A.basit Nazir (Alied Bank Ltd,. Final Report)

Internship Report
on
Submitted By:
Basit Nazir
BBA (7th)
The Islamia University of Bahawalpur

(Bahawalnagar Campus)
Department of Management Sciences
In the name of
Who is the most Merciful, the most

gracious and the most Beneficent.
Whose help and guidance I always solicit
at every step, at every moment
Internship report
2013
Dedication
I dedicate to my parents,
Whose pray for my success,
And to all my loved ones
Whom I love from the core of my hearts
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Preface
To become expert in any particular field only theoretical knowledge
does not provide a concrete base. Practical work and research base
on assignments are an integral part of our study. This practical work
known as internship, that plays the vial for student to come across the
practical aspects of the theoretical concepts of the books.
Bookish knowledge is of no value, without exposure to the practical.
The internship program enables us to evaluate and understand the
practical application of all the terms and techniques that we have
studied during our course work. It also provides us an opportunity to
see and observe the working environment of the organization.
I was assigned to complete my internship comprising practical work
of 6 weeks, at the Allied bank limited. In this internship report I have
tried my level best to explain each and every significant aspect of the
branch comprehensively.
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ACKNOWLEDGEMENT
A person who is not thankful to his benefactor, is not thankful to Allah
MUHAMMAD (PBUH)
All admirations are to Almighty ALLAH, the most Merciful and

Compassionate, who give me ability to accomplish this task and report
successfully.
After that I thank to my loving parents, who pray for my success and
always been a source of encouragement for me.
Secondly, I am thankful to my institute that made this learning
opportunity a part of my education.
Also I am thank full to all staff members of Allied Bank of Pakistan who
are very cooperative and I express my greatest thank full to my
kindhearted supervisor Mr. Asif Hameed, who made me able to write this
report. They kept me in high spirit through his appreciation. He helped
me a lot each time I went up to him.
Basit Nazir
BBA 7th (M)
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Table of Contents
S. No.
Chapter: 1
Chapter: 2
Chapter: 3
Chapter: 4
Topic
Preface
Acknowledgement
Executive Summary
Our Banking System Today
Introduction & History
History & Background
Australasia Bank
ESOP revolution
Ibrahum Group Assumes Control of ABL
Vision
Mission
Core Values
Objectives
Company Information
Organogram of Allied Bank
Branch Network
Number of Branches
Page No.
ii
iii
v
vi
1
All Departments Introduction
2
3
4
5
6
6
7
7
8
14
16
17
18
General Banking Department

Cash Department
Account Department
Remittance Department
Clearing Department
Advances Department
Credit Department
Foreign Currency Department
19
19
19
20
20
20
21
21
Marketing Mix & HR Activities
22
Product
Price
Placement
Promotion
HR Activities
23
25
26
26
27
Products & Services
29
Products
Services
30
33
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Chapter: 5
SWOT & PEST analysis
SWOT
Strength
Weakness
Opportunities
Threats
PEST Political
Economical
Social
Technological
Chapter: 6
Chapter: 7
2013
36
37
37
38
38
49
39
40
40
Financial Analysis
41
Balance Sheet
Profit & Loss Account
Horizontal Analysis of Balance Sheet
Horizontal Analysis of Profit & Loss Account
Vertical Analysis of Balance Sheet
Vertical Analysis of Profit & Loss Account
Ratio Analysis
42
43
44
45
46
47
48
Work done by me
54
Conclusion
59
Recommendation
60
Internship Letter
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Executive Summary
This report is about my internship program with allied bank
limited. In this comprehensive report, I have discussed about every
major aspect of the bank, Which I observed and perceived during my
internship program. In this report you will find the detail about the bank
right from its incorporation to the current position. Along with it, the
processes, policies and procedures of the bank are also discussed in
detail.
During my internship program, I mainly worked in general
banking. Al the departments have been discussed in detail and all the
policies and procedures has been described thoroughly. As the main
purpose of internship is to learn by working in practical environment and
to apply the knowledge acquired during the studies in a real world
scenario in order to tackle the problems using the knowledge and skill
learned during the academic process, in this report the detailed analysis
of organization tell us the financial, technical, managerial and strategic
aspects evaluated to analyze the current position of organization.
In the end, the learning and experience section consist of all the
policies, processes, practices and procedures which I have undergone
through and learned during my internship program. This report also
contains my participation, perception about the employees satisfaction,
motivation level and the working environment of the organization.
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Our Banking System Today

Our banking business, as we know it today
is composed and establish for three separate and
unique principal functions these are:
The obtaining of funds to invest and
give loans.
The investing of these funds in loans
and bonds to generate more revenue.
The examining of such funds, such as
providing of checking/saving facilities
and the collection of draft, notes
and cheques
These functions may be different in detail of
operations. Follow the same principles established
hundreds of year ago by money lenders and
exchangers.
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History and Background:

Allied Bank was the first Muslim bank
that has been established in Pakistan in
December 3, 1942 as the Australasia Bank in
Lahore with a capital of PKR 0.12 million
under the Chairmanship of Khawaja Bashir
Baksh, the Bank attracted deposits equivalent
to PKR 0.431 million in its first eighteen
months of business. At the time, the Banks
total assets amounted to Rs. 0.572 million.
Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed
Rs. 143 billion and total assets equal Rs. 170 billion.
The Banks journey has been about dedication, assurance, effectiveness and adapting to
environmental changes, important to its vast growth and stability. A view of Khawaja Bashir
Baksh Residence that was the first branch of Australasia Bank came into existence. It is these
factors that have made it a Bank the rest look up to.
Now a day, its networks of 855 branches are located in rural and urban areas in all over
the Pakistan. 560 branches are computerized out of 855 and provide his customers personal
banking service.
The Pre-Independence HISTORY (1942-1947):

In the early 1940s, the Muslim community was beginning to realize the need for its
active participation in the fields of trade and industry. Since the late 1880s, Hindus had
established a commanding presence in the areas of industry, trade and commerce and
were especially dominating in the Sub-continent area. Banking, in particular, was the
exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were
temperamentally unsuited for this profession.
It was particularly upsetting for Khawaja Bashir Bux to hear that:
Muslims could not be successful bankers.
He decided to step-up to that challenge and took the lead in establishing this first
Muslim bank by the name Australasia Bank Limited in Lahore, Punjab, which was to become
Pakistan in December 1942. The initial equity of the Bank amounted to Rs 0.12 million,
which was raised to Rs. 0.5 million by the end of the first year of operation, and by the end of
30th June 1947 capital increased to Rs. 0.673 Million and deposits raised to Rs 7.728 million.
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AUSTRALASIA BANK (1947-1974):

Australasia Bank was the only fully
operational Muslim bank in Pakistan on
August 14th, 1947. A view of the building
in Lahore, that once housed the Australasia
Bank branch. However, it was severely hit
by the riots in East Punjab. The Bank was
identified with the Pakistan Movement. At
the time of independence all the branches in
India,
(Amritsar,
Batala,
Jalandhar,
Ludhiana, Delhi and Angra were closed
down. New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha,
Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well.
The Bank financed trade in cloth and food grains thus, played an important role in
maintaining consumer supplies during the early months of 1948 affected by riots. Despite the
difficult conditions prevailing and the substantial set back in the Banks business in India,
Australasia Bank made a profit of Rs. 50,000 during 1947-48.
By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the
separation of East Pakistan. But the Bank did well despite losing a lot of its assets and by the
end of 1973 had 186 branches in West Pakistan.
ALLIED BANK (1974-1991):

In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed
Allied Bank after the amalgamation of four banks. The first year was highly successful; profit
exceeded Rs. 10 million, deposits rose by over 50 percent and approached Rs. 1460 million.
Investments rose by 72 percent and advances exceeded Rs. 1080 million for the first time in the
banking history. 116 new branches were opened during 1974 and the Bank started participating
in the Governments spot procurement agriculture program. Those seventeen years saw a rapid
growth for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from
Rs. 1.46 billion and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this
period. It also opened three branches in the U.K.
ALLIED BANK- A New Beginning:

In November/December 1990, the government announced its commitments to the
rapid privatization of the banking sector. Allied Banks management under the leadership of
Mr. Khalid Latif decided to react positively to the challenge. In September 1991, Allied Bank
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Limited entered in the new era of its history a worlds first bank to be owned and managed by
its employees. The 850 executives and 7200 staff members spread over 800 branches
throughout the Pakistan established in high degree of cooperation and family feelings.
ALLIED BANK Privatization (1991-2004):

As a result of privatization in September 1991, Allied Bank entered a new phase, and
became 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 became one of the premier financial institutions of
Pakistan. Allied Banks capital and reserves were Rs. 1.525 billion; its assets amounted to Rs.
87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in
Pakistans financial sector and was recognized as one of the best amongst the major banks of
the country.
In August 2004, as a result of capital reconstruction, the Banks ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today,
the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it
a strong equity, an asset and deposit base and the ability to offer customers universal banking
services with more focus on retail banking. The Bank has the largest network of online
branches in Pakistan and offers various technology-based products and services to its diverse
clientele through its network of more than 700 branches.
ESOP revolution:
ESOP stands for Employees Stock Ownership Plan. This concept is introduced first
time in Pakistan from Allied bank. This concept was not familiar, but Allied bank introduce
under the active of Mr. Khalid A. Sherwani. This concept is definitely recorded in the
history of Pakistan.
Under this concept of ESOP, the ownership of enterprises is transferred to its employees,
who are in the profitable position to running these enterprises. The more advantages of ESOP
is to support the workers in free enterprise system, in job securities, better profitability and a
distinctive corporate culture indicate family feelings & professional society. Privatization
policy is said a corrective action, but this fact of ESOP is a good initiative for the Govt. of
Pakistan. This fact lead to economic freedom, remove unemployment, poverty and improve
life quality.
September 10, 1991 the bank became the first bank of Pakistan that is rebuilt and jointly
owned by its employees through the ESOP concept. This fact developed by the management of
Allied bank under the head of M. Khalid Latif.
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ALLIED BANK (2006):

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 i.e.
Islamabad Stock Exchange August 8, 2005,
Lahore Stock Exchange August 10, 2005 and
Karachi Stock Exchange August 17, 2005.
Today, all Allied Bank Limited shareholders can trade in the Banks shares at their will
and the Bank stands on a solid foundation of over 63 years of its existence having a strong
equity, assets and deposits base offering universal banking services with higher focus on retail
banking.
ALLIED BANK (2009):

Muhammad Aftab Manzoor takes a charge of Allied Bank and become a CEO and
president of Allied Bank of Pakistan. Muhammad Aftab Manzoor is the Ex-president of
MCB.
ALLIED BANK (Today):

Today, with his physical existence of 66 years, Allied Bank of Pakistan built his strong
self-image, equity, assets and on deposit base in the mind of customer. It offers personal
banking service, internet banking solution, call center services and mobile banking service in
all Pakistan. Allied Bank has a largest network ATMs with 700 new and online branches and
offers different technology products and services.
IBRAHUM GROUP ASSUMES CONTROL OF ABL:

Ibrahim Group, through its different companies and sponsors owns more than 75% of
Allied Bank. The Group apart from interest in financial sector is engage Din manufacturing
of yarn and polyester staple fiber, trading and power generation.
The consortium of Ibrahim Leasing Limited And Ibrahim Group, which has injected Rs.
14.2 billion into capital of Allied Bank of Pakistan for acquiring its 325 million additional
shares. The Governor, State Bank of Pakistan, Dr. Ishrat Hussain handed over the relevant
documents to Mr. M. Naeem Mukhtar, Authorized Attorney of the consortium at a simple
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ceremony held at SBP, Karachi. In the auction, the consortium of Ibrahim Leasing Limited
And Ibrahim Group were the successful bidder as they offered the highest bid of Rs. 14.2
billion for acquiring these additional shares, which constitutes 75.35% of the revised
capital of ABL.
After the approval of scheme by the Federal Government, the State Bank issued the
Letter of Acceptance (LOA) to the consortium of Ibrahim Leasing Limited And Ibrahim Group
on July 26, 2004 in terms of which the full payment of Rs. 14.2 billion was made on August
19, 2004. On receipt of full payment by the Allied Bank of Pakistan Limited and verification of
the sources of funds by the State Bank of Pakistan, the control of the Bank was handed over to
consortium of Ibrahim Leasing Limited And Ibrahim Group.
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.
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COREVALUES:
The core values of Allied Bank are these:
Integrity
Excellence in Services
High performance
Innovation and Growth
OBJECTIVES:
Allied Bank has following objectives:
Earn profit by providing values to its customers.
Provide superior services to its customers.
Provide assistance in the development of the commerce and trade
industry.
Allied bank have another responsibility to give service to their
communities.
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Company Information:
a. Board of Directors:
The board of directors of Allied Bank Limited consists of the following 9 members.
M. Naeem Mukhtar
Sheikh Mukhtar Ahmad
M. Waseem Mukhtar
Abdul Aziz Khan
Mubashir A. Akhtar
Pervaiz Iqbal Butt
A. Akbar Sharifzada
Sheikh Jalees Ahmad
Khalid A. Sherwani
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b. Board Committee:
1. Audit committee of Board:
Primary responsibilities of the board audit committee are to identify the appropriate
measures, that taken by the management to protect Bank Assets, Consistency of accounting
policies, review of financial statement and close coordination with them to fulfill to legal and
code of business power requirements. Three persons are the members of this committee;
Mubashir A. Akhtar (Chairman)
Pervaiz Iqbal Butt
A.Akbar Sharifzada
2. Board Risk Management Committee:

Primary functions of Board Risk Management Committee (BRMC) are observing the
management faithfulness, assess the changing risk profile and provide risk appetite to business
units. It also ensure that the development of risk management principle to enhance shareholders
confidence. Four persons are the members of Board Risk Management Committee;
Sheikh Mukhtar Ahmad (Chairman)
Muhammad Waseem Mukhtar
Abdul Aziz Khan
Khalid A. Sherwani
3. e-Vision committee:
The main key mission of this committee is to provide a right direction to his customers
for e-banking adoption.
This committee takes a review of strategic plans to improve IT
infrastructure, online cash delivery channels.
Three persons are the members of Audit
committee of Board;
Sheikh Mukhtar Ahmad (Chairman)
Mubashir A. Akhtar
Khalid A. Sherwani
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4. Strategic Planning & Monitoring Committee:

The strategic planning & monitoring committee (SPMC) is responsible to long term
strategic plans, operational plans and budget of the bank before their attention by the board.
Four persons are the members of Board Risk Management Committee;
Muhammad Waseem Mukhtar (Chairman)
Sheikh Jalees Ahmad
Abdul Aziz Khan
Khalid A. Sherwani
5. Human Resource & Remuneration Committee:

This committee defines the organizational structure and responsibilities of each group.
This committee approves the staff length, special allowances, selection and compensation. It
also recommends amendments in Human Resource Management Principles. Four persons are
the members of Board Risk Management Committee;
Abdul Aziz Khan
Pervaiz Iqbal Butt
Khalid A. Sherwani
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c. Management Committee:
This Figure shows the all Committees of Allied bank of Pakistan. Management
Committee (MANCO) controls all these committees. Every committee is responsible for his
decision and responsibilities and duties.
Management
Committee
(MANCO)
Assets Liability
Committee
(ALCO)
Strategy and Business

Development
Committee (SBDC)
Operations and Service

Committee (OSC)
Human Resource
Committee (HRC)
Central Administratiive
Action Commettee
(CAAC)
Risk Management
Committee (RMC)
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Khalid A. Sherwani
Chief Executive officer
Sheikh Jalees Ahmad
Executive Director, Strategic Planning
Muhammad Abbas Sheikh
Advisor Chief Executive officer
Muhammad Jawaid Iqbal
Chief, Corporate and investment Banking
Khawaja Muhammad Almas
Chief, Commercial and Retail Banking
Rizwan Ata
Chief Islamic Banking
Ahmad Faheem Khan
Acting, Chief Treasury
Muhammad Shehzad Sadiq
Chief, Risk Management
Zia Ijaz
Chief, Banking service
Tahir Hassan Qureshi
Chief financial officer
Shafiq Ahmad Uqaili
Chief, Human Resource
Tariq Mehmood
Chief, Banking System & Implementation
Mujahid Ali
Chief, Information Technology
Saif-ul-Islam
Chief, Special Assets Management
Abdul Hafeez Butt
Chief, Compliance
Fareed Vardag
Chief, Audit & Risk Review
Muhammad Raffat
Company Secretary
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d. Business Volume
The Business volume of Allied Bank increase in 2012 with every aspect. During 2012,
the management of Allied Bank increasing the low cost deposits 399.6 billion to 5.147 Rs.
Billion. Company total assets increase at 23% ratio and the earning per share (EPS) is increase
from 10.71 to 12.34. But, the ROA remain constant at 2%.
This figure show the company total business volume of 2012.
Deposits
Up by
29%
Up by
22%
Up by
23%
Up by
15%
Rs. 514.7 billion (2011; 399.6 billion)
Loans & Investments

Total Assets
Profits
EPS
Rs.
ROA
Advance and Deposits (Rs. In billion)
12.34
2%
Earnings per Share
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Organogram of Allied Bank
a. Corporate Structure:
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b. Grade of Bank Staff:
2013
President
Senior Executive Voice President
Executive Voice President
Senior Voice President
Voice President
Assistant Voice President

Officer Grade 1
Officer Grade 2
Officer Grade 3
Assistant
Clerical Staff
Non clerical staff
Teller
Messanger
Technical Staff
Dispatch Rider etc.
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Branch Network:
Allied Bank has 885 nationwide branches of which approximately 67% i.e. 573 are
located in large metropolitan area, namely Karachi, Islamabad, Faisalabad, Lahore, Multan,
Peshawar and Hyderabad. The network of 855 branches enables the bank to generate a
substantial and stable deposit base, provide a wide range of banking products and other financial
services and diversify lending risks geographically, as well as on the basis of credit and customer
type.
Allied Bank divided into four Centers i.e. North, Central-I, Central- II and South. These
Centers have the regions and the regions further have the sub branches of Allied Bank Limited.
The detail is given there:
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Number of Branches
Reginonal Office Location
Center
Computrized
Total
49
61
67
100
16
32
Abbotabad
22
Mir Pur A.K
16
56
Faislabad
32
69
Gujranwala
23
36
10
35
67
67
Sialkot
20
42
Multan
37
63
21
39
104
104
37
59
Sukkur
14
34
Quetta
36
36
558
855
Peshawar
Rawalpindi
Islamabad
Mardan
Sargodha
North
Center-1
Lahore
Gulberg
Bahawalpur
Center-2
Bahawalnagar
Karachi city
Sadar & Society Kirachi
Nazam abad Karachi
Hyderabad
Total
South
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1. General Banking Department

The general banking department performs functions of account opening, deposits of cheques,
Demand draft, telegraphic transfer, clearing, collection of utility bills etc. it consists of following
Departments to perform its functions.
Cash department
Accounts department
Remittance department
Clearing department
2. Cash Department
It provides its users with following facilities:
(a) Accept deposits:
When a customer wants to deposit any amount in its account it goes to the relevant
officer who accept deposit and give a receipt to the customer. The cashier in cashier long book
enters the amount deposited by the customer on its credit side.
(b) Collection of utility bills:
The branch also provides the facility of utility bills collection of electricity, gas and
telephones. The branches collect utility Bills during banking hours. Bills can be paid through
cash or cheques.
3. Accounts department
One of the important functions of bank is to accept deposits from general public. Following
are the types of accounts provided by the bank:
Current accounts.
PLS saving accounts.
PLS term deposit.
Special notice deposit.
The classification is based on the duration and purpose for which the deposits are kept at the
bank. Following are the features of these accounts.
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4. Remittance Department:
One of the major functions of bank is remittance. This department provides this facility
through following instruments.
Demand draft
Telegraphic Transfer
Payment order
Deposit at call
5. Clearing Department:
When the branch receives cheques of other banks than one process of getting payment
against these cheques is that you sent a person who will take money on your behalf but in these
cities where State bank exist this function is performed by clearing. In State bank of Pakistan
there is a clearinghouse. It involves two clearing procedures,
Outward Clearing Register:
Inward Clearing Register:
6. Advances Department:
The basis function of the bank is to accept deposit and lend money to the borrowers
against a spread so to be able to give some profit to the depositors as well as to earn profit for the
bank. While lending the money to the borrowers the bank should observe the following lending
principals:
Safety principles
Profitabiity Principles
Purpose Principles
Liquidity Principles
Security Princiles
Spreading of Risk Principle
Nartional Interest & Suitability Principles
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7. Credit Department:
The main function of the credit department is to lend money to the customer. Allied Bank
Ltd. Lends money in the form of clean advances against promissory notes as well as secured
advances against tangible and marketable securities. Beside these ABL also lend money against
life policies and immovable property..
Lien
By Cash Credit
By Overdraft
8. Foreign Currency Department:

Like Pak rupees account the foreign currency has many accounts like
Saving account
Current account
Term deposit account.
The bank deal in three type of foreign currency account
1. Dollar
2. Euro
3. Pound
The account is open with 1000 dollar if it is less 5-dollar per month is deducted. For
opening the account NIC & introduction is required of the same bank. If any person wants to
import goods from foreign, an account is required and for international trading the FC is needed.
ABL provide foreign currency on Pak rupee at booking rate and the central office sent Rates.
Different accounts can be open like joint account or company account. The thankful letter is sent
for opening the foreign currency account to account holder and introducer. When any transaction
is made the bank inform stock exchange daily. The foreign currency note is counted and
recorded in the cash memo book. The people in the foreign country sent the amount through
S.W.I.F.T. Weekly and monthly report of all the transaction is given to the stock exchange.
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Marketing mix is a procedure consists of 4ps that is use to find customers needs and
wants. Allied bank limited also depend on these procedure. Customers needs and wants are
controlled by through 4s. This procedure consists of 4 variables.
Product
Place
Price
Promotion
We discuss one by one in detail.
Product:
Any physical thing or service offered to customer is known as product. Product depends
on company item or planned to operation. When a customer makes the decision about purchasing
any product then decision of that person depends on packaging of the product, appearance of the
product, warranty of product, guarantee of the product etc.
The allied bank limited of product or services are listed below.
Current Account
Saving Account
Fixed Account
Allied Basic Account
Cash Finance
ATM Card
Cash Shop
Debit Card
Allied Business Account
Agri. Revolving Finance
Running Finance
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1. Current account
This type of account is usually used by business men. In which customer draw cash any
time and deposit cash any time. No profit or loss calculated in this type of account. Zakat cannot
be deducted on this type of account
2. Saving Account
This account mostly uses those people who save money and want to deposit their amount
of savings in the bank for short time period or long time. The deduction of Zakat applies on this.
Fixed amount of profit given to the customer after fixed time period.
3. Fixed Account
In this account customers deposit money for long period of time and get profit on this
saving amount. Zakat is deducted in this type of account.
4. Credit Card
The allied bank limited provides the facilities of credit card to our customer and get some
specific interest against these facilities.
5. Cash Shop/Debit Card
ABL provide these services to our customer. The customer of ABL can pay any payment
of restaurant, departmental store etc. without cash.
6. ATM Card
ATM stands for automated teller machine. ABL provide ATM card to our customer.
Customers can get cash at any time of day through ATM card.
7. Allied Business Account;
This type of account use for only business purposes when the customer account have five
lace in our bank account the bank provide these services free of cost like online services etc.
8. Cash Finance
The ABL bank pledges the fixed assets of the customer against provision of loan to our
customer for specific time. The assets are pledged for a security purpose.
9. Running Finance
It is vice versa of cash finance.
10. Agri. Revolving
Agri. Revolving is only for those people who run agricultural land. The bank pledges the
land for the sake of security purpose and gives loan to our customer for specific time period.
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Price;
Price is the amount which is paid by the customer against any product or services. When
the organization set prices of any product or services then company keep certain point while
setting it that are competitors price, customers response, quality of goods and services etc. The
pricing strategies of ABL includes following terms.
Online transfer charge

Postage charges
ATM Charges
Credit Card Charges
Marked Up
We discuss these terms in detail.
On line transfer charges;

When the money is transfer one branch to another branch then bank deduct some specific
charges from customer.
Postage charges;
When bank collect outward bills for collection. Then, bank needs some postage charges.
Bank attaches advice with his check and post.
ATMs charges;
Fifteen rupees of one transaction are deducted for ATM, if we use any other bank ATM.
Credit Card Charges;
When bank issue Credit card to customer. Bank deducts card charges annually.
Marked up;
Marked up is amount the bank received on running finance.
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Placement;
Where the product is ready to offer to the target customer that is called the placement of a
company and consumer can purchase this product or service. But place decision of company
depends upon the channel of distribution. That means to serve the product of targeting customer
with sequence that must be easy for customer and company both. So the distributions systems of
products or services depend on proper channel in include channel members, types of good level
of services and marked coverage. Following concept are used by ABL use in the placement
strategies.
The branches of ABL all over the Pakistan which can facilitate its agreed culture,
industrial and commercial sectors. The ABL provide loan to large industry that is life blood of
county. So this facility is given to industrial sector of Pakistan.
PROMOTION;
It means activities that communicate with the customer. The decision related to
promotion is connected with communicating and selling product and services to the customer.
The price of product on promotion stage is very low. In these the value of customer and worth of
consumer must be determined.
Allied bank limited use the promotion activities that are listed below;
Advertising
Personal Selling
Public Relations
Print Media
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The Human resource management composed of the seven basic HR activities here we
discuss only few of them which are related to our company. Lets discuss few of them:
Strategic HR planning:
The HR planning means the right person at the right job at the right time. The HR
planning we forecast our demand and supply while expands our business. The United Bank
Limited follows the business level and competitive strategy because of the very large number of
its competitors in the market. The ABL gain the advantage in the differentiation because they
offer different types of the online and offline services to their customers.
Job analyses:
Job analyses are the procedure in which you determine the duties and responsibilities of
the job and the characteristics of the people to who should be hiring for it.
The job analyses include the job description, job specification and job evaluation.
Techniques in Job analyses:
The ABL use the qualitative method to analyze the job. The techniques that are used by
the UBL top management or analyst are the interview and the open-ended-questionnaire.
HRIS (Human Resource Information system):
The HRIS is the database in which the employees each and every document is recorded
and it is up to date with the passage of time. The ABL HRIS system is helpful when the internal
supply of the candidate is required. The ABL HRIS system gave the complete information about
the employees which are available for the job.
Training and Development:
Training refers to the methods used to give new or present employees the skills which
are necessary to perform the job. Development includes the employees, management,
organizational and career development which develop employees, career skills management
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which enhance the executive abilities, organizational cultural development and career
development for the employees.
Health, safety and security:
The ABL bank provides the compensation and benefits in the shape of the medical
treatment, repair the vehicles and provides the safety to the employees while they are doing their
work. Employees asked for their compensation if any of the above condition occurs. Benefits
which are provided by the ABL are paid time off, retirement, disability insurance and free
education and training programs. The insurance bank provides the financial support to the
employees while they are injured or ill on the job.
Employee and labor relation:
This HR activity deals with the persons who are working in the company and they have
several kinds of issues with the top level management. So, they elect the CBA (collective
bargaining agent) which directly connect with the top level management and in case of any
discomfort they told the top management on time and properly tell the whole story to the top
management. The UBL is also following the same procedure to enhance their good will among
the low level employees. The UBL management all the policies regarding to the well faire of the
worker or low level employees they first contact with CBA gave the whole policy to them and
then the CBA makes formal on behalf of the workers.
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Products:
Allied Bank offers a full suite of products and services, tailor-made to cater to the
requirements of each segment of its customer base. We aim to provide comprehensive solutions
for all our customers, wherever they are located on their financial graph. From customers just
beginning a banking relationship to those with more sophisticated banking needs, we can bring
the full capability of Allied Bank to their doorstep. Customers have the advantage of nationwide
network of over 873 online branches with well informed and friendly staff, as well as 618 ATMs
strategically located to help provide ease of banking. Allied Bank provides these types of
Products.
1. Branch Banking
With a vast network of 873 branches, ABL is committed to provide real time online
banking solutions to its customers in an efficient and convenient manner.
2. Banking on Saturday
For convenience of customers, full ranges of non-stop Banking Services are being offered
to the customers on Saturday from 10:00 AM to 02:00 PM. At present, around 300 branches
operate on Saturday for public dealings.
3. Allied Rising Star-1st youth Bank Account

Allied Rising Star is a profit based account product,
designed exclusively for children under 18 with the purpose of
instilling the habit of savings amongst them. The product offers
one of its kind daily profit features and is bundled with various
exciting features like game/dining voucher, life insurance cover
and cash box.
4. Platinum Allied Ba Ikhtiar

Platinum Allied BaIkhtiar is a distinctive 12-month
term deposit scheme, tailored to meet the customers needs
and requirements with an option to earn profit on investment
on monthly, quarterly, half yearly or yearly basis.
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5. Allied Business Account

To cater to the unique financial needs of businessmen,
Allied Bank has introduced Allied
Business
current
account. On maintaining a certain monthly average balance,
our business customers can avail free facilities like issuance
of bankers cheques, Demand Draft, funds transfer, intercity
clearing, telephonic transfer, Internet Banking, cheque returns
and Nationwide Real Time online banking to meet their day-to-day business requirements.
6. Current Account
ABL offers current account to cater the needs of various customer segments. On
maintaining a daily minimum balance of Rs 0.5 million, a range of free services like issuance
of Pay Order and free online transactions etc., can be availed.
7. ABL Bancassurance
ABL Bancassurance offers Investments
education/marriage, accidental and terrorism.
and
Protection
plans
for
child
8. Theme Branches
Modern technology and signature themes are adopted for attaining a significant position
as a preferred Bank. We have six women branches located across Pakistan which offers
exclusive services and provides a conducive environment for the female customers to
conveniently do banking with us. We have also launched youth branches with an aim to
specifically provide banking services to the younger generation as per their life style and a youth
friendly environment.
9. Extended Hours Banking

Extended Hours Banking facility at selected branches is offered to enable our customers
to do banking at their convenience.
10.E-Banking (Allied Direct)

Banking at your fingertips - Allied Direct (Internet
Banking) offers convenience from the desk to manage your
bank account from anywhere, anytime. It offers features like
fund transfers, Utility bill payments, Mobile top-ups,
Donations, e-shopping and much more. Allied Direct is also
available on mobile so that wherever our customers move, the
account stays with them.
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11.Allied Cash+Shop VISA Debit Card

Allied Cash+Shop Visa Debit Card is Allied Banks flagship
retail product that gives our customers access to their bank accounts
and also at
over 30,000 retailers in Pakistan and over 27 million
retailers all
over the world, without the worry to carry physical
cash in hand. It also gives our cardholders access to over 1 million
ATMs worldwide and over 5,900
ATMs in Pakistan, including
ABLs own large network of ATMs.
12.Allied Bank Visa Credit Card

Allied Banks Gold and Platinum Visa Credit Card offers
world of privileges, benefits and savings. In order to cater to
growing financial needs of customers, Allied Bank has launched
credit card that offers attractive service charge with a free credit
period of up to 50 days. It offers comprehensive protection against
loss/ stolen cards, SMS/e-mail alerts, cash advance, balance
transfer facility and access to international lounges for platinum card holders, thus providing
unique experience to the customers.
13.Allied Personal Finance

ABL has also launched a Personal Loan Product, Allied Personal Finance, targeted
mainly towards the employees of banks institutional customers. Allied Personal Finance is a
demand finance facility with equal monthly installments spread over the term of the finance.
With a low mark-up rate the product is offered to individuals associated with
corporate/institutional customers.
14.Allied Pay anyone

A unique product in which ABL customers can send cash /cheque
to any individual in Pakistan even if the beneficiary doesnt have a bank
account. All it takes is just a click of a button (Allied Direct).
15.Allied Fast Finance

Allied FAST Finance (AFF) enables its customers to
meet their personal and business needs without liquidating their
savings. With AFF, customers can utilize existing investments
and deposits as collateral and avail financing at very
competitive rates with a very quick turnaround time.
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16.Corporate Banking
The Corporate Banking works on a long term relationship based on a business model to
provide a single point within the Bank for meeting all business requirements of our corporate and
institutional customers, including public sector enterprises, with the primary objective of
enhancing customer service. Dedicated relationship an agers for each of our corporate client
ensures customer satisfaction, which remains our top priority. Our relationship oriented outlook
focuses upon providing a complete array of tailored financing solutions that are practical and
cost effective. Our main products include Working Capital Facilities, Term Loans, Structured
Trade Finance Facilities, Letters of Guarantee, and Letters of Credit, Fund Transfers /
Remittances, Bill Discounting, Export Financing and Receivable Discounting.
17.Investment Banking
The Investment Banking (IB) arm of the Bank is a multifaceted business unit geared
towards meeting the complex financing needs of its clientele by providing a full suite of
financing solutions to corporate clients which includes debt syndications and capital markets,
project finance and advisory services. Project Finance desk offers services to project sponsors for
development of a credit-worthy and bankable financial structure for the project with appropriate
risk allocation. It also extends syndicated project finance solutions to project sponsors desirous
of setting up green field projects. The Advisory Desk offers a broad array of services/products
ranging from advising on IPOs, Underwritings, Divestments, Debt Restructurings, Privatization
and M&A Deals. Within these broad service areas a full suite of solutions is available with
Allied Bank Investment Banking.
Services of ABL:
1. Agriculture Finance
Allied Bank Limited is also involved in agricultural
financing across the country and offers vast range of agricultural
financial facilities through more than 150 Agri designated
branches. Allied Bank offers multiple and diversified range of
Agri Products for both Farm & Non-Farm sectors.
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2. Allied Bank Lockers

Bank Lockers provide high-security protection for
your valuables. Lockers of different capacities are
available nationwide at conveniently located ABL
branches. The list of Lockers is maintained in the register.
In this register the name of locker holder is mentioned
along with the locker number. The key is provided to the locker holder called the Normal or
Ordinary key. The Bank keeps himself one key himself. When the locker holder wants to
operate to the locker, then he will operate the locker firstly entering the name in the register
along with the initials. The date and time of the transaction will also be recorded in the register.
Then the leaving time will also be recorded in the register.
Size of Lockers:
Locker Size
Security
Rent
Small
Medium
Large
Rs. 1500
Rs. 3500
Rs. 5000
Rs. 750
Rs. 1500
Rs. 2500
3. Import Export
Allied Bank provides highly efficient trade finance services for import/export businesses
through a large number of authorized branches where trained and motivated staff is available to
handle the business on the customers behalf.
4. Phone Banking Service

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 Phone
Banking services.
Allied Phone Banking provides its customers immense comfort!
In addition, Allied customers can also avail a host of services through automated Allied
Phone Banking (IVR/Self Service Banking) that lets them use their telephone keypad to inquire
about their financial balance/transactions.
Allied Phone Banking Services:
Dial - 0800-22522 to get absolute Banking freedom
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5. ATM Network
Allied Bank has a vast network of over 460 ATMs installed
in over 130 cities, which continues to grow at a rapid pace.
1 Link Network:
Additionally, Allied Bank is a member of the 1-LINK ATM sharing switch

comprising of over 2,000 ATMs nationwide, therefore, giving its Allied
Cash+Shop Visa Debit Card holders access to even more ATMs across the
6. M-Net Network
The Allied Cash+Shop Visa Debit Card can also be used
at M-Net ATMs, for cash withdrawal.
7. UTILITY BILL
Customers can pay their utility bills (e.g. electricity, gas, telephone) at any of the Banks
branches. For further convenience, bills are collected on all working days during normal banking
hours and also at certain times during the evening. Furthermore, customers can also pay their
bills using any of the Banks ATMs or via Internet Banking.
8. HAJJ SERVICES
The Hajj Service is available to all pilgrims. The 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.
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STRENGTH
Allied Bank Limited has certain strengths which are different from the other Banks.
ABL is the first Muslim Bank of the world, which is owned and managed by its own
employs. This is the biggest strength of the Bank. A feeling of ownership is present in
every employ, which not only helps in increasing the productivity of employs but also
creates sincerity with the Bank in them.
Strength is the high motivation of employees to their work because they know that what
so ever they do, it will be in their own benefit. They know that the profit, which they will
earn, will be distributed among all the employees. So they work with high motivation and
concentration.
Salaries are very reasonable, so the employees are not financially disturbed and they
devote their selves fully to their work.
They have wide area network in all over the Pakistan, so that they cover a lot of portion
of cash transactions and make customer satisfied.
The Bank has very strict rules and regulations about the customers complaints. The
customers are treated as very special persons in the Bank.
WEAKNESS
No entertainment facilities are available in the Bank when customer goes to the Bank
and wait for a longer time. These facilities can be the newspaper, magazines, etc.
Advertisement of ABL is not such goods as of other banks.
Outlook of the ABL branches is not attractive to the people.
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OPPORTUNITIES
The policies of the new government to uplift the economy and pursue financial sector
reforms are expected to yield positive results in the banking industry of the country. The
ABL is very well praised to avail promising opportunities.
As a result of the different steps taken by the Government regarding the betterment of the
economy, small borrowers are attracted to get the financing and start small businesses.
So, the ABL has an opportunity to attract the customers by giving them attractive
schemes.
THREATS
First threat is that of political influence. Three boards of directors are of government. So
that they can influence on the decisions of the ABL.
The biggest threat in the banking sector is the continuous downfall of the country
economy since the last few years. If this downfall remains for more few years then it may
be the great hindrance in achieving the Banks objectives.
The privatization of other banks is also a threat for the Bank. Due to the privatization of
the different bank e.g. MCB, the competition has increased a lot. Furthermore many
private banks have come in the sector due to which it is becoming more difficult day by
day to attract the customers.
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Pest analysis some time called STEP analysis or PESTEL analysis. It stand for Political,
Economical, Social, Cultural and Technological analysis. This analysis should be conducted by
ABL for the sake of determining the factors that can effect on operations and other function of
the branches. After this the results of this analysis are used by the bank to take advantage of
opportunities and to make contingency plan for threat.
So we discussed each factor with essential detail.
POLITICAL FACTOR
If we see the political situation in country. They can effect on the economy of the
country. This political situation can also effect on banking system.
SBP have regulatory authority of banking system. So the policies of SBP affect the major
cause in both directions. Trade policies are also affected but major reason is global changes that
affect the economy. In these days financial sector face depression that also effect on banking
system.
ECONOMIC FACTOR
Economic factor can also influence the banking system of Pakistan. The profit rate is
declining very fast during last few years. Here multiple reasons are responsible for this decline
but major reason is cost of starting new business is very high. Another reason is inflation that
also effect on profitability and other operations of business. The saving capacity of people is
declining day by day through inflation. Interest rate can also effect on banking business
sometimes interest rate is very high and economy move to negative figures.
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SOCIAL FACTOR
Social factor can influence the people and market. These factors change the values,
norms, choices, attitude and behavior of the society. In these days changes are growing fast from
market to market and person to person. So convert the behavior of customer through these
changes.
The social and cultural factors are different with each aspect such as norms, values,
behavior etc. Not all groups have same preference. The liking and disliking of every customer
are not same every customer has its own preference about product and services. So these
preferences are different from region to region or market to market.
In Pakistan customer can switch from conventional banking to Islamic banking system.
So ABL offer product and service according to the customer needs and wants.
TECHNOLOGICAL FACTOR
Modern technology can also impact on the success of banking system. If the banks use
modern and new technology then advancement and growth chances are very high.
Technology can also influence the social culture. Traditional system of banking is totally
changed with technological system. In these days allied bank limited use new and modern
technology for the sake of proving better service to our customer. But adoption of new
technology is requiring high capital. If the bank fails to use modern technology then the bank
cannot get market share and retained the customer.
Allied Bank Limited is adopting new and modern technology for the sake of increasing
market share and competing with competitors easily.
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Balance Sheet
Balance sheet
2010,2011,2012
Assets
Cash and balances with treasury banks
2010
2011
2012
31,265,658
36,479,765
43,351,653
579,700
1,679,121
1,029,286
11,488,944
1,361,754
10,720,935
Investments
121,158,730
195,789,638
267,403,346
Advances
253,102,710
244,439,837
271,084,275
15,371,118
18,095,123
19,871,173
483,152
751,908
Other assets
16,516,396
17,292,402
18,454,814
Total assets
449,966,408
515,888,612
631,915,482
Bills payable
4,118,791
4,015,317
6,203,051
Borrowings
20,774,450
49,993,200
38,916,192
371,280,948
399,560,790
514,707,055
5,494,800
5,492,600
5,490,400
Balances with other banks

Lendings to financial institutions
Operating fixed assets

Deferred tax assets
_______
Liabilities
Deposits and other accounts

Sub-ordinated loans
- - Liabilities against assets subject to finance lease - - - Deferred tax liabilities 12 - Other liabilities
64,584
12,307,789
13,347,347
15,618,340
413,976,778
472,409,254
580,999,622
35,989,630
43,479,358
50,915,860
Share capital
7,821,009
8,603,110
9,463,421
Reserves
7,516,910
8,762,745
10,906,250
15,853,255
20,395,717
22,558,411
31,191,174
37,761,572
42,928,082
4,798,456
5,717,786
5,719,446
35,989,630
43,479,358
50,915,860
Net Assets
Represented By
Inappropriate profit
Surplus on revaluation of assets - net of tax
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Profit and Loss Account
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Horizontal Analysis of Balance Sheet:

This technique is also known as comparative analysis. It is conducted by setting consecutive
balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in
individual categories on a year-to-year or multiyear basis. Horizontal analysis focuses on trends and
changes in financial statement items over time.
Horizontal analysis of Balance sheet(figure in %age)

Assets
2010
2011
2012
100%
116.68
118.84
100%
289.65
61.30
Lendings to financial institutions
100%
11.85
787.29
Investments
100%
161.60
136.58
Advances
100%
96.58
110.90
100%
117.72
109.82
Deferred tax assets
100%
155.63
0.00
Other assets
100%
104.70
106.72
Total assets
100%
114.65
122.49
Bills payable
100%
97.49
154.48
Borrowings
100%
240.65
77.84
100%
107.62
128.82
Sub-ordinated loans
100%
99.96
99.96
100%
108.45
117.01
100%
114.11
122.99
100%
120.81
117.10
Share capital
100%
110.00
110.00
Reserves
100%
116.57
124.46
Inappropriate profit
100%
128.65
110.60
100%
121.06
113.68
100%
119.16
100.03
100%
120.81
117.10
Liabilities
Net Assets
Represented By
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Horizontal Analysis of Profit & Loss Account:

Horizontal analysis Profit and Loss account (figure in %age)
Mark-up / return / interest earned
Mark-up / return / interest expensed
Net Mark-up / Interest income
Provision against non-performing loans and advances
Provision for diminution in the value of investments net
Provision / (reversal) against lendings to financial institutions
- - Bad debts written off directly - Net Mark-up / Interest income after provisions
2010
100%
100%
100%
100%
100%
100%
2011
115.15
118.83
111.47
88.14
17.76
-24.95
2012
109.98
138.62
81.44
41.43
-48.34
100%
100%
73.69
119.83
15.93
95.93
100%
100%
100%
100%
113.19
239.76
153.65
60.56
97.12
754.13
143.00
133.73
100%
100%
100%
100%
226.01
27.38
123.80
120.79
108.18
235.09
129.49
100%
100%
100%
100%
100%
100%
117.15
34.49
-163.47
122.54
376.44
118.59
128.23
103.42
-418.73
123.92
81.35
131.22
100%
122.90
127.83
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
118.52
41.80
24.70
121.06
123.81
130.32
81.02
130.18
127.60
123.78
89.66
Non Mark-Up / Interest Income

Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain / (loss) on sale of securities
Unrealized gain / (loss) on revaluation of investments
classified as held for trading - net
Other income
Total non-markup / interest income
Non Mark-Up / Interest Expenses
Administrative expenses
Provision against other assets net
Provision / (reversal) against off-balance sheet obligations - net
Workers welfare fund
Other charges
Total non-markup / interest expenses
- - Extra-ordinary / unusual items - Profit Before Taxation
Taxation
Current
Prior years
Deferred
Profit After Taxation
Inappropriate profit brought forward
Transfer from surplus on revaluation of fixed assets - net of tax
Profit Available For Appropriation
Earnings per share - Basic and Diluted (in Rupees)
-107.93
101.53
140.95
166.50
86.08
166.27
156.03
128.14
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Vertical Analysis
When using vertical analysis, the analyst calculates each item on a single financial statement as a
percentage of a total. The term vertical analysis applies because each year's figures are listed vertically
on a financial statement. The total used by the analyst on the income statement is net sales revenue, while
on the balance sheet it is total assets. This approach to financial statement analysis, also known as
component percentages, produces common-size financial statements. Common-size balance sheets and
income statements can be more easily compared, whether across the years for a single company. Vertical
analysis is a technique for identifying relationship between items in the same financial statement by
expressing all amounts as the percentage of the total amount taken as 100 in a balance sheet.
Vertical analysis of Balance sheet(figure in %age)

Assets
2010
2011
2012

Lending to financial institutions
Investments
Advances
Deferred tax assets
Other assets
Total assets
Liabilities
100%
100%
100%
100%
100%
100%
100%
100%
100%
7.07
0.33
0.26
37.95
47.38
3.51
0.15
3.35
6.86
0.16
1.70
42.32
42.90
3.14
0.00
2.92
Bills payable
Borrowings
Sub-ordinated loans
100%
100%
100%
100%
0.78
9.69
77.45
1.06
0.98
6.16
81.45
0.87
100%
100%
100%
2.59
91.57
8.43
0.01
2.47
91.94
8.06
100%
100%
100%
100%
100%
100%
1.67
1.70
3.95
7.32
1.11
8.43
1.50
1.73
3.57
6.79
0.91
8.06
Net Assets
Represented By
Share capital
Reserves
Un-appropriated profit
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Vertical analysis of Profit and Loss account(figure in %age)

Mark-up / return / interest earned
Mark-up / return / interest expensed
Net Mark-up / Interest income
Provision against non-performing loans and advances
Provision for diminution in the value of investments net
Provision / (reversal) against lendings to financial institutions
- - Bad debts written off directly - Net Mark-up / Interest income after provisions
2010
100%
100%
100%
100%
100%
100%
2011
100.00
51.51
48.49
5.23
0.44
0.14
2012
100.00
62.91
37.09
2.57
-1.26
100%
100%
5.81
42.69
1.31
35.78
100%
100%
100%
100%
5.78
5.17
1.24
1.68
5.19
17.04
1.21
3.88
100%
100%
100%
100%
0.01
0.13
14.01
56.70
0.55
27.86
63.64
100%
100%
100%
100%
100%
100%
25.64
0.22
0.28
0.61
0.52
27.26
29.39
0.69
0.75
0.64
0.12
31.58
100%
29.44
32.06
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
9.55
0.30
-0.20
9.65
19.79
30.59
0.06
30.64
50.43
573.80
7.56
Non Mark-Up / Interest Income

Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain / (loss) on sale of securities
Unrealized gain / (loss) on revaluation of investments
classified as held for trading - net
Other income
Total non-markup / interest income
Non Mark-Up / Interest Expenses
Administrative expenses
Provision against other assets net
Provision / (reversal) against off-balance sheet obligations - net
Workers welfare fund
Other charges
Total non-markup / interest expenses
- - Extra-ordinary / unusual items - Profit Before Taxation
Taxation
Current
Prior years
Deferred
Profit After Taxation
Un-appropriated profit brought forward
Transfer from surplus on revaluation of fixed assets - net of tax
Profit Available For Appropriation
Earnings per share - Basic and Diluted (in Rupees)
0.91
8.47
23.59
40.92
0.06
40.98
64.56
640.05
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Liquidity ratio:
Liquidity ratio, expresses a company's ability to repay short-term creditors out of its total
cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows
the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it
means fully covered.
Current ratio
Current ratio is a measure of the current adequacy of company's current assets to meet its current
obligations. It must be greater than 1. If it is less than 1, liabilities exceed current assets.
Formula = Current Assets / Current Liabilities

Year
2011
2012
Current Assets
Current Liability
Ratios in %age
414857145
249094261
1.665462477
362622738
286502761
1.2656867
Current Assets
Current Liability
Ratios
414857145
249094261
165762884
362622738
286502761
76119977
Net-working capital
Formula= current assets-current liabilities
Year
2011
2012
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Net-worth
It shows the trend of companys total assets and total liabilities.
Formula=Total assets-total liabilities
Year
Total Assets
Total Liability
2011
515698939
472359135
2012
631915482
580999622
Ratios
43339804
50915860
Profitability Ratio
There are many measures of profitability. As a group, these measures enable the analyst
to evaluate firms profits with respect to the given level of sales, a certain level of assets or the owners
investment. Without profit, a firm cannot attract the outside capital.
Operating profit Ratio

Formula=Profit before tax/mark-up earned
Year
Profit before tax
Mark-up earned
Ratios in %age
51814273
1.09
49502633
0.32
15108482
2011
15870352
2012
Explanation:
This ratio shows decreasing trend. It decreases 2011 to 2012 that decreasing trend
is not good indication for the banks financial health.
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Gross profit margin ratio

Gross profit margin ratio is used to assess the profitability of a Bank's core activities.
Gross profit margin indicates the relationship between gross profit and interest earned. A high
gross profit margin indicates that a Bank can make a reasonable profit.
Formula = (Gross Profit / Interest earned (Revenue)
Year
Gross Profit
Interest Earned
Ratios in %age
2011
25171039
51814273
48.57
2012
18360947
49502633
37.09
Net Profit Margin Ratio

Net profit margin measures the percentage of revenue remaining after all cost and
expenses, including interest and taxes have been deducted.
Formula = (Net Profit after Taxes / Interest earned)
Year
Net Profit After Tax
Interest Earned
Ratios in %age
2011
10139681
51814273
21.10
2012
11675814
49502633
23.58
Assets Turnover Ratio

This ratio is useful to determine the amount of revenue that is generated from each Rupee
of assets. The Banks with low profit margins tend to have high asset turnover, those with high
profit margins have low asset turnover.
Formula = (Revenue/ Total Assets)
Year
Revenue
Total Assets
Ratios in %age
2011
51814273
515698939
.10
2012
49502633
631915482
.07
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Return on investments Ratio

This ratio indicates the profit earned by the bank on the resources employed.
Formula = (Net income after taxes / Total Assets)
Year
Net Profit After Tax
Total Assets
Ratios
2011
10139682
515698939
.019
2012
11675814
631915482
.018
Return on Deposits Ratio

This ratio indicates to what extent deposits which represent funds mobilization on the
part of the bank contribute towards income generation.
Formula = (Net income before taxes / Total Deposits)
Year
Net income before taxes
Total Deposits
Ratios
2011
15108482
399561676
.038
2012
15870352
514707055
.0308
Return on Equity Ratio

Dividing profit after taxation by shareholders equity ROE compares net profit after taxes
to the Shareholders Equity. The return on common equity measures the return earned on the
common stockholders investment in the firm.
This ratio is calculated as:
Formula =(Profit after taxes/Shareholders Equity)
Year
Profit after Taxes
Shareholders Equity
Ratios
2011
10139682
8683110
1.167
2012
11675814
9463421
1.234
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Return on Total Assets Ratio

This ratio shows the efficiency of organization that how efficiently utilizes their assets.
This ratio relates profits to assets. The return on total assets often called as return on investment,
measures the overall effectiveness of the management in generating profits with its available
assets. The higher the firms return on total asset, the better the firms performance is. It is
calculated as:
Formula = (Profit after Tax/Total Assets)
Year
Profit after Taxes
Total assets
Ratios
2011
10139682
515698939
.0196
2012
11675814
631915482
.0185
Debt /Leverage Ratio

These ratios give users a general idea of the company's overall debt load as well as its
mix of equity and debt. Debt ratios can be used to determine the overall level of financial risk a
company and its shareholders face. In general, the greater the amount of debt held by a company
the greater the financial risk of bankruptcy.
Debt to Equity Ratio

The debt ratio measures the proportion of total assets financed by the firms creditors.
The higher this ratio, the greater the amount of other peoples money being used to generate
profits. This ration shows the amount contributed by creditors and shareholders. It shows to what
extent the firm is using borrowed money. To a large degree, the debt-equity ratio provides
another vantage point on a company's leverage position, in this case, comparing total liabilities to
shareholders' equity.
Formula = (Total Liabilities/ Total Shareholders equity)
Year
Total Liabilities
Shareholders Equity
Ratios
2011
472359135
8683110
54.399
2012
580999622
9463421
61.394
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My first day in Allied Bank Bahawalnagar city branch manager Mr. Asif Hameed has
introduced me with other employees of bank. After that I visited every department one by one
and observe what is happening there. They all provide me the basic information which I needed
.They are all very cooperative. They also provide me a lot off information about bank affairs, in
which I have no knowledge.
Some of my observation and experience are discussed below.
Working in Branch:
First day at bank, the manager asked some questions to me about bank. The bank
manager has made some conversation with me and asks some question. After that he provides
me the following information. Then, start my work as an internee in Allied Bank City branch
and perform working in different departments like,
Account Opening Deptt.
Token Deptt.
Remittance Deptt.
Demand Draft
Pay order
Accepting of Deposits
Clearing Deptt.
Account Opening Deptt.

I am working first in Account opening department.
I learn something new in this
department. One of the important functions of bank is to accept deposits from general public.
Bank borrowing funds from outside parties is more important because the entire banking system
is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial
banks do not receive these deposited for safekeeping purpose only. When the bank receives the
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amount of deposited as a depositor, it become the owner of it. The bank may therefore use these
deposits, as it deems appropriate. Deposits are referred to as the life blood small for any
banking sector. So, I also know about the types of Account.
Current Account
Saving Account
Fixed Account
PLS saving Account
Token Deptt.
In token department, token are issued for the encashment of cheques Demand draft,
Telegraphic transfer, Mail transfer and miscellaneous expanses voucher of bank before issuing
term we check the following
Date should be current or previous not advance.
Specimen Signature of account holder should there.
Signature of bearer should on backside of cheques.
Amount should be same both in figure and words.
In case of DD (Demand Draft), checking sign of authorized officer of bank if there is any
discrepancy in above-mentioned point, no token would be issued. Before issuing token, we
stamped on backside of cheques and write the no. Of token both front and backside of cheques,
etc. After all the process, the entry of cheques would be posted on the given register, which
includes token number Code number and amount. After banking hours, Total amount on register
would be tallied with the cash department amount, that which has been paid. Any cheques that is
returned from the current department because of any discrepancy, is debited from the total
amount on the register in token department.
Remittance Deptt.
Another important department in ABL Bahawalnagar Branch is Remittances Department
in which I shall perform work. The remittances department transfers the funds from one bank to
other bank and from one place to another place.
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In remittances department the collection take place. The ABL made payment of only open
cheques on the counter and prohibits the payment of crossed cheques. ABL transfers money
from one place to another by the following means.
Demand Draft
Demand Draft is another way of transfer of money from one bank to another bank.
Unlike pay order, a form is required to be filled for the issuance of the demand draft in which
necessary particulars about the beneficiary and sender are given. The sender deposits the amount
of DD plus commission and other charges on the bank counter, from where he is given a receipt
and in accordance with this receipt he is issued
The following are the main essential of draft:
It is a Negotiable Instrument.
Filling a form and depositing the amount written on it prepare 2} Draft.
It is a written order to its branches or to another bank to pay the stated amount on draft.
PAYMENT ORDER
Pay order is the most convenient simple and secure way of transfer of money. It is issued
by, drawn upon and payable by the same branch of the bank. It is neither transferable nor
negotiable and as such it is payable to the payee named there in. The following are the parties to
a pay order.
Purchaser is a person, firm, company or local authority.
Issuing/paying branch is one which issues/pays on presentation.
Payee is a person named there in.
Mail Transfer (MT)

When a customer requests the bank to transfer his money from one branch of bank to
another branch of the same bank or from city to another city to the same bank or any other bank
the customer fills the form given by bank.
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Telegraphic Transfer
This type of transfer is simple. After filling in the application form the concerned officer
shall fill the TT form. Then it is sent to the required bank, which on receiving it immediately
makes the payment to the customer and afterwards the vouchers are sent to that bank by ordinary
mail.
Clearing Department:
When the branch receives cheques of other banks than one process of getting payment
against these cheques is that you sent a person who will take money on your behalf but in these
cities where State bank exist this function is performed by clearing. In State bank of Pakistan
there is a clearinghouse. It involves two clearing procedures,
Outward Clearing Register:
Inward Clearing Register:
Cheque
During my work, I learn about cheque & his types. As a customer you keep money in the
bank, you are supposed to withdraw money whenever you want. But when you want to make
some payment and you have shortage of time you can draw the cheque on the bank and bank pay
your cheque amount. In this way the bank saves the time of his customer. Banks give you an
option. You can order them to pay someone, on your behalf. You can do this by giving a cheque
to the payee. A cheque is like an order to the bank. When the payee shows it to your bank, the
bank will pay the money. There are two types of cheque.
1. Open Cheques
Open cheques are those which are payable at the counter of the bank.
There are two types of open Cheques:
a. Bearer Cheques
According to instruction the payment is made to the man who holds the cheque Drawer order
the bank to make payment to the person who hold the cheque
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b. Order Cheques
Drawer orders the bank to make payment to a specified person whose name is mentioned in
the cheque. The bank pays only when it satisfied about the identity of payee.
2. Cross Cheque
A cheque with two small parallel lines is a crossed cheque. You cannot cash such a
cheque across the counter. It will only be credited to a bank account. Such a cheque has to go
through clearing. There are two types of Crossing
General Crossing
Special Crossing
c. General Crossing
The drawing up of two simple parallel transverse lines on the face of the cheque at the top
left hand corner with or without the words & co, Not negotiable or Account Payee only in known
as general crossing.
d. Special Crossing
A type of cheque deems to be crossed especially when it bears across its face the name of the
banker either with or without the words not negotiable. In case of special crossing the payment
can only be made to the bank named therein the cheque.
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Conclusion
At present there is no such organization in the world that is free from problems
and challenges. Every concern has to strive and struggle a lot to be more profitable and to get
more competitive edge.
The management of ABL is taking strategic steps to enable the bank to emerge as a
strong and progressive institution. It is continuing to make efforts to refine its products
and operations to make them more compatible. New deposit schemes have been introduced
and an action plan to maintain revenue growth in future.
During my internship I have learned many new things in spite of the knowledge gained at
university and also came to conclusion that education alone is not enough, practical training in
every field is crucial to become a successful manager.
The bank has great image due to the trust but it needs to use it effectively to increase
market share. Also the flaws in branch operations such as misallocation of resources should be
rectified.
As the business and economic conditions remain uncertain, ABL continues to develop the
new products like it has been doing in past.
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Recommendation for the Organization:

While doing my internship training of 8 weeks in Allied Bank of Pakistan, I
have analyzed some problem in the Bank. Keeping in views those problems followings are my
recommendations:
The bank has a lot of financing schemes but there are little advertisements of these
schemes so ABL should more advertise its schemes.
Most of the bank employees are stick to one seat only, which result that they become
master of one particular job and lose their grip on other banking operations. So all
employees should have regular job rotation.
Some of the talented employees should be sent to other countries for their advance
trainings.
In back offices the employees are still depend on manual work which causes slow
performance. It should convert their system to an automated one.
ABL should promote the paperless banking.
In some groups or wings, approach towards employees is still bureaucratic,
late promotion, favoritism in appraisals and lack of sufficient incentives are
some problems arising dissatisfaction so the employees should be promoted on fair
policies to increase more satisfaction among them.
ABL should introduce the Islamic products because it has the potential market.
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Internship Report

The Islamia University of Bahawalpur

Who is the most Merciful, the most

Department of Management Sciences

Department of Management Sciences

All admirations are to Almighty ALLAH, the most Merciful and

Department of Management Sciences

All Departments Introduction

General Banking Department

Marketing Mix & HR Activities

Products & Services

Department of Management Sciences

SWOT & PEST analysis

Department of Management Sciences

Department of Management Sciences

Our Banking System Today

Department of Management Sciences

Department of Management Sciences

History and Background:

The Pre-Independence HISTORY (1942-1947):

Department of Management Sciences

AUSTRALASIA BANK (1947-1974):

ALLIED BANK (1974-1991):

ALLIED BANK- A New Beginning:

Department of Management Sciences

ALLIED BANK Privatization (1991-2004):

Department of Management Sciences

ALLIED BANK (2006):

ALLIED BANK (2009):

ALLIED BANK (Today):

IBRAHUM GROUP ASSUMES CONTROL OF ABL:

Department of Management Sciences

Department of Management Sciences

Department of Management Sciences

Sheikh Mukhtar Ahmad

Abdul Aziz Khan

Pervaiz Iqbal Butt

Sheikh Jalees Ahmad

Department of Management Sciences

2. Board Risk Management Committee:

This committee takes a review of strategic plans to improve IT

infrastructure, online cash delivery channels.

Three persons are the members of Audit

Department of Management Sciences

4. Strategic Planning & Monitoring Committee:

5. Human Resource & Remuneration Committee:

Department of Management Sciences

Strategy and Business

Operations and Service

Department of Management Sciences

Chief Executive officer

Sheikh Jalees Ahmad

Executive Director, Strategic Planning

Muhammad Abbas Sheikh

Advisor Chief Executive officer

Muhammad Jawaid Iqbal

Chief, Corporate and investment Banking

Khawaja Muhammad Almas

Chief, Commercial and Retail Banking

Chief Islamic Banking

Ahmad Faheem Khan

Acting, Chief Treasury

Muhammad Shehzad Sadiq

Chief, Risk Management