Allied Bank Limited Was the First Bank to Be Established in Pakistan

8/2/2019 Allied Bank Limited Was the First Bank to Be Established in Pakistan

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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.


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ACKNOWLEDGEMENT

We offer our humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the Most

Considerate and the entire source of all knowledge and wisdom. We thank ALMIGHTY ALLAH,

who gave us the aptitude to do this project efficiently and successfully. We faced a lot of

difficulties during this period of developing this project. But Allah gave us a lot of patience and

due to the continuous encouragement of our teacher Sir Ghulam Mustafa and other people

concerned; we were able to complete this work.


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ALLIED BANK

Based On:

Integrity. Excellence in Service.

High Performance. Innovation and Growth.


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TABLEOFCONTENTS.

Preface Bank Profile History Of Bank Vision, Mission, Core Values Hierarchy

o Board Of Directorso Organization Charto Branch Organization Structure

Competitive Strategyo Target Marketo Varieties in Products.o Services.

Consumero Procedure For Opening An Accounto Cheque Book Issuing Process

Types Of Accounts Products Of Allied Bank Deposit Account. Allied Visa Credit Card. Allied Visa Debit Card. Allied Rising Star. Business Account. Internet Banking. 1-Link Network. Allied ATM Network.

SWOT Analysis.


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PREFACE

This Project is specially meant for the students of B.Com (hons.). It is

concerned to a brief study of the operation, Function, tasks and services of Allied

Bank of Pakistan.

Banking plays very important role in the commerce and economic

development of a country. Now-a-days banks are using different modern

technologies, which influence the managerial activities.

In preparation of this Report is have tried our best to provide all Possible

information about the operation, function and tasks of ABL in brief andcomprehensive form. We have also tried our best to use simple and easy words and

language.


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BANKPROFILE

Allied Bank Limited was the first bank to be established in Pakistan. It started out in

Lahore by the name Australasia Bank before independence in 1942 was renamed Allied Bank of

Pakistan Limited in 1974 and then Allied Bank Limited in 2005.In August 2004, because of

capital reconstruction, the Banks ownership was transferred to a consortium comprising

Ibrahim Leasing Limited and Ibrahim Group.

Allied Bank limited the Group's principal activities are to provide lending, depository

and related financial services. Financial services include credit risk management, foreign trade,

treasury, corporate and merchant banking, retail banking, electronic banking, credit cards,

marketing and customer service. Today, with its existence of over 60 years, the Bank has built

itself a foundation with a strong equity, assets and deposit base. It offers universal banking

services, while placing major emphasis on retail banking.

The Bank also has the largest network of over 700 online branches in Pakistan and offers

various technology-based products and services to its diverse clientele.

Today, Allied Bank's paid up Capital & Reserves exceed Rs. 13 billion, deposits exceed

Rs. 325 billion and total assets exceed Rs. 418 billion.


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HISTORY

Allied Bank was the first Muslim bank to have been established in Pakistan. Establishedin December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12

million under the Chairmanship ofKhawaja Bashir Bux, the Bank attracted deposits equivalent

to Rs. 0.431 million in its first eighteen months of business.

Today, Allied Bank's paid up Capital & Reserves exceed Rs. 13 billion, deposits exceed

Rs. 325 billion and total assets exceed Rs. 418 billion.

It started out in Lahore by the name Australasia Bank before independence in 1942; was

renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005.

In August 2004, because of capital reconstruction, the Banks ownership was transferred

to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today, with its existence of over 60 years, the Bank has built itself a foundation with a

strong equity, assets and deposit base. It offers universal banking services, while placing major

emphasis on retail banking. The Bank also has the largest network of over 800 online branches

in Pakistan and offers various technology-based products and services to its diverse clientele.

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.


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VISION

To become a dynamic and efficient bank providing integrated

solutions in order to be the first choice bank for the customers.

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 andreward dedicated team members according to their

abilities and performance

To play a proactive role in contributing towards thesociety

COREVALUES Integrity Excellence in Service High Performance Innovation and Growth


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BOARD OFDIRECTORS

Mohammad Naeem Mukhtar (Chairman) Muhammad Waseem Mukhtar (Director) Sheikh Jalees Ahmed (Director) Khalid A. Sherwani (Chief Executive Officer) Muhammad Raffat (Company Secretary) Sheikh Mukhtar Ahmed (Director) Abdul Aziz Khan (Director) Mubashir A. Akhtar (Director) Pervaiz Iqbal Butt (Director)


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ORGANIZATIONCHART

CHAIRMAN

CEO(PRESIDENT)

SENIOR EXECUTIVEVICE

PRESIDENT SEVP

SENIOR VICEPRESIDENT

EXECUTIVEVICEPRESIDENT

ASST.VICEPRESIDENT

OFFICERS GROUP(OG1,OG2,

SUPPORTING STAFF


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BRANCHORGANIZATIONSTRUCTURE

MANAGER

CUSTOMER SERVICEMANAGER

MG 10 MG 10

CDINCHARGE

TELLERCASHIER

ACCTOPENING

OFFICER

ATM& CASHBOOK

OFFICER

CLEARING OFFICER


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COMPETITIVESTRATEGY:

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

providing them the services they want. Allied banks 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.

TARGETMARKET

Allied Banks 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 banks main source of revenue earning is also the

corporate sector customers.

VARIETYINPRODUCTS

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 COMPETITIVETOOLS

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 mean to earn profit, but also to keep pace with the changing needs of the

customers and modern days banking trends.

SERVICES

Allied Bank offers the following services to its customers:

Home Remittances Remittances Hajj Services Utility Bills Lockers Commodity Operation


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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 banks own style.

CONSUMER.

In line with the Banks aim to provide a host of products and services to its customers,

substantial ground work has been done to establish a strong consumer banking business.

Furthermore, to achieve this objective, professionals from across the industry have been

recruited into areas of product development, sales, credit policy, research, consumer analytics,

call centers and service quality departments.

PROCEDURE FOR OPENING AN ACCOUNT INABL:

When customer comes in the bank for account opening the following procedure isfollowed.

Account opening form is given to the customer. All relevant information is given about the types of accounts and completion of the

form.


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When the customer returns the filled form then its particular is checked by the bankofficer.

Signature of the introducer is verified from the specimen signature card of theintroducer and stamp of signature verified is marked upon the form.

Account number is assigned to the form from the list of account number produced bythe computer.

Branch manager gives the final approval for the account. After approval from branch manager information given by the customer is inserted in

the computer.

Stamp of signature admitted is marked upon the form. Cheque book is issued to the customer.

CHEQUEBOOKISSUINGPROCESS

If someone 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

Current Account Profit and loss account or PLS Account 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.


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THETYPESOFACCOUNTS ANDPACKAGESOFFERED

BYABL:

The different types of accounts offered by ABL are:

PLS saving account (profit and loss saving account): Current account: ABA account (Allied business account): BBA account (Basic banking account): Foreign currency account E_Saver account Allied Savers Account Munafa package Mahana Amadni Package Allied Bachat Scheme package


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PRODUCTSOFALLIED BANK

Allied bank offers a wide range of products geared towards the customers. The

following products are available for customers:

Deposit Accounts Foreign Currency Accounts Allied Cash+ Card Online Banking Internet Banking Credit Card Advances/Financing Services

BUSINESS PROCESSANALYSIS

DEPOSITACCOUNT:

The following accounts are the parts of rupee deposits accounts:

a. Current Accountb. Saving Accountc. Allied Term Deposit Accountd. Allied Monthly Income Scheme

CURRENTACCOUNT

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.

SAVINGACCOUNT

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.


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ALLIED TERM DEPOSITACCOUNT

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%

ALLIED MONTHLYINCOMESCHEME

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.


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ALLIED VISA CREDITCARDS:

You authorize Allied Bank Limited to open an Allied Visa Credit Card account in your

name.With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art features and

unmatched value by spending at over 49,000 merchants across Pakistan and 27 million

merchant outlets worldwide! And what more, you can also use your credit card at over 1million ATMs internationally!

Allied Bank Limited will charge to this account any amount arising under transactions, which

you or a Supplementary Cardholder makes on the credit card and any other amounts which you

have to pay.

Credit card agreements today typically provide for a number of fees and charges, such

as Annual Fees, Cash Advance Fees, Late Payment Fees, Over-Limit Fees, etc. All these fees

and charges are included in the Schedule of Charges, which have been provided to you.

The minimum payment is the minimum amount you must pay each month to keep yourcredit card account from being in default. Allied Bank Limited usually requires a minimum

payment of 5% or Rs. 500, whichever is higher of the outstanding balance.

FEATURES

The Most Attractive Service Charge Buy Now, Pay Later Global Acceptance Flexible Repayment Cash Advance Facility Supplementary Cards Zero Loss Liability
http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/http://abl.com/consumer/gold/


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Balance Transfer Facility Allied Phone Banking Free CIP Lounge Access SMS Banking GCAS (Global Customer Assistance Service)

ADVANCES/CREDITDEPARTMENT: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).

TRADEFINANCE

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.


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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.

CORPORATEFINANCE

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.


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ALLIED VISA DEBITCARD:

The Card may be used to withdraw money at any Automated Teller Machine (ATM) or

to access any additional banking services offered through the ATMs or to pay for goods and

services at retailers or suppliers worldwide who display the VISA Plus sign and who accept the

Card, subject to compliance with VISA rules and regulations as applicable from time to time.

The Bank will issue a Card only if the Cardholder has duly completed an application

form.The Cardholder agrees that charges, fees, duties, levies and other expenses (collectively

the charges) will be charged by the Bank for the issuance and usage of the Card. All charges

are non-refundable unless otherwise indicated by the Bank.

The total amount of any Transactions carried out in any one day shall be limited to such

amounts and by such other conditions as shall be notified in writing to the Cardholder by the

Bank from time to time with effect from the date of such notice.

FEATURES

Get Cash Shop Any Where Dine Out Enjoy Traveling Get Groceries Have Fun Fuel Up Stay Alert Guidelines
http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/http://abl.com/consumer/debit_card/


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ALLIED

Allied Rising Star - Youths 1st Bank Account is a savings account for all youngsters below 18

years of age. It can help you save your pocket money and earn daily profit. And when youve

collected enough, theres so much you can do with your savings like buy your favorite books

and toys or a special present for your mummy or daddy, or even carry on saving! So if youre

below 18 years of age, you can open your very own Allied Rising Star - Youths 1st Bank Account

and have all the fun that goes with it!

When you open your account, its in your name, but you still have to take mummys, daddys or

your guardians help to use it - like with:

Signatures taking cash out from the ATM or the Bank general banking activities

You can use your account any timewhich means you can take money out with your parents orguardians help, or deposit money yourself, whenever you need to .

You get 2 accounts when you become an Allied Rising Star. One is your Main Account, which hasall the money that you deposit in it. The second is called your Wallet Account, in which all your

profit is collected.


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BUSINESSACCOUNT

Its 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.

EASYTO DEPOSITAND WITHDRAWN

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

withdraw money from any of the branch of ABL.

PAYORDERAND DEMAND DRAFTIn 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.

ACCOUNTINFORMATION

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

The information may be about accounts balance and account statements.

FOREIGNCURRENTACCOUNTS

Allied bank deals in following foreign currencies.

US Dollars Great Britain Pound Euro Japanese Yen


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INTERNETBANKING

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 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.

ONLINETRANSFER

This department providing online facility to the customers.

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 centralaccount of the bank and all the inter branch transactions has to go through this process.

ONLINEFEATURES

By Allied bank Online you can:

*Check your account balances.

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

* You can use your card for loan account payments.

* Check transaction history of your accounts.

* Get your account statement through fax.* Receive information on various Allied bank products and service.

* Find out status of your card or loan application.

* Request balance or reference certificate.


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1LINK

NETWORK:

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

branches, ABL has also enhanced ATM services by joining the 1-LINK SWITCH which has

following member banks.

ABN AMRO BANK AL BARAKA ISLAMIC BANK ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LIMITED ATLAS BANK LIMITED BANK AL HABIB LIMITED BANK ALFALAH LIMITED BANKISLAMI PAKISTAN LIMITED CRESENT COMMERCIAL BANK LIMITED DUBAI ISLAMIC BANK PAKISTAN LIMITED EMIRATES GLOBAL ISLAMIC BANK LIMITED FAYSAL BANK LIMITED FIRST DAWOOD ISLAMIC BANK LIMITED HABIB BANK LIMITED KASB BANK LIMITED MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN NIB BANK LIMITED PICIC COMMERCIAL BANK LIMITED SONERI BANK LIMITED STANDARD CHARTERED BANK PAKISTAN LIMITED UNION BANK LIMITED UNITED BANK LIMITED MYBANK LIMITED TAMEER MICRO FINANCE BANK LIMITED


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The card holders of ABL are thus able to access member banks ATMs for balance inquiry and

can withdrawal simultaneously vice versa. The card holders member banks can access ABLsATM machines. Every ATM which is connected with 1-LINK SWITCH has a logo which indicates

that 1-LINK SWITCH member can access the ATM.


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ALLIEDATMNETWORK

Allied Bank has a vast network of over 573 ATMs installed in over 130 cities, which continues to

grow at a rapid pace.

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 a remote branch. Remote Cheque Encashment from any online branch. Instant Funds Transfer between any 2 online branches. Remote Balance Inquiry and Statement of Account.


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SWOTANALYSIS

SWOT Analysis is the abbreviation of for words:

S _ STRENGTH W_ WEAKNESS O_ OPORTUNITIES T_ THREATS

STRENGTH

NETWORK OF 757 BRANCHES.

ONLINE FACILITY. SECURE BANKING. FOREIGN CURRENCY. VARIETY OF PRODUCTS LOCKERS FACILITY. CUSTOMER CARE CENTRE. SAME ACCOUNT NUMBER FACILITY. ACCOUNT OPENING.

PAID LEAVES. SUPPORTIVE ENVIRONMENT. LOW INTEREST RATES. EMPLOYEES REPLACEMENT. SECURE ENVIRONMENT.

WEAKNESSESS

LATE PROMOTIONS. LOW PRODUCT CREDIBILITY. MANUAL WORK.


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OPPORTUNITIES

ABL is working mostly in corporate sector and its basically missing a big share ofconsumer banking. If ABL over comes this point, then it can become of the biggest bank

of Pakistan. By improving itself in consumer banking it can really earn huge amount of

profits and can emerge as the top most bank of our country.

ABL has also ignored the sector of car financing, which is a very important financingnowadays. Many people nowadays buy cars through car financing but ABL does not

have this facility. If it starts car financing then definitely many people will get attracted

towards this scheme and definitely ABL will be able to earn a lot as well and many

customers will also get attracted in this way.

THREATS:

COMPETITORS. POLITICAL INSTABILITY. CHARGES BY GOVERNMENT. TRADE ,INDUSTRIES AND STOCK EXCHANGE. POLICIES OF ABL.

MATTER OFZAKAAT

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.

Allied Bank Limited Was the First Bank to Be Established in Pakistan

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