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 sustainability value through growth, efficiency and diversity for all
stakeholders
To provide a challenging work environment, and reward dedicated team members
To play it proactive role in contributing towards the society

CORE VALUES
Integrity
Excellence in Service
High performance
Innovation and Growth

LOGO

INTERNSHIP REPORT
Executive Summary

This internship report is actually is brief discussion of the functions, which are
being performed at Allied Bank Limited. ABL. It was incorporated in Lahore
before independence in 1942 as Australasia Bank and was renamed as Allied Bank
of Pakistan Limited in 1974 and Allied Bank Limited in 2005 and is one of the
major commercial banks of Pakistan. The Bank is making every effort to meet the
up-coming challenges through strategic planning and making the best use of the
resources at its command. The management is also in the process of rationalizing
the branch network and identifying and recovering its doubtful and classified
portfolio. It has planned to institute major improvements in customer services and
internal systems to improve efficiency. It also intends to launch innovative
products. The bank is increasing resource mobilization through regular deposit
campaigns and accelerating the process of recovery of outstanding advances and
non-performing assets.
ABL has assets of over Rs. 252,027 million, Shareholder's Equity of over Rs. 4,489
million and a solid track record of 45 years - in addition to the convenience of
more than 700 branches serving you throughout the country and also at several
locations.

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INTERNSHIP REPORT
Bank is derived form Bancus or Banque it is Italian word. History of Banking is traced to 2000
B.C in Greece. Priests and goldsmiths acted as financial agents by keeping
money and valuables of people in temples in strong safes. Thus the first stage in
the development of modern banking thus was accepting of deposits of cash from
those who had surplus money with them.

What is Banking Company:

Section 5 of banking ordinance 1962 says that “Banker means a person transacting the business
of accepting, for the purpose of lending or investment of deposits and withdrawals by Cheque,
drafts, orders of otherwise and includes any post office saving Bank”.

A BRIEF HISTORY OF BANKING IN PAKISTAN:

In subcontinent, before independence, most of the banking business was in the hands of Hindus
of British people and only two banks, Habib bank limited and Muslim commercial bank were
established just few months before independence. Habib bank was established in early 1947 in
Bombay while Muslim commercial bank was established in July 1947, in Calcutta. When
Pakistan came into being then it was decided that reserve bank of India would continue in
working in Pakistan until September 30,1948 and as for as take over of the management of the
public debts and exchange control from the reserve bank of India are concern will be made on
April 1, 1948. Due to efforts of govt. of Pakistan and keen interest of Mr. Muhammad Ali Jinnah
the creation of state bank of Pakistan was done July 1, 1948. After one year of the creation of
State bank of Pakistan, in November 1949, national bank of Pakistan was established in Dacca
(east Pakistan). The main purpose of which was to act as an agent of state bank of Pakistan.

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Organizations of Banking in Pakistan:

1. State Bank of Pakistan (central bank)

2. Commercial Banks
3. Exchange Banks
4. Co-operative Banks
5. Saving Banks
6. Agricultural banks
7. Industrial banks

1. STATE BANK OF PAKISTAN:

SBP is functioning as the Central Bank of country with its offices at Karachi, Lahore, Peshawar,
D.I.Khan, Quetta, Faisalabad, Rawalpindi, Islamabad, Multan, Gujranwala, Sialkot, Sukkur,
Hyderabad and Bahawalpur.

2. COMMERCIAL BANKS:
Commercial banks have been the most effective mobilizers of saving and have been providing
short-term requirements of working capital of trade, commerce and industry. So far twelve
Banks have been established in private sector and they have been allowed to open five branches
each in various parts of the country initially but provisions exist for their future expansion. These
banks ae authorized to carry on all the banking business.

3. EXCHANGE BANKS:
Foreign banks other than Indian banks have been commonly known as Exchange Bank’s due to
the fact that prior independence foreign banks the Indo-Pakistan sub-continent were engaged
primarily in the finance foreign trade.

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4. COOPERATIVE BANKS:
Cooperative banks are and integral part of the cooperative movement which aims at the
promotion of thrift, self-helped mutual aid amongst agriculturists and others with common
economic needs so as to bring about better living, better business and better methods of
production etc.

5. SAVINGS BANK:
There is only two Savings Banks in Pakistan i.e., Post Office Savings Bank, and National saving
scheme. ., Post Office Savings Bank wholly controlled by the Government of Pakistan. I accept
deposits from public and invest them in various Government projects. Its operation, therefore, is
very limited.

6. AGRICULTURAL BANKS:

Agricultural banks are set up to provide the financial assistance to the agriculturist. The
agricultural banks provide short-term credit to the farmers for the purchase of seed, manure, etc.
they also make long term advances for buying tractors and introducing modern technologies in
the farming. In Pakistan Agricultural Development Bank of Pakistan was set up in 1981 to meet
the financial requirement of agriculture. Now it is named as Zarai traqiati bank limited.

7. INDUSTRIAL BANKS:

The industrial banks provide long-term credit to the industries. Since the industrial banks have
long-term deposits, so they are in position to permit long-term investment in industries. In
Pakistan the Industrial Development Bank (IDBP) set up in 1961.The other institutions engaged
in financing financial assistance to industries are PICIC, NDFC, ICP, etc.

INTERNSHIP REPORT
About Allied Bank:

Allied Bank Limited is the first bank incorporated on the soil of Pakistan. It was incorporated in
Lahore before independence in 1942 as Australasia Bank and was renamed as Allied Bank of
Pakistan Limited in 1974 and Allied Bank Limited in 2005.

In August 2004 as a result of capital reconstruction, the Bank’s ownership was transferred to a
consortium comprising of Ibrahim Leasing Limited and Ibrahim Group.

Today the Bank stands on a solid foundation of over 60 years of it’s existence having a strong
equity, assets and deposits base offering universal banking services with higher focus on retail
banking. The Bank has the largest network of on-line branches in Pakistan and offers various
technology based products and services to its diversified clientele through its network of more
than 700 branches

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HISTORY OF ALLIED BANK LIMITED:

The Bank's history may be divided into several distinct phases. It began life as a Lahore based
Muslim bank in a financial world which was predominated by other communities. Experience
gained during this period proved to be of great benefit in enabling the Bank to impart financial
knowledge and develop banking expertise at a time when Pakistan suffered from a severe
shortage of these skills. During 25 years of united Pakistan the Bank advanced forward in all
areas of its activities. The 1970s was a difficult decade for all Pakistani banks. In 1971 the
eastern part of the country was separated. Australasia Bank lost more than 50 branches and
deposits worth Rs. 54.444 million. Nevertheless, growth remained steady and by the close of
December 1973, assets had risen to Rs. 1.25 billion and deposits to Rs. 849 million.

On 1st January, 1974 all the scheduled banks, including Australasia Bank, were nationalized.
Three small provincial banks were merged into Australasia Bank and on 1st July 1974, the new
entity was renamed as the Allied Bank of Pakistan Limited. Allied Bank began its operations as a
public sector financial institution. During the 17years(1974-1991)the value of total net assets
rose to Rs. 24.4 billion and deposits to over Rs.21.3 billion with 747 branches network (Figures
are for 10-09-1991, the date the Bank was privatized).

Habib Allied International Bank PLC Financial Services Authority was desirous to form a UK
incorporated independent subsidiary by all the Pakistani Banks or a joint subsidiary of two
Banks. Accordingly the Management of Allied Bank of Pakistan LTD and Habib Bank LTD
agreed to incorporate a joint venture Bank named "Habib Allied International Bank PLc" whose
initial paid-up capital is 25.00 million pound sterling. With a network of 10 branches located in
all big cities of UK, the bank will be well poised to handle large volumes of business,
particularly of the Asian community.

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PRODUCTS OFFERED BY ALLIED BANK OF PAKISTAN:

ABL facilitates its customers by providing different types of services of deposits, advances,
foreign exchange and other general services.

Accounts facility:
Allied bank provide account open facility. Here is list of accounts provided by ABL.
• Current Account
• PLS saving account
• Allied basic Banking
• Foreign currency banking
• Allied profit plus term deposit
• Allied profit deposit
• Allied monthly income scheme
• Allied Bachat scheme
• Allied e-Savers Accounts (ESA)

Current Account:

Allied Bank offers Current Account facility for individuals as well as for institutions and
commercial customers.

Free Online Transactions, DD/TT/PO for depositors maintaining average monthly balance of Rs.
25,000 otherwise Rs. 100 would be charged.

PLS Saving Deposits:

Allied Bank offers PLS Savings Account facility to its customers with the following attractive
features.

Attractive return up to 11.25% per annum

Complementary ATM cards

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Free Online Transaction, DD/TT/PO for depositors maintaining minimum monthly of Rs. 10,000
otherwise Rs. 50 would be charged.

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 deposit of Rs 1,000/=.
• 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.
• The statement of the account will be issued on yearly basis.
• There are no service charges on the said account for a maximum 2-withdrawals and 2-
deposits during a calendar month. Additional transactions will be subject to a service
charge as per Bank’s schedule of charges for every withdrawal/deposit.
• Unlimited free of charge withdrawals from ATM.

Allied Profit plus – Term Deposit:

The scheme offers an attractive return on various tenors tailored to the individual needs of
customers. Profit is payable on maturity.

Pre-Mature Encashment: In case of pre-mature encashment of Allied Profit Plus Term Deposit,
the profit to the depositor may be paid only for completed months at profit rate applicable for the
term lower than the relevant term of deposit. No profit will be paid for non completed month.

ALLIED e-SAVERS ACCOUNTS (ESA):

Allied e-Savers Account (ESA) is the most flexible saving account which cater to the needs of
such individuals who desire to maximize return on their surplus funds.

Investment: Rs. 25,000/- to Rs. 500,000/-

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 Profit: payable on half yearly basis
Projected Profit rate: up to 7.5% P.A
Eligibility: Individuals
Additional Benefits:

Unlimited deposit transactions, cash withdrawals through ATMs, debit card payments and
electronic transfers
Access to 740+ online branches all over Pakistan
Free Allied Cash+ ATM Debit Card
Cash withdrawals from Allied Bank’s largest ATM network of 350 ATMs in more than 90
cities
Note: All profits are payable subject to Zakat & Govt. Levis applicable from time to time.

Types of Accounts:

Joint Accounts:
An account open by two or more individuals is a joint account. Special instructions should be
taken from the account openers, whether the account is to be operated upon by them jointly or
severally in appropriate columns of account opening form. If account is operated jointly than
operations are allowed under the sign of all account holders. But if account is operated severally
than operation is allowed by anyone of the joint account holders.

Minors Accounts:
An infant or minor is a person who has not attained the age of eighteen. If this type of account is
opened than it is necessary that this account will be opened by the guardian and the account will
be operated by the guardian till such time the minor attains majority.

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Sole Proprietorship Account:
Sole proprietorship account is that, which is opened for the individual, trading under the style of
the firm on his declaration to the effect that he is the sole proprietor of the firm. After getting
proper introduction and establishing identity of the account opener the account is opened and
will be operated by the account holder easily.

Partnership Firms Accounts:

Partnership is the relation between the person who have agreed to share the profit of the business
carried on by all or any of them acting for all persons who enter in it are called partners and
collectively firm. While opening partnership account the partners have to declare that they
entered into partnership. Special and clear instructions are taken that whether account is operated
jointly or severally if the partners give authority to a person outside the partnership to operate
upon the account, all the partners must sign the letter of authority. It is also clearly mentioned if
they authorized operation to anyone or more from them to act on them behalf and they have to
notify the bank if any change occur in partnership.

Such an account is opened in firm’s have account opening form is signed by all partners,
information regarding all partners address, telephone number, NIC number will be obtained. A
copy of NIC will also be obtained for each partner. A copy of partnership deed is also obtained
for careful security.

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Other services provided by Allied Bank:

Agricultural Finances:

Bank under Agricultural Financing Scheme envisaged by the State Bank Of Pakistan extends
short, medium and long term, farm and non-farm credits. The farm credits are extended for
production (inputs) and development purposes. Non-farm credits are allowed for livestock
(goats, sheep and cattle), poultry, factory including social forestry and fisheries.

Import Export Business/Trade Finance:

ABL Provides highly efficient trade finance services for import/export business for our
clients/customers through large number of authorized branches where trained and motivated staff
is available to handle the business on behalf of customer.

Seasonal Finances:

• Running Finance is a short term loan allowed by the bank for a period of one year. The
running finance account can be operated and daily sale proceeds can be deposited into the
account. The mark-up is recovered on the products of daily outstanding balance. The
running finance is suitable for meeting day to day financial needs of the business.
• Cash Finance is allowed against pledge of goods. The delivery of goods is made against
payment.
• Demand Finance is disbursed in lump sum or in accordance with the agreed
disbursement schedule and it is repayable as per the agreed installments, which could be
monthly, quarterly, biannual or annual.

Internet Banking:

Banking at your fingertips! Allied Direct Internet Banking offers you the convenience to
manage and control your banking and finances - when you want, where you want to! It's Simple,
Convenient, Secure and Faster. So, just get clicking.

INTERNSHIP REPORT
Some features of Allied Direct are:

• Simple and Convenient

Easier navigation and help provided at every step so you can have most out of this
service. With Allied Direct convenience is just a click away.
• Secure and Faster
Secured & encrypted with latest tools and technologies, Allied Direct is the choice for
secure and fast Internet Banking.
• 24x7 Access
You now have access to your account 24 hours a day, 7 days a week. You transfer funds
or even pay bills even if it's a holiday.

To use Allied Direct Internet Banking, you should be a registered Allied Bank Account holder
with a valid ATM Card. If you do not have an account, please visit any of our nearest branches
and open your account and obtain an ATM Card. Our friendly branch staff will help you open
your account quickly.

All-Time Banking:

Allied Bank is now introducing the Allied Cash+ also referred to as ATM card. You will now
have the convenience of withdrawing cash from any of our multiple ATMs ("All-Time Banking"
locations) conveniently located in major cities like Karachi and Lahore at any time of the day or
night even on closed days/holidays. Other services include customer being able to inquire about
the balance of his/her account or printing an abbreviated (mini) statement showing the most
recent eight transactions up to the previous working day.

1 Link Network:

In continuation of ALL TIME BANKING services, with the country wide network of 735
branches, we are pleased to announce that ABL has enhanced ATM services by joining the "1-
Link Switch" to member banks such as MCB, HBL, UBL, NBP, etc.

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ABSOLUTELY NO CHARGES:

Allied Cash+ offers you the privilege of using thousands of ATMs of all banks without the extra
charge of Rs 15. Through this card you can have an experience of Cashless Shopping at
thousands of merchant locations. Get the card at no issuance fee. Pay no annual fee and no
transaction fee.

Get instant cash and check balances at over 1000 ATMs nationwide with no ATM access fees!
Here is what we have to offer:

Round-the-clock cash withdrawals:

Now you can make withdrawals up to Rs. 25,000 in a day (depending upon your deposit) at any
ATM across Pakistan. (The transaction limit is Rs.25,000.)

'No Fee' ATMs:

Next time you make a transaction at a 1-Link or MNET ATM anywhere in Pakistan, you can
be rest assured you will not be charged the extra fee of Rs.15

Loss of Card:

In case you lose your Allied Cash+ Card or the Card is stolen, the matter should invariably be
bought to the notice of the Bank personnel as soon as you discover the loss. For this purpose, the
Branch Manager must be notified in writing immediately.

MASTER CARD:
You can now become the holder of a true Credit Card here in Pakistan. Allied Bank under
license from Master Card International, U.S.A issues it's Master Card to anyone meeting the
eligibility criteria. With the Allied Bank - Master Card you will be assured of a service meeting
the highest international standards maintained by Master Card.

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The New Allied Bank-MasterCard:

We at Allied Bank are of the view that the time has come to bring about a radical change in the
Pakistani credit card industry. Being a successful individual, you deserve a life unrestricted by
cash limitations, you deserve a reliable credit line, you deserve the best – you deserve the Allied
Bank-MasterCard! Luxury, status, prestige and convenience await you with the Allied Bank-
MasterCard - at no extra cost. That’s why the Allied Bank-MasterCard is now available for you –
with a set of unique features, a simple application procedure and the fastest processing time!
Accepted at 16,000+ establishments in Pakistan and over 17 million retailers across the world,
the Allied Bank-MasterCard is your ticket to complete financial independence.

No Annual or Joining Fee: No annual or joining fee is applicable for the first year of operations
of the card after 1st year for Local Card Rs. 1000/ per year, International Card Rs. 1,500/- per
year and supplementary card are free for Lifetime.

Quick Processing Time: With our automated processing systems and simplified application
procedures, we promise delivery of the Allied Bank-MasterCard at your doorstep in record time.

Pioneer in Credit Cards: Not only is Allied Bank-MasterCard a pioneer in the credit card
industry, but is also the first free credit card launched by a completely Pakistani.

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General banking departments
The general banking department performs functions of account opening, deposits of cheque,
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

Cash department
It provides its users with following facilities:

1. Make payments on cheques.

Accept deposits.
Collect utility bills.

Cheque:
The cheque is the most important, convenient and well established medium of modern
banking used for withdrawal of funds and settlement of debts by an account holder i.e a drawer.

Definition:

A cheque may be defined as “A written order of a depositer upon a bank to pay or to the
order of a designated party, a specified sum of money on demand.”

Parties of cheque:

Parties involved in cheque are:

1. Drawer: the person who is ordering for payment.

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 2. Drawee : that bank who has to pay the amount.
3. Payee: the person who is receiving the payment. The drawer and payee may be the same
person.
Payment of cheque:

Ways to make payment of cheque:

The cheque may be paid in one of the following ways:

1. By cash payment over the counter.

2. By transfer from one account to another.
3. By collection/clearing.

Now a days token system is completely finished because of the introduction of online banking.
Only cheque deposit to officer and he verified signature through computer and pass the cheque.
And the cheque is send to cashier. Cashier is made payment to drawer enter in long book on
debit side.

Dishonor of cheque:

While making payment of cheque the officer must check it according to following guidelines. If
any of the following case is appeared then payment is not given to the customer.

• When cheque presented at a branch where customer not held his account.
• When customer’s account is closed before presentation of cheque
• When the cheque is ambiguous or mutilated.
• When a notice of customer’s insanity is given to bank.
• When notice of loss of cheque is given to bank.
• When signatures of drawer differ.
• When the cheque is undated or post dated.
• When balance of customer’s account is insufficient to meet the demand.
• When order of court prohibits the payment of cheque.

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Collection of utility bills:

The branch also provides the facility of utility bills collection of KESC, SSGC, PTCL,
KW&SB, CDGK, Cell phone bills, colleges & universities fee etc. The branches collect
utility Bills during banking hours. Bills can be paid through cash or cheques.

Account Department
Account department opens and maintains the accounts of new customers, issues cheque books
etc.

Account Opening Process:

Continued addition of new accounts is an important functional activity of a bank because it not
only builds up its deposits base, but also increases its profitability, it is very necessary for its
survival. All deposits are opened with a fixed minimum cash deposit.

While opening an account following steps are under taken.

Proper introduction:
At first proper introduction of account holder is taken from different sources.

Completion Of Account Opening Form:

It is checked carefully that account opening form is complete in all respects and signed by the
account holder and introducer.

Obtaining Identity Card:

As an additional precaution attested copy of national identity of account holder and introducer
will be obtained.

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Accounts Opening Registration:
After opening an account relevant information is recorded in account opening register.

Following are the particulars recorded.

• Date
• Name of account holder
• Account number

Closure of Accounts:

Following are the reasons for closing an account:

Customer’s Request:

Due to personal reasons or inconvenience if the customer request for closing his account
than his account will be closed.

At Bank’s Discretion:
If the account is not satisfactorily operated by the customer than bank has the discretion to close
account after giving notice to the customer.

Death Of The customer:

On death of the customer the bank stops the payment of the cheques.

Insolvency Of Customer:
If insolvency of any customer comes to the knowledge of the branch than no further withdrawal
be allowed and account cannot be operated and the problem will be referred to the higher
authorities.

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Order Of Court:
In case of any legal order from the court than payments of cheques also stopped and account
cannot be operated.

Remittance Department
One of the major functions of bank is remittance. This department provides this facility through
following instruments.

1. Demand draft
2. Deposit at call
3. Travelers Cheques
4. Online Banking

Demand Drafts:

Draft is an order cheque drawn by the one branch of the same bank to pay sum of money to
drawer on demand. It is payable on demand.

A bank Demand draft has following particulars:

• Payee’s name
• Date of issue
• Amount in words and figures
• Drawee Branch’s name and code
• Address
• Serial number

Deposit At Call:
These are made for tender purposes. These are kept as security when a tender is submitted
by a person to a company. If the tender is approved than these are payable to that company
but if person fails to get approval of tender than these are cancelled and will be refunded by
the person. There is no limit of the period of deposit at call.

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Travelers Cheques:

Carrying cash to strange alien location can prove to be risky as a single incident can render one
without monetary backup of any sort. Hence travelers cheques are introduced by banks in order
to protect against any contingency.

Online Banking:

Allied Online is a unique service offering from Allied Bank Limited. Through Allied Online,
your account in Allied Bank is available to you from any of our branches country-wide. No
matter where you are in the country and which branch your account is maintained, you can have
your cheques encashed at any of our over 700 branches located in 250 cities. You can also use
the service to deposit cash for instant credit into your account or any other account in Allied
Bank from any branch. Similarly account-to-account Funds Transfer facility is also available for
instant remittance.

Your cheques drawn on a remote branch for credit into beneficiary’s account or encashment up
to a specified amount can also be presented at any branch by a 3rd
party. Other services available to accountholders are Balance Enquiry and Account Statement at
remote branches.

Allied Online provides a secure, efficient and convenient facility for making payments to
beneficiary accounts from any of our branches country-wide. It can be used for cash
management services by corporate customers requiring funds collection or disbursement facility.

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. The representatives of local banks meet there at 9:00o’clock and exchange there
cheques and other instruments with each other. Than they come to their bank and check these
instruments that these are ok or not. The representative again meet at 12:00 o’clock in the

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clearance house and the cheque which are ok get payment against these and the cheque that
cannot be cashed these are again exchanged. In State bank every local bank has its account from
that account payments for clearing are made.

Transfer Delivery:
All cheques and other instruments received for collection, which have been drawn on other local
branches of Allied Bank Of Pakistan Limited, their collection system is called transfer delivery.

Outward Transfer Delivery:

When the branch sends on instruments for collection than it will called outward transfer delivery.
All such instruments will be entered in a separate register called outward transfer delivery
register.

Inward Transfer Delivery:

When the branch pays against an instrument it is called inward transfer delivery. All such
instruments are recorded in a separate register called inward transfer delivery register.

Books & Registers :

Cashier long book:

After making the payment the cashier will enter the amount in cashier long book on the
debit side.

Accounts Opening Register:

After opening an account relevant information is recorded in account opening register.

Following are the particulars recorded.

• Date
• Name of account holder
• Account number

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Cheque Book Issue Register:
For issuance of Cheque book customer give an application to the manger and than the Cheque
book is issued.

Following are the particulars of Cheque book issue register.

• Date of issue
• Distinctive number
• Form
• To
• To whom issued
• Account number
• Whether sent by post/ peon
• Date Ack received

Demand Draft Issue Register:

When a Demand draft is filled out and made than an entry is made in which

Following information is recorded in the register:

• Date
• Draft number
• Name of purchaser
• Favoring
• Amount
• Amount of exchange

Demand Draft Issue Payable Register:

When a Demand draft is received and paid than an entry is made in Demand draft payable
register.

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The register contains following information:

• Date on which it is received

• Draft number and its date
• Favoring
• Amount
• Paid on

Deposit At Call Register:

When a deposit at call voucher is filled out an entry is made in deposit at call register.

The register contain following information:

• Date
• Receipt number of deposit at call
• Name and Address
• Reason of issue
• Amount
• Paid on

Outward Clearing Register:

When through clearing payment is given to the other bank than this entry will be recorded in
outward clearing register.

The register contain the following information:

• From whom it is received

• Drawer
• Drawee
• Cheque number
• Account number
• Amount

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Inward Clearing Register:

When payment is received from the other bank than entry is recorded in inward clearing
register.

The register contain following information:

Serial number

Date

Amount

Remarks

L/C Opening Register:

When L/C is opened some information is maintained in that register.

Following is the information recorded.

• Date
• L/C number
• Name of party
• Foreign currency account
• Rupees equivalent
• Type of goods
• Country of origin
• Foreign advising bank
• Expiry date

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 • Margin percentage
• Amount of margin
• Commission
• Postal charges
• Cable charges
• Importer’s name and address
• Exporter’s name and address

Letter of Credit:

Definition:
A concept is developed between seller and buyer. Buyer goes to bank and makes his letter of
credit. It is just like a guarantee. Guarantee to pay account from bank but if terms and conditions
of letter of credit are fulfilled.

Letter of credit is used as Modes of Payments in import export

Parties Involve in L/C:

Following parties are involved in it.

Importer:
The person who want to open a letter of credit in favor of exporter when importing something
from abroad.

Exporter:
The person who is selling in abroad letter of credit is open for exporter.

Issuing Bank:
The bank that issue letter of credit. It is the bank of importer.

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Advising Bank:
The bank with whom issuing bank negotiates in export’s country.

Export Company:
The bank who work on behalf of exporter. Advising bank and exporter bank may be the same
but it is not necessary.

Confirming Bank:
In case if exporter hesitates for trading due to bad economic conditions of importer’s country
than confirming bank assure the exporter bank that payments are made to exporter.

Reimbursement Bank:

This bank maintains the account of issuing bank and it is situated in that country whose
currency is used for payments.

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SWOT Analysis

Strengths:
• 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 employee 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 customer's complaints. The
customers are treated as Very special persons in the Bank.

Weaknesses:
• 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.

Opportunities:
• The policies of the new government to uplift the economy and pursue financial sector reform
are expected 10 yield positive results in the banking industry of the country, The ABL is very
well praised to avail promising opportunities.
• As 1 result of the different steps taken by the Government regarding the betterment of the
economy, small borrowers Mi attracted to get the financing and start small businesses. So, the
ABL has an opportunity to the customers by giving those schemes.

THREATS
• First threat is that of political influence. Three boards of director 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.
• New Privates Bank coped with emerging new Technology of IT.

INTERNSHIP REPORT
Recommendations
Following are some observations and suggestions during the internship.

• When giving the loan, the Bank must carefully analyze the past six month’s transaction
history of the borrower. This will help in judging the dealing behavior and financial status of the
client. In most cases, this thing is not properly done and it is the major reason of default of
many clients.

• The Bank should keep the proper check on stock which is hypothecated. A textile owner may
return the loan on same 10,000bales of cotton from checking system of the Bank.

• The Bank should try to give more loans to the small borrowers as the past history shows that
most of the loans given to the corporate borrowers have convened in bad debts.

• The Bank has a lot of financing schemes but there is very little advertisement of these
schemes. So Bank should increase its advertisement.

• When any one comes to operate the lockers. then the things which he keeps in Locker should
be checked through metal detector for security purposes.

• Most of the bank employees are sticking to one seal only, with the result that they become
master of one particular job and loose their grip on other banking operations. In my opinion all
the employees should have regular job experience through job rotation. The promotion policy
should be adjusted.

• Every year some of the employees should be sent training to other countries and employees
from other branches should be brought here. More reading material should be brought provided
in reference Room, it should be relevant and its purpose should be to educate the employees with
the advance studies in their field. The employees should be provided the opportunities to attend
and participate in seminars and lectures on banking.

INTERNSHIP REPORT
References

Bibliography:
All the information provided by making this Internship Report has been gathered
during doing Internship in Allied Bank Limited and from the following

• Website State Bank of Pakistan

• Website of Allied Bank Limited
• Bank Manager and Staff
• 1961 Banking Ordinance

Websites:
• www.abl.com.pk/finance
• www.businessrecorder.com
• www.jdawB.com
• www.sbp.com.pk

INTERNSHIP REPORT
 Index

1 Executive Summary 2
2 History of banking 3
3 History of banking in Pakistan 4
4 Organizations of Banking in Pakistan 5
5 About Allied Bank 7
6 History of Allied Bank 8
7 Products offered by Allied Bank 9
8 Types of Accounts 11
9 Services Provided by Allied Bank 13
10 General Banking departments 17
11 Cash department 17
12 Account department 19
13 Remittance department 21
14 Clearing department 22
15 Books & Registers 23
16 Letter of Credit 27
17 SWOT Analysis 29
18 Recommendations 30
19 References 31

INTERNSHIP REPORT