PRESENTED TO:

RIAZ AHMAD MIAN

PRESENTED BY:
MUSARRAT FATIMA SWAIRA GUL Mi08MBA021 Mi08MBA026

MEHWISH ASHRAF

Mi08MBA059

HAILEY COLLEGE OF BANKING & FINANCE UNIVERSITY OF PUNJAB LAHORE

HISTORY OF BANKING
The history of banking is traced to 2000 B.C in Greece.

FOUR STAGES OF EVOLUTION:Priest and Goldsmiths acted as financial agents by keeping money and valuables of people in temples in strong safes The second stage in the development of banking was the issuance of bank notes. They began to give interest on the money deposited with them. This was the third stage in the development of banking . Banks allowed the overdraft facility to their deposits and this was the fourth stage in the development of banking.

HISTORY OF ALLIED BANK

Allied Bank Limited was the first bank to be established

in Pakistan by the name Of Australasia Bank before

independence in 1942 with a paid-up share capital of Rs. 0.12 million. Today Allied Banks paid-up capital & reserves amount to Rs. 10.5 billion. ABL was renamed as Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in

In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry . It was particularly upsetting for Khawaja Bashir Bux to hear that

The Pre Independence Journey (1942 to 1947)

Muslims could not be successful bankers. A view of Khawaja Bashir Bux's Residence
The first branch of Australasia Bank

Allied Bank (1991 to 2004

In 1993 the First Allied Bank Modaraba (FABM) was floated.
2005 to Date In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made; ABL was formally listed and the Banks share trading began on the following dates: Islamabad Stock Exchange Lahore Stock Exchange Karachi Stock Exchange 8th 10th 17th August 2005 August 2005 August 2005

SLOGAN OF ABL
Crafting value, enhancing creativity

VISION
To become a dynamic and efficient bank providing integrated solutions in order to become 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 customers requirements. To create sustainable value through growth, efficiency and diversity for all stakeholders. To provide a challenging work environment and reward dedicated team members according to their abilities and performance. To play a proactive role in contributing towards the society

CORE VALUES:
Integrity
Excellence in Service High Performance

Innovation and Growth

CORPORATE INFORMATION
CENTRAL OFFICE
Bath Island, Khayaban-e-Iqbal, Main Clifton Road, Karachi-75600 UAN: (92 21) 111-110-110

REGISTERED OFFICE

8-Kashmir/Egerton Road, Lahore UAN: (92 42) 111-110-110

COMPANY SECRETARY
Waheed-Ur-Rehman,FCA

AUDITORS

M.Yousaf Adil Saleem & Co.

Chartered Accountants Chartered Accountants

KPMG Taseer Hadi & Co.

BOARD OF DIRECTORS

MANAGEMENT

Asim Tufail

(Group Chief, Consumer & Personal Banking)

Iqbal Zaidi

(Group Chief, Compliance)

Mohammad Aftab Manzoor

(Chief Executive Officer)
(Group Chief, Treasury)

Muhammad Yaseen Shafique Ahmed Uqaili Tahir Hassan Qureshi Waheed ur Rehman

(Group Chief, Human Resources) (Chief Financial Officer) (Company Secretary)

Fareed Vardag
(Chief Risk Officer)

Mohammad Abbas Sheikh

(Group Chief, Special asset management) (Group Chief, Corporate & Investment Banking)

Muhammad Jawaid Iqbal

Mujahid Ali

(Group Chief, Information Technology)

Khawaja Mohammad Almas

(Head, Core Banking Projects)

Zia Ijaz
(Group Chief, Commercial & Retail Banking) (Group Chief, Operations)

Tariq Mehmood

AUDIT COMMITTEE

Sheikh Mukhtar Ahmad

Farrakh Qayyum Mubashir A. Akhtar Sheikh Jalees Ahmed

Chairman

WEBSITE & EMAIL:

www.abl.com E-mail: info@abl.com

Member

Member

TOLL FREE NUMBER:

0800-22522

Memeber

BRANCH NETWORK
CENTRAL I GROUP
Regions
Faisalabad Region Sargodha Region Gulberg Region, Lahore Gujranwala Region City Region, Lahore Sialkot Region Gujrat Region

Branches
35 36 38 34 35 24 21

Total

223

CENTRAL II GROUP
Regions Jhang Region Multan Region Sahiwal Region Bahawalpur Region Rahim Yar Khan Region Total Branches 19 31 25 22 12 109

NORTH GROUP
Regions
Rawalpindi Peshawar Mir Pur Mardan Islamabad Abbottabad Muzaffarabad Kohat

Branches
40 40 33 32 30 20 18 17
236

Total

SOUTH GROUP
Regions
Sadar, Karachi Mazimabad, Karachi City, Karachi Quetta Hyderabad Sukkur Nawabshah

Branches
32 32 31 31 24 21 17

Total

198

AWARDS

Deal of the Year Award 2008 by The Banker-UK Corporate Finance House of the Year 2007 Corporate Report Award & Certificate Tern Finance Certificate (TFC)-1st Issue Top 1000 Banks of the World-Ranking Credit Rating Corporate Governance Rating

RANK CATEGORIES
Performance Based
Profit on Average Capital (RoE) Return on Assets (RoA) Real Profit Growth 31st 130th 206th 517th

RANK

Soundness Based
Capital Assets Ratio

Sized Based
Assets Overall World Ranking 846th 969th

CREDIT RATING

Long Term Short Term

AA A1+

CORPORATE GOVERNANCE RATING

CGR-8

PRODUCTS OF ABL
ACCOUNTS :
1.

CURRENT ACCOUNT:

Allied bank offers current account facility for individuals as well as for institutions and commercial customers . No return\ profits shall be payable on current accounts. Free services for depositors maintaining minimum balance of Rs. 0.1 (M) in previous month.

Free online transactions Free issuance of payment orders Free issuance of demand drafts

Free issuance of deposit at call receipts

PLS SAVING DEPOSITS:

Allied bank offers PLS savings accounts facility to its customers with the following features Attractive return up to 5.00% per annum No Service charges on active account Complementary ATM cards

Allied Basic BANKING ACCOUNT

IN order to provide basic banking facilities to low income people in Pakistan, Allied bank has introduced Allied basic banking account (ABBA). This account can be opened with an initial deposits of 1000/= . The account is a non-remunerative account with no minimum balance requirement.

The account will be closed automatically if the balance remains zero continuously for one year
. There are no service charges on the said account for maximum of 2- withdrawals and 2- deposits.

FOREIGN CURRENCY DEPOSITS: Allied Bank has offer facilities for opening current saving and term deposit accounts. These accounts can be opened in us dollars, Pound Sterling, Euro, and Japanese Yen at designated branches.

ALLIED PROFIT PLUS-TERM DEPOSITS

The scheme offers an attractive return on various tenors tailored to the individuals needs of our customers. Profits is payable on maturity SLABS
Rs0.5(M) to less than RS 5 (M) Rs5(M) to less than Rs 10(M) Rs10(M) to less than Rs 15(M) Rs15(M) to less than Rs20(M) Rs 20(M)&above 1 MONTH 6.50% 6.75% 7% 7.5% 8.0% 3 MONT HS 7.00% 7.25% 7.5% 8.00% 8.5% 6 MONTHS 7.50% 7.75% 8% 8.5% 9.00% 12 MONTHS 8.00% 8.25% 8.5% 9% 9.5%

Allied Monthly Income Scheme:

Allied Monthly Income Scheme is a unique product with attractive returns. It provides an opportunity for regular monthly income. The period of deposit under this scheme is 3 years
R 100,000 ( with increments of Rs 10,000) Payable on monthly basis

Minimum Amount Profit

Projected profit rates

Eligibility Period

Rs 850 per month on a deposit of Rs 100,000 @ 10.20% p.a

All individuals & institutions Financial Institution 3 years other than

Allied Cash+:

CARDS

Allied Bank ATM Card also referred to as Allied Cash+ can also be used as Debit Card at merchant locations having ORIX POS Terminals and displaying the ORIX logo. You can withdrawal upto Rs 25000 in a day (depending upon your deposit).

Master Card:
Allied Bank under license from Master Card International, U.S.A issues its Master Card to anyone meeting the eligibility criteria.

Accepted at 16,000+ establishments in Pakistan and over 17 million retailers across the world,

LENDING PRODUCTS
SEASONAL FINANCE:
seasonal finance facility is allowed against pledge of produce of cash crops harvested in that particular crop season. The delivery of pledge stocks/goods is made against appropriate cash payment

AGRICULTURAL FINANC:
bank under agricultural financing scheme envisaged by the state bank of Pakistan extends short, medium and long term, farm and non-farm credits. the firm credit are e3xtended for production (inputs) and development purposes. Non-firm credits are allowed for livestock (goats, sheep and cattle) ,poultry, factory including social forestry and fisheries .

IMPORT EXPORT BUSINESS/TRADE FINANCE:

Allied Bank provides highly efficient trade finance services for imports/exports 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:

it is a short term loan allowed by the bank for a period of one year. 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 distributed 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.

5: CORPORATE LEASING:
Allied bank Limited commenced lease operations upon amalgamation with Ibrahim Leasing limited. Facilities include leasing for machinery, commercial vehicles and equipments.

SERVICES OF ABL

Home Remittances

The Bank having a network of almost 766 branches all over Pakistan, undertakes to provide safe and instant of remittance from expatriates, routed through designed foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard.

Remittance:

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.

Hajj Services:
The bank serves the intended pilgrims by helping them in performing in this religious obligation. The Hajj forms and other related services are provided by the bank . Hajj applications are available with all branches during Hajj season, immediately after the Hajj policy is announced by the Government of Pakistan.

Utility Bill 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.

Telegraphical Transfer:
Bank s are offering various type of products related to fund transfer in Pakistan, assuring the fastest delivery of Funds around the Globe, through telex, SWIFT and other Electronic Media. Allied Bank with its large network spread all over the country is sharing quite a sizeable Funds transfer business in the domestic market.

Demand Draft:

A draft is one of the most popular banking instruments in the trade circle to settle business deals and transferring funds from one place to another. Allied Bank has taken radical steps for a speedy issuance/payment of drafts through automation and introduction of a more simplified system based procedure.

Pay Orders:
Pay order is a bank instrument issued by a bank in Pak Rupees at the request of a customer to transact payment to a named payee through banking channel.

Traveler Cheques-ABRTC:

Rupees Traveler Cheques is one of the most

convenient products launched by Allied Bank which has an excellent market response. ABRTC is only to be issued by the authorized branches of the ABL.. Traveler Cheques shall be valid until encashed unlike a Negotiable Instrument which is valid for 6 months.

Lockers:
Allied Bank Lockers are available in three different sizes. Small, Medium and Large on a yearly fee. Locker holders need not to have an account I the bank.

Commodity Operations
It is a Cash Credit Financing to government for procurement of various commodities, as per allocation of the limits by the State Bank of Pakistan on government of Pakistan Guarantee

ATM NETWORK

Allied Bank ATM Locater:

Allied Bank has now introduced the Allied Cash+ 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)

Link Network:
In continuation of All-Time Banking services, with the country-wide network of 766 branches, we are pleased to announce that ABL has enhanced ATM services by joining the 1-Link Switch which has following members Bank:

ABN Amro Bank Allied Bank Bank Alfalah Al baraka Islamic Bank Habib Bank Limited

Askari Bank Bank Al Habib National Bank Picic Commercial Bank Union Bank Soneri Bank Meezan Bank

M-Net Network:
The Allied Bank ALLIEDCASH+ card could be used in an M-Net ATM as well. In Pakistan, the M-Net ATM facilities can be availed at any of the following banks and location

Metropolitan Bank Citi bank Nib Bank HSBC The Bank of Punjab American Express My Bank Limited

Standard Chartered Bank Saudi Pak Bank Limited Prime commercial bank Limited Habib Bank AG Zurich Muslim Commercial Bank Bank of Khyber KASB

DEPARTMENTATION

Departmentation is the process of grouping activities by function . With idea of specialization and division of work activities that are alike or similar are placed in one department and under a single chain of command. Functional Departmentation is a method that has been Grouping departments along functional lines takes advantage of occupational specialization by placing together jobs and tasks that are performed by people with the same kind of training, experience, equipment and facilities n and still is successful in most organizations. It makes sense since it is a natural and logical way of arranging activities.

Department at Lahore Branch

Cash Department:
Cash department is working under the supervision of head casher, who and his team is responsible for disbursement and receipt of cash from customers. The transactions are also maintained manually on cash register and at the close of the day they compare both computer and register Finally they send daily cash report to head office Karachi with duly sign by manager and head casher.

Deposits Department:
The saving schemes which are offered by the bank are as follow.

Current Deposits:

C.D account is usually maintained by businesses and traders, where the holder of the account can deposit and withdraw from the account at any time Current account can be open by any member of the public. Entities, corporations. Account holders can only withdraw sums from their account by means of cheques supplied to them by the bank for a particular account.

Profit and Loss Saving Account

The main objective of this account is to encourage and mobilized savings of the people . Rules for PLS are as follow. The account can be opened with a minimum balance of Rs.100 The account can be opened in the name of individuals; minors (to be operated by guardian) limited companies, firm, educational institutions etc. The account holder can withdraw cash from PLS account only eight times in a calendar month and for total amount should not exceed Rs. 15000.

Allied Saving Account

This scheme is introduced to attract the customers as well as to encourage savings. It does not require minimum balance. The account holder can operate this account frequently as in case of current account, profit paid on monthly basis. Table shoeing rate of returns is as under.
Balance On 1 Million Over Rs 1.0 Million To 20.0 Million Over Rs. 20.0 Million 100.0 Million Rate of Return P.a 1.25% 1.75% 2.50%

Capital Growth Certificate Scheme:

Compound Interest is paid half yearly i.e. on principle as well as on interest and this account can be opened by any category of customers

PLS Term Deposits:

These deposits are accepted by individuals, firms, associations, local bodies, companies etc

1 month

2.00%

3 months
2 years 3 years

2.25%
3.25% 3.50%

4 years
5 years

4.00%
5.00%

3. Remittances

Department:

This department transfers funds from one place to another place and different rates on the basis of amount transferred. ABL offers the following kinds of remittances:Telegraphic Transfer Demand Draft Travelers Cheques

7. Human Resource Department:

This department is responsible to manage the workforce of the bank in effective and efficient way so that it can achieve its objectives.

8. Bills Department:
This department is responsible for collection and payment of bills which include outward bills for collection (OBC) and inward bills for collection (ICB). For OBC, the bank charges some commission.

MOTIVATION:
Motivation is the individuals ,internal process that energizes ,directs and sustains behavior. ABL has adopted different ways to motivate employees, which are as follows:
1.ATTRACTIVE REWARD SYSTEM 2.ATTENDACE AND PUNCTUALITY REWARD SYSTEM. 3.CASH AWARD SYSTEM 4.HIGH PERFORMANCE AWARDS. 5.ATTRACTIVE SALARIES.

Financial Analysis

PERFORMANCE HIGHLIGHTS
2007
ASSETS Total Assets-Gross Total Assets- net of provision LIABILITIES Total Liabilities NET ASSETS/LIABILITIES Equity-Tier I 18,408 20,805 300,231 344,325 330,419 320,110 379,304 3,366,680

2008

Surplus on revaluation of assets

PROFITABILITY Net Markup/ Interest income Non interest income Gross income Profit before provisions Profit befor Taxation n Profit/(Loss) after taxation

1,470

1,550

11,108 3,920 15,029 8,855 5,953 4,076

14,011 4,152 18,163 9,764 6,121 4,157

CASH FLOW STATEMENT-SUMMARY

Cash flow from Operating Activities Cash flow from Investing Activities Cash flow from Financing Activities 46,350 -38,461 -1,904 564 -3,544 -1,755

Cash & Cash equivalent at the Beginning of the Year Effect of exchange Rate Changes

24,303 65

29,842 511

Cash & Cash equivalent at the End of the Year

30,353

25,618

FINANCIAL RATIOS

Return on Equity(RoE Return on Assets(RoA) Gross spread ratio Cost to revenue ratio Return on capital Employed

24% 1.42% 52% 41.10% 21%

21% 1.21% 46% 46.20% 19%

SHARE INFORMATION
Cash dividend per share (Rs) 3 2.5

Earning per Share(EPS)

6.31

6.43

Book value per share Market Value per Share

36.9 130.2

34.6 31.3

BALANCE SHEET
December 31,2008 Rupees in '000' Audited Un-audited December 31,2007

ASSETS
Cash and balance with treasury banks Balance with other banks Lendings to financial institutions Investments Advances Operating fixed assets 23,653,754 2,097,611 15,793,183 82,433,998 213,020,108 11,150,129 29,739,878 668,449 18,419,241 83,458,463 168,407,280 7,551,848

Deferred tax assets Other assets

1,031,049 17,388,612 366,568,444

662,416 10,698,979 319,606,554

LIABILITIES
Bills payable
Borrowings Deposits and other accounts Sub-ordinated loans s Liabilities against assets subject to finance lease

2,952,490
27,778,151 297,474,543 2,498,000

3,494,384
22,933,656 263,469,594 2,499,000

Deferred tax liabilities

Other liabilities NET ASSETS 13,629,361 344,332,545 22,235,899 7,329,759 299,726,393 19,880,161

REPRESENTED BY
Share Capital Reserves Unapproprited profit 6,463,644 5,804,776 8,475,791 20,744,211 Surplus on revaluation of assets-net of tax 1,491,688 22,235,899 5,386,370 6,050,713 6,973,227 18,410,310 1,469,851 19,880,161

Financial Analysis
Total Assets 366 billion, 2008
Investment-Net 83 Advances-Net Others 213 71

Asset Composition,2007
Investment-Net

68

84
Advances-Net Others

168

Total Deposits 297 billion, 2008

Current Remunerative 14% Term 36% Current 26% Saving 24%

Deposit Mix 2008(Rs in Billion)

Current Remunerative Term Current 26% 36% Saving

24%

14%

Earning Per Share

EARNINGS PER SHARE(Rupees)
6.4 3 6.3 6.8 1 4.8 0 1000 Years 2008 2007 2006 2005 2000 3000 Earnings per Share Years

Years 2005 2006 2007

Earnings per Share 4.8 6.8 6.3

2008

6.4

Profit after Taxation

Years Rupees
4 3 2 1 0 1000

2005

2006

2007

2008

3,090 4,397 4,076 4,157

2008 2007 2006 2005 3,090 4000 5000 4,157 4,076 4,397
Rupees Years

Profit after Taxation(Rs. in million)

Years 2000 3000

Operating Profit
Years Rupees 2005 5,543 2006 7,583 2007 8,855 2008 9,764

Operating Profit(Rs. in million)

4 3 2 1 0 2008 2007 2006 2005 5,543 5000 Years 10000 15000 9,764 8,855 7,583 Rupees Years

Foreign Exchange Reserves:

Years Rupees 2005 2006 2007 2008 12,597 13,122 15,647 11,369
Foreign Exchange Reserves (US $ millions)

4 3 2 1 0

2008 2007 2006 2005 5000 10000 Years

11,369 15,647 13,122 12,597 15000 20000

Rupees Years

SWOT ANALYSIS

SWOT Analysis
Strengths:
Strengths are the internal plus point that makes an organization strong.

Its online banking facility to its customers has given Allied Bank a competitive edge over its competitors, ensuring fast and reliable banking transactions. It has product innovation skills and resources. Allied Bank mainly focuses on its customers
Allied Bank has got a very friendly staff. Because of the policies of Allied Bank employees are very much motivated and devoted to their work.

Weakness
1)

2)

3)

4)

Weaknesses are the internal weak points, which every organization has. Marketing skills of the bank are good, but they have little presence at media. The lower level management lacks clear direction and it is not having the managerial depth. Customers having account with small amount are not given the same attention as compared to those with large amount. Physical setup of the branches is not impressive.

Opportunities
An external situation, which an organization can benefit from, is called opportunities for that organization. Allied Bank should extend their branches network to other part of the country. Increases credit facilities to lower income group, thus reducing the risk of loss improving the image of the bank. Allied Bank should take interest in the new market statement like IT business and software business. Increasing need and potential of leasing in Pakistan provides ABL an opportunity to utilize its skills and efficiencies in leasing business as well.

1) 2)

3) 4)

Threats
An external situation posed to harm organizations interest is regarded as threat to that organization. 1)Political and economical situation of the country.

2)Reducing the rates of savings in different segments of people.

3)Increasing number of private /foreign banks in the country.

4)Global technology advancement.

5)Deteriorating confidence of people in bank uncertainties of the investors.

RECOMMENDATIONS
Selection Market

& Recruitment

Research Relation

Customer Rules Job

& Conventions of Organization

Rotation

Training Salaries Credits

Programs
& Benefits

CONCLUSION

Thank you