.4,407(m) in 2004 ie., an increase of 15% Profit before tax and provisions increased

from Rs.1,824(m) in 2003 to Rs.2,051 (m) in 2004 Le and increase of 12%.

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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, it does

not appear on the balance sheet. A financing lease does appear on the balance sheet.

Car leasing is the process in which banks provide finance for the purchase of cars. 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.

Allied Bank of Pakistan is the oldest bank of Pakistan but its performance is not very

good as compare to other commercial banks. 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. these banks also having high

performance and productivity.

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.

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.

HOME FINANCING:

Home is the basic need for human being each and every person wishes that he should

have his own house. Home financing is another way of credit which banks use to full fill

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the needs of those people who want to buy or purchase a house. It like the car financing,

in it banks finance the home for their customers.

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.

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. There is lot of local , foreign and

other financial institutions are providing home finance.

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.

The Strategic Planning and Balance Sheet management responsibilities

include:

1. 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.

2. Overseas Branches Treasury and Capital Markets.

We plan to integrate the treasury activities for all overseas branches, to

develop synergies amongst our various treasuries. As our core business in

these markets continues to develop, we expect significant opportunities to

arise in the trading, funding and gapping areas.

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3. Research

providing market research for internal and external and external clients in

order to support the sales and trading effort.

COMPETITOR, S ANALYSIS

Major competitors

The major Competitors of UBL are National Bank of Pakistan (NBP),

AlliedBank Limited (HBL) and Muslin Commercial Bank have 10 % market

share , HBL have 20 % market share, MCB have 11% market share and the

rest of the share is of other banks in market.

Comparison of UBL and its Competitors

UBL have a market share of 9% in the market. The management is trying to

intrtoduce changes, which would help the bank in exceeding in the market.

After Privatization, the bank has gone through many changes, Staff has been

reduced and branches have been cut down, Keeping in view the need of the

bank. HBL has stabilized its position and has a strong image in the minds of

many customers. NBP and MCB are also included in the main competitors

of UBL. They have also secured a large part of market share.

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CHAPTER# 03 WORK EXPERIENCE

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INTERNSHIP EXPERIENCE

This internship has no doubt been a great learning experience for me. My internship

started on 16th june 2008 , I was placed under the supervision of Mr. Ahmad Saad

ullah . As part of my rotation I was assigned to work in the different department of ABL.

BRIEF DESCRIPTION OF THE DEPARTMENT WORKED INACCOUNT DEPARTMENT

Account Opening and Maintenance

FUNCTIONS

This department deals in account opening. This department is made for the convenience

of customers having dealings of PAK rupees. It makes easy for account whether it is

individual a/c, company a/c etc

For individual a/c minimum Rs 500 up to Rs 10000 required to open account.

For company a/c minimum Rs 1000 required to open account.

This department, s deals to open account of the department or customers are in the

Pakistan. It also deals to make following a/c

Individual a/c

Partnership a/c

Proprietorship a/c

Proprietorship a/c, joint a/c. etc

Major Tasks Learnt

I was placed in account opening department. I learnt the various functions carried out by

the account opening department and got an opportunity to help in the daily activities. The

account opening department is handed by Mr. Rashid Mehmood. During my internship I

worked under his supervision

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Daily Activities;Deals with the customers guide them about the functions of account in ABL.

Filling of account opening forms are maintained on daily basis.

To check the account serial numbers which are daily allotted to customers.

A/C opening forms are checked and stamped duly signed.

Supporting documents are also checked such that CNIC, job letters, student card,

department card etc

Letter of banks and opening letters are also sent to the customers and introducers of a/c

holders.

The A/c opening forms are authorized by BHM and supervisor by depositing in charge

after being feed in the computer.

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.

The SS Card is scanned on daily basis in computer.

DEPOSIT DEPAARMENTFUNCTIONS;This department deals the depositing. This department is made for the convenience of

customers having a/c in the ABL. It make easier to get information about balance of

accounts or depositing. This department also deals with the issuance of certificate. All

funds of collection A/C are made by this department. Issuance of check books, statement

of accounts, supervisions of signs on the checks and up dating.

Closing and activation of accounts are also made by this department.

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MAJOR TASKS LEARNTI was placed in the depositing department. I learnt various functions carried out by the

department and got an opportunity to help in the daily activities. The depositing

department handled by two officers. During my internship I also worked under their

supervision.

Daily ActivitiesDebit and credit vouchers are posted pertaining to customer deposit.

Vouchers having amount more then Rs. 50000 are supervised by deposit in charge.

Check books are issued to the customers on daily basis.

Accounts are closed and activated by this department.

Accounts are closed and activated by this department.

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.

Signatures of the customers are also up to dated from this department.

Changes in addresses or costumers missing CNIC and changes in SS cards are also

checked.

All funds of collection accounts are also transferred to different accounts are made on

daily basis.

DEMAND DRAFTS

It is an instrument payable on demand for which value has been received, issued by the

branch of the drawer bank i. E. payable at some other place (branch) of the same bank. If

two banks are involved, then the DD is sent to other bank.

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Procedure of issuance and payment is like; DD can be issued by filling application from

the customer. Then bank apply some charges such as commission, excise duty according

to the schedule of charges,. If he fills the tax exemption from, tax is not charged. Then

cashier counts the amount and signs the DD application and enters it in the register. Then

it is signed by officer of remittance department and operation manager and then D this

given to the customer. Vouchers are prepared and posted and advises are printed and

mailed to the concerned branch. When the bank receives DD and its advice, and entry is

made on the DD payable register and the vouchers are made. DD credit advice is attached

with the vouchers and given for posting to the computer. When DD is received there are

some tests number issued which are then matched and the payment is made. Vouchers are

given for posting and the entry in the register is closed DD payable is nil. If the customer

is looking for a safe, speedy and reliable way to transfer money, he can purchase ABL s

Demand Drafts at very reasonable rates. Any person whether an account holder of the

bank or not, can purchase a Demand Draft from any bank, s branch.

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. Pay order issued from one

branch can only be payable from the same branch. It is normally referred to as banker, s

Cheque. Important point cancel it but the one who has deposited money once, cannot get

it back it is non refundable. It is issued in a manner that form is given to the customer; he

fills and signs it. After proper checking and charging bank commission according to the

schedule of charges, the cash amount stamped and handed over to the applicant as a

receipt. After the pay order receipt is filled, an entry is made in the pay order issue

register. After checking properly, concerned officer signs it. The order is then handed

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over to the applicant after obtaining his signature on the PO Form. A voucher is also

made and posted at the computer.

After the issuance there comes payment step. When the pay order receipt is presented two

authorized officers of the branch sign the receipt. PO entry is made in the PO issue

register. Then the amount is credited to the account of the customer. Then PO is posted at

the computer.

UBL provide another reason to transfer your money. Pay order is a secure and easy way

to move your money from one place to another. And , the charges for this service are

extremely competitive.

MAINTENANCE OF CHEQUE BOOKS

Cheque books are maintained on daily basis. I also made the Cheque books. 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. Daily number of customers gives request for new Cheque

book. 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. Time for

receiving new one is one week. If Cheque book is not collected within 60 days then it is

destroyed automatically.

PROCEDURE FOR ISSUING NOW CHEQUE BOOK

When Cheque book requisition slips are received, on the same date the account numbers

and name of the customers should write in the Cheque book register. Then that Cheque

book requisition slip is send through NIFT to Karachi Head Office. When Cheque books

are made in the Karachi Head office then these are send back through NIFT.

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Charges for Cheque Book

The amount is R S.3 per leave. Cheque books mostly contains of 25 leaves. Customers

pay cash against the Cheque Book then there will be no deduction in the account of the

customer, if customer does not make payment against the cheque book then account is

automatically Ddr by Rs. 75. There is no Cheque book charges for the ABL Staff is free

of cost.

CERTIFICATE OF INSURANCE

This scheme is introduced for all ABL account holders. Insurance is for the permanent

disability and permanent partial disability. No benefit will be given in case of temporary

disability. Rs. 50000/- will be given in case of temporary permanent partial disability. In

case of joint account, only the primary account holder will be offered insurance coverage.

Customers having more than one account with the bank shall be offered single insurance

coverage.

The policy shall only cover the account holder.

In case a customer gets compensation for permanent disability and he eventually dies, the

customer shall not be entitled for multiple claims.

The policy is non transferable and non saleable.

Closure of the account, where the reason is other than death of the customer, will result in

automatic cancellation of the policy.

All staff of ABL and subsidiaries are eligible for insurance coverage under this scheme.

Information relating to next of kin in the account opening form shall be constructed as

beneficiary information.

Policy renewal shall be on a monthly basis, based on the stipulated eligibility criteria.

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VERIFICATION OF CNIC THROUGH NADRA

When account are opened , the CNIC is verified through NADRA. All the account

numbers and CNIC of the customers are sending to NADRA. After that NADRA send

back the original the original CNIC of the customers with there account numbers. These

are then matched by the CNIC that are attached with the account opening foam, after this

stamp of CNIC verified and signatures are done by the person who checks the CNIC.

A. Guidelines for using special purpose software for CNIC verification

To implement prudential Rules and Regulations as per SBP, s Circular dated july 08,

2006, pertaining to CNIC verification, saying It is mandatory for the Banks to get

the CNICs verified from NADRA, for their Customer Accounts.

B. 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, and in case of off line spokes, to Hub E -

Coordinators, HBMs under cc to Ams and AOMs

In order to open/ read the validated file, user would require special purpose software that

must be installed on the designated as per above workstations.

MAILING

Computer work: sending mails, preparation of remittance messages, filing. I also

prepared the letter of thanks to the new account openers and the introducers of the new

account openers. Once the letters are prepared they are mailed through TCS.

Clearing of Tezreftar cheques which are ABL,S new remittance service, TezRaftaar

offers all overseas Pakistanis the fastest and the most convenient delivery of their money

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to their beneficiaries in Pakistan. Best of all , 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. Free doorstep delivery by authorized courier.

Complete confidentiality of all transactions. Open to all including those who are not

ABL account holders.

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CHAPTER#4 COMPANY ANALYSES

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INDEX ANALYSIS:

This technique is also known as comparative analysis. It is conducted by setting

consecutive balance sheet, income statement or statement of cash flow side-by-side and

reviewing changes in individual categories on a year-to-year or multiyear basis. The most

important item revealed by comparative financial statement analysis is trend.

A comparison of statements over several years reveals direction, speed and extent of a

trend(s). Restating amount of each item or group of items as a percentage does the

horizontal financial statements analysis.

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. Thereafter, 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. The resulting figures are called index numbers or

trend ratios.

COMMON SIZE ANALYSIS:

Vertical/Cross-sectional/Common size statements came from the problems in comparing

the financial statements of firms that differ in size.

In the balance sheet, for example, 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.

In the common size income statement, turnover is expressed as 100% and every item

in the income statement is expressed as a percentage of turnover (sales).

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ASSETS Rs. In Millions

Cash in balances with treasury banks 11,472 11,205 12,320 18,035 24,745Lending to Financial Institutions 10,839 15,361 16,175 5,777 19,050

Investments-Gross 34,001 41,126 57,657 45,269 47,156

Advances- Gross 54,032 49,987 69,949 119,866 151,705

Operating fixed assets 2,835 2,596 2,552 4,721 6,445

Other assets 8,760 7,306 7,500 7,907 10,801

Total assets-Gross 121,939 127,581 166,153 201,575 259,902

Provisions against non-performing adv. 9,065 9,673 10,890 8,659 7,672

Provisions against diminution invest. 409 392 337 342 203

Total assets-net of provision 112,465 117,516 154,926 192,574 252,027

LIABILITIESCustomer deposits 103,883 114,218 126,392 161,410 206,031

Inter bank borrowing 7,483 2,665 12,538 9,694 18,410

Bills payable 1,400 1,773 2,534 2,449 2,278

Other liabilities 3,205 2,834 3,206 4,471 7,620

Net assets/liabilities (3,506) (3,794) 10256 14,550 17,688

Equity-Tier I (5,267) (4,869) 9448 12,914 16,230

Share capital 1,063 1,063 4405 4,489 4,489

Share premium - - 10640 4,316 4,316

Reserves 481 558 717 1,377 1,817

Un-appropriated profit/(Loss) (6,811) (6,490) (6314) 2,732 5,608Surplus on revaluation of assets net tax 1,761 895 808 1,636 1,458

PROFITABILITY

Mark-up/Return/Interest earned 7,947 4,985 5,245 9,892 17,216

Mark-up/Return/Interest expensed 3,727 1,155 794 2,025 6,793

Net Mark -up/Return/Interest 3,770 3,830 4451 7,867 10,423

Fee, commission, brokerage & income 723 617 1,520 1,470 1,636

Dividend income & Capital gain 477 1,198 65 196 540

Other income 272 328 155 273 273

Operating expenses 3,537 3,681 3,964 4,263 5,289

Profit before provisions 1,705 2,292 2,227 5,543 7,583

Donations - - - 15 9

Provisions-(expense)/reversal (3,222) (870) (1,594) (694) (913)

Additional charge for employee benefit (70) (468) (151) - -

Profit/(Loss) before taxation (1,587) 954 482 4,834 6661

Taxation 518 (568) (290) (1,744) (2,264)

Profit / (Loss) after taxation (1,069) 386 192 3,090 4,397

UNITED BANK LTD

December 31 2003 2004 2005 2006 2007

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COMMON SIZED ANALYSIS

For the Period Ended December 2003 to2007

ASSETS:Cash and balances treasury banks 10.20% 9.53% 7.9% 9.36% 9.82%

Lending to financial institutions 9.64% 13.00% 10.44% 2.99% 7.55%

Investments-Gross 30.23% 35.00% 37.21% 23.50% 18.71%

Advances-Gross 48.00% 42.50% 45.14% 62.2% 60.20%

Operating fixed assets 2.52% 2.20% 1.64% 2.45% 2.56%

Other assets 7.78% 6.21% 4.84% 4.10% 4.28%

Total assets-Gross 108.42% 108.56% 107.2% 104.6% 103.12%

Provisions against non-performing 8.06% 8.23% 7.02% 4.49% 3.00%

Provisions against diminution invest. 0.36% 0.33% 0.21% 0.177% 0.080%

Total assets-net of provision 100% 100% 100% 100% 100%

LIABILITIES:

Customer deposits 92.36% 97.20% 81.58% 83.66% 81.75%

Inter bank borrowing 6.61% 2.27% 8.09% 5.03% 7.30%

Bills payable 1.24% 1.50% 1.63% 1.27% 0.90%

Other liabilities 2.85% 2.41% 2.00% 2.32% 3.023%

Net assets/ Liabilities - - 6.61% 7.55% 7.01%

Equity-Tier I - - 6.09% 6.70% 6.43%

Share capital 0.94% 0.90% 2.84% 2.33% 1.78%

Share premium - - 6.86% 2.24% 1.71%

Reserves 0.43% 0.47% 0.46% 0.71% 0.72%

Un-appropriated profit/(Loss) (6.00%) (5.52%) 4.07% 1.42% 2.22%Surplus on revaluation of assets net 1.56% 0.76% 0.52% 0.85% 0.58%

PROFITABILITY:

Mark-up/Return/Interest earned 100% 100% 100% 100% 100%

Mark-up/Return/Interest expensed 49.71% 23.17% 15.14% 20.47% 39.45%

Net Mark -up/Return/Interest 50.29% 76.83% 84.86% 79.53% 60.54%

Fee, commission, brokerage &income

9.64% 12.38% 28.98% 14.86% 9.50%

Dividend income & Capital gain 6.36% 24.03% 1.24% 1.98% 3.14%

Other income 3.63% 6.58% 2.95% 2.76% 1.58%

Operating expenses 47.18% 73.84% 75.58% 43.09% 30.72%

Profit before provisions 22.74$ 45.98% 42.46% 56.03% 44.04%

Donations - - - .152% 0.052%

Provisions-(expense)/reversal (42.98%) (17.45%) (30.40%) (7.00%) (5.30%)

Additional charge for employeebenefit

(0.93%) (9.39%) (2.88%) - -

Profit/(Loss) before taxation (21.69%) 19.13% 9.19% 48.87% 38.70%

Taxation 6.91% (11.39%) (5.53%) (17.63%) (13.15%)

Profit / (Loss) after taxation 14.26% 7.74% 3.67% (31.24%) 25.54%

UNITED BANK LTD

December 31 2003 2004 2005 2006 2007

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INDEX ANALYSIS

For the Period Ended December 2003 to2007

ASSETS:Cash and balances treasury banks 100% 97.67% 107.40% 157.21% 215.70%

Lending to financial institutions 100% 141.72% 149.23% 53.30% 175.75%%

Investments-Gross 100% 120.95% 169.57% 133.14% 138.70%

Advances-Gross 100% 92.51% 129.46% 221.84% 280.77%

Operating fixed assets 100% 91.57% 90.00% 166.52% 227.34%

Other assets 100% 83.40% 85.62% 90.26% 123.30%

Total assets-Gross 100% 104.63% 136.26% 165.31% 213.14%

Provisions against non-performing 100% 106.70% 120.13% 95.52% 84.63%

Provisions against diminution invest. 100% 95.84% 82.40% 83.62% 69.19%

Total assets-net of provision 100% 104.50% 171.23% 171.23% 224.00%

LIABILITIES:

Customer deposits 100% 109.95% 121.67% 155.38% 198.33%

Inter bank borrowing 100% 35.61% 167.55% 129.55% 246.00%

Bills payable 100% 126.64% 181.00% 174.93% 162.71%

Other liabilities 100% 88.42% 100% 139.50% 237.75%

Net assets/ Liabilities - - - - -

Equity-Tier I - - - -

Share capital 100% 100% 414.40% 422.30% 422.30%

Share premium -100% - - - -

Reserves 100% 116.00 0.46% 286.28% 377.75%

Un-appropriated profit/(Loss) 100% (95.29%) (92.70%) 40.11% 82.33%Surplus on revaluation of assets net 100% 50.82% 45.88% 92.90% 82.80%

PROFITABILITY:

Mark-up/Return/Interest earned 100% 66.50% 69.96% 131.95% 229.64%

Mark-up/Return/Interest expensed 100% 31.00% 21.30% 54.33% 182.26%

Net Mark -up/Return/Interest 100% 101.59% 118.06% 208.67% 276.47%

Fee, commission, brokerage &income

100% 85.34% 210.23% 203.32% 226.28%

Dividend income & Capital gain 100% 251.15% 13.63% 41.09% 113.21%

Other income 100% 120.59% 56.98% 100.36% 100.36%

Operating expenses 100% 104.07% 112.07% 120.52% 149.53%

Profit before provisions 100% 134.43% 130.61% 325.11% 444.75%

Donations - - - .15% 9.00%

Provisions-(expense)/reversal 100% (27.00%) 49.47% (21.54%) (238.34%)

Additional charge for employeebenefit

100% (668.57%) (215.71%) - -

Profit/(Loss) before taxation 100% (60.11%) 30.37% 304.60% 419.72%

Taxation 100% (109.65%) (55.98%) 336.68% (437.06%)

December 31 2003 2004 2005 2006 2007

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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. The analysis is used to provide indicators of past

performance in terms of critical success factors of a business. This assistance in decision-

making reduces reliance on guesswork and intuition and establishes a basis for sound

judgment.

Note: A ratio on its own has little or no meaning at all.

Consider a current ratio of 2:1. This means that for every 1 monetary values of current

liabilities there are 2 of assets. However each business is different and each has different

working capital requirements. From this ratio, we cannot make any comments about the

liquidity of the business, whether it carries too much or too little working capital.

Significance of Using Ratios:

The significance of a ratio can only truly be appreciated when:

1. It is compared with other ratios in the same set of financial statements.

2. It is compared with the same ratio in previous financial statements (trend analysis).

3. It is compared with a standard of performance (industry average). Such a standard

may be either the ratio, which represents the typical performance of the trade, or

industry, or the ratio, which represents the target, set by management as desirable for

the business

4. Liquidity Ratios:

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Liquidity refers to the ability of a firm to meet its short-term financial obligations

when and as they fall due.

The main concern of liquidity ratio is to measure the ability of the firms to meet their

short-term maturing obligations. Failure to do this will result in the total failure of the

business, as it would be forced into liquidation.

1. CURRENT RATIO

2003 2004 2005 2006 2007

119818 127743 167328 197948 250611112766 118656 141464 173553 226719

1.06X 11.08X 1.18X 1.14X 1.10X

The ratio indicates the ability of the enterprise to pay its current obligations out of current

assets. Short term creditors are normally interested in this ratio.

Adequate working capital (current assets current liabilities) is necessary for interrupted

operations of an entity. However the amount of working capital itself may carry little

meaning unless it is measured in relation to current assets and current liabilities.

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2000

2001

2002

2003

2004

2005

2006

2007

2008

Current Rati

Seri

Seri

ANALYSIS

From 2003 to 2005 the current ratio increased by 1.06 to 1.18 but from 2006 to 2007 it

decreased by 1.10 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. The total deposits increased to Rs. 206 billion from last years Rs.161.4

billion, reflecting a growth of 28% with our market share increasing by 80 basis points

to 6.9%. The growth was achieved despite stiff competition for deposit mobilization

during FY06. Deposits continued to be our major source of funding as we maintained

an extensive customer base. Continuous expansion in Pakistans economy, growth in

per capita income and rising interest rates for time deposits were the main reasons for

the continued increase in the deposits.

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2. ASSETS MANAGEMENT RATIO:

2003 2004 2005 2006 2007

7497 4985 5245 9892 17216112465 117516 154926 192574 252027

6.50 4.20 3.30 5.10 7.00

In asset management ratio is very low, investors in the business would rather take their

money and place it somewhere else, to increase the assets the bank should make proper

plan and therefore used to assess how active various assets are in the business.

1998

2000

2002

2004

2006

2008

2010

2012

2014

Asset Management Rati

Seri

Seri

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FIXED ASSETS TURNOVER RATIO2003 2004 2005 2006 2007

7497 4985 5245 9892 17216

2835 2596 2552 4721 6445

2.64 1.92 2.05 2.09 2.67

The fixed assets turnover ratio measures the efficiency with which the firm has been

using its fixed assets to generate sales. It is calculated by dividing the firms sales by its

net fixed assets as follows: Generally, high fixed assets turnovers are preferred since they

indicate a better efficiency in fixed assets utilization.

2000

2002

2004

2006

2008

2010

Fixed assets Turnover Rati

Seri

Seri

3. Basic Earning Power Ratio

2003 2004 2005 2006 2007

7497 4985 5245 9892 17216

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112465 117516 154926 192574 252027

6.67 4.24 3.38 5.13 6.83

Earning per share is perhaps the most widely used of all accounting ratios. The trend is

earning per share and the expected earnings in future periods are major factors affecting

the market value of a companys share. The EPS share is encouraging for the investor. In

2003 EPS was 6.67 and in 2007 it becomes 6.83. This consistent growth shows better

policies and utilization of available resources

1998

2000

2002

2004

2006

2008

2010

2012

2014

Basic Earning Power Rati

SeriSeri

4. RETURN OF ASSETS RATIO (ROA)

2003 2004 2005 2006 2007

1069 386 192 3090 4397112465 117516 154926 192574 252027

0.95% 0.33% 0.12% 1.60% 1.75%

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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. The return on total assets also showing healthy growth in last 5 years. It was 0.95

in 2003 and reaches to 1.75 in 2007. It indicates that bank is utilizing its assets in a

professional way. This trend should be maintained to be competitive in the market

2000

2001

2002

2003

2004

2005

2006

2007

2008

Return on Assets Rati

Seri

Seri

5. RETURN ON EQUITY RATIO (ROE)

2003 2004 2005 2006 2007

1069 386 192 3090 43973506 3974 10256 14550 17688

30.50% 9.71% 1.87% 21.250% 24.86%

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In asset return on equity ratio is very high, investors in the business would rather take

their money and place it somewhere else, to increase the equity the bank should make

proper plan and therefore used to assess how active various assets are in the business.

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

Return on Equity Rati

Seri

Seri

6. RETURN ON CAPITAL EMPLOYED (ROCE)

2003 2004 2005 2006 2007

3770 1115 794 2025 67931063 1063 4405 4489 4489

3.55 1.05 1.80 0.45 1.513

Profitability is the ability of a business to earn profit over a period of time. Although the

profit figure is the starting point for any calculation of cash flow, as already pointed out,

profitable companies can still fail for a lack of cash

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2000

2001

2002

2003

2004

2005

2006

2007

2008

Return on Capital Employed (ROC

Seri

Seri

PROFIT MARGIN RATIO

2003 2004 2005 2006 2007

3770 1115 794 2025 67937497 4985 5245 9892 17216

50.29% 22.37% 15.14% 26.54% 39.46%

This is a widely used measure of performance and is comparable across other banks. The

fact that a bank works on a low margin profits.

.

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1980

1990

2000

2010

2020

2030

2040

2050

2060

Profit Margin Rati

Seri

Seri

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RECOMMENDATIONS

In order to improve that staff efficiency and avoid further rise in delinquency trend I have

Proposed the following recommendations to ;the UBL management;

3) Improve the Courier ServicesMost 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. And when the due date is

passed the customers or label to pay penalty of Rs .600.hance the irritated customers

clams an explanation from the collection officer who are much degraded at that moment

5) Communication GapAs new plan are prepared by the higher management should be will explained to

lower level management. Department wise so as to discipline that work according to the

policies and procedures devised. For this purpose ,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. More over the employees should be provide

chance for giving suggestion to the higher management in these session

6) Customer ComplainsOne 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 EducationProvide superior customer services is a fundamental goal of every successful business.

The manner in which employees provide value-added service is key not only to maintain,

but also to attract, additional business, to be successful service provides companies need

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to focus on variables such as improving employee efficiency and productivity thought

focused training

and education programs, the goal is to develop an extensive, 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, sometimes referred to as the project management

methodology approach

1. Assess what needs to thought

2. Identify and develop the training material

3. Test by running the program

4. Implementation of the program once the revisions are established

5. 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

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CONCLUSION

UBL is one of the banks performance has been improving day by day. It has been

offering unique services such has its recent campaign of free insurance for all UBL

account holder, car replacement plan etc, 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. I have observed during my internship that resource are

available put these are not will utilize by the management. Proper training should have

customer service center having UAN number as well as there should be proper check and

balance of each employee.

During my internship I found that staff efficiency and motivating the employees has a

deep relationship, due to this relationship output of UBL increases and it can easily

archive its goals. Human Resource of every department plays a primary role in

conducting any activity. Hence if the human resource is not will trained and efficient then

this will affect the entire organization productivity.

The deposit staff has been suffering high turnover absenteeism, lack of skilled profession

etc. 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. 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. All employees are hired on contracts that expire after a year. Only after a year

employees are kept permanent on the basis of their of dedication to work and their

achievements

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REFERENCES

1. Understanding employees motivation ; By james R.Lindner , Research and

Extension Association, Ohio State University

2. Improving Employee efficiency thought education by Anthony D Albanese.

3. Mc Enru, M.P (1989) The Perceived fairness of managerial promotion practices

Human Relation , M.A Lexington Books.

4. Extension D.J(1999), Complex problem solving Using Labor Manager

partnership public Employee Relation Journal California state University

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ANNEXURE

November 7, 1959

ChairmanHis Highness Shaikh Nahayan Mabarak Al NahayanDeputy Chairman

Sir Mohammad Anwar Pervez OBEPresident & CEO

Mr. Atif R. BokhariBranches

1056 Domestic, 15 Overseas BranchesRepresentative Offices

Tehran and CairoSubsidiary

United Bank AG Zurich, SwitzerlandUnited National Bank Limited, UK (joint venture with NBP)Associated Company

Oman United Exchange Company, MuscatOffshore Banking Unit

Export Processing Zone, EPZ Branch, Karachi, PakistanHead Office

State Life Insurance Corp. Building #1.I .I. Chandigarh Road, Karachi, PakistanP.O. Box No: 4306. Phone: (92-21 111-825-111)