Mirza Salman Baig (Intership Report)

7/31/2019 Mirza Salman Baig (Intership Report)

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DEDICATION:

I would like to dedicate

This internship report

To my honorable vu teachersAnd my specials regards to my

Most respectful affectionate loving parents,

Who always,

Prayed for my success and betterment.

Dedicated To

My Beloved Parents &Honorable VU TeachersWhose affections & guidancehave enabled me to put my

strengths on the road to success and whose prays are

my shelter till my destination.


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ACKNOWLEDGEMENT

In the name of ALMIGHTY ALLAH, the most Gracious, Merciful and Compassionate,

the creator of the universe, who enabled me to complete this internship, report work

successfully. I would like to thank my BIOLOGICAL AND SPIRITUAL PARENTS without

whom Ive not been what Im. I am grateful to the Mr. Sheikh Masood Elahee (Branch

Manager) of Bank Alfalah, Mr. Malik Javaid (Manager Operations) and the entire

operations Department & Miss Maria Khan (CRO) of Bank Alfalah for helping and

guiding me in a relentless manner during my internship at Bank Alfalah. I also thankful

to Miss Saira (Manager Trade) & Mr. Hamayoun Rasool Malhee (Manager Credit), Miss

Hina also gives a greater knowledge about accounts department, so I am also thankful

to her. Last but not least I would love to thank all my friends for their undying support,help and for being there whenever I need them.


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EXECUTIVE SUMMARY

Being a student of business administration, its very much necessary to get the practical

experience of an organization and see the implementation of all that we have studied in

theory. When I stepped in Allied Bank to have my reality bite, I wasnt blind of what I am

going to have.

Internship is in fact a glimpse of job world and off course practical and professional life.

Internship at Allied Bank provided me an opportunity to explore practical work in light of

what I have studied during MBA. My SIX (6) week working at Allied Bank Limited, Main

GT Road Branch, and Gujranwala was full of learning regarding various aspects of

banking. This report contains practical knowledge, which I gained during my internship.

During the internship I have learnt basic banking work and a lot of practical work which I

had not acknowledged before. I worked indifferent departments and learnt basicoperations of the departments that departments are. Account opening department,

Clearing department, Remittance department Calling and sorting department etc. I have

spent most of my time in Account opening department and hence I learn what

professional attitude to adopt while dealing with external as well as internal customers. I

have filled out the different vouchers and slips such as Current Account slip, PLS

Saving Account deposit slip, clearing vouchers; online inter branch transaction slip etc.

This report is composed of the ABL History, ABL introduction, organizational structure,finance structure, its different Analysis such as critical analysis and swot analysis and

recommendation etc. e.g. ABL is the one of the leading bank that is first Muslim bank

incorporated in the soil of Pakistan in 1942.in Lahore as Australasia bank.ABL

organizational and financial structure is very trustworthy.ABL has some weakness but

by using its strength ABL can overcome the weakness as ABL is the strong and leading

bank, But It also has faces many threats but it has many opportunity to overcome the

threats.


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TABLE OF CONTENTS

S. No. Topic Page No.

Chapter No 1.

1. Introduction --------------------------------------------------------------

2. Over View of the Bank ABL------------------------------------------

History

Nature of the Organization

Business VolumeProduct Line

Competitors


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1. Introduction:

What is Bank ?A system of trading in money which involved safeguarding deposit and making funds

available for borrowersOr simply,

A bank is an institution which Accept deposits and give advances.

Definition of Bank:

Like many other subjects and social sciences no precise definition can be given from the study of

banking also. Different authors have defined and described this subject, keeping in view the

particular functions and modern banking, but the basic idea is the same. Banking has now become

a multi-service organization with wider scope and area of its influence. However, the following

definitions of bank are given by different writers from time to time.

Mr. Hart says, Bank is a person who in his ordinary course of business honors cheque drawn

upon him by person from and for being receives money or current accounts.

Mr. Gilbert says, Bank is a dealer in capital or more peculiarly in money. He is an intermediateparty between borrower and lenders.

Mr.Kinly says, Bank is an institution which receives deposits and advances loans.

The definition in the banking companies Act 1962 is Bank means a person, transacting the

business of accepting for the purpose of lending or investment, of deposits of money from the

public repayable on demand or otherwise and withdrawal by cheques, drafts or orders or otherwise

and includes any post office saving Bank.

In simple words, a bank can be defined as an institution dealing in money, accepting deposits and

advancing loans.

According to the Crowther, A bank collects money from those who have it spare or who are saving

it out of their Incomes. It lends money to those who require it.


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About Allied Bank:

Allied Bank Limited is the first bank incorporated on the soil of Pakistan. It was

incorporated in Lahore before independence in 1942 as Australasia Bank and was

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

Limited is the one of the top and renowned bank it has excellent reputation. In the wake

of its success one of the most important factors, apart from its energetic management

and prudent approach, is the QUALITY of its SERVICES, which gives it a great periphery

over its competitors ABL is providing the most modern and technologically advanced

services to its customers according to the customers need and demands, and hence the

ABL is meeting the customers expectation very finely. BANK has always strived tofacilitate its customers by introducing various high quality hi-tech services. Today the

Bank stands on a solid foundation of over 69 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 clients through its

network of 800 online branches in over 300 cities and towns. The bank has in place the

largest ATM network in the country with more than 573 ATMs in more than 130 citiesand towns across Pakistan.


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Main Sector of the Organization:

Main sector of the ABL are the: Credit department (Advances department) Foreign currency department (Deposit department)

Customer management servicesThe credit department and the foreign currency departments are basically the maindepartments in which the organization is dealing at a large scale and dealing is set inmotion in customer management services department. These departments are playinga vital role in banking sector. These departments give the bank a real business.

Credit Department:The main function of the credit department is to lend money to the borrowers on theinterest and hence bank earns a lot .ABL is serving the customers by giving the shortterm, medium term, long term, farm and non firm credits. The bank lends money againstsome guarantee or pledges or some property. ABL the is giving the clean advances

against promissory notes, giving secured advances against tangibles and marketablesecurities and now also lending money against life policies and immoveable property.

Foreign currency department:The ABL is also giving the facilities of foreign currency account as well as Pak rupeeaccount. Foreign currency department is also playing a vital role in the banking and itbecomes immense source of earning. In the allied bank the foreign currency accountcan be opened in many currencies but the four main currencies are:

US Dollar (USD) Euro (EUR) Japanese yen (JPY) Sterling Pond

Foreign currency account can be opened in many accounts such as: Current account Saving account Term deposit account

Customer management services:This is the department which is dealing with customers and

convinced them towards to open the accounts and persuading them to indulging inmany other activities of bank, these departments serving the customers in the variousways. The above two departments activities are actually starting from here it can be saythat customer service department is composed of the foreign currency departments andcredit departments.


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Allied Bank Limited operates by the following Vision, Mission & Values:

VISION:

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

MISSION:

To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements To create sustainable value through growth, efficiency and diversity for all

stakeholders To provide a challenging work environment, and reward dedicated team

members To play a proactive role in contributing towards the society

CORE VALUES:The core values of Allied Bank are these:

Integrity Excellence in Service High Performance Innovation and Growth

OBJECTIVES: Allied Bank has following objectives:

Prime focus to earn profit by providing values to its customers To provide superior services to its customers To provide assistance in the development of the commerce and trade industry Focus on blending skills and experience towards creating an enabling

environment Core focus is to inculcate a culture of collaboration intended to deliver world

class customer service


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OVERVIEW OF THE ORGANIZATION

Allied bank is the First Muslim bank that was established in December 3, 1942 in Lahore

as Australasia Bank, and then renamed as Allied Bank Pakistan Limited in 1942, and

then Allied Bank Limited in 2005.In 1942 the chairman of Australasia Bank wasKhawaja Bashir bux. Equity at the begging of this bank was Rs. 0.12 million. And at the

end of the first year the equity raised by .5 million. Initial total assets at this time was

the Rs. 0.572 million. By the end of 30th June 1947 capital of the Australia bank

increased to Rs 0.673 million and deposits raised to Rs. 7.728 million. On 14th August,

1947 the Australasia Bank was only the totally operational Muslim bank in Pakistan. At

this time all Australasia branches in India were closed down due to attack of rioters. And

hence the bank faces a big loss of capital and deposits. Luckily, very soon new

branches were come into existence in different areas of Pakistan such as in Rawalpindi,

Peshawar, Karachi, and Sialkot, Sargodha etc In spite of very sensitive and difficult

condition; during 1947 to 1948 the Australasia bank earned a profit of Rs.

50,000.Australasia bank was the first Pakistani bank that negotiated and opens L.C in

August 1948.andit made links with UK India and USA In 1950s Chairman was replaced

with his own brother Kh. Sharif Baksh. Progress remained continue, and at the end of

1970 it had 101 branches but unfortunately it had lost 51 branches at the time of

separation of East Pakistan. Yet the development remain continue and it did welldeposits and had 186 branches in 1973.1974, the Board of Directors of Australasia

Bank was dissolved and the bank was renamed as Allied Bank. In the first year the

profit is increased by 10 million, deposits rose by over 50percent and approached Rs

1460 million. Investments rose by 72 percent and advances exceeded Rs 1080 million

for the first time in bank history. 116 new branches were opened during 1974and the

Bank started participation in the spot procurement agriculture program of the

Government.

Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46

billion, and Advances and investments from Rs 1.34 billion to Rs 22 billion during this

period. It also opened three branches in the UK. For better running of enterprise the

ownership of an enterprise is transferred to its employees under the philosophy of

ESOP on September 10, 1991 bank became the countrys 1 st bank to be reconstituted


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as an institution jointly owned by its employees through the unique concept of

Employees Stock Ownership plan [ESOP] developed by the Allied Management Group

lead by Mr. Khalid Latif enabled the bank staff to react creatively to the privatization

challenge. More than 7500 staff members acquired a share in the bank As a result of

privatization in September 1991, Allied Bank entered in a new phase of its history, as

the worlds first bank to be owned and managed by its employees. In 1993 the First

Allied Bank Modaraba (FABM) was floated. After privatization, Allied Bank registered an

unparalleled growth to become one of the foremost financial institutions of Pakistan.

Allied Banks capital and reserves were Rs.1.525 (Billion) and assets amounted to Rs.

87.536 (Billion) and deposits were Rs.76.038 (Billion). In August 2004 as a result of

capital reconstruction, the Banks ownership was transferred to Ibrahim Leasing Limited

and Ibrahim Group. In May 2005 Ibrahim Leasing Limited was merged by transfer toand vested in with and into Allied Bank Limited

ABL was formally listed and trading of the shares of the Bank commenced the following

dates.

Islamabad Stock Exchange - 8th August 2005

Lahore Stock Exchange - 10th August 2005

Karachi Stock Exchange - 17th August 2005

Mohammad Aftab Manzoor has taken charge as CEO and President of the Bank on

August 132007. He is an ex-president of MCB Bank Ltd. The Bank also has the largest

network of over 700online branches in Pakistan and offers various technology-based

products and services to its varied clients. Today the Bank stands on a solid foundation

of over 63 years of its existence having strong equity, assets and deposits base offering

universal banking services with higher focus on retail banking. In the journey of bank it

shows that it greatly committed to its stability and huge growth by responding to the

changing environment with great leading

Best Retail Bank in Pakistan Award:

Allied Bank wins 'Best Retail Bank in Pakistan' Award


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Karachi, March 21, 2011: Allied Bank has been recognized as the 'Best Retail Bank in

Pakistan'. Mr. Zia Ijaz, Group Chief, Commercial & Retail Banking Group, Allied Bank,

received the award at The International Excellence in Retail Financial Services 2011

Awards ceremony, held in conjunction with the region most prestigious retail banking

event, the Excellence in Retail Financial Services Convention. The award program,

administered by The Asian Banker and refereed by prominent global bankers,

consultants and academics, is the most prestigious of its kind. The evaluation was

conducted on the basis of transparency in strategy; value of franchise; annual financial

performance; sustainability; sales capability; risk management; processes and

technology; penetration and efficiency of distribution channels; people skills; and ethical

banking. Chris Kapfer, Head of Asian Banker Research, said: 'With the retail banking

sector in Pakistan set for a period of high growth, banks will have to scale up their presence in areas such as physical and electronic penetration, product and service

offering, and most of all, be backed by superior management. Allied Bank has

demonstrated its commitment in all these aspects, and was able to make the retail

banking experience more enjoyable for the citizens of Pakistan.' About 150 senior

bankers from award-winning banks in 29 countries across the Asia Pacific, the Middle

East, Central Asia and Africa attended the event that recognizes their efforts in bringing

superior products and services to their customers. Allied Bank has been regularlybringing innovative product offerings to its customers. One of its latest offering 'Allied

Pay Anyone' enables its account holders to transfer funds 24/7, through three

convenient ways, i.e., telephone, mobile and internet, to anyone across Pakistan even if

the beneficiary does not have a bank account.


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Organizational Hierarchy chart

ORGANIZATIONAL STRUCTURE:

PRESIDENT

ASSEISTANT VICEPRESIDENT (AVP)

SENIOR VICEPRESEDENT

CEO

SENIOR EXECTIVE VICEPRESEDENT

EXECTIVE VICEPRESEDENT (EVP)

OG-I OG-IIIOG-II

SUPPORTINGSTAFF


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BRANCH STRUCTURE:

BRANCHMANAGER

OPERATIONALMANAGER

CUSTOMER SERVICESMANAGER (CSM)

CASHIER TELLER

LOWERSTAFF


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Business Volume2010 2009 2008

Total Assets 399,837,286 418,374,331 366,695,669

Investments 94,199,004 94,789,492 82,646,595

Advances 227,033,971 237,344,038 212,972,008

Interest Earned 44,992,696 41,121,503 30,570,540

Share Capital 7,821,009 7,110,008 5,386,370

EPS 10.52 10.02 5.85

Imports Exports 192,973 196,211 194,186

Other Informations

No. of Employees 8,947 8,713 8,325

No of branches 806 779 766

No of ATMs 574 530 489


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Product line:1 Link Network:

M. Network

Masters Cards

Allied Bank Rupee Travelers Checks

Home Remittances

Utility Bills

Different schemes:

Allied Umrah Aasan Allied Tahafuz Deposit Scheme

Allied Karzas Scheme

Allied Bachat scheme

Rewarding Term Deposit

Finance Facility:

Cash Finance

Demand Finance

Running Finance etc

Agricultural Finances etc

Accounts facility:

Current Account

Saving account

Allied Business Account

Allied Rising Star

Rewarding Profit Account

Other Accounts
http://www.abl.com.pk/commercial/rewarding_term.asphttp://www.abl.com.pk/commercial/rewarding_term.asphttp://www.abl.com.pk/commercial/dep_account.asphttp://www.abl.com.pk/commercial/dep_account.asphttp://www.abl.com.pk/commercial/rewarding_term.asp


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Bancassurance:

Anmol Rishty

IIm

Alsurance

Banking provides:

Internet Banking

Allied basic Banking

Foreign currency banking

Deposits: Allied profit plus term deposit

Allied profit deposit

Allied monthly income scheme etc

Large ATM Network:

24/7 availability

Phone Banking: Allied Bank is focused on delivering exceptional services to its customers that would

strengthen the relationship and build Loyalty. To make banking experience quick,

efficient, secure and easy, Allied Bank of Pakistan now offer its customers 24/7 Phone

Banking Service.


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Dial - 0800-22522 to get absolute Banking freedom


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Competitors:

These are the some competitors.

Habib bank limited

Soneri bank

Alfalah bank

United Bank Limited

The bank of Punjab

Soneri Bank LimitedBank Al-Habib Limited

Bank Al-Falah Limited


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DepartmentsCustomer service Department

Cash department

Advances Department

Foreign currency Department

Clearing Department

Foreign currency Department

Remittance Department OBC Intercity

Introduction of all departments:

Customer Service Department:This is the main department of the PAF branch. And this department is dealing with customer and

provides them services of giving the information about the Banks products and Services. And also

help the customer in different ways, also response to the complaint.

Cash Department:This is also the very important and main Department of PAF ABL branch as this department is

dealing in cash which come in the bank or goes from the bank. Cash is in different form of

currency. Its basic function is dealing with Receipts and Payments.

For example,

Accept deposits in terms of cash

Give advances in terms of cash

Collect utility bills etc

Other sources

Advances Department:


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This Department is also play a vital role in banking this department give advances to the customers

etc .To accept deposits and lend or give advances is the basic and primary Function of this bank.

The bank lends money in the form of Advances, against promissory notes Secured advances

against tangible and marketable securities. Etc.

Foreign Currency Department:

The function and role of foreign currency department is very important and pivotal in the banking

sector. It became the big source of a earning in bank. As it is dealing in the foreign currency. The

foreign currency account can also be open in many accounts same like as Pak rupee account, such

as

Saving account

Current account

Term deposit account

The bank deal in three type of foreign currency account

US Dollar (USD)

Euro (EUR)

Japanese yen (JPY)

Sterling Pond

Clearing Department:

This department is used for clearing for example clearance of cheque and the work of this

department is very sensitive and time taking. The clearance is dealing with those activates when

bank receive or pay the amounts or cheque of the other banks for instance the receiving or sending

amount to Mezan bank, Habib Bank Limited, National Bank of Pakistan, Soneri bank. Intercity

and OBC actually the part of the clearing department with little bit difference functioning .

Remittance Department:

The main task of the Remittance department is Transfer funds from one bank to another on

demand and the collection takes place in this department

Remittances include:


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Demand draft (DD)

Cash order or credit order

Online inter branch transaction

CommentsThe organizational hierarchy represents the different designations in organization, and every lower

level position officer/employee is responsible for the upper level designation person. And

Assistants play a very vital role in the organizational structure. Assistants assist their officer and

make the work/job easy and quick. And every one is responsible for his work for their officer.

Hence it creates a good control in overall structure and thus the overall ABL structure full filling

the overall requirement of the organization

The successful management depends on these factors:

Fully and hearted contribution of all the members/employees. Successful organizational

/management structure usually depends upon the fully and active contribution of the each member

of the organization:

Such as contribution of:

President

Board of directors

Supervisors All employees etc.

The manner of doing the work at each level is also very important PAF branch have above both

factors, every employee is responsible for senior officer in the branch and work with fully attention

and devotion, and the overall branch is under the control of board of directors and president etc.

and hence overall working of the branch is best. As the branch is under the control of: Presidents

and board of directors, Every junior employee of the branch is under the control of his senior

officer/employee and it creates the dual control on the branch and hence branch is working withfull awareness and with intimation and hence the PAF branch structure is fully fulfilling the

requirement of the organization.


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Plan of Internship Program

Brief Introduction of N- Block ABL Branch:

I have done my internship form allied bank limited PAF base branch Lahore. It is located on

Sarfraz Rafiqui Road PAF Market base Lahore. This branch has almost a 14employees. PAF

branch code is 0534 and GHAZANFER HAYAT is the Branch Manager of this branch.

It is a very diligence branch and it is situated from 36 years It is dealing in various Tasks. It is

situated in the commercial area as there is many schools are located near PAF branch and many

rich peoples buildings are located near the ABL PAF Base branch LHR and also the Pakistan Air

Force office and units are located near the PAF branch and hence it attract so many people on daily

basis. As, many teachers comes many a times for opening different types of accounts, joint

accounts, single accounts and for different other activities and also they deposit huge amounts, and

many PAF servants also comes daily in this bank for availing banking services and also many rich

people indulging with banks activities and hence the PAF Base ABL branch doing a very good

business. Thus, It has serving the all those customers in various aspects from 36 years with a

high quality of products and services. Its mode of dealing is very attractive as, It gives advances

and also performing the job of deposits at very attractable and reasonable rates. It is providing

and introducing the new and innovative products in the PAF area .It has a very good progress and

earns high profitability. And has a good reputation.

STARTINNG ENDING DATE OF INTERSHIP:

Starting date: 15 MayEnding date: 30th June

NAME OF DEPARTMENT AND DURATION:Account opening : 15 May to 21 st MayRemittance : 24 May to 28 MayClearing : 1st June to 8 JuneCalling and sorting : 9 June to 15 JuneOBC : 16 June to 23 JuneIntercity : 24 June to 30thJune


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Work done by me during internship:I have done six weeks internship form allied bank PAF Branch. And during my internship I was

work in different departments and I had been assigning with different tasks according to the

departments. During my internship I have learn many things which I found very interesting. One

the first week, the branch Manager told me about the employees of the Bank and handover me to

the Madam Mubashra and this madam tell me some basic information about the bank and the first

week, I did work in the Account Opening Department. Account Opening is the function is to opens

the accounts. First day Madam Mubashra Supervisor of the bank gave me some basic information

about the bank. She told me about the departments of the bank and some other basic information

about the bank, cheque, records, deposits slips, current slip etc. Second day she told me that now I

have to start work in the different departments. I started my internship from account opening

department

.

Account Opening Department:

I have started my internship from Account Opening department. Second day of my internship the

Customer service officer Madam Maira informed me and taught me that how to open the accounts.

She told me about the different Accounts, such as Current Account, Saving Account, joint

Account, Business Account. Third day I have assigned the work of Opening the Accounts, and Ienjoyed this work a lot. I had opened the different accounts but I observed during my 6 one week

in Account Opening Departments that the most clients come to open the personal account and most

of them are PAF servants. The most of the working is conducted in this department and this

department having a lot of burden of work.

Tasks Assigned to me in Account Opening Department: To open the Account

Filling of Account opening Form Filling of check list

Filling of KYC form

Taken sign on Specimen Signature card

Allot the Account number


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Enter the Account number into the relevant Account Opening Register

Calling the clients/customers if any omission or mistake found in the Account

Issuance of Cheque book.

Calling them after receiving the ATM card of the customers/issuance of ATM card

Telling them the remaining balance and other account information of the account

Filling of different slips

Closing the Account

Process Detail:How to Open the Account?When persons came for opening the Account I had verified the person first and I have received

copy of identity card after seeing the original identity card and job/service certificates in case

of servant, student identity card in case of student, property certificate, and then I was starting the

filling of Account opening form, I had filled the Account opening form specifications such as,

The type of account which any person want to be open, he has to select that.

Nature of account whether individual or proprietorship or other.

Currency (in which want to operate).

Particular of deposits. (Period for operation).

Complete address of the person who want to open the account (applicant)

Complete address of the next of kin of the applicant

Telephone number of the applicant and next of kin number

Nature of business etc.

Detail of other accounts.

Complete Personal information. which is required for Account opening form such as;

Name of the applicant, his father/husband, mother/wife name, and name of his next of kin

Date of birth.

Nationality etc.

Then signatures of the account holders and the bankers and manager.

Signature of the introducer, his account number and addressed

KYC form:


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After filling the form of account opening I had filled the KYC form (known your customer).

Taking sign on Specimen Signature CardWhen this form is filled then signature of the person who want to open the account are to be taken

on the Specimen Signature Card, and I had checked the signature carefully; this signature must be

matched with the identity card signature. Then it is recorded in the computer. Specimen Signature

Card is available in Annexes.

Allot the Account number :

After filling of all required documents I had allot the Account number to the new opened account

which is being processed till now.

Enter the Account number into the relevant Account Opening Register:

After allotting the account #, I put it in all the spaces of account opening form, SSC card etc and

then enter this account # in the relevant Account opening register, for example the account #

of joint account will be enter in the joint Account Opening Register.

Calling the clients/customers if any omission or mistake found in the Account:

I did all the work of opening account very carefully, but if there found any mistake or signature

differ problem or any type of mistake or omission then I had called those customers and rectify the

errors.

Issuance of Cheque book:

After the completion of all the formalities of Account opening form the customer receives the letter

of thanks. Then. He will get the cheque book within a week and my job was to receiving the

cheque book and I had to verify the customer signature and I had to issue the cheque

book manually.

There is a requisition slip with every cheque book for the purpose of re issuance of cheque

book when all the leaves of first cheque book are being used. The following information is printed

on the front of cheque book.

Title of Account

Account number of customer


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The stamp of ABL

And it also contains the signature of the authorized person and this all information is printed on

every page of cheque book.

Calling them after receiving the ATM card of the customers/ issuance of ATM:

After some days of opening account the ATMs are issued by the bank. My job was to receive the

ATMs card of applicants and then calling them.

I had called all the ATMs clients and told them to bring their ATMs card it is issued. I had issued

the ATMs card and received the sign on the ATM record register and sign of those customers who

had received their ATMs card by me.

Telling them the remaining balance and other account information of the account:Here I was assigned the work of telling the remaining balance, payments etc I used to tell to the

customer about their receipts, payments, charges and remaining balance etc and I told these

Account information only those persons who are the real account holder of that account I

never told these information to any other persons who asking these even to his relative one.

I had asked the account number and then after opening the account on pc I used to ask the title

of the account and after proper verification I used to tell the Account information to the real

accountholder. After telling I also record it on the book that I opened and told this accountinformation to its account holder.

Filling of different Slips:

Here I had assigned the work of filling of different slips of the customers who didnt know how to

fill the slip.

I had filled different slips but I mostly I had filled these slips thats are

Current Account Slip

PLS Saving Account deposit Slip

How to fill the Current Account Slip:

This slip is used for current account only for withdrawing the money from current account. It is

very easy to fill; I had filled the following information in this slip

Title of Account (name of Account holder) in two spaces


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Phone # of the Account holder

Account # in two places

Amount in figures as well as in digits in two places which the Account holder wanted to

take out.

And word Cash in the particulars.

And then getting the sign of the Account holder.

PLS Saving Account deposit Slip:I also had used to fill these slips and PLS saving account slips are used in case of saving Account

and it is used for depositing the cash or cheque etc. this slip is just like a current account slip with the

same filling only with the difference in the particulars filling and it include the stamp when I had

received the cheque for depositing then I had entered the cheque # of the bank that and name of those bank from which the amount is being transferring/ adding into the ABL account of the

account holder.

(Available in annexes)

Remittance:

Transfer of fund from one place to the other within the city or out of the city

It is the one of the major function of banking sector.

I worked in this department four days i.e. form 24 th May to 28 th May.

Tasks Assigned to me in Remittance Department:

Madam Mubashra is the officer of this department. During four days I have worked in two

Assignments in this department.

Issuance of Demand Draft (DD)

Demand Draft Issue Register

Demand Draft Issue Payable Register:

Filling/ issuance of Pay order

Online inter branch transaction

Keep record of all issued and paid pay order

Process:Demand draft (DD): The first and the most popular way of remittance is Demand Draft


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The DD has the following information which I had filled during issuing the DD:

A bank Demand draft has following particulars:

Payees name

Date of issue

Amount in words and figures

Drawee Branchs name and code

Address

Serial number

Demand Draft Issue Register:

After filling and making of DD I had to record this on the DD issue register and this register have

the following details:

Date

Draft Number

Name of purchaser

Favoring

Amount

Amount of Exchange

Demand Draft Issue Payable Register:

When a DD is paid and received then an entry is made in the Demand draft payable register. This

register has the following particulars.

Date on which it is received


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Draft number and its date

Favoring

Amount

Paid on

Filling/ issuance of Pay order:

Pay order is used to transfer money within city. It is very safe and convenient method to sending

money from one place to another place.

Pay Order involves the following parties:

Purchaser May be a person, firm, company or local authority

Issuing/paying branch is one which issues/pays on presentation

Payee is a person named there in

Process:

I issue the pay order by making the pay order on the receipt and this receipt is Issue and payable by

other bank. Here I had to make the record of all issued and paid pay orders. As pay order is in the

written form thus certain document filled by the client/customer and by me.

Detail of the procedure is already described above (In departments activities/operation)

Online Inter branch transaction:

Online transferring of funds from one place to another place This is also the very fast,

convenient and popular way of transferring of funds from one place to another place.

In this department I mostly issue/prepare the online inter branch slip.


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Online inter branch transaction Slip:

This slip is used to transfer fund from one place to other far place. I also filled these slips as well as

above slips. And this slip contains the following information:

Applicant name,

Applicants NIC No., address and Tel No.

Remote Branch name and code,

Remote Account title, A/C No,

Amount in Rs as well as in words

Signature of the Applicant etc

And after filling, I received the identity card copy and attach it with the online slip. And put a

Stamp on it.

Clearing Department:

Clearance means to clear the cheque of other branches:

Tasks Assigned to me in Clearing Department:

In this department I had done these works.

Sorting of cheques

Made vouchers

Stamping on Cheques

Recorded all inward clearing cheques/vouchers Inward Clearing Register

Recorded all outward cheques/vouchers in clearing outward Clearing Register


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Returned cheque record

Recorded the reason of returning and attached the reason Slip with cheque

Process:

Firstly I had to sort out all the cheques branch wise and then I used to scrutinize the each cheque

the cheque should be free of error thats are going into clearing, all particulars should filled

properly, the sign should be matched the amounts in figures and words should be matched, and

stamp of clearing of other bank should be put on all cheques if there is any mistake exist in the

cheques then those cheque will be returned. And I had filled the returning reason slip and then

attached this slip with the Cheque and then I had to record this in the clearing returned register.And those cheque thats free from errors I had selected them and then made their vouchers and

advices and stamped them and then recorded all the vouchers and advices in their respective

register. i.e. inward clearing in inward clearing register and out ward clearing cheques in out ward

clearing register

Intercity:

Intercity is the same as of Clearing but the difference is that clearing is dealing those cheques

of other branches thats are come from within the city and intercity is used for outside city cheques

but local cheques (NIFT having)

For ABL these are the local cities thats used in intercity

Islamabad

Karachi

Lahore Rawalpindi

Peshawar

Multan

Tasks Assigned to me in Clearing Department:


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In this department I had done these works.

Sorting of cheques

Made vouchers

Stamping on Cheques

Recorded all inward intercity cheques/vouchers Inward Intercity Register

Recorded all outward intercity cheques/vouchers in clearing outward Intercity Register

Returned cheque record

Recorded the reason of returning and attached the reason Slip with cheque

Process of intercity:

Almost the intercity Process is the same as clearing with little bit difference. E.g. for Intercity

Clearing a stamp of intercity instead of clearing posted on face of bill, then amount, account

number and city name is entered in a separate register and deposit slip is attached in a specific file.

And a stamp is posted on back of bill. A separate slip is filled for every city given by NIFT. In the

specified envelope is used for every city given by NIFT with printed name of city. One advice ismade for him. Three copies are prepared for each advice. One advice goes to CSO for record. One

goes for cashier and one goes to the clearing department for entry in the computer. When we

release the intercity/clearing then we will Debited the advice and cheque will credited. And when

we lodge the intercity/clearing then advice will be credited and cheque will be debited

OBC Department:

OBC (out ward bill for collection):

It is the same as clearing and intercity but the difference is that the branch transfer or receives the cheque

of the banks that are out of station.

OBC COLLECTION PROCEDURE:


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It is mention on the cheque that the person To Whom It May Concern can cash it from the certain branch

of the bank in favor of which its drawn. The customer presents the cheque to his branch, which sends a

document called OBC to the bank that has to make the payment. The clearing department of the

receiving bank follows a prescribed procedure and credits the amount to sending bank through a central

account maintained by each bank with SBP. ABL sends the cheque to its own branch if available for

collection from the payers banks otherwise the OBC is directly sent to other bank.

MAINTAINING REGISTER for OBCS:

We have a register in which we have the serial no for OBC with other details like amount, date, sending

and receiving branches codes. Every OBC is entered in the register on daily basis. If OBC is not cleared

due to what ever fault, we take it back as a return but after that we call the concerned person and we also

write name of person.

OBC are of two types:

1. IBC or inter bank collection:

When the cheque received by the bank for clearing this is calls IBC.

2. OBC or outward bank collection:

When the cheque is send by Allied bank limited to the other bank for clearance this is OBC for Allied

bank limited


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Ratiosa) Liquidity Ratio

1.Current Ratio:Formula:

Current ratio = Current Assets / Current Liabilities

Rupees in 000

2010 2009 2008Current Assets 290,992,251 269,570,232 256,465,600

Current Liabilities 337,739,972 320,979,606 223,816,575C.A / C.L 0.86 0.84 1.15

Working:Current Assets:Cash and balances with treasury banks + Balances with other banks + Lendings to financialinstitutions + Investments (current) + Advances (current) + Other assets (current)

Current Liabilities:Bills payable + Borrowings + Deposits and other accounts (current) + other liabilities (current)

Graphical Presentation of Ratio:

Interpretation:This ratios is indicates the Liquidity (ability of a bank to meet short tern obligation) of the business

by comparing the current assets to current liabilities. The higher current ratio indicates the better liquid position. As, the current ratio of 2010 is become higher as compare to 2009 its a good signof liquidity its mean the bank become the more liquid, and more able to meet the short termobligations yet the ratio of 2009 is less as compare to 2008 and its an alarming situation becauseyet the ratio is lower than1, which is a not a good sign and standard current ration is 2:1.


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2.Acid Test Ratio:

Formula:Current ratio = Current Assets / Current Liabilities

Rupees in 000

2010 2009 2008Current Assets 290,992,251 269,570,232 256,465,600

Current Liabilities 337,739,972 320,979,606 223,816,575C.A / C.L 0.86 0.84 1.15




Interpretation:This ratios is indicates the Liquidity (ability of a bank to meet short tern obligation) of the business

by comparing the current assets to current liabilities. The higher current ratio indicates the better liquid position. As, the current ratio of 2010 is become higher as compare to 2009 its a good signof liquidity its mean the bank become the more liquid, and more able to meet the short termobligations yet the ratio of 2009 is less as compare to 2008 and its an alarming situation becauseyet the ratio is lower than1, which is a not a good sign and standard current ration is 2:1.


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3. Working Capital:

Formula:Working Capital = Current Assets - Current Liabilities

Rupees in 000

2010 2009 2008Current Assets 290,992,251 269,570,232 256,465,600

Current Liabilities 337,739,972 320,979,606 223,816,575C.A - C.L -46,747,721 -51,409,374 32,649,025




Interpretation:WORKING CAPITAL Compares the current assets with the current liabilities it indicates that either the firm/bank is in a condition that it can pay its liabilities when due. Higher and appropriateworking capital is used to face and get over the contingencies and uncertainties. But here in ABLworking capital shows very low even in negative value in 2010 and 2009 so I think that ABL haveno appropriate Working Capital to face and get over contingencies and uncertainties in last twoyears, but in 2008 ABL have a amount to get over this situation. As, the working capital isdecreasing in 2009 & 2010 and it is bad for bank.

.


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b) Leverage Ratio

1.

Times Interest Earned:Formula:

Times Interest Earned = Earning before Income Tax (EBIT) / Interest Expense

Rupees in 000

2010 2009 2008EBIT 12343106 10536120 6120940

Interest Expense 22427652 22421694 17272724EBIT / I.E 0.55 0.47 0.35 Working:EBIT:Earning before Income Tax (EBIT) take from Profit and Loss Account

Interest Expense:Interest Expense value is the value of Mark-up / Return / Interest Expensed Profit and Lossaccount.


Interpretation:This ratio serves as one measure of the firms ability to meet its interest payments and thus avoid

bankruptcy. In general, higher the ratio, the greater the likelihood that the company could cover itsinterest payments without difficulty. In 2008 the bank Time interest earned Ratio is 0.35 times in2009 the ratios increases and reaches it 0.47 times and 2010 ratio also increases..

.


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2. Debt Ratio :Formula:

Debt Ratio = Total Liabilities / Total Assets

Rupees in 000

2010 2009 2008Total Liabilities 369,587,496 388,414,353 344,340,055

Total Assets 399,837,286 418,374,331 366,695,669T.L / T.A 0.92 0.93 0.94

Working:Total Assets:Amount takes from Balance sheet

Total Liabilities:Amount takes from Balance sheet


Interpretation:It indicates percentage of total assets financed by debt. The ratio under 1 means a majority of assets are financed through equity and the ratios is above 1 indicates the assets are financedthrough debt. A bank ratio in 2008 is 0.94 and in 2009 is 0.93 and in 2010 is 0.92 which shows thatthe assets are financed through equity rather then debt..


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3. Debt / Equity Ratio:Formula:

Debt / Equity Ratio = Total Liabilities / Total Share holder equity

Rupees in 000

2010 2009 2008Total Liabilities 369,587,496 388,414,353 344,340,055

Total Share Holder Equity 26,254,376 25,891,278 20,805,117T.L / T.E 14 15 16.6

Working:Total Liabilities:Amount takes from Balance sheet

Total Share holder equity:Total share holder equity = share capital + Reserves + Unappropriated Profit and amount takesfrom Balance sheet


Interpretation:Creditors would generally like this ratio to be low. The lower the ratio, the higher the levelof firms that is being provided by shareholders. This ratio also tells as about capital structure,what portion of debt in the bank overall capital. In 2008 this ratio is 16.6 and in 2009 the ratio is 15and in 2010 this ratios decreases which is 14 it is good for bank.


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4. Debt to Tangible Net worth Ratio :Formula:

Debt to Tangible Net worth Ratio = Total Debt / Tangible Net Worth

Rupees in 000

2010 2009 2008Total Debt 369,587,496 388,414,353 344,340,055

Tangible Net Worth 30067430 29804437 22248708T.D / T.N.W 12.3 13 15.5

Working:Total Debt:Amount takes from Balance sheet

Tangible Net Worth:Tangible Net Worth = Total Assets Intangible Assets Total LiabilitiesTotal Assets and Total Liabilities values takes from balance sheetIntangible Assets amount takes from operating Fixed Assets


Interpretation:The tangible net worth in 2008 is 15.5 and in 2009 is 13 and in 2010 it decrease to 12.3, it is agood sign as Total debt decreasing as compare to Total tangible Net worth. Which shows the better condition.


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5.Total Capitalization Ratio:Formula:

Total Capitalization Ratio= Long Term Debt / (Long Term Debt + Shareholder Equity)

Rupees in 000

2010 2009 2008Long Term Debt

Long Term Debt +Shareholder Equity

Working:Long Term Debt:Deposits and other accounts (Long Term) + Sub-ordinated loans + liabilities against assets subjectto finance lease + Deferred Tax liabilities + other liabilities (Long term) and Amount takes fromBalance sheet and its Notes

Total Share holder equity:Total share holder equity = share capital + Reserves + Unappropriated Profit and amount takesfrom Balance sheet


Interpretation:This ratio represents the proportional importance of long term debt to long tern financing. Where,the total capitalization represents all long term debt and shareholders equity. The above ratio showsthat the ratio is suitable for financing


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c) Profitability Ratios

1. Net Profit Margin Ratio:Formula:

Net Profit Margin Ratio = (Net Income / Net Sales) * 100

Rupees in 000

2010 2009 2008Net Income 8225332 7122167 4156686

Net Sales 44992696 41121503 30570540

Net Income / Net Sales *100 18.3 % 17.3 % 13.6 %

Working:Net Income:The amount takes profit after tax from Profit & Loss Account

Net Sales:The amount takes from Mark-up / Return / Interest Earned in Profit and Loss account


Interpretation:This ratios shows the efficiency of the bank, how bank efficiently uses its assets and generating

profits, the percentage of net profit based on sales, the bank net profit ratio in 2008 is 13.6% itincreases in 2009 which is 17.3% and in 2010 bank net profit ratio increases which good which is18.3%


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2. Return on Assets :Formula:

Return on Assets = EBIT / Total Assets

Rupees in 000

2010 2009 2008EBIT

Total AssetsReturn on Assets

Working:EBIT:Earning before Income Tax (EBIT) take from Profit and Loss Account

Total Assets:The values takes from balance sheet


Interpretation:This ratios shows the efficiency of the bank, how bank efficiently uses its assets and generating

profits, the percentage of net profit based on sales, the bank net profit ratio in 2008 is 13.6% itincreases in 2009 which is 17.3% and in 2010 bank net profit ratio increases which good which is18.3%


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Future out Look:To increase its profit, Expansion in volume, increase in number of share holders is the future

planning of the ABL. ABL can get this by a enhance its effort. Its history is very well. The global

financial crisis has its effects trickling down to the banking system. The financial sector is facingits lows but still on its comparative basis its better than other neighboring countries owing to

regulations and role of SBP to take timely corrective measures. Measures include relaxation of

CRR and SLR in phases.

The banking sectors spread continues its rising trends after witnessing. Profits shows that long

term investment in Pakistani banking system will be lucrative, as the asset quality is quite

satisfactory.

Challenges faced by the economy in general and banking sector in particular, include restrained

liquidity, slowdown of economic activities and high inflation. Despite of these issues, ABL has

been able to maintain its profitability and equipped to face challenges with its dynamic

management and trained workforce.

Future Planning Products:

Allied rising Star

Rewarding Term Deposit

Rewarding Profit Account


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Conclusion:

Although the country is suffering from the financial crises, slow economic

growth, and lack of political stability, however, still the ABL continues to fulfill

its commitment by contributing in a structured manner, by focusing onAgriculture sector and SME, strengthening cooperate and commercial

relationships, product innovation, creativity , technological advancement, and

continuous focus on service quality. Due to its strong foundation and well-built

strategy. Customer is the focus of everything for ABL and ABL is working

tirelessly to enhance relationship with customers by understanding them

and then offering relevant products and services all the times and ABL

tirelessly continues to working very hard to strengthen the relationship with

customers and number of initiatives has been taken by ABL to strengthen its

overall function.

During three years analysis of ABL such as from 2008 to 2010, I observed that

ABL has impressive profit growth as from 2008 to 2010 its profit after tax rise

by Rs. 4,157 million to Rs. 8,225 million. And it resulted in increase in ROA by

1.21% to 1.89%, and ROE by 21.2% to 28.8% by average.

Thus I have concluded that the ABL is a financially strong bank and having the

long term rating of AA and short term rating of A1+ by PACRA, and serving

and continuously attracting the large number of customers by offering them

the innovative, reliable and better competitive products and services and

capture a great part of the market in the country by having a large number

of depositors and customer. N, Block Branch also a very progressive branch

and it expanding its business very rapidly and serve the customers very

efficiently from 36 years.


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From: FBLBusiness volume:

http://www.google.com.pk/search?

q=business+volume+of+abl+bank +2010&hl=en&source=hp&aq=f

&aqi=&aql=&oq=http://www.ablamc.com/investor_education/glossary/http://www.abl.com.pk/commercial/product_information.asp

Lahore, March 16, 2011: The 65th Annual General Meeting (AGM) of the shareholders of Allied Bank was held here today, which was chaired by Mr. Mohammad Naeem Mukhtar,

Chairman, Board of Directors, Allied Bank. Members of the Board, State Bank representatives, external auditors, institutional shareholders as well as a large number of individual shareholders also attended the event. The Shareholders adopted the Annual

Accounts of the Bank for the year 2010. The AGM considered and accorded approval forthe payment of Final Cash Dividend @ 20 percent i.e., Rs. 2.00 per share asrecommended by the Board of Directors, in addition to 20 percent interim cash dividendalready paid for the year 2010. The Shareholders also approved issuance of 10 percentBonus shares by utilizing share premium account. The Shareholders also approvedincrease in the Autrhozied Capital of the Bank from Rs. 10 Billion to Rs. 15 Billion as

recommended by the Board of Directors keeping in view the State Bank's future Capital Adequacy and Paid up Capital requirements, as well as the future growth and expansionplan of the Bank. Total assets of the Bank increased to Rs. 450 billion, while tier-I equityimproved by over 20 percent to Rs. 31 billion at the year end. Deposits of the Bank havegrown by 13percent to reach Rs. 371 billion as at December 31, 2010 over the previousyear. Gross Advances grew by 8 percent over the previous year and reached to Rs. 269
http://www.ablamc.com/investor_education/glossary/http://www.abl.com.pk/commercial/product_information.asphttp://www.ablamc.com/investor_education/glossary/http://www.abl.com.pk/commercial/product_information.asp


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billion as on December 31, 2010. The Bank has earned Rs. 8.2 billion profit after taxregistering growth of 15.5 percent over previous year


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