Allied Bank TABLE OF CONTENTS by umairsheikh2002

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									TABLE OF CONTENTS
No: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Titles EXECUTIVE SUMMARY VISION, MISSION AND CORE VALUES HISTORY OF ALLIED BANK BOARD OF DIRECTORS ORGANIZATIONAL CHART SWOT ANALYSIS COMPETITIVE STRETAGY PEST ANALYSIS SERVICES OFFERED BY ABL PRODUCTS (ACCOUNTS AND PACKAGES) FINANCIAL RATIO ANALYSIS ABL AND FIRST DATA SIGN CARD THE CEBIT (EVENT IN GERMANY) PUBLICITY AND PUBLIC RELATIONS QUALITY ASSURANCE SYSTEM HUMAN RESOURCES LEARNING AS AN INTERNEE NEW KNOWLEDGE ACQUIRED PROBLEMS ENCOUNTERED HOW EXPERIENCE IMPACTS MY CAREER BIBLIOGRAPHY AND REFRENCES Page no 3 4 5 9 10 12 19 20 21 23 39 52 52 54 56 57 61 64 70 71 72

Executive Summary
I did my internship in Allied Bank Limited, Raiwind road branch from 20th July to 30th of august. As it was my very first experience of work so they rotated me in different departments like Account opening, clearing, issuance of ATMs, cheques books and lockers, online transaction. The staff made me learns the basics of different departments in this way. I faced a lot of difficulties during the span of learning but I got full attention and support from the staff, and they really made me learn a lot. During the internship I kept on consulting my internship advisor every week. At the end of internship the manager gave me the internship letter and evaluated my overall performance on an evaluation form prescribed by our university.

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Vision, Mission & Values
Vision
 To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.

Mission
 To provide value added services to our customers  To provide high tech innovative solutions to meet customers  Requirements.  To create sustainable value through growth, efficiency and diversity  for all stakeholders  To provide a challenging work environment and reward dedicated  team members according to their abilities and performance  To play a proactive role in contributing towards the society

Core Values
 Integrity  Excellence in service  High performance  Innovation and growth

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History of Allied Bank of Pakistan
ABL was established in Lahore before independence in 1942 Allied Bank Limited is one of the largest banks in Pakistan now with more than 757 Branches in over 300 cities offering real time online banking. . In August 2004 the Bank was restructured and the ownership was transferred to Ibrahim Group. Established in December 1918 with the name “Australasia Bank” at Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had attracted deposits equivalent to Rs. 0.431 million in its first eighteen months of business. Total assets then 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 different stages through which Allied Bank had gone are a result of hard work and determination. Before partition the Hindus got flourished in the field of trade and commerce and it was thought that muslims can not compete then because they can not save and invest , and they do not have the caliber to operate in the field of banking . To respond these remarks by hindus , Khawaka Bashir Bux established the first Muslim bank in December 1918; by the name of Australasia Bank Limited. The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5 million by the end of first full 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. Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August 14, 1947.It was severely hit by the riots in East Punjab.All the branches in India were closed and new Branches were opened in Karachi,

Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later its network spread to Multan & Quetta . Despite the worst conditions prevailing during 1947 to 1948 Australasia made a profit of 50,000 .It lost 51 branches

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because of separation of East Punjab , but still it didn’t give up and kept on working hard with full determination and got success.

A NEW PHASE, ALLIED BANK:
In 1974, the Board of Directors of Australasia Bank was dissolved and with the union of Lahore Commercial Bank and Sarhad Bank it was renamed as Allied Bank. This phase was remarkably a very successful one for ABL, 116 new branches were opened soon, because ABL made a profit of more than rupees 10 million, deposits rose to Rs: 1460 million, Investments rose by 72 percent and advances exceeded Rs 1080 million for the first time in bank history. ABL got so much profit from 1974 to 1991 that branches increased from 353 to 748. Deposits rose from Rs 1.46 billion, and Advances and investments from Rs 1.34 billion to Rs 22 billion during this period. That’s why it opened 3 branches in UK as well.

A NEW PHASE IN 1991:
ABL entered into a new phase in 1991, as a result of the policy of privatization, ABL became the very first bank to be owned and managed by it’s own employees .Even after privatization ABL proved itself and Allied Bank’s capital and reserves were Rs. 1.525 (Billion), assets amounted to Rs. 87.536 (Billion) and deposits were Rs 76.038 (Billion). In this way ABL enjoyed an inevitable position in financial sector of Pakistan and became one of the best banks in our country.

IBRAHIM (2004)
In 2004 , the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group .ABL is now part of Ibrahim Group , one of the world’s largest industrial congloromates in Pakistan with business in

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textile , trading , polyester fibers , energy and financial services sectors .After this merging the board formulated comprehensive strategic priorities to address the needs to run a world class financial institution .To attain this goal , it was imperative to invest in human resources , systems and technology , with special Emphasis value addition and special quality.

ABL IN 2005:
In May 2005 Ibrahim Leasing Limited (ILL) was amalgamated and vested in Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced W.E.F. the following dates. Islamabad Stock Exchange 8th August 2005 Lahore Stock Exchange 10th August 2005 Karachi, Stock Exchange 17th August 2005 Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their free will.

ABL IN 2007:
Allied bank’s progress was further acknowledged when the bank was included in the top 1000 banks of the world. This goes to show the improvement in Allied bank’s policy, procedures and services during the past few years .

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IN TODAY’S WORLD:
ABL is now one of the largest banks in Pakistan with a network of 757 in over 300 cities and towns offering real time online banking. The bank leads the way by having the largest network of 450 ATM’s in more than 145 cities and towns across Pakistan. Currently ABL possesses 932nd position in the world. The management has a vision to move forward and to be one of the world’s leading banks.

PACRA:
Based on it’s impressive financial performance and significant improvement in areas of risk management and corporate governance, the Pakistan Credit Rating Agency assigned the long term credit rating of Allied Bank to AA (double A) and short term rating to A1+ (A one plus).

o AA:
o Very high credit quality. AA ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

o A1+:
o Obligations supported by the highest capacity for timely repayment. The rating reflects ABL’s good performance prospects emanating from its extensive outreach, sound capital structure and an improving asset quality. While seeking to strengthen it’s infrastructure and control environment, the Mamagement intends to withstand in an increasingly competitive environment through achieving diversification in loan book and leveraging the extensive outreach to expand its retail universe both for credit expansion and low cost deposit mobilization.

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BOARD OF DIRECTORS:
Following are the names of the Chairman, Chief executive officer, and Board of Directors of ABL:

CHAIRMAN:  MOHAMMAD NAMEEM MUKHTAR CEO:  MOHAMMAD AFTAB MANZOOR DIRECTORS:  PERVAIZ IQBAL BUTT  FARRAKH QAYYUM  ABDUL AZIZ KHAN  AHEIKH JALEES AHMAD  MUHAMMAD WASEEM MUKHTAR  SHEIKH MUKHTAR AHMAD  TASNEEM M. NOORANAI  NAZRAT BASHIR  MUBASHIR A. AKHTAR

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Organizational Chart
CHAIRMAN

CEO

Senoir Executive Vice President(SEVP)

Senoir Vice President(SVP)

Executive Vice President(EVP)

AssistantVice President(AVP)

OG-1

OG-11

OG-111

Supporting staff

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Branch Organization Structure
Manager

Customer Service Manager (CSM)

MG-10(Day End/calling)

MG-10(Day end/Calling)

MTO (Acct opening Officer)

MTO (ATM & Cash Book Officer)

MTO (Clearing Officer)

MTO (CD Incharge)

Cashier

Teller

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SWOT ANALYSIS:
SWOT Analysis is the abbreviation of for words:  S _ STRENGTH  W_ WEAKNESS  O_ OPORTUNITIES  T_ THREATS

MICRO FACTORS: The strength and weakness are the internal factors of the organization; they are also known as micro factors. EXTERNAL FACTORS: The opportunities and weakness are the external factors, and are also known as macro factors.

Both these micro and macro factors really effect the working of an organization, but the only difference is that micro factors are under the control of the organization where as the macro factors are not under the control of the organization it self. By doing SWOT analysis of the organization the present and future conditions and status of the organization can be evaluated. To run an organization it is very important to know the strengths of that organization so that they can be made the competitive advantage of that firm against its competitors. Same is the case with weaknesses that by knowing them a firm can try to overcome those weaknesses. And by knowing the opportunities and threats of a firm or an organization, that organization can make plans for its future. It can avail the opportunities and avoid the threats. So following is the SWOT analysis of ABL from my view and the knowledge I have about ABL.

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STRENGTHS:
 NETWORK OF 757 BRANCHES Allied bank has a large number of branches i-e 757. It has one of the largest networks all over Pakistan. All of its branches are interlinked through an online system. And most of its branches are doing a very good business and earning a lot of profit.  ONLINE FACILITY

ABL is providing an online facility to its customers, through this facility customers can send or transfer cash or cheques to any other account in any other branch of ABL within seconds. It also provides the facility of cash withdrawal and balance inquiry from a certain account of any other branch of ABL through cheques.  SECURE BANKING:

The online banking facility provides less chances of fraud. Because the receipts of any online transaction are given to customers at the time transaction takes place and also can be checked any time. To make it much more secure the NIC copy of the person is also submitted at the time of online transaction but those customers who also have their accounts in the same branch do not need to submit the copy of NIC as their copy is already attached with their account opening forms.  FOREIGN CURRENCY:

ABL also provides its customers the facility of foreign exchange; people can also open their accounts in foreign currency. Customers are also given the facility of money exchange on current rates. The head office also provides the foreign currency account holders the facility of the current rates of foreign exchange

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through fax facility. The bank also provides the facility of letter of credit and export/import facility to the customers.  VARIETY OF PRODUCTS:

ABL provides a variety of products to its customers. ATM, DD, TT, PO, CREDIT CARDS, TRAVELERS CHEQUE are its main products. Customers have a lot of variety of accounts; they can invest in any account of their choice keeping in view that are they salaried persons, businessmen, or students etc. It also gives the facility of collection of amounts to its customers.  LOCKERS FACILITY: ABL provides the facility of lockers in its all branches. It is one of those banks which is offering this facility in all of its branches.  CUSTOMER CARE CENTRE: ABL also provides the customer care centre facility to its customers. ABL has a toll free number on which the customers can call anytime, its free of cost , so that customers can contact the bank whenever they need any sort of help or guidance.  SAME ACCOUNT NUMBER FACILITY At Allied bank the customers the person who has more than one account can have the facility of the same account number only the suffix is changed. This facility provides the customer with easy remembering of the account number.  ACCOUNT OPENING: At Allied bank it’s very easy to open an account just an introducer and a copy of NIC is required. Customer just needs to fill up account opening forms and can

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enjoy the facilities of any type of account the want. This is the strength of Allied bank facilitates all of its customers.  PAID LEAVES: The employees can avail the one month leave facility in an year and 36 medical leaves per year with full salary so that its employees can have some relaxation.

 SUPPORTIVE ENVIRONMENT: ABL provides its customers a very supportive environment, customers are given the foremost priority, even the staff helps all of its colleagues and all staff members like to share the workload with their colleagues.

 LOW INTEREST RATES:

To encourage people to do business with ABL, it gives loans to its customers on very low interest rates.  EMPLOYEES’ REPLACEMENT In every branch of Allied bank the back up of every employee is there in case of emergency if some officer is not available at the bank, some other person will back him up. That person is always well familiar with the responsibilities of that officer.  SECURE ENVIRONMENT

Cameras are installed in all the branches of the bank to ensure security of its customers and employees. Also security guards are available through out the day. Cameras are installed in front of the cash counters. These cameras are switched on all the time. The branch manager can see all the activities while

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sitting in his office on a display monitor. If some thing goes wrong then the manager can buzz the security alarm immediately

WEAKNESSESS
 LATE PROMOTIONS:

Against the schedules specified by the bank, employees are promoted after a long period of time. And from my view its one of the biggest weaknesses of ABL.  LOW PRODUCT CREDIBILITY Allied Bank has still not got the edge where the consumers become loyal to its products and services. Mostly customers become its customers out of no reason than request from a personal banker. And talking about consumer banking, though credit cards awareness in our middle class society has gradually improved but not up to the point where they can compare the features that one Bank is offering and other is not. Truth must be said, most customers do not even know the points behind the term “interest free days”. The point is, consumers do not know of the product being offered so how can they rely on the product.

 MANUAL WORK:

ABL is still relying on a lot of manual work. As compared to other banks now a days ABL is still using a lot of manual work instead of software’s. Most of its recording are kept in form of hard copies and maintained by its employees in manuals. It really takes a lot of time and efforts for maintaining the data manually.

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OPPORTUNITIES:

 ABL is working mostly in corporate sector and its basically missing a big share of consumer banking. If ABL over comes this point, then it can become of of the biggest bank of Pakistan. By improving itself in consumer banking it can really earn huge amount of profits and can emerge as the top most bank of our country.

 ABL has also ignored the sector of car financing, which is a very important financing nowadays. Many people nowadays buy cars through car financing but ABL does not have this facility. If it starts car financing then definitely many people will get attracted towards this scheme and definitely ABL will be able to earn a lot as well and many customers will also get attracted in this way.

THREATS:  COMPETITORS:

The main competitors of ABL are BANK AL-FALAH, FAYSAL BANK, PRIME BANK, MCB. Due to tuff competition with these banks ABL is forced to sanction loans at less interest rates, so that to attract the customers. And because of these low rates it earns less. The threat of these competitors is a very big hurdle in the way of success of ABL.

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 POLITICAL INSTABILITY: Due to continuous political instability in the country the foreign exchange accounts and overall growth of financing sectors has really declined a lot.

 CHARGES BY GOVERNMENT: Government has increased the taxes and charges on all the services of finance and banking sector, because of these increased charges ABL has to increase the charges on every service to the customers, which is really affecting the working of ABL and all other banks as well. As government keeps on revising the taxes on continuous basis ,which is not at all in the interest of the banking sector.

 TRADE ,INDUSTRIES AND STOCK EXCHANGE:

Sudden fall in the trade, industrial sector and stock exchange market has also adversely affected the working of banks a lot. Decreased per capita income, unemployment, inflation, un favorable balance of trade recession and boom are the source to the slow progress of the banking sector.  POLICIES OF ABL: The employees are given promotions on reference basis, which causes frustration among employees and overall graph of the performance comes down. So ABL should reconsider their policies so that the bank may remain in the race.

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COMPETITIVE STRATEGY
ABL has this strategy that it always gives priority to its customers , as compared to other banks it has made it its motive that its foremost priority are its customers service . According to their strategy it is the demand and need of customers which should me given priority and importance, so that if they will get what they really want then definitely they will be satisfied and prefer that bank over others. Another important thing which differentiates them is that, ABL believes that making your existing customers loyal is very important, because it is really the existence of your already existing customers that attracts new people to come and try, like a famous saying that money attracts money so in the same way loyal customers attract new customers. To achieve this motive, ABL has made it its policy to give its customers full time and attention, to introduce them with new policies, through their employees, help line number, pamphlets, magazines, and it is made the duty of its employees to deal with customers in such a manner that they feel very safe, that they have got all the safety of their wealth, full attention and interest by the bankers.

TARGET MARKET
The target market of ABL is both the Retail banking and the corporate banking. All the salaried persons, house wives, retired people, labors and all those type of people who have an average amount of savings are included in retail banking. Where as the big business men and big investors, financers, and those customers who take huge amounts of loans and fiancé are included in corporate banking, simple all those customers which are included in corporate sector.

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PEST Analysis

Political
Pakistan despite all international and public perceptions, today is a functioning democracy and gradually there is a change in complexion and composition of legislatures with more educated people and women (27% of National Assembly and 17% of Senate) entering into politics Similarly it helps in designing best strategies to implement that could support the revival of bank industry. Like in the era of nationalization banks had to suffer as other industries that’s why that impact is still found in the performance of this industry.

Economical
Although banking sector development is important at the early stage of economic growth, general liberalization presuming a homogeneous bank role may not necessarily promote growth. The estimated cost structure indicates that stateowned commercial banks are large enough, while development financial institutions and private banks can expect to obtain cost-saving advantages by expanding their operations. Since scope economies are significant, portfolio diversification generally increases bank profits. In addition, privatized banks are the most efficient, followed by foreign and private banks. Public banks are the least efficient.

Social
Banks always helped people in improvement of living condition of poor people in various forms like giving loans to poor for starting business or directly providing them the instruments that could enhance their living conditions. Similarly Allied Bank always tried to provide the needy people loans on soft terms and also helped to eradicate unemployment by providing job opportunities

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Recent high growth trends coupled with enhanced spending on social and poverty programs that rose from 3.8% of GDP in 2001/2002 to 5.05% by 2005/2006 has together begun to pay some dividends as evident from the reversal in poverty incidence trends and social indicators.

Technology
The Banking sector in Pakistan has experienced a rapid transformation. Just about a decade back this sector was limited to the Sarkari (read nationalized) and co-operative banks. Then came the multi-national banks, but these were confined to serving an elite few. One could regard the past as the 'medieval ages' in the banking industry, wherein every branch of the same bank acted as an independent information silo and multi-channel banking (ATMs, Net banking, Tele-banking, etc) was almost non-existent. Today banks have to look much beyond just providing a multi-channel service platform for its customers. There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future. Here are the top three concerns in the mind of every bank's CEO. The customer is interested in how he/she can benefit from the bank and its products. That's why it becomes necessary for a bank to differentiate its products from the others. Some of the ways in which differentiation can be introduced are through specialization, new products, and increasing the added value

SERVICES OFFERED BY ABL:
ABL provides many remarkable services to its customers which really serves it as its competitive strategy. All the performance of a bank mainly depends on the services provided by it to its customers, better and higher the services greater the performance .All the new customers and the already existing ones really get attracted by these core competencies of the ABL. The most prominent service offered by ABL, which differentiates it by other banks is the Online transaction

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facility provided by ABL. ABL is that one bank which has the largest network all over the country to provide this facility; this service is provided in each and every smallest branch of ABL. Other services include lockers, Home remittance, remittances, Hajj services, internet banking, and Utility bills. ABL uses these services to win its customers and their level of satisfaction as its competitive strategy.

TOLL FREE NUMBER
ABL, keeping in mind the queries and problems of its customers has set up a toll free number, to provide convenience to its customers , so that if they face any problem they can simply contact ABL to get guidance and help. And this number costs nothing to its customers as it’s a toll free number, simply its made for the convenience of its customers.

ONLINE SERVICES:
Why should we go to the bank if we have the online facility that is , access to the bank online. ONLINE BRANCH NETWORK: Online banking facilities are available to customers maintaining accounts at all online branches across the country. The following facilities are available.    

Cash deposit for immediate credit to remote branch. Remote cheque Encashment from any online branch. Instant funds Transfer between any 2 online branches. Remote balance inquiry and statement of accounts.

In addition to the above, account holders of all online branches can obtain ABL’s Allied cash+ for use at ATM’s as well as at Debit card POS terminals.

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PRODUCTS: LOCKERS:
ABL has given its customers the facility of lockers, so that they can secure their valuable things in the lockers, for example, gold, any important documents, or anything which a person wants to keep very safely. ABL lockers are available in three different sizes large, medium, and small on a yearly fee. Locker holders need not have an account in the bank. The customers get back the security fees when they close their locker facility by the bank.

SAFE DEPOSIT LOCKERS INSURANCE:
The bank has already informed its safe deposit locker holders through half yearly statement of accounts as on 30-06-07 that the bank has arranged insurance cover at its own cost subject to the terms and conditions of the insurance policy for the losses sustained and discovered by the reasons of damage, destruction or loss by fire, burglary and locker breaking. Maximum insurance ceiling provided for each category of lockers is mentioned hereunder: Serial number 1: 2: 3: Small Medium Large Locker size Annual locker rent Maximum (current) Rs. 1500/Rs. 2000/Rs. 4000/coverage/Limit Rs. 500,000 Rs. 1,000,000 Rs. 1,500,000 loss

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CHEQUE BOOKS:
Cheque books are issued after three days of opening of account, the first cheque book issuance charges costs rupees 110, second and so on cheque books are issued on request of the customer, customer has to submit a request form for issuance of another cheque book, and the charges of these cheque books are 215 rupees. There are two types of cheque books, the first one is of 50 leaves and the second one is of 25 leaves.

ALLIED CASH + CARD:
Allied bank’s ATM Debit card, also referred to as Allied Cash+, can be used to withdraw cash and may also be used as a debit card at merchant locations / service outlets having ORIX POS terminals and displaying the ORIX logo.

Allied Cash+ offers you the privilege of using over 2000 ATM’s all over Pakistan including our largest ATM network of over 450 ATM’s. Through this card you can have an experience of Cashless shopping at thousands of merchant locations. Get instant cash and check balances at over 2000 ATM’s nationwide. Here is what they have to offer: 

Round-the-clock cash withdrawals:

Now people can make withdrawals up to Rs: 25000 in a day (depending upon your deposit) at any ATM across Pakistan (the maximum transaction limit is 25000).

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

Balance inquiry and mini statement of account: The ATM screen will reveal the balance in your account. A mini statement Comprising last 8 transactions can also be obtained from the ATM.



Pin change: You can now easily change your Pin at regular intervals for enhanced security at all ATM’s of Pakistan.



Utility bill payment facility: Pay your telephone, electricity and gas utility bills on any of out ATM’s without having to wait in long queues outside your branch.



Funds transfer facility: You have the power to transfer money from your account to any account of ABL anywhere in Pakistan.

1 LINK NETWORK:
In continuation of ALL TIME BANKING SERVICES, with the country wide network of 735 branches, ABL has also enhanced ATM services by joining the 1LINK SWITCH which has following member banks.  ABN AMRO BANK  AL BARAKA ISLAMIC BANK  ALLIED BANK LIMITED  ASKARI COMMERCIAL BANK LIMITED  ATLAS BANK LIMITED  BANK AL HABIB LIMITED  BANK ALFALAH LIMITED  BANKISLAMI PAKISTAN LIMITED 25

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 CRESENT COMMERCIAL BANK LIMITED  DUBAI ISLAMIC BANK PAKISTAN LIMITED  EMIRATES GLOBAL ISLAMIC BANK LIMITED  FAYSAL BANK LIMITED  FIRST DAWOOD ISLAMIC BANK LIMITED  HABIB BANK LIMITED  KASB BANK LIMITED  MEEZAN BANK LIMITED  NATIONAL BANK OF PAKISTAN  NIB BANK LIMITED  PICIC COMMERCIAL BANK LIMITED  SONERI BANK LIMITED  STANDARD CHARTERED BANK PAKISTAN LIMITED  UNION BANK LIMITED  UNITED BANK LIMITED  MYBANK LIMITED  TAMEER MICRO FINANCE BANK LIMITED The card holders of ABL are thus able to access member banks ATM’s for balance inquiry and can withdrawal simultaneously vice versa. The card holder’s member banks can access ABL’s ATM machines. Every ATM which is connected with 1-LINK SWITCH has a logo which indicates that 1-LINK SWITCH member can access the ATM.

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Remittances:
Allied bank can transfer funds to the remotest part of the country for payment or credit to the customer himself or a third party through telegram/telefax/telex for payment or credit on the same or next day. Telegraphic transfers can also be made abroad in foreign currency. Carrying cash to the strange alien location can prove to be risky as a single incident can render one without monitory backup of any sort. Hence traveler’s cheques are introduced by banks in order to protect against any contingency.

TELEGRAPHICAL TRANSFER:
Banks are offering various types of products related to funds transfer in Pakistan, assuring the fastest delivery of funds around the globe, through telex, swift and other electronic media. ABL with its largest network spread all over the country is sharing quite a sizeable funds transfer business in the domestic market. Bank has recently moved to optimize the use of electronic media to handle funds transfer with speed. Even the shift over to Swift is at hand and a network has been established by Central office.

DEMAND DRAFT:
A draft is one of the most popular banking instrument in the trade circles to settle business deals and transferring funds from one place to another. ABL has taken radical steps for a speedy insurance/payment of Drafts through automation and introduction of a more simplified system based procedure.

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PAY ORDERS:
Pay Order is a bank instrument issued by a bank in Pak rupees at the request of a customer to transact payment to a named payee through banking channel. Generally payments against such cheques (pay orders) are restricted to Payees account and as such are required to be enrooted through a bank account locally.

TRAVELLERS CHEQUES _ ABRTC:
Rupee traveler’s cheques are one of the most convenient products launched by ABL, which has an excellent market response. ABRTC’s is only to be issued by authorized branches of the ABL. With the application of government levies, nominal commission is also charged on issuance of Traveler cheques. Traveler cheques shall be valid until encashed unlike a Negotiable instrument which is valid for 6 months. VISA CREDIT CARD: ABL as part of it’s commitment to improving customer service has launched its new ABL VISA CREDIT CARD; it will be in use from the month of august. All existing ABL MasterCard credit cards will be blocked or inactivated in august preventing any future transactions on those cards. To assist customers in this process, ABL will be contacting its cardholders directly and through personal visits from duly authorized representatives for the purposes of obtaining consent and other related documentation including copies of CNIC. Any balances remaining on ABL MasterCard will after compliance with formalities, be transferred to the new Allied visa credit card to avoid any inconvenience to the existing customers

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UTILITY BILLS: All branches of ABL collect utility bills of electricity, gas and telephones. For convenience of the customers, utility bills are collected by the branches during banking hours and also in the evening-banking on all working days. Bills can be paid through cash or cheques. Consumers may drop bills with crossed cheques into a drop box available at the branches under CHEQUE DROP IN system. Utility bill payment facility – Pay your telephone, electricity and gas utility bills on any of the ATM’s of ABL without having to wait in long queues outside your branch.

THE TYPES OF ACCOUNTS AND PACKAGES OFFERED BY ABL:
The different types of accounts offered by ABL are :           PLS saving account (profit and loss saving account): Current account: ABA account (Allied business account): BBA account (Bacis banking account): Foreign currency account E_Saver account Allied Savers Account Munafa package Mahana Amadni Package Allied Bachat Scheme package

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CURRENT ACCOUNT:
ABL offers current account facility for individuals as well as institutions and commercial customers. Free online transactions, DD/PO/TT for depositors maintaining average monthly balance of Rs:25000 (M) and above during the previous month.

PLS SAVING DEPOSIT:
ABL offers PLS savings account facility to it’s customers with the following attractive features.  Attractive return up to 1% per annum

Free online transaction, DD, TT, PO for depositors maintaining average monthly balance of Rs: 25000(M) and above during the previous month.

ALLIED BUSINESS ACCOUNT:
Allied bank offers a banking experience beyond expectations. Allied business account is a non-profit current account with countless benefits and services. If you are a business man, trader or an individual Allied business account is an ideal proposition for you.    Minimum average balance Transaction limit Eligibility Rs:10000/- monthly No limit All individuals and institutions

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AVERAGE BALANCE

MONTHLY SERVICES

CHARGES

Online/Manual remittance Rs: 500,000 and above

Free

Outward cheque return Rs: 500,000 and above

Free

Issuance

of Free

DD/TT/PO/OBC/Expression Rs: 500,000 and above collection

ADDITIONAL BENEFITS: o 24 hours helpline service o Free internet banking facility o SMS transaction alerts o ATM / DEBIT card for cash withdrawals through any ATM and debit transactions at various retail outlets

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: 1000/-.  This account is a non-remunerative account with no minimum balance requirement.

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 This 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 maximum 2withdrawals 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.

FOREIGN CURRENCY DEPOSITS:

Allied bank offers the facility for opening Current, savings and Term deposit accounts. These accounts can be opened in US Dollar, Pound Sterling, Euro, and Japanese Yen at designated branches.

ALLIED MUNAFA ACCOUNT (AMA): Allied Munafa Account is a profit bearing checking account with the payment of profit on a monthly basis. The estimated rate of profit is given below. SLABS Rs 0.5(M) to less than Rs 5(M) >Rs 5(M) to Rs 25(M) >Rs 25(M) to Rs 50(M) >Rs 50(M) to Rs 100(M) >Rs 100(M) to Rs 250(M) >Rs 250(M) to Rs 500(M) Rs 500(M) and above RATES EFFECTIVE FROM 01.01.07 5.00% 6.00% 7.00% 7.50% 8.00% 8.50% 9.00%

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SALIENT FEATURES:  The applicable profit rate would be based on slabs of amounts maintained on average monthly basis and the profit credited in the account on monthly basis.  Individuals, firms, companies, schools, hospitals, charitable organizations and non-government organizations etc are free to open their account in this scheme. BEHTAR MUNAFA ACCOUNT (BMA): Behtar munafa account is a profit bearing checking account with the payment of profit on a monthly basis. The estimated rate of profit is given below.

SLABS Up to Rs: 5,000,000 Rs: 5,000,001 to Rs: 25,000,000 Rs: 25,000,001 to Rs: 50,000,000 Rs: 50,000,001 to Rs: 100,000,000 Rs: 100,000,001 to Rs: 250,000,000 Rs: 250,000,001 to Rs: 500,000,000 Above Rs: 500,000,000

RATE (P.A.) 5.00% 6.00% 7.00% 8.50% 9.25% 10.00% 10.50%

SALIENT FEATURES:



The applicable profit rate would be based on slab of amounts maintained on average monthly basis and the profit credited in the account on monthly basis.



Individuals,

firms,

companies

,

schools,

hospitals,

charitable

organizations etc are free to open their account in this scheme.

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BEHTAR MUNAFA TERM DEPOSIT (BMTD): Allied bank offers following rates in the Behtar munafa term deposit.

AVERAGE BALANCE

MONTHLY 1 MONTH

3 MONTHS

6 MONTHS 8.50% 9.00%

1 YEAR

Upto Rs: 5,000,000 Rs: 5,000,001 to

6.00% Rs: 6.50%

8.00% 8.50%

9.50% 10.00%

25,000,000 Rs: 25,000,001 to Rs: 7.00% 9.00% 9.50% 10.50%

50,000,000 Rs: 50,000,001 to Rs: 7.50% 9.50% 10.00% 11.00%

100,000,000 Rs: 100,000,001 to Rs: 8.00% 500,000,000 Above Rs: 500,000,000 8.50% 10.75% 11.00% 12.00% 10.00% 10.50% 11.50%

MAHANA AMADNI PACKAGE (MAP): Mahana amadni package is a unique product with attractive returns. It provides an opportunity for a regular monthly income with a flexibility of placement for 12, 24 and 36 months.  Minimum amount  Profit  Projected profit rates  Eligibility  Period

Rs: 100,000/- (with multiples of Rs: 10,000) Payable on monthly basis Up to @ 10.30% per annum All individuals and instituitions 1,2 and 3 years

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SPECIAL BENEFITS:   Profit to be credited in the depositor’s PLS saving A/C and can be withdrawn through ATM free of charge. Free transfer of monthly profit to any branch of ABL all over the Pakistan.

S#

DEPOSIT MATURITY

PAID

BEFORE RECOVARY ALREADY PAYMENT

OF PAID

PROFIT AND

1.

Within 6 months of opening of No profit wil be paid and profit account already paid will be recovered from principle

2.

After

6

months

but

before 60% of the profit paid will be recovered or adjusted from the principal amount

completion of 12 months

3.

After

12

months

but

before 40% of the profit paid will be recovered or adjusted from the principal amount

completion of 18 months

4.

After

18

months

but

before 30% of the profit paid will be recovered or adjusted from the principal amount

completion of 24 months

5.

After 24 months but before the 20% of the profit paid will be completion of 30 months recovered or adjusted from the principal amount

6.

After

30

months but

before 10% of the profit paid will be

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completion of 36 months

recovered or adjusted from the principal amount

ALLIED BACHAT SCHEME (ABS):

Alled bachat scheme is a PLS term deposit scheme based deposit scheme whereby you can double your investment in just 7.5 years.    

Maturity period Minimum deposit Expected rate of profit Eligibility

7.5 years Rs: 50,000/- with multiples of Rs: 10,000/The deposit amount will be doubled in 7.5 years. All individuals and institutions

NO: OF YEARS

ABL RATES

PROJECTED REPAYMENT AMOUNT

0 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

0 7.00% 7.50% 8.00% 8.75% 10.00% 10.25% 10.50% 10.75% 11.00% 11.25%

50,000 53,500 55,625 58,000 60,937 65,000 67,937 71,000 74,187.50 77,500 80,937.50

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6 6.5 7 7.5

11.50% 11.75% 12.00% 13.33%

84,500 88,187.50 92,000 100,000

PREMATURE ENCASHMENT:

No profit shall be paid from the date of issue, if en-cashed before completion of 6 months. In case encashment take place after 6 months, In case encashment takes place after 6 months, the profit is to be paid for completed half year on the prescribed rates and 6% for the completed months as per the projected rates.

ALLIED E_SAVERS ACCOUNTS (ESA):

Allied E-savers account is a unique saving plan where you can earn returns as high as 7.5% with the flexibility of 4 withdrawals a month.

RATES EFFECTIVE FROM 01.01.07 SLABS 7.5% p.a. Rs: 400,001 up to 500,000 Rs: 300,001 up to 400,000 Rs: 200,001 up to 300,000 Rs: 100,001 up to 200,000 Rs: 10,000 up to 100,000 6.0% p.a. 5.0% p.a. 4.5% p.a. 4.0% p.a.

ADDITIONAL BENEFITS:

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   

24 hours phone banking service Free internet banking facility SMS transaction alerts ATM/Debit card for cash withdrawals through any ATM including our largest networks of ATM’s across Pakistan and for debit transactions at various retail outlets



First free cheque book – A/C payee only

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FINANCIAL RATIO ANALYSIS
ALLIED BANK LIMITED
COMPARITIVE BALANCE SHEET FOR THE PERIOD ENDED Dec: 31, 2006-2007 . Rupees in (000) 2007 2006 ASSETS Cash and bank balance Balance with other banks Lending to financial Institutions Investments Advances Operating fixed assets Deferred tax asset Other assets Total assets LIABILITIES Bills payable Borrowing Deposits & other A/c's Sub – ordinated loans Liabilities against assets subject to finance lese Deferred tax liabilities Other liabilities Represented Equity & Reserves Share capital Reserves Unappropriated profit Surplus on revaluation of asset 29,739,857 23,042,011 668,449 1,703,011 18,419,241 19,050,239 83,958,463 46,953,241 168,407,280 144,033,634 7,548,628 6,445,111 662,431 638,168 10,705,374 10,161,361 320,109,723 252,026,776 . 3,494,384 2,278,007 22,933,656 18,410,425 263,972,382 206,031,324 2,499,000 2,500,000 7,332,059 5,119,267 5,386,370 6,050,713 6,971,308 1,469,851 4,488,642 6,133,209 5, 607, 796 1,458,106

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ALLIED BANK LIMITED
BALANCE SHEET SHOWING INCREASE / DECREASE IN % AGES FOR THE PERIOD ENDED Dec 31 2006-2007 Taking 2006 as base year 2007 ASSETS Cash and bank balance Balance with other banks Lending to financial Institutions Investments Advances Operating fixed assets Deferred tax asset Other assets Total assets LIABILITIES Bills payable Borrowing Deposits & other A/c's Sub – ordinated loans Liabilities against assets subject to finance lese Deferred tax liabilities Other liabilities Represented Equity & Reserves Share capital Reserves Unappropriated profit Surplus on revaluation of asset 153.39% 124.56% 128.10% 99.96% 143.22% 142.27% 98.65% 124.31% 100.80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 129.06% 39.25% 96.68% 178.81% 116.92% 117.12% 103.80% 105.35% 127.014% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2006

Over all the assets has increased from the previous year the major increase has been seen in cash and bank balance. Similarly the liabilities has also been increased in liabilities major increase has been seen in bills payable and deposits in other bank while share capital has also increased by significant margin.

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ALLIED BANK LIMITED
COMPARATIVE BALANCE SHEET SHOWING COMMON SIZE % AGES FOR THE PERIOD ENDED Dec: 31, 2006-2007 2007 ASSETS Cash and bank balance Balance with other banks Lending to financial Institutions Investments Advances Operating fixed assets Deferred tax asset Other assets Total assets LIABILITIES Bills payable Borrowing Deposits & other A/c's Sub – ordinated loans Liabilities against assets subject to finance lese Deferred tax liabilities Other liabilities TOTAL LIABILITIES Represented Equity & Reserves Share capital Reserves Unappropriated profit Surplus on revaluation of asset TOTAL Equity and reserves 1.16% 7.63% 87.92% 0.83% 2.44% 100 % 27.09% 30.43% 35.07% 7.39% 100% 0.97% 7.85% 87.92% 1.06% 2.18% 100% 25.37% 34.67% 31.70% 8.24% 100% 9.29% 0.20% 5.75% 26.22% 52.60% 2.35% 0.206% 3.34% 100 % 9.14% 0.67% 7.55% 18.62% 57.15% 2.55% 0.25% 4.03% 100%

2006

This table shows how much each element is of the total assets. Where we can see that there is only one significant change in the table that is oin advances where previously it was 557.15% of the total assets while now it is 52.60% of total assets. While on the other side increase in the part of investment can be seen in 2007 which is 26.22%.

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ALLIED BANK LIMITED
COMPARATIVE PROFIT AND LOSS STATEMENT FOR THE PERIOD ENDED DEC 31, 2006-2007 2007 2006 21,201,422 17,215,507 10,019,004 6,793,101 11,182,418 10,422,406 583,305 (14,623) 136,189 9,717,535 1,353,888 193,255 282,285 376,792 (30,180) 273,028 2,449,068 12,166,603 5,290,578 205,307 2,546 7,078 5,505,509 6,661,094 2,215,092 48,752 4,397,250 2,731,979 19,452 2,751,431

Mark–up /Return/Interest earned Mark–up /Return/Interest expensed

Net Mark–up /Interest Income
Provision against non–performing loans and advances – 2,712,936 net Provision /(Reversal) for diminution in the value of 719 Investments – net 9 Bad debts written off directly 1,187 Net Mark–up /Interest Income after provisions 8,467,576 NON MARK–UP/INTEREST INCOME Fee, commission and brokerage income 2,062,677 147,184 Dividend Income Income from dealing in foreign currencies 194,879 Gain on sale of securities 1,439,387 Unrealized loss on revaluation of investments classified (1,463) as Held for trading – net Other income 77,435 Total non–markup/Interest Income 3,920,099 12,387,675 NON MARK–UP/INTEREST EXPENSES Administrative expenses 6,018,346 Provision against other assets – net 119,579 Provision against off–balance sheet obligations – 39,805 net Other charges 256,869 Total non–markup/Interest expenses 6,434,599 Extra-ordinary/unusual items PROFIT BEFORE TAXATION 5,953,076 Taxation – Current 1,887,299 Prior years Deferred (10,381) PROFIT AFTER TAXATION 4,076,158 Unappropriated profit brought forward 5,607,796 Transfer from surplus on revaluation of fixed assets – 32,701 net of tax 5,640,497

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ALLIED BANK LIMITED
COMPARATIVE PROFIT AND LOSS STATEMENT SHOWING INCREASE / DECREASE IN % AGES FOR THE PERIOD ENDED Dec 31 2006-2007 Taking 2006 as base year 2007 123.15% 147.48% 107.29% 465% 0.87% 87.13% 152% 76.16% 69.03% 382% 28.36% 160% 2006 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Mark–up /Return/Interest earned Mark–up /Return/Interest expensed

Net Mark–up /Interest Income
Provision against non–performing loans and advances – net Provision /(Reversal) for diminution in the value of Investments – net 9 Bad debts written off directly Net Mark–up /Interest Income after provisions NON MARK–UP/INTEREST INCOME Fee, commission and brokerage income Dividend Income Income from dealing in foreign currencies Gain on sale of securities Unrealized 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 113.75% Provision against other assets – net 58.24% Provision against off–balance sheet obligations – 15.63% net Other charges Total non–markup/Interest expenses 116.8% Extra-ordinary/unusual items PROFIT BEFORE TAXATION 89.37% Taxation – Current 85.20% Prior years Deferred PROFIT AFTER TAXATION 92.69% Unappropriated profit brought forward 205% Transfer from surplus on revaluation of fixed assets – 168% net of tax

100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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ALLIED BANK LIMITED
COMPARATIVE PROFIT AND LOSS STATEMENT SHOWING COMMON SIZE % AGES FOR THE PERIOD ENDED Dec: 31, 2006-2007 As Percentages of Interest Earned 2007 2006 100% 100% 47.25% 39.45% 52.74% 60.54% 12.79% 0.005% 9.72% 0.69% 6.78% 0.365% 28.38% 30.34% 28.07% 8.90% 19.22% 26.45% 0.154% 3.38% 0.79% 7.86% 1.12% 2.18% 1.58% 30.73% 31.97% 38.69% 12.86% 25.54% 15.86% 0.112%

Mark–up /Return/Interest earned Mark–up /Return/Interest expensed

Net Mark–up /Interest Income
Provision against non–performing loans and advances – net Bad debts written off directly NON MARK–UP/INTEREST INCOME Fee, commission and brokerage income Dividend Income Gain on sale of securities Other income NON MARK–UP/INTEREST EXPENSES Administrative expenses Total non–markup/Interest expenses PROFIT BEFORE TAXATION Taxation – Current PROFIT AFTER TAXATION Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets – net of tax

Similarly look at the above two tables, we can see in table one that there is significant increase in Mark–up /Return/Interest expensed while Net Mark–up /Interest Income has also significantly increased while Administrative expenses has decreased similarly Provision against off–balance sheet obligations – net has also significantly decreased from previous year. Table two shows how much each element is of Mark–up /Return/Interest earned. If we look at the table we can see that there is significant increase in the part of Mark–up /Return/Interest expensed while Provision against non–performing loans and advances – net has also decreased from its previous year while the part of gain on sale of securities has increased its proportion in Mark–up /Return/Interest earned 44

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RATIO ANALYSIS
The term ratio means a numerical relationship between items or group of items and is determined simply by dividing one item in relationship by the other. We will only take such ratios which will help us in analysing and interpreting the current financial position of the industry. The analysis of current financial is beneficial both for owners and creditors particularly short term creditors.

CURRENT POSITION ANALYSIS:
Following are the ratios, which are used in analyzing the current financial position such as:

WORKING CAPITAL.
Working capital is the excess of current assets over current liabilities. In other words working capital is the amount of current asset after deducting the current liabilities represents a margin of safety that is a claim of protection for the current creditors. Larger the amount of working capital the position would be satisfactory to meet current debts, fixed investment and absorb operating loses while the inadequacy of working capital is harmful for the operation of business as well as the policy of the firm . It is computed by following formula: Net Working Capital = Current Assets - Current Liabilities. Rupees in (000) Year Current Assets (a) Current Liabilities (b) Working Capital (a-b) 2007 41,113,680 36,259,099 4,854,581 2006 34,906,383 28,307,699 6,598,685

Although working capital is still in negative but the margin has decreased which is because of decrease in deposits and other accounts. Here we can see that working capital has decreased although current assets has increased but in COMSATS Institute of Information Technology, Lahore 45

contrast the current liabilities has also increased but in more proportion that’s why working capital has decreased which is an alarming sign for the bank.

CURRENT RATIO OR WORKING CAPITAL RATIO.
Current Ratio is use to measure current liquidity position. It is computed by following formula: = Total current assets/Total current liabilities Rupees in (000) Year Current Assets (a) Current Liabilities (b) Current Ratio (a/b) 2007 41,113,680 36,259,099 1.13 2006 34,906,383 28,307,699 1.23

This ratio has decreased because working capital has decreased which ultimately lowers this ratio. This means that bank was previously more able to apy its short times obligations while now this ability has lower down.

WORKING CAPITAL TURNOVER
It is computed to know the utilization of working capital during the period under analysis. It is calculated by following formula: Working Capital Turnover = Net Income Net Working Capital Rupees in (000) Year Net Income(a) Working Capital (b) W.C. Turnover (a/b) 2007 4,076,158 4,854,581 0.83 2006 4,397,250 6,598,685 0.66

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This ratio has increased because the net income changed by a little margin while working capital has decreased that means that bank utilized its working capital more efficiently this period.

RELATIONSHIP LIABILITIES.

OF

CURRENT

LIABILITIES

TO

TOTAL

This relationship shows the current maturity of obligation. It enables the creditor to get information about there participation in the business. It is computed by dividing the current liability by total liabilities and multiplied by 100 as shown below: Rupees in (000) Year Current Liabilities (a) Total Liabilities & Equity (b) Relationship of C.L to T.L (a/b)*100 2007 36,259,099 320,109,723 11.32 2006 28,307,699 252,026,776 11.23

This ratio almost remained unchanged because current liabilities increased as the total liabilities also increased with almost the same pace.

RELATIONSHIP OF CURRENT ASSET TO TOTAL ASSETS.
This relationship will indicate the percentage of investment in current assets. It is computed by divisions current assets by total asserts.

Year Current Assets (a) Total Assets (b) Relationship of C.A to T. A (a/b)*100

2007 41,113,680 320,109,723 12.84

2006 34,906,383 252,026,776 13.85

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This ratio has decreased although current assets and total assets has increased but the proportion with which they were divided previously has decreased. In other words it means that previously current assets were in large proportion but this time it is low.

STABILITY ANALYSIS:
Generally short term creditor are interested in the current financial position of the business whereas long term creditors and stockholders are much concerned with the long term financial position of the company.. In order to have knowledge about above points we pursue the following ratios.

RATIO OF OWNERS EQUITY TO TOTAL ASSETS.
This ratio expresses the amount of total investment in the assets that has been financed by shareholders. It is calculated by the following formulae. Ratio of Owners Equity to Total Assets = Owners Equity X 100 Total Assets Year Stockholder’s Equity (a) Total Assets (b) Ratio (a/b)*100 2007 19,878,242 320,109,723 6.20 2006 17,687,753 252,026,776 7.01

As stated above this ratio shows the amount of total investment in the assets that has been financed by shareholders and we can see that this ratio has decreased which means now less part of total assets is financed by share holders this time. But there is a very slight change in it.

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RATIO OF OWNERS EQUITY TO FIXED ASSETS
This ratio indicates the percentage of fixed assets financial by owners. It is calculated by the following formulae. Ratio of Owners Equity to Fixed Assets = Owner equity . X 100 Fixed Assets.

The ratio of owner equity of fixed assets of universal leather is shows below; Rupees in (m) Year Stockholder’s Equity (a) Fixed Assets Net (b) Ratio (a/b)*100 2007 19,878,242 201,698,950 9.85 2006 17,687,753 228,984,765 7.72

The above table means that there is a bit increase in this ratio which shows that how much percentage of fixed assets financial by owners. Which means this year more of owners equity is invested in net fixed assets.

RATIO OF OWNER EQUITY TO TOTAL LIABILITIES
This ratio shows the owners interest in the business. It shows the position of the shareholders as well as creditors. It is calculated by the following formulae.

Ratio of Owner Equity to Total Liabilities = Owner Equity X 100 Total Liabilities

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Rupees in (m) Year Stockholder’s Equity (a) Total Liabilities (b) Ratio (a/b)*100 2007 19,878,242 300,231,481 6.62 2006 17,687,753 234,339,023 7.54

This ratio has also decreased because of increase in total liabilities while less increase in share holders’ portion in the business. It is an alarming sign for the creditors whether to invest in the business or not.

RATIO OF NET INCOME TO FIXED ASSETS.
This ratio measures the utilisation of fixed assets. It is computed by following formulae. Ratio of sale to Fixed Assets = Net Income x 100 Fixed Assets
Rupees in (m)

Year Net Income (a) Fixed Assets Net (b) Ratio (a/b)*100

2007 4,076,158 201,698,950 2.02

2006 4,397,250 228,984,765 1.92

This ratio as stated above measures the utilisation of fixed assets and increase in this ratio means that bank have utilized its fixed assets more efficiently then the previous year.

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RATIO OF NET INCOME TO OWNER'S EQUITY.
This ratio expresses the turnover of the owner’s equity. It is calculated by the following formulae. Ratio of Sales to Owners Equity = Net Income Owner Equity
Rupees in (m)

X 100

Year Net Income (a) Stockholder’s Equity (b) Ratio (a/b)*100

2007 4,076,158 19,878,242 20.50

2006 4,397,250 17,687,753 24.86

As we had a glimpse of owners position above we can see here as well that this ratio has also decreased where main reason is the decrease in net income.

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ALLIED BANK AND FIRST DATA SIGN CARD:
PROCESSING AGREEMENT:

ABL has signed a card processing agreement with First Data, a global leader in electronic commerce and payment services. This agreement will enable ABL to maximize the effectiveness of its consumer banking portfolio by providing innovative, secure and cost effective solutions with shorter time to market. Under the terms of the agreement, First Data will host Allied bank’s complete card portfolio on its Vision Plus processing platform First Data will provide the bank with the full spectrum of card processing services, ranging from consulting services to portfolio management, development, and risk and fraud management. The Head of Consumer and Personal Banking Group of ABL said that “This is the first step towards making ABL the best managed consumer bank in Pakistan. ABL’s strategic co-operation with a world class organization like First Data is proof of our commitment to product innovation, service excellence and the highest level of customer satisfaction”. The Managing Director of First Data Middle East, commented: “We, at First Data, are proud to work with Allied bank which has been diligently serving the people of Pakistan for over 60 years. The bank has a mission to provide high-tech, innovative solutions to its customers and First Data’s global payments’ experience and extensive local market knowledge will help them accomplish this mission.

THE CEBIT (EVENT IN GERMANY):
CEBIT is the worlds largest fair showcasing digital IT and Telecommunications Solutions for home and work environments. The event which is renowned as

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THE LEADING BUSINESS EVENT FOR THE DIGITAL WORLD is organized every year at Hanover, Germany by Deutsche Messe AG.

CEBIT offers an international platform for comparing notes industrial trends, networking and product presentations. Deutsche Messe AG has been organizing CEBIT in Hanover each spring since 1986. This year ANL’s management nominated a delegation of 4 executives from the IT Group to attend this event from March 04, 2008 to march 09, 2008. These delegates included their Head of IT Operations, Head of Networks, Head of data centre and Head of wing. ABL’s participation at this event helped in understanding what new technologies are about to be introduced in the market in the coming years and how the same could help to improve the currently developed technologies at the bank. The delegation witnessed soon to be launched Services and Network connections, Data Centre trends and technologies for business continuity in floods and rain. The IBM Tape backup library, which is fully operated by using robotic functions, was also on display.

The delegation observed some remarkable functions of a German bank termed as the future bank. There were 8 machines for cash deposit/disbursement/funds transfer/customer statement inquiries sans teller in the branch. Out of these 8, 1 machine was for blind / visually impaired customers who required keypads and carpet mats on the floor so that they could identify the right machine to operate their accounts. There was also a fully computerized locker system that operates with the help of an ATM card and slides in and out through an electro-mechanical system.

Currency counting and currency note validation machines and technologies were another area of interest. The delegation met many vendors including Pro-Intellect

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Technology. They also met NCR and WINCORE for ATM machines. IP Surveillance, speed gates for the queuing system and the building management system were also observed.

PUBLICITY AND PUBLIC RELATIONS:
PUBLIC RELATIONS:

As part of its corporate social responsibility (CSR) program, ABL strives to contribute and bring about positive changes in the communities it operates in. On March 12, 2008, over 4000 special and underprivileged children from over 65 local schools and institutes gathered to enjoy the 9th annual Children’s Benefit Concert, organized by the Family Education Services Foundation (FESF) and partly sponsored by Allied bank.

Seating 4000 children was not so easy but more than 100 volunteers did an excellent job of making the children feel like they were the special VVIP guests for the day. The program, presented by Pakistan’s very famous compares and also featured FESF’s own show team, who made audience really enjoy a lot, many other items were presented by volunteers of FESF’s.

A Musical evening was also arranged for those children, most of those students never had an opportunity to participate in any such lively event. This musical event, so called concert for them, was an unforgettable day they will remember for many months to come.

This event was a team effort in which the role of ABL was also very prominent and it was really great to see that what is possible when people join hands together and reach out to those who are less privileged. The love and encouragement given to those children will live on in many hearts that were

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touched in a special way that day. In this way ABL performed its social responsibility. PUBLICITY:

ABL Co-sponsored India Pakistan cricket series 2006: ABL is proud to co-sponsor the India-Pakistan cricket series 2006, comprising the 3 test Allianz Cup and the 5 one day International Hutch Cup. By signing the sponsorship deal, ABL outdid a number of Indian banks that were in the line to sponsor the India Pakistan series_ one of 2006’s most important events in the cricket calendar. With this deal ABL has entered the sponsorship of global sporting events. The successful initiative by the bank showcases its desire to be an active partner in the passion for cricket shared by the people of both India and Pakistan. ABL is also presenting Catch of the match award throughout the test and ODI series.

ABL is one of the largest commercial banks in Pakistan. With its new vision and new look, the bank has taken upon the task of nourishing the sports talent of the country by sponsoring the sports events, in order to bring out the best talent on the sporting frontiers of Pakistan, ABL is phenomenal and the one to be followed and admired by each and every sports lover of the country. The management allocates an extensive budget in term of sponsorship of the sports events, tournaments and life achievement awards for the players. MEN’S MINI MARATHON: On the occasion of Pakistan Independence Day celebrations, ABL organized a men’s mini marathon held on 19th august 2005, in Lahore. The bank focuses on the national and international sports promotional activities, and provides principal and partial sponsorship. In this connection, the splendid history of the bank shows that ABL is the pioneer bank to prop up the sports financially and morally. The greatest legends of sports have always been unprecedently motivated by the bank.

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ABL looks forward to the bright future of the sports wholeheartedly and ready to set an example to facilitate the sports activities in all good manners.

ABL believes that the sports promotional activities are not only a source for a healthy environment in the country but they also build a healthy generation.

PRODUCTION AND OPERATIONS: QUALITY ASSURANCE SYSTEM:
STEWARD OF THE DAY: (UPLIFTING THE SERVICE AT BRANCH LEVEL

In order to further improve the customer experience at branches, ABL has introduced a unique concept called STEWARD OF THE DAY, which has been put into practice from 17th of March, 2008. The brief of this concept is that the Branch Managers assign each member of its branch a particular day of the week (in case of smaller branches) or a particular date (in case of bigger branches), when that individual would be the STEWARD in the branch. He or She would be responsible to go through a checklist of various functions and activities of the branch and remark accordingly in the morning before banking hours. These remarks would pertain to various aspects of the branch operations such as front entrance, customer service area, waiting area, tellers area, ATM’s and over all staff presentation, behavior and punctuality. It will be his responsibility to upgrade the quality of services, i.e., to convert poor into good by taking appropriate measures and to maintain the same throughout the business day. The checklist or form will be submitted to the Branch Manager at the end of the day, who will keep a record of the same in a separate file.

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Since every individual has an opportunity to play the STEWARD and make the branch appearance checks, all the members of each branch are collectively involved in monitoring and ensuring the branch is presentable.

HUMAN RESOURCES:
RECRUITMENT STRATEGY AND METHOD:
ABL recruits the most deserving and talented people for the service. It recruits those candidates who really have passion and talent, those who can serve the banking sector the most. So that it can select the best one from them. The candidates scoring above 3 Gpa in business administration or commerce or any related field are proposed to apply and come forward. ABL announces its selection tests by giving advertisements in newspaper. The basis requirements are mentioned in that, means the requirements for capable candidates are mentioned in the add. Like the minimum requirement of years of education, percentage of ,marks , skills etc.Then the interested candidates apply through email or mail and send their Cvs to the address given. Then the recruitment staff shortlist the candidates and sends the letter of being short listed to the most deserving and capable candidates. The date of entry test is mentioned in that letter along with the roll number slips. SELECTION STRATEGIES AND METHODS: ABL’s selection committee checks the papers very care fully and honestly, and selects the most brilliant candidates who really deserve to be selected. This procedure of selection takes almost a month. And after a month when result is prepared the short listed candidates are given the date for interview. Interviews are taken by the senior staff of ABL. The selected candidates are sent appointment letter within 5 to 8 days. Those candidates who reply Yes in reply of this letter are selected and given training. 57

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TRAINING: All the candidates are given training of basic banking for about three months. The most interesting point in this training are that all the candidates are given salary which is almost 20,000 rupees%, so this training is almost equalent to job. In this training program all the students or employees who have come from different institutions and backgrounds are taught banking courses and all those subjects whose basic awareness is important in the field of banking like finance , accounting, computer science , English , the routine work done in banks and many more. The most efficient bankers and teachers are appointed to train all of them. At the end of the training all the candidates have to go through an exam , and all those who score above 90% get the promotion to MG 10 after 3 months of working in bank where as the remaining ones are all appointed on MG11 at the time of end of training.

INCREMENT AND PERFORMANCE EVALUATION:
All the employees of ABL are given an increment of 10% after every 6 months of period. Bonuses are also given on every Eid that is equalent to the basic salary of every employee. The process of performance evaluation keeps on going in banks, special exams and test are arranged to evaluate employees. And the daily performance evaluation is also done by seniors, so that those employees who really perform well are given promotions every year.

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INCENTIVES, MOTIVATING AND DEMOTIVATING FACTORS:
All the increments given after every 6 months, and all the bonuses on Eids, bonuses according to daily performance of employees, house building loans, car leasing loans, insurance policies together become the factors of motivation for the employees. Where as all the non achievements of these factors become the demotivating factors for the employees, as well as the long hours of working, the sensitivity of work, and to work by sitting on a seat all the time really demotivate the employees.

THE SERVICE QUALITY TRAINING GIVEN TO THE EXISTING EMPLOYEES: SERVICE QUALITY TRAINING:
Allied bank is focusing on quality customer services to deliver the best customer experience. The aim of the Service Quality Group is to create Service Awareness across the bank where every individual has the willingness to help both internal and external customers and provide prompt services while adopting a personalized approach. To put this in effect, the role of the service quality group is to conduct service oriented training programs, which would be conducted across the customer touch points.

In this regard, the service quality group conducted in-house training in March 2008 on Customer Services for branch staff where Customer Support Officers (CSO’s) were placed. The participants were the CSO’s, Branch Managers, CSM and Tellers. This training was conducted in all three regions (Karachi, Islamabad, and Lahore) at there Management Development Centers and the facilitator was their Training

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Manager of Service Quality Group. The Group Head of Service Quality along with the respective Group Heads of CRBG were also present at each session.

The aim of this training was to develop the skills and knowledge of our frontline staff on delivering consistent courteous behavior, which would consequently build trust and confidence in ABL’s customers. The involvement of individuals within the dimensions of service culture was emphasized through various team building games and role plays.

TOPICS COVERED IN THE TRAINING:
     ABL vision How to create the best customer experience How to communicate with your customer Service Quality dimensions and objectives Business dressing and grooming

This initiative was the first step taken by the Service Quality Group towards strengthening customer relationship and building upon customer loyalty.

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LEARNING AS AN INTERNEE:
Duties and accomplishment:

My duties at the bank were of different types. I was rotated in different departments in different weeks, so that I could get the exposure of different tasks in a bank. But my duties were always supervised by the employees of ABL so that I do not make any major mistake, as I was an internee and didn’t go through the training of three months, as all the employees of ABL get before joining the bank. But still I had to deal with all the matters of the bank under their supervision. My duties are mentioned as follows.

ACCOUNT OPENING: During my first two weeks in the bank I did work in account opening department. During my training in that department I was taught that how to open the account of the customers in the bank. That whenever a customer comes how he should be explained about the types of accounts and the benefits provided in each account. My supervisor used to tell me that how to fill the form of account opening, and which documents are required for opening the account, the information’s and all. But I didn’t have the opportunity to enter the accounts opened on daily bases in the software system because it’s a very sensitive issue and I was not so much trained that’s why I used to only fill the forms and do stamping on them.

CLEARING DEPARTMENT:  I also spent two weeks in clearing department. I learned to fill the deposit slips of current and saving account in this department.  I also learned to fill the cheques in this department, as most of the customers do not know that how to fill the cheques and deposit slips (

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mostly the labor class and others who do baking by giving just thumb impressions).  I also learned to do clearing of inward and outward cheques.  I learned to make OBC’s  I learned to make Demand drafts  AND I also learned to enter the daily inward and outward proceedings in the record

ONLINE TRANSFER OF MONEY:

In this department I learned to make transfer slips and see the online transfer of money from one branch of ABL to another, I spent one week in this department. I couldn’t get a chance to transfer money myself online because this is a very sensitive issue. That’s why I was assigned the duty of filling the online slips of the customers, to tell them about this facility and solve any of their quires. As online transfer facility is the point on which ABL really has comparative advantage that’s why a lot many people used to come for online transfer of money every day and as it’s a new service and people used to have many queries and I had to solve them ,that’s why it kept me very busy all the week. ATM’S, CHEQUE BOOKS AND LOCKERS:

I also spent two weeks in this department. I learned to send ATM request, cheques book and lockers request of the customers. And I also learned to issue them the ATM card, cheques books and to operate lockers. Whenever any

customer used to come to collect his or her ATM, cheques book then I used to take his sign on the record register, do stamping, write date of issuance, match his sign with sign card and then provide him his card and cheques book. It was also my duty to explain him the working procedure, so that if any customer had any query in his mind he could ask me the details.

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It was also my duty to issue lockers, that if any customer used to come to take any locker , it was my duty to let him operate his locker and note the operating time of his locker, I also used to tell them about the rents and security of the lockers. DIVERSE DUTIES: Apart from the duties mentioned above, in the last week of my internship, I had to perform some other duties as well. Calling was one of those duties. It’s manual checking of the record produced by the computer pertaining encashment, transfer and collection of cheques and other instruments like deposit slips and online slips. I also had to do arrange the cheques in the evening. One of my duties was also to do phone calls to customers to remind them about their ATM cards and cheque books. I also had to do customer care service, means if any customer had any query about any procedure or if he wanted information regarding any account then I had to explain him all the procedure.

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NEW KNOWLEDGE ACQUIRED:
ISSUENCE OF CHEQUE BOOK:

Whenever a person opens an account with ABL, then he is issued a cheque book which is free of cost. But for his purpose he has to fill a requisition slip, and then after about four days of opening of account he gets his cheque book, which comes from Karachi.

There are two types of cheque books:  The first type of cheque book has 50 leaves.  The second type of cheque book has 25 leaves.

There is also another requisition slip inside each cheque book, which is used for the purpose of reissuence of a new cheque book if the leaves of first cheque book start finishing. There is written the title of account holder, his account number, the stamp of Allied bank and the signatures of the authorized person on every page of cheque book and also on the requisition slip.

ACCOUNT OPENING:
Account opening is one of the most interesting things which I have learnt in ABL. To open the account of any person an account opening form is made fill by him. This form contains:  A signature card  Requisition slip  The main account opening form  Acknowledgement  Know your customer profile  ATM application form

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These all forms will be filled by the customer and following things will be required from the customer to attach with this form:  A copy of NIC  A copy of job evidence or contract or student id card copy (house wives do not need to submit this)

If the customer wants to change his signature on the account opening form then he has to fill another form.  Undertaking form This form contains the request of the customer to change his signature and both signatures, the first one which he has done on his NIC and the other one which he has done in his account opening form.

One the person completes these forms then his account is opened, the account opening officer gets this form signed by CSM officer and the Manager of the bank. Then the account opening officer enters the account opened in the software system. He also scans the Signature card, and gives the Requisition slip and ATM request form to the officer responsible for issuance of Cheque book and ATM. And attaches a Letter of thanks with the remaining forms and now the person is an account holder of the bank.

The minimum amount of money for opening account is Rs: 100, which has to be deposited by the customer at the time of account opening. Those people who are not literate do not need to do a sign; they can give their Thumb impressions instead of Signatures. But those people who do signature in Urdu or give thumb impressions instead of sings are not issued ATM cards and they also have to submit a photograph during account opening as well, but those ladies which do Pardah need not to submit the photograph.

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After a few days the Bank send or mails another copy of Letter of thanks to the customer as well. ZAKAAT: The deductions of Zakaat from the account of Muslims are made on the 1 st Ramadan according to the Islamic rate. But the people who do not want the bank to deduct Zakaat and want to disburse it at their own, they have to provide an affidavit on a prescribed format provided by the bank.

CLEARING DEPARTMENT:
There are two types of clearing:  Inward clearing  Outward clearing

OBCs
CLEARING CHEQUES This department receives the cheques and other negotiable instruments drawn on local branches of other banks. NIFT has a clearing house, in which cheques and other negotiable instruments are brought by each local bank representative and the claims of each bank on other is offset and a settlement is made by the payment of difference. Clearing system is helpful for both the customers and bank in saving money, time and labor. PROCEDURES The cheques and drafts come to branch from different banks. They enter the particulars of the cheques on a register. After this process the balance with total drafts and total amount are given to the representative. ABL works under the rules and regulations prescribed byf State Bank of Pakistan (SBP) and has an

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account with SBP. The clearinghouse of SBP (NIFT), through whom branches forward/receive-clearing cheques along with a schedule conducts clearing. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheques, which he receives by the clerk on that day and sends these cheques to the checking officer. Checking officer passes these cheques and vouchers by his initials, endorsement stamp and branch special crossing stamp. Clerk posts the contra entries of these vouchers in the clearing register. Representatives’ banks collect these cheques. Next day at 8:30 A.M. representatives of all local banks and foreign banks exchange their cheques, which are drawn on their banks. The clearinghouse debits/credits the payee/receipt branch with the total amount of the cheques paid on their behalf. The settlement of book entries e.g., if ABL is to give Rs. 2 Million to ASKARI BANK and ASKARI BANK has to give Rs.1 million to ABL then ABL will draw a cheque of 1 Million in favour of ASKARI

BANK. SBP will debit this amount from ABL account and credit of ASKARI BANK account. In this way mutual cross debiting and crediting in the books of SBP settle obligation of banks. PAK ACCOUNT All the inter-bank adjustments will be affected through head office account called Pak account. It will be essential for the branch to advise pak account of each transaction so that they may also pass the necessary entries in their books. The NIFT will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered to or received from the branches. The amount of the advice will agree with the total amount appearing in the schedule of cheque delivered/received. The head office will similarly send advice to the branches of the returns, if any. Copies of all advices will be sent to the head office.

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INTER-BRANCH CLEARING AND COLLECTION Branch receives the cheques and other negotiable instrument drawn on other branches of the same bank. Main branch of ABL handles the transfer and

delivery of cheques. The same clearing cheque procedure will be adopted in the transfer deliveries except in case when the facility of SBP is not availed. In case of cheques drawn on one branch and collected by an other branch for the credit of its constituents, the branch delivering the cheques will send a consolidated debit advice. If any cheque is returned unpaid, a credit advice will be sent to the branch returning the cheque. COLLECTION CHEQUES OR OBCs The collection cheques/OBCs are the cheques, which we have cleared for our customers when some of our customers receive the cheque that is of some other city. These types of cheques are known as collection cheques or the other name we gave them is OBC PROCEDURE OF COLLECTION On the cheque there is written that the person to whom it may concern can cash it from the certain branch of the bank in favour of which it’s drawn. The customer presents the cheque to his branch, which send a document called “OBC” to the bank that has to make the payment. The clearing department of the receiving bank follows a prescribed procedure and credits the amount to sending bank through a central account maintained by each bank with SBP. ABL sends the cheque to it’s own branch if available for collection from the payer’s bank otherwise the OBC is directly sent to other bank.

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MAINTAINING REGISTER for OBCs We have a register in which we have the serial no for OBCs with other details like amount, date, sending and receiving branches’ codes. Every OBC is entered in that register on daily basis. If OBC is not cleared due to what ever fault, we take it back as a return but after that we call the concerned person and we also write name of the person.

ONLINE TRANSFER:
Online transfer is a very interesting department as well. Any person who wants to transfer some amount from minimum 500/- to 500,000/- from one branch of ABL to another branch of ABL can transfer the amount within minutes. The fee charged for this service for within city is Rs: 120/- and inter city is 315/-.The only thing which i had to do was to fill the slip of online transfer in which the most important coloums were;  Name and code of remote branch  Title of the remote account  Account number of remote account  Applicant’s name  Amount to be transferred in words  Amount to be transferred in numbers  If cheque is submitted then the number of cheque  A copy of NIC (only if the person is not the account holder of the bank) Then the person submits the cash and slip on the counter and the cash is transferred to the remote account within seconds by entering the data in the software system. This is what I have learned in the online transfer department.

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PROBLEMS ENCOUNTERED:
 The biggest problem I had to face during my start of internship was the NEW ENVIRONMENT. In the beginning I felt very hard to mix with the employees of the bank. As all of them were a kind of strangers for me that’s why I couldn’t feel comfortable in the very first week. Basically it was all because of being in a new place. But after a week I started adjusting with them and after two weeks I also felt that Iam a part of this bank.  The second problem was that I had to be very formal there, like as we are very casual and free minded in university life, but when I was in the bank , I really felt that I have to be very formal all the time.  Then another problem which I really faced was the hectic routine of the bank. I had to go n time, work or at least to sit on a single place from 9 to 5 and be formal and present minded all the time without being non serious. And as all the customers used to come for things related to finance, which is a very sensitive issue that’s why I had to be very attentive all the time and no holiday on Saturdays.  The knowledge which we acquired through our books is very different from the practical knowledge that’s why I really had to learn a lot many new things every day. And all those things which we have studied in our books in the form of different theories when I had to apply them practically it was not so easy at the first time at least.

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HOW EXPERIENCE IMPACTS MY CAREER:
By doing internship for eight weeks in Allied bank limited I have gained a lot of practical experience of doing work, which was really different from the experience of student life. By doing internship I really gained the knowledge of banking sector, which I didn’t found so easy, I have learnt the meaning of responsibility, time management, and professionalism. Because of this experience now I can decide well that should I opt to join banking field or should go for another one.

The real thing which I gained by doing this internship was the confidence and knowledge, the confidence and knowledge which we gain from our student life is far more different from this one, because whenever I used to talk or deal with those bankers who are in banking sector from more then a decade they used to give me a lot of knowledge to deal with daily routine matters of banking sector. Whenever I used to interact with such highly professional bankers, I used to hesitate in the beginning but with the passage of time I also gained that much confidence and a little knowledge that I could interact with them more sense ably. In the beginning really it was very difficult for me to interact and work with such formal people in such a formal environment but as I said that I really leant to work with them and talk to them with the passage of time and now I think I will not find any difficulty in at least understanding the environment of organizations and offices when I will start my job in near by future. I also feel that I have also understood the basic culture and environment of professional life which is very important to understand for doing any kind of job.

Now I really feel that the knowledge which I got by working n ABL for eight weeks will be really helpful to me in future, as I have got the experience of General banking during my student life in my vacations from university. This experience will also help me in getting a goob job in near future because now at least I have some experience of work.

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BIBLIOGRAPHY AND REFRENCES  www.abl.com.pk  www.google.com  Interviews with Bank Staff

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