INTERNSHIP REPORT

Allied Bank of Pakistan

MBA (Banking & Finance)

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAB

In the Name of

Most Merciful and Compassionate the Most Gracious and Beneficent whose help and guidance I always Solicit at every step, at every moment.

PREFACE
This Report is specially meant for the student of MBA. It is concerned to a brief study of the operation, Function, tasks and services of Allied Bank of Pakistan. Banking play very important role in the commerce and economic development of a country. Now-a-days banks are using different modern technologies, which influence the managerial activities, thats why I decided to do my internship Training in the bank. In preparation of this Report is have tried my best to provide all Possible information about the operation, function and tasks of ABL in brief and comprehensive form. It also includes a brief department worked during internship. I have also tried my best to use simple and easy words and language. Then internship report ends with some recommendation after identification of some problems observed during the course of internship.

ii

ACKNOWLEDGEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report I am thankful to all my staff members so Allied Bank Of Pakistan Limited G - 9 Branch Islamabad. I found every one very co-operative and helpful for providing me the Theoretical as well as practical knowledge about the function and operation of the bank. I express my greatest gratitude to my kindhearted Supervisor Mr. Asad Ullah Makhdoom who was the Person who made me able to write this report, His enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. He helped me a lot each time I went up to him.

iii

EXECUTIVE SUMMARY
ABL is one of he most dynamic and progressive bank in the banking industry of Pakistan. This is due to its impressive growth and development. It has 756 branches through out the country. It also provides facilities online banking and ATM. Allied Online Banking is a unique service being offering from Allied Bank. I did my internship of six weeks in ABL G - 9 Branch (0681) from 15-09-09 to 31-10-09. It is one of the small branches of ABL, which is yet to be renovated. I selected this branch because of two reasons. First, I was of the view that one can find more learning opportunities in a small branch as compare to a big one. Secondly it is situated near to my residence. My report contains all the things which I learned during my internship in ABL G-9 Branch. The report contains overview of ABL, organizational structure of ABL, functions of accounts and finance department of ABL, critical analysis of theoretical concepts, financial analysis of ABL, weaknesses of the ABL, conclusion and recommendations as required.

iv

TABLE OF CONTENTS S.No. Topic Page No. 1 1

1 5 6 7 7

1 Objectives of Studying the Organization 2 Overview of the Organization

2.1 History Of ABL 2.2 Nature Of The Organization 2.3 Business Volume 2.4 Number of Employees 2.5 Product Lines & Services of ABL

3 Organizational Structure
3.1 Overall Organizational Structure 3.2 Organizational Structure of ABL G-9 Branch 3.3 Various Departments of ABL

14
14 16 16

4 Structure of Finance/Accounts Department

4.1 Structure of Finance/Accounts Department 4.2 Finance & Accounting Operations 4.3 Role of Financial Manager 4.4 Technical Methods (Use of Electronic data) 4.5 Funds Management

31
31 32 33 34 50

5 Theoretical and Practical Concepts

5.1 Daily Schedule For Evaluate A Banks Money Position 5.2 Account Opening Procedure 5.3 Customer Privacy

53
53 53 53

S.No.

Topic

Page No.

6 Financial Analysis
6.1 Balance Sheet 6.2 Income Statement 6.3 Ratio Analysis 6.4 Horizontal Analysis of Balance Sheet 6.5 Horizontal Analysis of Income Statement 6.6 Vertical Analysis of Balance Sheet 6.7 Vertical Analysis of Income Statement 6.8 Organizational Analysis 6.9 Future Prospects of ABL

54
54 55 55 69 71 73 75 77 78

7 Weaknesses of ABL 8 Conclusion 9 Finding and Recommendations 10 References 11 Annexes

10.1 Annexure I 10.2 Annexure II 10.3 Annexure III

80 84 85 92 93
93 94 95

vi

vii

1. OBJECTIVES OF STUDYING THE ORGANIZATION

Objective of studying the organization is to analyze the performance of the organization and to know the all possible information about the operation, function and tasks of ABL in brief and comprehensive form. Relate theoretical concepts with practical concepts and seek knowledge. Learn with practical experiences and analyze to what changes occur in banking industry. Another objective is to learn the financial analysis by computing different ratios that must be imperative for any business. Other objectives are:

To get acquaintance to the banking operations. To know what sort of changes it brings in managerial activities. To see the application of our Professional studies especially. To objectively observe the operations of Allied Bank of Ltd in general and the operations of ABL, in specific. To make recommendations or implementation plans for the improvement of the operations of ABL, in the light of professional studies.

2. OVERVIEW OF THE ORGANIZATION

ABL is one of the largest banks in Pakistan, serving the Country for over 60 years in all spheres at banking and financial Services.

2.1 HISTORY OF ABL

Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital of PKR 0.12 million under the Chairmanship of Khawaja Bashir Bux, and his business associates, including Abdul Rahman Malik who was amongst the original Board of Directors, the bank had attracted deposits, equivalent to PKR 0.431 million in its first eighteen months of business. Total assets then amounted to PKR 0.572 million. Today i

Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of dedication, commitment to professionalism, adaptation to changing environmental challenges resulting into all round growth and stability, envied and aspired by many.

2.1.1 1942 - 1947: Pre Independence

In the early 1940s the Muslim community was beginning to realize the need for the active participation in the field of trade and industry. The Hindus had since the late 1880s established a commanding presence in these areas and industry, trade and commerce in the undivided Sub-continent was completely dominated by them. Banking, in particular, was an exclusive enclave of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally unsuited for this profession. It was particularly galling for Khawaja Bashir Bux and Abdul Rahman Malik to hear the gibe that Muslims could not be successful bankers. They decided to respond to the challenge and took lead in establishing this first Muslim bank on the soil of Punjab that was to become Pakistan in December 1942; 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.

2.1.2 1947 to 1974: Australasia Bank

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the 14th, 1947. It had been severely hit by the riots in East Punjab. The bank was identified with the Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in Karachi, Rawalpindi, ISLAMABAD, Sialkot, Sargodha, Jhang, Gujranwala ii

and Kasur. Later it network spread to Multan & Quetta. The Bank financed trade in cloth and food grains and thus played an important role in maintaining consumer supplies during riot affected early months of 1948. Despite the difficult conditions prevailing and the substantial set back in the Banks business in India, Australasia Bank made a profit of Rs 50,000 during 1947-48. By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of East Pakistan which became Bengladesh. The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186 branches in West Pakistan.

2.1.3 1974 to 1991: Allied Bank

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was renamed as Allied Bank. The first year was highly successful one: profit exceeded the Rs 10 million mark; deposits rose by over 50 percent and approached Rs 1460 million. Investments rose by 72 percent and advances exceeded Rs 1080 million for the first time in bank history. 116 new branches were opened during 1974 and the Bank started participation in the spot procurement agriculture program of the Government. Those seventeen years of the Bank saw a rapid growth. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46 billion, and Advances and investments from Rs 1.34 billion to Rs 22 billion during this period. It also opened three branches in the UK.

2.1.4 ESOP Revolution (Employee stock ownership plan)

Under the philosophy of ESOP ownership of an enterprise is transferred to its employees who are in an advantageous position in running the enterprise. The added advantage of ESOP that it strengthens the workers stake in the free enterprise system, in job securities, better profitability & unique corporate culture symbolizing family feelings & professional fraternity.

iii

September 10,1991 is the historical date as on this date the bank became the countrys 1st bank to be reconstituted as an institution jointly owned by its employees through the unique concept of Employees Stock Ownership plan (ESOP) developed by the Allied Management Group headed by Mr. Khalid Latif enabled the bank staff to react creatively to the privatization challenge. More that 7500 staff members acquired a share in the bank. The articulation of the ESOP is a landmark in the financial history of Pakistan-indeed of the entire world .It is a practical step ensuring an increase in workers participation and in productivity a means for enhancing an equitable redistribution of financial assets & an effective strategy for achieving the cherished goal of national self-reliance.

2.1.5 1991 to 2004: Privatization

As a result of privatization in September 1991, Allied Bank entered in a new phase of its history, as the worlds first bank to be owned and managed by its employees. In 1993 the First Allied Bank Modaraba (FABM) was floated. After privatization, Allied Bank registered an unprecedented growth to become one of the premier financial institutions of Pakistan. Allied Banks capital and reserves were Rs. 1.525 (Billion) and assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion). Allied Bank enjoyed an enviable position in the financial sector of Pakistan and was recognized as one of the best amongst the major banks of the country. In August 2004 as a result of capital reconstruction, the Banks ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today the Bank stands on a solid foundation of over 63 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. 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.

iv

2.1.6 2005
In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and into 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

2.1.7 2007
Mohammad Aftab Manzoor has taken charge as CEO and President of the Bank on August 13 2007. He is an ex-president of MCB Bank Ltd.

2.1.8 Today
Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 756 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.

2.2 NATURE OF THE ORGANIZATION

The main objective of the bank is to accept deposits and provide loans to its customers and also to be more efficient in providing services. The bank maintained its commitment to most efficient and personalized services to its customers. Allied Bank of Pakistan

introduced many remunerative schemes for its depositors and introduced computer services for the first time in the banking history of Pakistan. Allied bank gives advances to small, medium and big industries, commercial establishment, agriculture, construction companies and other needy persons. Allied bank collects electricity gas and telephone bills from public and over hundred branches of Allied Bank Ltd. deal in foreign exchange were facilities are given to financial and commercial so its ultimate objective is to receive funds from the depositors and provides loans/credit facilities to different sector including trade, industry and agriculture in its most branches.

2.3 BUSINESS VOLUME

Description Millions) Revenue Investments Deposits Advances (in 2005 13,176 57,657 126,392 69,949 2006 41,423 45,269 161,140 119,866 2007 32,5 37 47,1 56 206,031 151,705 2008 40,1 49 84,1 51 263, 972 178, 524 297,475 22 3,640 2009 52,8 64 84, 587

Source: Annual Report of ABL 2009 Volume of revenue has been increased since 2004 due to increase in interest income earned. Volume of investments has been increased since 2007 because of increase in longterm investments by ABL. Volume of deposits has also increased due to increase in consumer deposits in past three years after great increase in inflation. Volume of advances in 2009 is also showing a great increase.

2.4 NUMBER OF EMPLOYEES

vi

Following is the total number of employees working in 756 branches of ABL:

Management Employees Support Staff Total Number of Employees of ABL

2,945 3,802 6,747

Following is the total number of employees working in the G-9 Branch of ABL:

Management Employees Support Staff Total Number of Employees in ABL G-9 Branch

2 13 15

2.5 PRODUCT LINES & SERVICES OF ALLIED BANK LTD

Following are the various product lines and services offered by ABL:

2.5.1 All-Time Banking (ATM)

Allied Bank has introduced the Allied Cash last year also referred to as ATM card. The customer will now have the convenience of withdrawing cash from any of ABLs ATMs (Auto Taller Machine) conveniently located in major cities 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.

vii

In order to obtain Allied Cash+ Card, the customers simply have to fill out prescribed Application form available at selected Allied Bank Branches in Karachi and Lahore. The dully-filled form should be handed over the Manager of the Branch where the customer is maintaining his account. Non-account holders would first have to open an account with Allied Bank to have access to this facility. The Customer can feel absolutely safe his Allied Cash + Card because it can only be used with the Personal identification Number (PIN), which is given to him by the bank. Graphical representations have been employed, where appropriate, for ease of understanding.

2.5.2 Allied Umrah Aasan

This unique scheme facilities those persons, who cannot afford to incur the lump sum expenses for Umrah. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in monthly installments. Its salient features are: It is free of interest and markup. Using this scheme family, relatives and household servants can be sent for Umrah. Around 2500 Aazmeen are to be sent for Umrah every month. Lucky winners of the draw are duly informed by their respective branches. Total package for Aazmeen from Karachi is being Rs. 45,000. Aazmeen from Lahore and Islamabad will have to pay an extra Rs. 3,000/- for Airline fare. Umrah packages are of 10 days duration. The charges include Airline return ticket. Fee Visa, family accommodation and traveling within Saudi Arabia (Jeddah to Makka, Makka to Madina and Median to Jeddah). Application for whole Family/Group can be filed through a single Application Form. All applicants of a family/group are sent for Umrah even if only one member of that family/group is declared successful in the draw.

viii

Due to any reason if Umrah Applicant needs to withdraw his/her application, he/she will given a refund of all money deposited through installments till that time.

At the time of submitting the application Aazmeen has to deposit Rs. 2,000 per person as first installment. Rest of the money is to be deposited through monthly installments of Rs. 2,000/- person on every 5th day of the month.

If an Applicant wins in the draw he/she is required to pay the balance amount through monthly installments on returning from Umrah. Aazmeen have to submit a copy of their NI Cards and Passports with the application. Applicants have to deposit the monthly installment using deposit slips still 5th of every month. Defaulters will not be included in the draw.

2.5.3 Master Cards

The customer 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 its Master Card to anyone meeting the eligibility criteria. With the Allied Bank Master Card the customer is assured of a service meeting the highest international standards maintained by Master Card. The Allied Bank Master Card helps the customer pay without the complications of cash or checks. It doesnt cost the customer anything if he pays in full within the due date, but if he decides to spread the payments over several months a service charge @ 2.50% per month is charged. Allied Bank Master Card is safer than cash and simpler than checks. The customer has been an account holder with the Allied Bank to apply for the Allied Bank Master Card that is available to the customer for an initial fee of Rs. 2,000/- (Rs. 500/membership fee + Rs. 1,500/- annual fee). Once the customer obtains his card, he simply presents it at Shops, Supermarkets, Hotels, Pharmacies, Nursing Homes, restaurants, Petrol Pumps and hundreds of other establishments which display the familiar Master Card sign throughout Pakistan and abroad. ix

Once purchases are made, the customer signs a voucher and thats it he is not required to take extra troubles. Every month the customer receives a statement showing details of transactions, outstanding and the minimum amount due. The statements also give the last date for payment so the customer can avoid paying service charges. In order to avoid disruption in use of the card, it is essential that a least minimum payable amount of the bill be paid regularly. In case the required payment is not received the operation of the Master Card is automatically, suspended by the system. In such case, the card is activated after receipt of overdue payment only.

2.5.4 Allied Tahafuz Deposit Scheme

Brings the customer unparalleled life insurance covers along with attractive monthly profit. Minimum Deposit amount Rs. 50,000/- or multiples thereof. Insurance cover up to - Rs. 5,000,000/. As Competitive rate profit. The features of this scheme are: Prospective client who will maintain a return free deposit for at least 3 months shall eligible to avail interest free/mark-up free finance. Payment of profit on monthly basis, automatic renewal on face value. Life insurance up to 5 times of the customers deposit amount with no extra cost. Premium shall be paid by the bank. Full payment of claim in case of Death Permanent total Disability. Eligibility Age 18 to 64 years. No medical examination for: Deposit up to Rs. 500,000/- and age up to 60.

2.5.5 Allied Karzas Scheme (No Interest/Markup)

Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage of a real Riba Free economic environment and avail following: Prospective client will maintain a return free deposit for at least 3 months shall be eligible to avail interest free/mark-up free finance. Deposit amount Rs. 100,000/- and multiples thereof. Minimum deposit period, 3 months with automatic rollover facility. Premature encashment allowed, without any penalty/charge. Minimum deposit period for eligibility of finance, 3 months. Maximum period of finance, 6 months. Maximum period to avail finance, 12 months from the maturity of deposit. Every month (30 days) completed by the deposit shall be taken into account for calculation of entitlement of finance. Finance proposal processing fee Rs. 100/- (non-refundable) plus documentation cost on actual basis. In case of default/delay in repayment @ 0.055% per day (20.075% p.a._ to be placed in charity A/C. Formula for calculation of entitlement of finance. Same amount of finance for half the period of deposit or Same period of finance for half the amount of deposit.

2.5.6 Other Products Home Remittances

The Bank having a network of 755 branches all over Pakistan, undertakes to provide safe and instant payment of remittance from expatriates, routed through designated foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard. Through the Allied Express xi

Services, ABL ensures that beneficiaries Accounts in ABL branches are credited with in 48 hours of receiving home remittance information from overseas.

Hajj Services

The Bank serves the intending pilgrims by helping them in performing this religious obligation. The Hajj forms and other related services are provided by the bank. However, the terms and conditions for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj Policy announced by the government, each year. Hajj applications are available with all branches during Hajj season, immediately after the Hajj policy is announced by the Government of Pakistan.

Utility Bills

All branches of the Bank collect utility bills of electricity, gas and telephones. For convenience of the customers, Utility Bills are collected by the branches during banking hours and also in he evening banking on all working days. Bills can be paid through cash or checks. Consumers may drop bills with crossed checks into a drop box available at the branches under Checks Drop-in system.

Agricultural Finances

Bank under Agricultural Financing Schemes envisaged by he State Bank of Pakistan extend 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 (inland and marine excluding deep sea fishing).

Lockers
xii

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

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.

Allied Bank Rupee Travelers Checks

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 banks introduce travelers checks in order to protect against any contingency.

Seasonal Finance
Runni

ng 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 markup is recovered on the products of daily outstanding balance. The running finance is Cash suitable for meeting day-to-day financial needs of the business. made against payment. Dema nd Finance is disbursed in lump sum or in accordance with the agreed Finance is allowed against pledge of goods. The delivery of goods is

xiii

disbursements schedule and it is repayable as per the agreed installments, which could be monthly, quarterly, biannual or annual.

3. ORGANIZATONAL STRUCTURE OF ABL

Head Office

Regional Offices

Zonal Offices

President
Branches
Organizational Chart of ABL

Senior Vice President

Note: Organogram of ABL is given in Annexure I.

3.1 OVERALL ORGANIZATIONAL STRUCTURE OF ABL

The day-to-day affairs of ABL are managed by President of ABL who has to report to Executive Vice Management Board of Directors of ABL. Their reporting lines are given as follows: Senior Executive

Vice President

Vice President [rosodmemtPresident

Regional Head Managerxecutive Vice President

xiv

Branch Manager

Management of ABL is given as follows: Asim Tufail (Group Chief, Consumer & Personal Banking) Fareed Vardag (Chief Risk Officer) Iqbal Zaidi (Group Chief, Compliance) Mohammad Abbas Sheikh (Group Chief, Special Assets Management) Mohammad Aftab Manzoor (Chief Executive Officer) Muhammad Jawaid Iqbal (Group Chief, Corporate & Investment Banking) Muhammad Shahzad Sadiq (Group Chief, Audit & CRR) Muhammad Yaseen (Group Chief, Treasury) Mujahid Ali (Group Chief, Information Technology) Shafique Ahmed Uqaili (Group Chief, Human Resources) xv

Khawaja Mohammad Almas (Head, Core Banking Projects) Tahir Hassan Qureshi (Chief Financial Officer) Tariq Mehmood (Group Chief, Operations) Waheed ur Rehman (Company Secretary) Zia Ijaz (Group Chief, Commercial & Retail Banking)

3.2 ORGANIZATIONAL STRUCTURE OF ABL G - 9 Branch

In ABL G-9 Branch, main authority lays with the Branch manager, Mr. Muhammad Tanvir who has to report to Regional Head Officer. Mr. Tariq Abassi is the Customers Service Manager who reports to the Branch manager. Customers Service Manager furthers looks at the various departments or desks of the branch and rest of the staff has to report to him. Note: Organogram of ABL G-9 Branch is attached in Annexure II.

3.3 VARIOUS DEPARTMENTS OF ABL

In the same branch different departments of ABL are working. So I got the opportunity to know briefly about every department.

3.3.1 IT Department
In ABL, IT department performs several duties that are as under:

Daily Transactions To record all the transactions in case of deposits made by the people and also to record all the withdrawals made by the people or customers. Each transaction has to be recorded in its appropriate head of account with the help of prescribed codes.

xvi

Vouchers To record all the vouchers made by the remittance department. Remittance department have to prepare debit and credit vouchers for about every transaction recorded in their department. Then these vouchers are sent to computer operator to record those in computer. Advices To record all advices received from other branches. Most of the-inter branch or intra branch- remittances are subject to ultimate receipt of advices from the corresponding branch to materialize the transactions. These advices also have to be recorded in computer. Statements (End Of Day report) To close the daily record a number of statements have to be printed out, like: Days transactions (sequence) Overdrawn facilitated a/c statement Markup sheet Inter branch transactions Detail of PLS and Current a/c

Days transactions (a/c wise) Operative, Dormant, Inoperative and Unclaimed a/c

All ATM transactions Detail of GL entries (official & non customer transactions)

xvii

Summary of all a/c (debits, credits & balances) Profit due, transferred, disbursed, etc.

3.3.2 Deposits Department

Accounts Department of ABL deals with deposits of ABL. Bank borrowing funds from outside parties is more important because the entire banking system is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial banks do not receive these deposited for safekeeping purpose only. When the bank receives the amount of deposited as a depositor, it becomes the owner of it. The bank may therefore use these deposits, as it deems appropriate. But there is an implicit agreement that the amount owned by the bank will be paid back to the depositors on demand or after a specified period of time. The borrowed capital of the bank is more than the banks own capital. Banks borrowing is mostly in the form of deposits. These deposits are lend-out to different parties. Larger the difference between the rate at which these deposits are borrowed and the rate at which they lend-out the greater will be the profit margin of the bank. Larger the funds lend-out the greater will be the return earned on them and greater the amount of return on these deposits earned greater will be the profit for the bank. It is because of this interrelated relationship. Deposits are referred to as the life blood small for any banking sector. There are numbers of account that ABL offers to its customer keeping in mind their needs and dealing as follows:

I. Saving Bank Account P & Loss Account In Pakistan the saving Bank accounts are know as profit and profit and loss sharing accounts (PLS A/C) fowling the illumination of bank. The owners of such account are

xviii

not allowed to withdraw money more than once are twice a week. In case of withdrawal of large sum, the depositor is required to give to prior notices a week or two. Thus the bankers are not required is always available to bank for giving to loans to their customers. Thus these deposits also serves as source of credit certain by the commercial banks. The rate or profit on this type of account varies from time to time. All the commercial banks declare the rate of profit every year that is paid on these accounts on the basis of their monthly credit balance. The bank will determine the proportion of profit & its decision will be final. Profit will be determined on daily product basis while it will be paid on monthly basis & will be paid on the minimum balance between the first day & last day of the month. Zakat will be deducted on the exceeding amount as exempted from the Zakat deduction. Taxes will be imposed according to the rules & regulation. In Pakistan post offices & national saving centers also maintain this savings bank account to encourage saving habits among the people. At the time of opening this account, a minimum amount of Rs.1000 is to be deposited. Subsequently the account is opened & account number is located. The depositor is given a chequebook. The depositors who are wishing to close his account are required to present his cheques to the bank in order to draw the credit balance and to close the account. And this type of account a customer can open joint account also, which can be operated by anyone.

II. Current Account There is no limit of withdraw of money from these accounts. In practice the bankers do not allow any profit to such deposits in Pakistan. The customers are required

xix

maintaining the minimum credit balance in their account in case of failing incidental charges are recovered from defaulters. This is because the depositors may withdraw current deposits at any time and as such the bank is not entirely free to employ such deposits. In general, the bank allows the overdraft facilities to current account holders & the prevailing rate of markup is charged from these customers. In ABL the minimum amount required to open the current account is Rs. 1000. No profit is paid to account beside this that the account holder has the facility to taking s much money as he wants. Individual account is opened in the name of the single personal one person on whose name it is opened only conduct it. While two opens joint account and partnership account are more person and the bank fallow their instructions for the conduct of the account. Similarly limited companies can also open their current account. III. Fixed Deposit Account/Term Deposits These deposits are also called as time deposits because these deposits are based on the fixed duration. The period for which these deposits are kept with bank are ranged from seven days to ten years in light of the agreement between the customer and the banker. The profit allowed on these account depend on the duration longer the duration of the deposits the higher will be the rate of profit. The operation of fixed account is different from saving & current accounts. Every time money is deposited with the bank an application from filled and the bank issue a fixed deposit receipt for amount deposited along with specific period. Fixed deposit receipt is given to the depositor and the bank retains the counterfoil of the same receipt. Fixed term deposits may be in the joint names of two or more person. The payment to one of those people will not discharge by the bank without the authority of others.

xx

 Opening and Operation Of Bank Account As discuss earlier there is a prescribed procedure for opening different types of account. Following steps are followed while opening a new account. a. Application from for Opening of Accounting A person who wishes to open a bank account is required to complete this from the personal information is to be furnished. The application signs the declaration to effect that he has understood the rules and regulation of the bank.

b. Introduction As required by the banking law the new customer needs to be introduced by the account holder of the same branch where the account is being opened. The manager or any other bank officer may introduce the new customer if they know them personally. Signature card At the time of opening an account a specimen signature card containing two signature of the customer is required which the manager of the branch attaches with application form. During the operation of account the signature is verified when the cheque is presented for payment. Cheque Book After completing formalities for opening saving and current a cheque book is issued to the customer for withdrawing cash from his or her account at the time of need. The cheque contains minimum 25 pages & maximum 50 pages. The bank also charges excise duty on cheque book.

xxi

3.4.3 Advances & Credit Department

The basis function of the bank is to accept deposit and lend money to the borrowers against a spread so to be able to give some profit to the depositors as well as to earn profit for the bank. While lending the money to the borrowers the bank should observe the following lending principals: I. Safety Principle It means that the lended money will come back along with interest or service charges etc. The borrower should not invest the money borrowed in unproductive or speculative business. II. Liquidity Principle The money which has been lended to the borrower should be returned to the bank on demand or as per repayment schedule provided by the client. The sources of repayment should be clear and definite

III. Purpose Principle The purpose of the advances should be legitimate and productive. It should be ensured that the banks, funds are not being utilized for speculative business. The credit restrictions by the central bank should not be violated & it should also be ensured. It is always beneficial for the bank to finance for short-term requirements.

xxii

IV. Profitability Principle The end result of every business activity should be to earn some profit. Similarly the bank must get some profit out of the activity of lending so that the depositors could get their shares as well as the shareholders could earn something for their investments. V. Security Principle The proposal should be dealt on its merit not on security. The security should be considered a safety for the bank only in case of unexpected emergencies. All the relevant documents of securities must be obtained & got valuation of the property or any other security should be assessed correctly. VI. Spreading of Risk Principle It is always safe for the bank to spread the risk in large number of borrowers instead of loaning huge amount to few big shots, it is better to obtain different types of securities instead of concentrating on one security. VII. National Interest and Suitability Principle

It is Banks moral as well as legal obligation to ensure that no loaning is running counter to national interest. It is also banks duty to ensure that their lending policies are not against the social conditions or bindings. VIII. Lien

Lien is the bank right to with hold property until the claim on the property is paid. The bank looks at their lien as a protection against loss or overdraft or any other credit facility. In ordinary lien the borrower remains the owner of the property, but the actual or constructive possession remains with the creditor or bank though the borrower has no right to sell it. xxiii

By Cash Credit In this the bank lends money to the borrower against tangible security. The total amount of the loan is not paid in one installment. The borrower has to pay markup on the amount borrowed. Cash credit is favorite loan for large commercial & industrial concern. By Overdraft This the most common type of bank lending. When a borrower requires temporary accommodation, ABL allows its customer to withdraw an excess of the balance form their account, which the borrowing customers have in credit and thus called overdraft. This facility is given to regular reliable & well-established customer. When it is against collateral securities, it is called Secured Overdraft & when borrowing customer cannot offer any collateral security except his personal security then the accommodation is called Clean Overdraft.

Types of finance I.
Short Term Finance

Allied Bank Ltd. receives the saving of the people and lends it for short term to its customers. Short-term finance is generally given for a period of one year or less in duration.

xxiv

Medium Term Finance The duration range of the intermediate term finance is from one year to three years. It is also called term loan. Intermediate term finance is usually given for the expansion of an existing business or for the purchase of new equipments. Long Term Finance This type of finance is required for the period of more than five years. Long-term finance is generally given for the compilation of big projects, for the construction of building and for the purchase of machineries. Producer of Applying for Loan Any customer who applies for loan should have an account (usually current account) with ABL branch concerned. That account must be in running position. When approval from head office is given, branch gives tern & condition to the party. Bank does not advance 100% loan against a security, rather the profit margin is different in different type of loan.

3.4.4 Remittances Department

Another important department in ABL is Remittances Department. The remittances department transfers the funds from one bank to other bank and from one place to another place.

xxv

In remittances department the collection take place. The ABL made payment of only open cheques on the counter and prohibits the payment of crossed cheques. ABL transfers money from one place to another by the following means: Mail Transfer When a customer requests the bank to transfer his money from this bank to any other bank or the branch of some other bank, the first thing he has to do is to fill an application form. In which he states that he/she wants to transfer the money from this bank to that bank by mail. If the customer is the account holder of the bank, operating personal will proceed further with steps like: Writing a debit voucher for a/c holders a/c Preparing an advice in favor of stated bank/branch Writing credit voucher for GL Mail the advice If the customer is not the account holder of this bank, then firstly, he has to deposit the money and than above procedure will be adopted to transfer his money. Telegraphic Transfer With the changing requirements of the customer, ABL has introduced the fastest transfer of money. The sender is required to apply through a form in which he will give all the necessary details about the sender and beneficiary. The sender deposits the money to be transferred plus bank charges at the bank counter. The remittances officials send a telegram to concerned branch with specified code words and the receiving branch makes payment to the beneficiary. Vouchers are sent by ordinary mail to keep the record. On TT, no excise duty is charged only commission and telegram charges are charged. Pay Order

xxvi

Pay order is the most convenient simple and secure way of transfer of money. It is issued by, drawn upon and payable by the same branch of the bank. It is neither transferable nor negotiable and as such it is payable to the payee named there in. The following are the parties to a pay order. Purchaser is a person, firm, company or local authority. Issuing/paying branch is one which issues/pays on presentation. Payee is a person named there in. Demand Draft Demand Draft is another way of transfer of money from one bank to another bank. Unlike pay order, a form is required to be filled for the issuance of the demand draft in which necessary particulars about the beneficiary and sender are given. The sender deposits the amount of DD plus commission and other charges on the bank counter, from where he is given a receipt and in accordance with this receipt he is issued. The following are the main essential of draft:

a) It is a Negotiable Instrument. b) Filling a form and depositing the amount written on it prepare 2} Draft. c) It is a written order to its branches or to another bank to pay the stated amount on draft.

3.4.5 Cash Department

This is the most important and critical department in a Bank. There are two basic functions performed by the cash department. These are Receipts

xxvii

An individual who has account in the Bank can deposit money in his account. For deposit of the money the individual has to fill the deposit slip in which the account holder writes his name, Account number, amount of the money both in figures and in words. After filling the deposit slip the Cash amount along with the deposit slip is submitted with the cashier. The cashier collects the cash and counts it and after verification the cashier stamps the deposit slip. One part of the deposit slip is given back to the customer and the other part of the deposit slip remains with the bank for the record purposes. The cashier also record the deposits made by the customers in credit sheets daily. The deposits of all customers of the bank are controlled by mean of ledger account. Every customer has its own ledger account and has separate ledger cards in which his / her total record is kept. Bill collection is also one of the main functions of bank. Cashier has to prepare a list of bills serial number, a copy of which is to be sent to the corresponding organization. Payments The procedure of clearance of a cheque or payments is as following. First of all the customer presents his cheque to the cashier. The cashier records the account number and the amount, which is to be drawn. Then the cashier check the cheque number in the computer for the verification whether the account holder has such amount in his account which he is demanding or not. If the computer passes the cheque, the Passing officer signs the cheque and sent it to the cash counter then cashier pays the written amount to the customer and then in the end cashier records the amount paid in computer.

3.4.6 Foreign Currency Department

Like Pak rupees account the foreign currency has many accounts like xxviii

Saving account Current account Term deposit account. The bank deal in three type of foreign currency account: 1. Dollar 2. Euro 3. Pound

The account is open with 500 dollar if it is less 5-dollar per month is deducted. For opening the account NIC & introduction is required of the same bank. If any person wants to import goods from foreign, an account is required and for international trading the FC is needed. ABL provide foreign currency on Pak rupee at booking rate and the central office sent Rates In foreign currency department the remittance is sent through Foreign Telegraphic Transfer. The account holder can sent the amount in foreign bank account. If any transaction is made the daily report is given to the central office Karachi daily. Different accounts can b open like joint account or company account. The thankful letter is sent for opening the foreign currency account to account holder and introducer. When any transaction is made the bank inform stock exchange daily. The foreign currency note is counted and recorded in the cash memo book. The people in the foreign country sent the amount through S.W.I.F.T. Weekly and monthly report of all the transaction is given to the stock exchange. Cheque book is also issued to the account holder & the foreign currency Account number is given to him. In this FBC & FBR is done. Debit Credit Voucher is used. The charges are deducted while closing the foreign currency account. And the cheque book is return while closing the account.

xxix

The branch sent excess foreign currency to its main branch. If any branch needs foreign exchange they sent to this branch.

3.4.7 Clearing Department

In clearing process, if the account holder of ABL receives the cheque of other bank like City Bank, Habib Bank Limited etc, and he submits it in ABL branch to be cashed. At the same time the clearing process starts. First the bank name. Cheque number and the amount are written in the register. After this three kind of stamps are required first bank name stamp, secondly clearing stamp of next date and If the cheque is not local then the inter city clearing stamp is required. Some cheques are local and some are outstation. The institution N.I.F.T. provides the services in clearing the cheque. They send the different cheque to different banks. The N.I.F.T service is only in few cities. The cheque of inter city is send through N.I.F.T. And where, the N.I.F.T service is not available so the cheque is sent through T.C.S. The clearance of cheque is informed through advice. Some cheque is not passed so they should return so Rs. 200 is deducted and if the cheque is inter city then the postage charges is deducted. For this purpose the Debit & Credit voucher is used. When the cheque is cleared the today stamp is required. Some cheque is drawn on ABL. This is called outward clearing. These cheques will be entered in the outward clearing register. And the advice is sent for the clearance of cheques. The account holder account is credited. OBC means the cheque of other banks. When they sent OBC the OBC is credit & OBR is debited and the advice is made on that time, one copy is remain in the bank and the other copy is sent to the related branch. When they realized the opposite entry is made. It is entered in the OBC register. The income A\c commission is credited, and postage.

xxx

4. STRUCTURE AND FUNCTIONS OF FINANCE DEPARTMENT OF ABL

Bbbbbbbbbbbbbbbbbbbb 4.1 STRUCTURE OF FINANCE/ACCOUNTS DEPARTMENT
ABL has separate departments for accounts and finance. Both of these departments are controlled by CFO. Accounts Department has further Accounting and Operation Department, Accounting & Audit Department and Control Department whose officers report to CFO. Finance Department has further Portfolio Management Department and Investment and Finance Planning Department whose officers also report to CFO. Portfolio Department has further sub-department of lending who report to Portfolio Officer. Investment and Finance Planning Department has further sub-department of Funds Raising who report to Financial Planning Officer. Note: Organogram of Finance and Accounts Department of ABL is attached in Annexure III.

4.2 FINANCE & ACCOUNTING OPERATIONS 4.2.1 Generation of Accounting Information

Finance and accounting policies and procedures are strictly followed. With them come new departments and divisions to help management more effectively focus and control the banks resources e.g. fund raising and fund management division, funds allocation department, portfolio management department, personal financial services division,

xxxi

investment and funding group etc. These new departments and divisions require the appointment of bank management and staff that can devote more time to surveying customer surveys, and modifying old service offerings to reflect changing customer needs. The technology of financial services production and delivery has shifted more and more in recent days towards computer-based system and electronic service delivery. Automated bookkeeping has reduced the time managers spend in routine operations, thus allowing greater opportunity for planning new services and new operations.

4.2.2 Recording of Accounting Information

Accounting information handle by preparing journal, ledger and trial balance and information recorded electronically. The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and income and expenses. It also requires management to exercise its judgment in the process of applying the accounting policies. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

4.2.3 Uses of Accounting Information

In the process of applying the Banks and its subsidiarys accounting policies, management has made the following estimates and judgments which are significant to the financial statements: Classification of investments Valuation of derivatives

xxxii

Impairment Recognition of taxation and deferred tax Provisions Accounting for post employment benefits Calculation of depreciation, amortization and revaluation of operating fixed assets

4.3 ROLE OF FINANCIAL MANAGER

Financial manager mainly emphasize on maximize shareholders wealth. All important decisions related to finance and investment that must improve the success of the organization. Financial manager also perform several tasks as follows: Advice institutions on high net worth individual customer on investing funds, managing assets, reorganizations, raising capital. Purchase short term assets (mainly accounts receivable) from business in exchange for supplying temporary financing. Purchase short term credit to improve commercial use. Offer saving deposit plans and housing related credit predominantly to individual. Execute customer buy and sell orders for marketable securities and exchange traded financial futures and option contracts and provide other full service brokerage functions.

Control of the composition of a banks assets to provide adequate liquidity and earnings.

xxxiii

 Control over a banks liabilities, usually through changes in interest rates offered to provide the bank with adequate liquidity.

Invest in corporate stock to help finance the start of new branches to support the expansion of existing business.

4.4 TECHNICAL METHODS (USE OF ELECTRONIC DATA)

Any new technology in banking sector has its own effects because new technology indicates the improved operation and performance of the sector. Introduction of new technology has an extensive effect on customers. So the quick adopters of new technologies have an edge over others in the industry. Allied bank use Linux and UNI BANK. Allied bank uses new technology in different department, which improved the quality of services of that department.

4.4.1 Cash Department

Cash department involves receipts and payments process manually. But now ATM is used which has affected the cash department in some extent. Before Before ATM and online technology ABL was able to provide only 8 hours services for payment. Customers were enforced to wait in huge lines for getting payments. To check the total amount of account customer had to give application to the bank Needs number of cashier and clerks Everything took a long time.

xxxiv

After Now ABL can provide 24 hour banking to its customers so that customers can withdraw money at any time. Now customers have no need to wait for the payment in long queues. When customer withdrawal the money and mini statement of his account is shown to the customer. ATM technology reduces the extra burden on the cashier, and now bank dont need extra cashier and clerks

4.4.2 Remittances Department

The remittances department transfers the funds from one bank to other bank and from one place to another place. ATM and online banking has also effected the remittances department and increased its efficiency. Before Before ATM if customer wanted to transfer his fund to other bank account or other branch account, then he had to submitted a cheque which takes a lot of time for clearance process Before online banking to transfer the funds to other braches or to other banks bankers had to use demand draft, telephonic transfer pay order and mail transfer etc. After Now customer can transfer money from his account to any other account at any time any where in Pakistan, without waiting for the clearance process.

xxxv

Through online banking bankers has no need to send cheque or money through demand draft or telephonic transfer etc. the banker can access any branch and transfers funds to it with in no time.

In online transaction the account holder has account in another bank. The account holder sent the amount to his account. Online transaction is made only ABL to ABL. So they can transfer the amount, they can cash the amount they can find the balance & receive the statement of his account in another branch. In this type of transactions the application is filling for this purpose.

Date Name Remote Account number Amount

4.4.3 Online Banking

Allied Online Banking is a unique service being offering from Allied Bank. Through this service, account in Allied Bank is available to from any of branches countrywide. ABL is the first bank in the history of Pakistan which connects with each branch of it through online banking. These branches can offer the facilities of remote cheque encashment, cash deposit, funds transfer, balance enquiry and statement of account printing to customers of other online branches besides issuance of ATM cards to their own account holders. Rules

xxxvi

With the introduction of online banking services in branches, the computerized operations of the banking system in branches has become even more sensitive thats why the top management has set some rules and given some guidelines to each and every branch to be followed: 1. Only authorized persons should be allowed access to the computer system of the branch. Physical access to the branch server machine should especially control. All maintenance activity, whether by IT Centre personnel for trouble-shooting or by authorized service providers for hardware / communication support should be documented. For this purpose, a separate register should be maintained in the branch where in the name / identity of the person concerned along with the date and time of such activity should be recorded. 2. Personnel of the branch who have been authorized to use the system to enter transaction or carry out end of day processing should not divulge their password to anyone under any circumstances, in case, it is felt by the password holder that his password has become known to someone else, it should be changed immediately.

3. It is the responsibility of the branch to take back-ups on daily basis and to ensure that these are sent to the IT Center as per laid down procedure, Taking of backup or restoring of backup of the branch based system should never be allowed to be carried out by and outsider, Under no circumstances, should a backup be carried out of the branch by and unauthorized person, The dispatch of backup of IT Center/Division should only be handled by designated couriers in sealed envelopes. 4. Use of PC workstations having removable drives and/or modem is not allowed, Internet access / Internet mail I not permitted on any workstation of the branch system. Strict compliance of this must be ensured.

xxxvii

5. In case of any problems related to end-of-day processing or in respect of hardware/ software, the matter should invariably b referred to the IT Centre. Attempts to the fix problems without the knowledge of IT Centre staff must b avoided. Transaction Amount Limits

1. 2.
instance.

Cash Withdrawals: As per standing instruction the online transactions are

restricted to a maximum of Rs. 500,000/- per instance for Cash Withdrawals.

Third Party Cheques Encasement: The customers can encash third party

cheques of an account holder of Allied Bank subject to a maximum of Rs. 25,000/- per

3. 4.

Funds Transfer: The maximum amount is restricted to Rs. 500,000/- for funds

transfer except when the customer is transferring funds from the branch where his account is maintained, to any other account in any ABL branch.

Deposit of Third Party Cheques for Instant Credit: The account holders can

deposit third party cheques, either drawn in his favor or bearer, at the branch where he holds an account for instant credit. The maximum value of each third party cheque, which is being deposited, should not exceed Rs. 500,000/- and utmost precautions must be undertaken to ensure authenticity and genuineness of the third party cheques.

xxxviii

Physical Presence Of Account Holder

It is essential for the account holder to present a cheque in person at the remote branch for encashment from his account at the parent branch, The presence of customer is necessary in case of Funds Transfer transactions, however customer presence is not necessary for cash deposit or third party encashment of cheques up to Rs 25,000/- . Fund Transfer The customers will be allowed to transfer funds from an account in the local branch to an account in the remote branch and vice versa. In this case the from account must b Customers own account whether in the local branch or the destination branch and a cheque for the transfer would be required to be presented. Supervision Of Transactions All cash and Fund Transfer transactions require immediate online supervision at the local branch before being transmitted to the remote branch for acceptance; Supervision requires re-entry of all transactions particulars by the Supervisor, Transactions relating to Balance Enquiries and Display of statements of account do not require and supervision

KYC / Customer Due Diligence

xxxix

The banks are required to perform KYC / customer Due Diligence as per Prudential Regulation issued by State Bank of Pakistan, Accordingly, all abnormally high / suspicious transactions particularly cash transactions, are required to be examined and reported to the concerned departments,

4.4.4
mated Teller Machine (ATM)
continues to grow at a rapid pace.

Auto

Allied Bank has a vast network of over 460 ATMs installed in over 130 cities, which

The ABL Automated Teller Machine (ATM) launched in 1995 is a means of providing customers with 24 hour cash convenience. Over the years its success has encouraged the bank to expand its network to major cities. In the past six years, ABL installed this convenience in Karachi, Lahore, Hyderabad, Islamabad / Rawalpindi, Faisalabad, Multan, Gujranwala, Quetta, Sialkot and ISLAMABAD. Further expansion plans to other cities are on the way. Debit Card Facilities Funds transfer on ATM A cardholder can transfer funds on the ATM from his account to any other account in any branch of Allied Bank up to a maximum of Rs. 100,000 per day. 2. ATM Daily Withdrawal Limit Previously the card holders were allowed to withdraw Rs 25, 000 per day, which has now been enhanced as follows:

1.

xl

ATM Cash Withdrawal Limit: Per transaction limit Rs. 25,000 Daily limit Rs 100,000

3.

Debit Card on POS The debit transactions on POS were previously up to a maximum limit of Rs 50,000 per day which has not been enhanced to Rs 100,000 per day.

4.

Other Enhancements For the convenience of the Cardholders the following enhancements have also been incorporated:

Screens have now become bilingual and the card holder has the option to

operate the ATM in English or Urdu language.

Fast cash maximum amount, which was previously Rs. 10,000, has now been

enhanced to Rs. 25,000.

Guide Lines for Standardization of ATM Operations.

1.

Cash Balancing Procedure

xli

The actual cash in ATM is to be balanced with ATM Journal Roll, in order to identify the suspect transaction Following steps must be taken before end of day Put the ATM in Supervisory mode. Obtain ATM Cash position on ATM Journal Roll

The physical Cash in ATM must b equal to the amount appearing in the ATM Receipt. Under no circumstances the physical Cash should be placed shot in ATM while checking the cash in ATM, cash in the Reject Bin should also be checked and taken into account and the print in ATM journal for Reject Cash should also be verified. In case the physical / actual cash in AT M is more than the cash appearing in the journal then it means that customers account has been debited without cash disbursement, now the individual suspected transactions are to be identified on the basis of the verification from ATM Journal Roll, Branches should immediately complete process of Automatic Credit as per procedure and time frame mentioned below.

2. Procedure And Timelines For Automatic Credit

Same Bank-Same Branch:

Branch to credit customer account on next business day. Same Bank-Different Branch (within same city) xlii

ATM acquiring branch after verification of the transaction from their ATM Journal Roll, must issue Credit Advice to the card issuing branch (the branch from where the card was issued / account of the card holder is maintained) on next business day. Same Bank Different branch (different cities) ATM acquiring branch after verification of the transaction from their ATM Journal, Roll, must issue Credit Advice to the card issuing branch (the branch from where the card was issued / account of the card holder is maintained) on next business day. This whole process should be completed within maximum 4 business days. ABL ATM Branch and Other Banks / Switches. On verification by ABL ATM Branch (acquiring branch) from the PAN/ Card number, if it appears that the cash has been retracted against the ATM card of a bank other than ABL (First six digits of the ATM card represent the bank, in case of ABL IMD/ Bank no, is 589430) the ABL ATM branch, after verification from the ATM Journal Roll will issue a credit advice of the suspected transaction in favor of Bath Island Branch, Karachi (0949) and A list containing identification number of the different banks (IMD) is enclosed as annexure They will send the Credit Advice through TCS to ATM Wing COK along with a copy o the ATM Journal Roll as an evidence, ATM Wing upon receipt of the credit advice from the ATM branch will credit the same in settlement account and will issue a Debit. Authority to the respective switch/bank authorizing them to Debit ABLs Nostro account against the suspected transaction for credit to the other banks ATM card holder account.

xliii

3.
Cash Replenishment officers assigned by the customer services manger.

ATM

ATM cash replenishment is done on daily basis, which is joint operation. The locking / opening of ATMs for replenishment is under dual control of the

ing steps are performed before ATM cash replenishment: a. b. Putting ATM in supervisory Mode. bother officers.

Follow

Part of ATM Journal Roll for same date shall be taken out and signed by

c.
limit.

Logging in as Supervisor on UNIBANK running Option 06 for

calculation of cash replenishment position which shall b signed by both officers and attached with vouchers. All remaining physical cash in ATM shall be taken out and counted. Fresh currency notes shall be fed in to ATM according to assigned branch

4. Working of ATM
It is a high speed mode of transporting data from one branch or bank to another. With ATM, a customer able to transmit data in small data packets over a single network. It can carry traffic at speeds up to 622 Mbps. Data is transmitted in fixed length cells, which gives it advantages over other methods of data transfer. ATM is a cell switching network which takes data and breaks it into 48 bytes. These bytes are then affixed to a 5 byte header which will contain the source and destination information. The use of cell switching and multiplexing is employed and the

xliv

information is routed in a calculated manner. This method makes it so that transmission is constant and has a guaranteed capacity. Following diagrams will better help in understanding the working of ATMs:

Use cases: A use case describes a sequence of actions that provide something of measurable value to an actor and is drawn as a horizontal ellipse. In above diagram four main use cases has been drawn 1. System startup 2. System shut down 3. Session 4. Transaction (Transaction is an abstract generalization. Each specific concrete type of transaction implements certain operations in the appropriate way. The flow of events given here describes the behavior common to all types of transaction. The flows of events for the individual types of transaction <withdrawal, deposit, transfer, inquiry> give the features that are specific to that type of transaction)

xlv

Card insertion

Allied bank

Actors: An actor is a person, organization, or external system that plays a role in one or more interactions with system. In above diagram there are 3 Actors 1. Operator 2. Customer 3. Allied Bank

Associations: Associations between actors and use cases are indicated in use case diagrams by solid lines. An association exists whenever an actor is involved with an interaction described by a use case.

xlvi

I.

System Startup: The system is started up when the operator turns the operator switch to the "on" position. The operator will be asked to enter the amount of money currently in the cash dispenser, and a connection to the bank will be established. Then the servicing of customers can begin.

II.

System Shutdown: The system is shut down when the operator makes sure that no customer is using the machine, and then turns the operator switch to the "off" position. The connection to the bank will be shut down. Then the operator is free to remove deposited envelopes, replenish cash and paper, etc.

III.

System Session: A session is started when a customer inserts an ATM card into the card reader slot of the machine. The ATM pulls the card into the machine and reads it. (If the reader cannot read the card due to improper insertion or a damaged stripe, the card is ejected, an error screen is displayed, and the session is aborted.) The customer is asked to enter his/her PIN, and is then allowed to perform one or more transactions, choosing from a menu of possible types of transaction in each case. After each transaction, the customer is asked whether he/she would like to perform another. When the customer is through performing transactions, the card is ejected from the machine and the session ends. If a transaction is aborted due to too many invalid PIN entries, the session is also aborted, with the card being retained in the machine. The customer may abort the session by pressing the Cancel key when entering a PIN or choosing a transaction type.

IV.

System Transaction: A transaction is started within a session when the customer chooses a transaction type from a menu of options. The customer will be asked to furnish appropriate details (e.g. account(s) involved, amount). The transaction will then be sent to the bank, along with information from the customer's card and the PIN the customer entered. xlvii

If the bank approves the transaction, any steps needed to complete the transaction (e.g. dispensing cash or accepting an envelope) will be performed, and then a receipt will be printed. Then the customer will be asked whether he/she wishes to do another transaction. If the bank reports that the customer's PIN is invalid, the Invalid PIN extension will be performed and then an attempt will be made to continue the transaction. If the customer's card is retained due to three invalid PINs, the transaction will be aborted, and the customer will not be offered the option of doing another. If a transaction is cancelled by the customer, or fails for any reason other than repeated entries of an invalid PIN, a screen will be displayed informing the customer of the reason for the failure of the transaction, and then the customer will be offered the opportunity to do another. The customer may cancel a transaction by pressing the Cancel key as described for each individual type of transaction below. All messages to the bank and responses back are recorded in the ATM's log.

I.

Event Trace Diagrams

To represent objects & events in a scenario Objects in transition drawn as vertical lines Events drawn as horizontal arrow from the sending object to receiving object Event timing sequence shown - timing proceeds vertically An object can send simultaneous events to other objects

xlviii

II.

Event Flow Diagram

An Event Flow diagram consists of interconnected objects and explains the flow of data among those objects. Complex Event relationships and Synthetic Events are also represented in an Event Flow diagram. Object is drawn as rectangle Arrow sign show the association between objects and flow of data between objects. In below 2 diagrams objects are. User ATM Consortium (An association of banks for some definite purpose) Bank

Event Trace Diagram for the Normal ATM Scenario

xlix

Event Flow Diagram for the ATM System

4.5 FUNDS MANAGEMENT

Funds management deals with following aspects; Sources of funds Generation of funds Allocation of funds

4.5.1 Sources of Funds

Following are the sources of funds of ABL and their figures for last 5 years:

li

Description millions) Share Capital Reserves

(in

2005 10,256 10,640 126,392 12,538

2006 14,550 4,316 161,410 9,694

2007 17,688 4,316 206,031 18,410

2008 19,878 3,419 263,972 22,934

2009 22,356 2,341 297,475 27,778

Customer Deposits Inter borrowings bank

Source: Annual Report of ABL 2008 Banks major source of funding is individuals who deposit their funds. Bank also have other sources e.g. borrow from other banks and financial situation and in time of need it also approach state bank of Pakistan for extra funds and state bank provide funds after fulfilling basic requirements according to prudential regulations.

4.5.2 Generation of Funds

Following figures shows the generation of funds in last 5 years of ABL:

Description millions) Interest Earned

(in

2005 5,245 1,520 65 1,740

2006 9,892 1,471 196 1,940

2007 17,216 1,636 540 2,449

2008 21,201 2,258 1,585 3,920

2009 30,571 2,522 1,571 4,152

Fee, Commission, Brokerage Income Capital Gain & Dividend Income Non-interest Income

Source: Annual Report of ABL 2008

lii

Funds are mostly generated from the interest income earned by banks. Other places from where funds are generated include commission earned, capital gain and dividend income and non-interest income earned by bank.

4.5.3 Allocation of Funds

Following are the places where funds are allocated and their figures for last five years:

Description millions) Interest Expensed

(in

2005 794 4,115 290

2006 2,025 4,264 15 1,744

2007 6,793 5,289 9 2,264

2008 10,093 6,174 28 1,877

2009 16,560 8,399 82 1,964

Operating Expenses Donations Taxation

Source: Annual Report of ABL 2008 The main place where banks allocate its funds is in interest expenses. Other main place of allocation of funds is the operating expenses. Banks are heavily taxed which is a major portion of allocation of banks funds.

5. THEORETICAL AND PRACTICAL CONCEPTS

During internship I relate theoretical concepts relating to practical experiences. More opportunities expand my practical knowledge and understanding. I under go an internship program of six to eight weeks in bank to get exposure to the real time business environment and to know what sort of changes Information Technology brings in management

liii

activities. The real purpose of this internship program is to provide an opportunity to the students to see the practical applications of their background professional studies.

5.1 Daily Schedule For Evaluate A Banks Money Position

In this schedule I studied that bank manager trying to keep and record track of the many transactions each day. The bank name as day of end report consist of all record of vouchers, cheques, deposits, online transfers.

5.2 Account Opening Procedure

Account opening procedure is a procedure when a customer applies to open new account. A document consist of a form called account opening form for basic introduction of the customer and other details e.g. residence source of income and for security purpose specimen signature card, on this card customer signature three times to operate the account.

5.3 Customer Privacy

Bank protect the personal information that customer supply to manager so that customers are not damaged by the release of their private data to outside parties. Manager strictly follows privacy policy. Moreover, at least once a year the customer must be reminded about the content of those privacy policies.

6. FINANCIAL ANALYSIS OF ABL

6.1 BALANCE SHEET (2005-2009)
(figures in millions) December 31 Assets Cash and balances with treasury and other banks Lending to financial institutions Investments- Gross Advances - Gross 2005 18,035 5,777 45,269 119,866 2006 24,745 19,050 47,156 151,705 2007 30,408 18,419 84,151 78,524 2008 25,751 15,793 84,602 223,640 2009 27,716 28,123 96,975 249,887

liv

Operating Fixed assets Other assets Total assets - Gross Provisions against non-performing advances Provisions against diminution in value of investment Total assets - net of provision Liabilities & Equity Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Net Assets / Liabilities Share capital Share premium Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets

4,721 7,908 201,575 (8,659) (342) 192,574 161,410 9,694 2,449 4,472 178,025 14,550 4,489 4,316 1,377 2,732 12,914 1,636 14,550

6,445 10,800 259,902 (7,672) (203) 252,027 206,031 18,410 2,278 5,119 2,500 234,339 17,688 4,489 4,316 1,817 5,608 16,230 1,458 17,688

7,549 11,368 330,419 (10,117) (192) 320,110 263,972 22,934 3,494 7,332 2,499 300,231 19,878 5,386 3,419 2,632 6,971 18,408 1,470 19,878

11,134 18,399 379,319 (10,668) (1,956) 366,696 297,475 27,778 2,952 13,636 2,498 344,340 22,356 6,464 2,341 3,463 8,537 20,805 1,550 22,356

12,447 17,955 433,103 (12,543) (2,186) 418,374 328,875 39,819 3,162 11,061 5,497 388,414 29,960 7,110 1,695 4,888 12,198 25,891 4,069 29,960

Source: Annual Report ABL 2009

6.2 INCOME STATEMENT (2005-2009)

December 31 PROFITABILITY Markup / Rerurn / Interest earned Markup / Rerurn / Interest expensed Net Markup / Interest income Fee, Commission, Brokerage and Exchange income Capital gain & Dividend income 2005 9,892 2,025 7,867 1,471 196 2006 17,216 6,793 10,423 1,636 540 2007 21,201 10,093 11,108 2,258 1,585 2008 30,571 17,273 13,298 3,266 1,571 2009 41,122 22,422 18,700 3,470 2,452

lv

Other income Non interest income Gross income Operating expenses Profit before provisions Donations Provisions - (charge) / reversal Profit before taxation Taxation Profit / (Loss) after taxation

273 1,940 9,807 4,264 5,543 15 (694) 4,834 (1,744) 3,090

273 2,449 12,872 5,289 7,583 9 (913) 6,661 (2,264) 4,397

77 3,920 15,029 6,174 8,855 28 (2,874) 5,953 (1,877) 4,076

59 4,897 18,195 8,431 9,764 82 (3,561) 6,121 (1,964) 4,157

36 5,958 24,658 9,609 15,049 97 (4,416) 10,536 (3,414) 7,122

Source: Annual Report ABL 2009

6.3 RATIO ANALYSIS:

Five years ratio analysis of bank consists of profitability ratios, liquidity ratios, market ratios and solvency ratios.

6.3.1. Debt Ratio

Debt Ratio= Total Debt / Total Assets

lvi

2005 144671/154926 =0.933 2006 178025/192574 =0.924 2007 234339/252027 =0.930 2008 300231/320110 =0.938 2009 344325/366680 =0.939 Debt ratio increase first and then decreases in year 2007 the reason being this increasing trend of both total debt and the total assets till 2006 and in the year 2007 the increase in total debt is greater whereas the increase in total assets is comparatively less.

0.94 Debt Ratio 0.935 0.93 0.925 0.92 2003 0.924 2004 2005 2006 Years 0.933 0.93

0.938 0.939

2007

2008

2009

6.3.2. Return on assets (ROA)

Return on assets (ROA) = Earnings After Tax / Total Assets 2005 192 / 154926 = 0.001 2006 3090 / 192574 = 0.016 2007 4397 / 252027 =0.017 2008 4076 / 320110 =0.013 2009 4157 / 366680 =0.011

lvii

Return on assets increases till 2007 after that it shows downward trend, reason behind this increase in income is less then the increase in total assets.

0.02 0.015 ROA 0.01 0.005 0 0.001 2006 Years

Gross Profit Margin = Gross Income / Total Operating Revenue * 100 2005 2006 6191 / 5245 * 100 = 118.04 9807 / 9892 * 100 = 99.14

0.016 0.017 0.013 0.011

2003 2004 6.3.3. Gross Profit Margin 2005

2007

2008

2009

2007 12872 / 17216 * 100 = 74.77 2008 15029 / 21201 * 100 = 70.89 2009 18163 / 30571 * 100 = 59.42 Gross profit margin shows downward trend because increase in gross income is less whereas increase in total revenues is greater.

6.3.4. Return on Equity (ROE)

140 120 100 80 60 40 20 0 2003 Gross Profit Margin 118.04 99.14 74.77 70.89 59.42

2004

2005

2006 Years

2007

2008

2009

lviii

Return on Equity (ROE) = Earnings After Tax / Total Equity 2005 192/10250 =0.19 2006 3090/14550 =0.21 2007 4397/17688 =0.25 2008 4076/19878 =0.21 2009 4157/22355 =0.19 Going year 2004 to 2008 return on equity first increases till 2006 and after that is starts falling.

0.3 0.25 0.2 ROE 0.15 0.1 0.05 0 2003 2004 2005 2006 Years 2007 2008 2009 0.19 0.21 0.25 0.21 0.19

6.3.5. Debt to Equity Ratio (D/E)

Debt to Equity Ratio (D/E) = Total Debt / Total Equity 2005 144671/10250 =14.11 2006 178025/14550 =12.24 2007 234339/17688 =13.25 2008 300231/19878 =15.10 2009 344326/22355 =15.40

lix

Debt to equity ratio shows downward trend till 2005 after that it show upward trend reason behind this increase in total debt increases. 18 16 14 12 10 8 6 4 2 0 2003

14.11 12.24

15.1 13.25

15.4

D/E Ratio

2004

2005

2006 Years

2007

2008

2009

6.3.6. Operating Efficiency Ratio

Operating Efficiency Ratio = Total Operating Expenses/ Total Operating Revenues 2005 4115 / 5245=0.79 2006 2007 4264/9892=0.43 5289/17216 =0.31

2008 6174/21201=0.29 2009 8399/30571 =0.28 Operating efficiency ratio decreases from 2004 to 2008 because increase in operating expenses is less whereas increase in total revenues in comparatively greater.

lx

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2003

Oerating Efficiency Ratio

0.79

0.43 0.31 0.29 0.28

2004

2005

2006 Years

2007

2008

2009

6.3.7. Plow Back Ratio

Plow Back Ratio = (Earnings After Tax-Dividends) / Earnings After Tax 2005 2006 2007 2008 2009
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2003

192-65/192 =0.66 3090-196/3090=0.94 4397-540/4397=0.88 4076-1585/4076=0.61 4157-1571/4157=0.62

0.94

0.88 0.61 0.62

Plowback ratio

0.66

2004

2005

2006 Years

2007

2008

2009

lxi

Plow back ratio increases till 2006 after that it stars falling and in year 2009 it again increases because in 2009 difference of earnings and dividends is greater as compare to increase in earnings.

6.3.8. Absolute Ratio

Absolute Ratio = (Cash+Marketable Securities)/ Current Liabilities 2005 2006 2007 2008 2009 12320/141464=0.087 18035/173553=0.104 24745/226719=0.109 30408/290400=0.105 25751/328205=0.079

Going through the years from 2005 to 2009 absolute ratio increases till 2007 after that it decreases reason behind this increase in current liabilities is comparatively high. 0.12 Absolute Ratio 0.1 0.08 0.06 0.04 0.02 0 2003 2004 2005 2006 Years 2007 2008 2009 0.087 0.104

0.109

0.105 0.079

6.3.9. Time Interest Earned Ratio

Time Interest Earned Ratio= EBIT/ Interest Expense

lxii

2005 482/794=0.61 2006 4834/2025=2.39 2007 6661/6793=0.98 2008 5953/10093=0.59 2009 6121/16650=0.37 3 2.5 time intrest ratio 2 1.5 1 0.5 0 2003 0.61 0.98 0.59 0.37 2008 2009 2.39

2004

2005

2006 Years

2007

Time Interest Earned Ratio increases in year 2005 and 2006 and decreases till 2009. This value in year 2005 is very small the reason being very small amount of earning before interest and taxes. And this amount in the coming years is very large. The value again in 2009 is also very small.

6.3.10. Net Non Interest Margin

Net Non Interest Margin = (Non Interest Revenue Non Interest Expenses)/ Total Assets 2005 2006 2007 2008 2009 1740-3321 / 154926 = -0.01 1940-2239 / 192574 = -0.001 2449-(-1504) / 252027 =0.01 3920-(-3919) /320110=0.02 4152-(-8161) /366680 =0.03

lxiii

0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 -0.005 2003 -0.01 -0.015

Net Non Interest Margin

0.03 0.02 0.01 -0.001 2004 2005 2006 -0.01 years

2007

2008

2009

Going through the years from 2005 to 2009 the trend of the net non interest margin is increasing in first two years it was negative because in these two years the net interest revenue was less than the net interest expenses. Then in the last three years revenue becomes greater which was mainly in the form of interest. Also the amount of total assets is increasing along the years.

6.3.11. Net Bank Operating Margin

Net Bank Operating Margin = (Total Operating Revenue Total Operating Expenses) / Total Assets 2005 5245- 4115 / 154926 =0.007 2006 9892-4264 /192574 =0.03 2007 17216-5289 / 252027 =0.04 2008 21201-6174 / 320110 =0.04 2009 30571- 8399 / 366680 =0.06

lxiv

0.07 0.06 0.06 0.05 0.04 0.04 0.04 0.03 0.03 0.02 0.01 0.007 0 2003 2004 2005 2006 2007 2008 2009 years

Net bank operating margin is first of all decreasing and it became constant in year 2006 and 2007 and then it increases. This trend is due to the smaller difference in the total operating revenue and the total operating expenses in the beginning years and this difference goes on up side which makes the ratio first increasing then constant and then decreasing and the total assets were increasing with the years.

6.3.12. Net Interest Margin

Net Interest Margin = (Interest Income Interest Expense) / Total Assets 2005 5245-794 / 154926 = 0.028 2006 9892-2025 / 192574 = 0.040 2007 17216-6793 / 252027 =0.041 2008 21201-10093 / 320110 =0.034 2009 30571-16560 / 366680 =0.038

Net Bank Operating Margin

lxv

The net interest margin first increases from 2005 to 2007 and then it decreases from 2008 and 2009. The reason behind this increase and decrease is the greater increase in interest income and the smaller increase in interest expense with the passing years. Net Interest Margin 0.05 0.04 0.03 0.02 0.01 0 2003 2004 2005 2006 years 2007 2008 2009 0.028 0.04 0.041 0.034 0.038

6.3.13. Banks Equity Multiplier

Banks Equity Multiplier = Total Assets / Total Equity Capital 2005 154926 / 10250 =15.11 2006 192574 / 14550 =13.24 2007 252027 /17688 =14.25 2008 320110 /19878 =16.1 2009 366680 /22355 =16.4 Banks equity multiplier decrease first and then increases in year 2006 the reason being the increasing trend of both total assets and the equity capital till 2005 and in the year 2006 the increase in total assets is greater whereas the increase in capital is comparatively less.

lxvi

18 16 14 12 10 8 6 4 2 0 2003

Bank's Equity Multilpier

15.11 13.24

16 14.25

16.4

2004

2005

2006 Years

2007

2008

2009

6.3.14. Assets Utilization Ratio

Assets Utilization Ratio = Total Operating Revenue / Total Assets 2005 5245 / 154926 = 0.033 2006 9892 / 192574 = 0.051 2007 17216 / 252027 =0.068 2008 21201 / 320110 =0.066 2009 30571 / 366680 =0.083

Assets utilization Ratio

0.1 0.08 0.06 0.04 0.02 0 2003 2004 2005 2006 years 2007 2008 2009 0.033 0.068 0.051 0.066 0.083

lxvii

Assets utilization ratio shows increasing trend the reason behind the increase in both total operating revenue and the total assets.

6.3.15. Earning Spread

Earning Spread = (Total Interest Income / Total Assets) (Total Interest Expense /Total Interest bearing bank liability) 2005 0.033 -0.005 = 0.028 2006 0.051-0.011= 0.04 2007 0.068-0.028= 0.04 2008 0.066-0.033= 0.033 2009 0.083-0.048= 0.035 The trend in earning spread is first increasing till 2007 and then it shows decreasing trend. And it shows positive values. 0.05 Earning Spread 0.04 0.03 0.02 0.01 0 2003 2004 2005 2006 years 2007 2008 2009 0.028 0.04 0.04 0.033 0.035

6.3.16. Net Profit Margin

Net Profit Margin = Earnings after Taxes / Total Operating Revenue * 100

lxviii

2005 192 / 5245 * 100 = 3.66 2006 3090 / 9892 * 100 = 31.23 2007 4397 / 17216 * 100 = 25.54 2008 4076 / 21201 * 100 = 19.22 2009 4157 / 30571 * 100 =13.59 Net profit margin increases in year 2005 and 2009 and decreases till 2009. This value in year 2005 is very small the reason being very small amount of earning after taxes. And this amount in the coming years is very large. Therefore NPM in year 2005 is very less.

35 Net Profit Margin 30 25 20 15 10 5 0 2003 3.66 2004 2005 2006 years 2007 2008 2009 31.23 25.54 19.22 13.59

lxix

6.4 HORIZONTAL ANALYSIS OF BALANCE SHEET

2005 ASSETS Cash and balances with treasury and other banks Lending to financial institutions Investments - net Advances - net Operating Fixed assets Other assets Total assets 2006 2007 2008 2009

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

200.8% 117.8% 81.8% 216.9% 252.5% 152.7% 156.8%

246.8% 113.9% 146.% 255.2% 295.8% 160.7% 199.4%

209.% 97.6% 146.7% 319.7% 436.3% 260.1% 228.9%

225.% 173.9% 168.2% 357.2% 487.7% 253.9% 261.3%

LIABILITIES & EQUITY Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 163.% 146.8% 89.9% 159.7% 100.% 162.% 101.9% 40.6% 188.8% 171.8% 180.4% 172.5% 208.9% 182.9% 137.9% 228.7% 99.6% 207.5% 122.3% 32.1% 210.4% 194.8% 181.9% 193.8% 235.4% 221.5% 116.5% 425.3% 99.9% 238.% 146.7% 22.% 235.2% 220.2% 191.8% 218.% 260.2% 317.6% 124.8% 345.% 219.9% 268.5% 161.4% 15.9% 293.2% 274.1% 503.4% 292.1%

Total Assets have greatly increased in 2009 on terms of increase in cash, net investments, advances and operating fixed assets. Liabilities have also increased due to a very great increase in inter bank borrowings. Total equity has also increased due to a great increase in reserves of ABL. These analysis shows that ABL is going through a growth phase due to which it is incurring great increases in various items of balance sheet. Horizontal Analysis of Balance Sheet also shows that ABL is in good financial health and is following proper strategies for expanding its business. Comparing the asset composition in the two years the advances of the ABL have increased considerably, and also the amount of the total assets has been increased. The increase in the advances shows that customers

lxx

have trust over the banks money and they are getting more and more money from their bank and also the collection policy is fair and successful.

This deposit growth has enabled to increase market share of ABL by 40 BPs in only one years time to reach 7.8%. In end of year 2009 loan portfolio of bank grew by 25.3% to Rs.223.62 billions represented by 72% corporate loan book and 19% SME loan. Banks managing portfolio while remaining vigilant of change economic environment. Bank has managed to increase its market share by 40BPs to 7.1% to end of year 2009.

lxxi

6.5 HORIZONTAL ANALYSIS OF INCOME STATEMENT

2005 Interest / Return / Non Interest Income earned Markup / Return / Interest earned Fee, Commission, Brokerage and Exchange income Capital gain & Dividend income Other income Total Interest / Return / Non Interest Expense Markup / Return / Interest expensed Operating expenses Provisions Taxation Total expense Profit / (Loss) after taxation Total 2006 2007 2008 2009

100.% 100.% 100.% 100.% 100.%

328.2% 107.6% 830.6% 176.5% 281.5%

404.2% 148.5% 2,438.9% 50.1% 359.7%

582.9% 214.8% 2,417.8% 38.2% 507.8%

784.1% 228.2% 3,772.8% 23.3% 674.%

100.% 100.% 100.% 100.% 100.% 100.% 100.%

855.4% 128.7% 57.3% 780.8% 224.8% 2,292.7% 281.5%

1,271.% 150.7% 180.3% 647.4% 309.8% 2,125.4% 359.7%

2,175.1% 206.9% 223.4% 677.5% 460.9% 2,167.4% 507.8%

2,823.5% 235.8% 277.% 1,177.5% 588.2% 3,714.% 674.%

Profit and loss after taxation of ABL has greatly increased in the past three years due to the following factors: Fee, Commission, brokerage income was increased in the past four years. Gross Income was increased. Interest Income of ABL was increased on account of consumer deposits. Operating expenses proportionally didnt increase that much.

Non-interest Income has also increased in the past two years due to increase in income dealings in foreign currencies. Operating profit is increasing from 2005 to 2009 but initially

lxxii

the increase was small but from the year 2005 the increase is greater and this value is largest in year 2009 with a greater increase of more than 500% as compared to value in 2009. And profit after taxation is also increasing from 2005 to 2009. Mark-up / interest income of the Bank grew by 44% to reach Rs.30.6 billion led by earning assets growth coupled with the re-pricing of assets at higher interest rates. With the quality of growth given priority, average earning assets rose by 21%. Further, the management was able to structure its assets to ensure that assets are re-priced adequately in the rising interest rate scenario. As a result, the yield on average earning assets rose by 2%. Mark-up / interest expense rose to Rs.16.6 billion depicting a rise of 64.1%.

The banks operating expenses rose to Rs.8.4 billion or 36% over last year. Increased loan book and deposits volumes, that too amid overwhelming challenges on deposits retention front, planned expansion and renovation of branch network complemented by the high inflation were the primary reasons for such an increase. Further, various branches were relocated to strategic locations, incurring higher costs, to support business growth. Various expenses tend to have a long term impact on improving banks image and in turn, on business retention as well as growth.

lxxiii

6.6 VERTICAL ANALYSIS OF BALANCE SHEET

2005 ASSETS Cash and balances with treasury and other banks Lending to financial institutions Investments - net Advances - net Operating fixed assets Other assets Total assets LIABILITIES & EQUITY Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets 9.4% 3.% 23.3% 57.7% 2.5% 4.1% 100.% 2006 9.8% 7.6% 18.6% 57.1% 2.6% 4.3% 100.% 2007 9.5% 5.8% 26.2% 52.6% 2.4% 3.5% 100.% 2008 7.% 4.3% 22.4% 58.1% 3.% 5.% 100.% 2009 6.6% 6.7% 22.7% 56.7% 3.% 4.3% 100.%

83.9% 5.% 1.3% 2.3% 0.0 92.4% 2.3% 3.% 1.4% 6.7% .8%

81.8% 7.3% .9% 2.% 1.% 93.% 1.8% 2.4% 2.2% 6.4% .6%

82.3% 7.2% 1.1% 2.3% .8% 93.7% 1.7% 1.9% 2.2% 5.8% .5%

81.1% 7.6% .8% 3.7% .7% 93.9% 1.8% 1.6% 2.3% 5.7% .4%

78.6% 9.5% .8% 2.6% 1.3% 92.8% 1.7% 1.6% 2.9% 6.2% 1.%

Customer deposits hold a portion of 80 to 98 percent of the total liabilities and equity this shows how much customer deposits ABL has. Total Equity holds only 6 to 7 percent of the total liabilities and equity which shows that ABL mainly generates its funds from customer deposits rather than equity financing. Advances hold the most portion in total assets of ABL. In the year 2009 banks suffer major crises in which heavy withdrawals from the accounts observed, during this period, bank wanted to maximize their profit by advancing, thats why in 2009 liquidity its cash balance lined with other banks as result 52.6% to 58.1%. 5.5% amount brings interest that is income of bank. In previous years, bank profited from foreign investments. Banks use to survive very tough situation decline, a lot of mergers

lxxiv

observed, many banks lost their name. But, ABL survived with little decline on deposits time.

Some time bank use to increase interbank borrowing advises adverse situation equity was increase. As 2007 base year, equity decrease in appropriated profit increase 2.2% to 2.3%.

The total deposits of the bank have been increased by 16 % and over all trend in the deposit is increasing which shows that the customers are putting more and more money into the bank and they trust that their money is safe in ABL.

6.7 VERTICAL ANALYSIS OF INCOME STATEMENT

lxxv

2005 Interest / Return / Non Interest Income earned Markup / Return / Interest earned Fee, Commission, Brokerage and Exchange income Capital gain & Dividend income Other income Total Interest / Return / Non Interest Expense Markup / Return / Interest expensed Operating expenses Provisions Taxation Total expense - percentage of total income Profit / (Loss) after taxation Total

2006

2007

2008

2009

83.6% 12.4% 1.7% 2.3% 100.%

87.5% 8.3% 2.7% 1.5% 100.%

84.4% 9.% 6.3% .3% 100.%

86.2% 9.2% 4.4% .2% 100.%

87.3% 7.4% 5.2% .1% 100.%

17.1% 36.2% 5.9% 14.7% 73.9% 26.1% 100.%

34.5% 26.9% 4.7% 11.5% 77.6% 22.4% 100.%

40.2% 24.7% 11.4% 7.5% 83.8% 16.2% 100.%

48.7% 24.% 10.% 5.6% 88.3% 11.7% 100.%

47.6% 20.6% 9.4% 7.3% 84.9% 15.1% 100.%

From the vertical analysis, it is clear that ABL like any other banks earns its most income from interest income earned on giving out consumer and business loans. They hold almost 80 to 170 percentage of the gross income. Interest expenses also incur to a great deal on account of giving out deposits to consumers and businesses. Operating expenses also hold a considerable portion in income statement that is up to 40 to 70 percent of the gross income. Markup interest income of the bank grew by 45% to reach Rs.30.6 billions to which the quality of the growth priority. Average earning asset rose by 21%. Markup interest expense grew to 16.6 billion the banking industry experienced shrinking liquidity this year, which therefore led to pressure on to banking industry and liquidity issues. Non mark-up income grew by 5.9% to Rs.4.2 billion, contributing 23% to gross income. The core fee, commission and brokerage income grew by over 19% to Rs.1.98 billion. Amidst global recession and weakening economy, the bank was still able to grow its

lxxvi

investment banking fee income remarkably by 24% to Rs.299 million. Account maintenance charges fell by 23% to Rs.314 million primarily

ABL has performed well. Despite various challenges faced by country (Pakistan) in domestic front and led by global reflationary trend as the bank has posted and operating profit of Rs.9.8 billions, which is by 10% over 8.8 billions registered during 2009 profit after tax 6.12 billions. The growth has been achieved in spite of a good portion of impairment losses. This growth has been achieved in spite of expected losses.

6.8 ORGANIZATIONAL ANALYSIS

lxxvii

Although ABL is in an industry where it has many competitors but it is being compared as following two biggest competitors which are MCB and HBL:

Description (in millions) Assets Liabilities Profitability

ABL 366,680 344,325 4,157

MCB 443,615 385,179 20,526

HBL 717,302 652,257 10,001

If ABL is compared with MCB and HBL, it is observe that HBL is a big banking group as compare to ABL and MCB. Deposit wise HBL is in front of both ABL and MCB. Although ABL is in good position as compare to MCB in deposit situation. It shows customers trust on both banks. HBL again ahead in case of advances portfolio as compare to ABL and MCB. Here health portfolio of advances places the ABL in second position which is a good indicator. But profit wise MCB is in front of both HBL and ABL in year 2008. Branches of HBL are greater than ABL and MCB. There is a less difference between ABL and MCB in number of branches. MCB has greater number of employees as compared to ABL and HBL. These figures show that HBL and MCB are in much better position than ABL. After the privatization business of ABL is taking high growth. The Bank's long term rating is AA +, which denotes good credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. The short-term rating is A1+, which denotes the highest certainty of timely payment. Short-term liquidity, including internal operating factors and / or access to alternative sources of funds, is outstanding and safety is just below risk free Government of Pakistan's short-term obligations. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets. The Bank is making every effort to meet the up-coming challenges through strategic

lxxviii

planning and making the best use of the resources at its command. These financial figures and improving condition of the bank shows that ABL is among the leading commercial banks of Pakistan.

6.9 FUTURE PROSPECTS OF ABL

ABL aims to offer products that will change the industry norms by providing innovations, options and flexibility unmatched so far by any other bank due to the investment made in the state-of-the-art systems at ABL. ABL plans to expand the market by its vast distribution network. ABLs products & services are being developed keeping in view the increased level of consumer awareness due to increased accessibility of information, and hence the demand for better products and services with options. Management believes that their business process reengineering initiative supported by their customized core banking technology platform will also help them to compete more effectively in the changing landscape of the Pakistani banking sector. Banks Credit Risk Environmental and Monitoring system which is in its final stages of implementation is expected to assist them in more effective post disbursement monitoring. They expect their efforts in this area to show positive results in the coming months. Macro economic and political instability, going forward, will continue to impact growth and profitability of the banking sector. Management believes that political reconciliation will result in renewed attention to economic management and hence improvement in the operating environment. Management is focusing on converting the manual branches into online branching system and also to expend their branch network domestically and internationally. Management is also keen to increase the ATM network in future and plans have prepared for it. Management believes the bank is well positioned to take advantage of the next economic upturn.

lxxix

ABL is expected to fulfill following demands in future: Achieve high performance To provide high-tech innovative solutions to meet customer requirements To provide value-added services to our customers Innovation and Growth. To create sustainable value through growth, efficiency and diversity for all stakeholders To provide a challenging work environment, and reward dedicated team members To play a proactive role in contributing towards the society Integrity Provide excellence in Service. More technical methods.

ABL has emerged as one of the foremost-privatized financial institutions in Pakistan endeavoring to gear up its operations to meet the demands of the future. It has the following opportunities which it can meet in future:

lxxx

The biggest opportunity for the ABL, Islamabad is the greater number of non Muslim customers who get their payments through ABL, Bank. These customers can be easily convinced to open their accounts with ABL.

A considerable portion of the labor force of the area is serving overseas. Their families can be encouraged to use ABL as channel for remittances.

The Internet facility in the area provides an opportunity to ABL to get Online. The Bank has the basic infrastructure, which can facilitate the online process. The location of the ABL, G - 9 branch itself provides an opportunity to ABL to get more and less cost deposits.

The group from its survey and analysis of IT companies has found out that there are many companies which are not satisfied with its current bank, so Khyber branch with its superior service quality and long working hours can capture those customers.

7. WEAKNESSES OF ABL
Following are the weak areas of ABL stressing on financial aspects which needs managements attention: The Branch has a good staff combination on the basis of experience, but their training capabilities are not up to the requirements of the fast changing banking environment. The customers Long-term contacts are not maintained with customers.

lxxxi

The technical training of the staff is negligible e.g. in case of the absence of computer there is no alternate trained personal who can record the daily transactions.

The organization is very much mechanistic and provides no flexibility to encourage creativity.

The lower staff is non cooperative as compared the lower staff of other branches. The control of manager is not effective. The discretionary powers of manger are very low to offer more incentives and value added services to its customers.

There is a lack of commitment and professionalism on part of the employees. The staff is always in a hurry to leave the bank as soon as possible. They were also observed to starting their operations comparatively late.

The organizational culture is not cooperative. Nepotism was observed on part of the manger as well as the top management towards some staff members.

The branch has no industrial accounts. The level of technology management in the branch is very low. The technology available is not maintained well mainly because of the lack of technically trained staff. For instance the scanner, in spite of its availability has not been used for scanning the specimen signature cares.

lxxxii

In spite of the presence of technology many jobs are done manually such as the letters, drafts for fax messages and other calculations, which could be easily, done in MS Word and Ms Excel.

The branch lacks some physical facilities such as clean washrooms which can affect employees performance

The layout of the branch is such that it is hindering the flow of work on one hand and the documents are lying exposed which can be easily taken away by any person entering the branch.

The job distribution is not up to the mark. The immediate result of this immediate result of which is: The filing system is not up-to-date. Much time is wasted while searching for even a week old document. followed. Though ABL in the area it lack specialized counters or facilities such as: Investment advisory counters; Leasing or leasing arrangements; Credit services. The staff spent ore time in collections than required. Delays were observed because the prescribed procedures are not

The four branches of Allied bank in Islamabad are closely located where most of

the services offered are not at all differentiated.

lxxxiii

No efforts are made to recover the outstanding debts. There is no facility for receiving and satisfying complaints and inviting

suggestions. Foreign currency accounts are not entertained. The main reason for these negative

responses that the staff is not trained in dealing foreign currency accounts. Customers coming to the Bank for TTs TCs etc. are not received with open hearts

and thus deprives the bank of revenues. Some shortcomings on part of Allied Bank of Pakistan, which affects the

operations of the bank: There is a lack of functional and proper research and development, which could Financial audits are conducted but operational audits have not received proper There is no procedure, which could encourage the middle and lower level

scan the micro and macro environmental data for future planning and strategy. attention as much as it should get. management to initiate creativity. biggest threat to the operational success of the branch is the better than Allied Bank of Pakistan. Cannib The competitors

services. Many private sector banks are offering higher rates of return to customers

alization of profits is yet another threat to the success of Bank. The branches of Allied Bank are located very close to the each other. All these branches are taking away each others customers.

lxxxiv

One of

the biggest to the ABL is the increasing rate of dissatisfies customers. Most of these customers were observed to be dissatisfied with the delays in their servicing. The greatest threats to the performance of ABL, are the decreasing morale of employees. They feel that they are not provided with bonuses. They are not given proper attention to have a say in the annual meetings. The proxy forms are signed on their behalf without letting them know. Bank. High-

pressure interest groups are developing which poses a constant threat to Allied

8. CONCLUSION
ABL offering a growth menu of services through multiple ways. for providing better services it has increase the departments and divisions. Moreover the skills bank need to function efficiently are changing rapidly with new technology and increasing competition. There is growing emphasis on services marketing, corporate planning, electronic banking and efficient services delivery and improved management information system that link the computer more closely with both management and customer service need. Banks use to survive very tough situation decline, a lot of mergers observed, many banks lost their name. But, ABL survived with little decline on deposits time. Not only survive also captured profits in perplex situation. Financial position espouses due to the quality of its management and the economic conditions in the banking industry are appearing to be for more important to success.

lxxxv

Bank has maintained a relationship among bank operations, profitability and efficient service delivery. It performed well in serving customers and in providing acceptable returns to their customer. Increasingly bank mangers are being forced by both competition and regulatory pressure to asses that banks performance over time and relative to the other banks.

9. FINDINGS AND RECOMMENDATIONS

The critical analysis ABL in the previous section is the representation of its past, mirror of its present, and an insight into its future. The past data of ABL G - 9 branch enabled me to study the organization in a historical perspective and understand the nuisances in the banking operations. Study of he present of ABL helped me evaluate the organization in comparison to its future and competitors. The data obtained from the analysis of its present and future in combination with my professional studies resulted in some suggestions and implementation plans, which can help to increase the profitability and operational success of the ABL. Some of the major findings suggestions are discussed as below:

9.1 Physical Facilities

The physical facilities or the layout are the most fundamental features in an organization, which the customers observe in forming an opinion, perception or idea about the organization. Therefore, every organization tries to make a good first impression on customers through the presentation of its physical facilities or layout. The physical facilities in the branch are not up to the mark, which requires timely changes to provide good environment to customers. The suggested changes and corrective actions are gives below: The lighting system must be improved and all the out of use lights must be

replaced.

lxxxvi

 smell.

There is always a stinking smell in the Bank due to the out of order condition of

washroom. Therefore the washroom must be brought into order to remover this unpleasant

Generators should be made available to the branch to minimize the disruptions due

to power failure. Newspaper should be provided to the customers to avoid the pain of waiting long. A cash counting machine can help reduce the time spent in counting cash.

9.2 Availability of Staff

The existing staff in the Bank is overburdened due to the non-availability of more staff. Staff in the branch must be in proportion to the customer has so as to expedite the workflow, avoid overloading of staff and remove the customers grievances arising mainly due to delay in workflow. The additional staff required is in the fallowing categories:

strength.

More technically trained staff should be added to the existing staff

One staff assistant or grade 2 officers properly trained in computer and sufficiently

trained in foreign currency accounts. filing. One employee of grade 4 should be hire on daily wages or contract, to maintain

lxxxvii

9.3 Commitment of Employees

The decreasing commitment of employees can be increased by introducing an effective performance appraisal system, which can reward and recognize the achievements and services of employees for the Bank. The appraisal system must have the following features:

Feed Back: Periodically provided to employees and recognizing their efforts

through reward (bonuses) and publicly appreciation.

Uniform: The appraisal system must be uniform in evaluating all the employees

without any discrimination.

Objectivity: The appraisal system must be based on facts and figures and objective

evaluation of the facts on grounds.

9.4 Simplification of Advances

The biggest source of the bank revenue is advances. The advances of ABL, G - 9 branch are on him decreasing trend, causing a decrease in the revenue for the bank. The bank should make the advance procedure simple and quick to meet the customers requirements. The following steps are suggested for simplifying the advance procedure. Increasing the discretion of manager for the amount of advance to Rs. 100,000.

lxxxviii

Speeding up the process of investigation and verification. Expanding its customer base.

9.5 Marketing Concept

The concept of marketing should be followed in every aspect of the organization. Generally, the banks staff considers that marketing is to go to customers, beg them for opening an account with the Bank and to abide by his every just and unjust action They should be taught that marketing is not only to go to customers only. A customer can also be attracted by provided customer oriented services, showing empathy to customers and attending him personally.

9.6 Customer Orientation

Deposits are the main source of funds for commercial banks. Therefore, the priority of every bank is to increase the number and amount of deposits. The key to successful business does not lie in simply attracting new customers. The real success is to maintain in the old customers and attract new customers at the same time because retaining a customer is more difficult than attracting new customers. Every depositor should be given equal importance and there should be no differentiation between customers so that every customer feels himself as much important as the other customer. The attitude of the staff should be friendly to all the customers. The customers should be taken to the concerned person or guided friendly if the concerned person is not available. The attitude of thats not my job should not exist anymore.

lxxxix

9.7 Mobilization of Less Cost Deposits

The analysis of expenses shows that 43% of expenses of the bank are the payments on fixed deposits, which is a very high proportion. Apart from this the interest earned on advances Rs. 0.265 million is smaller than the interest paid on different deposits Rs. 4.1 millions The bank should launch a campaign to get less cost deposits much as high amount current account as well as low cost PLS saving accounts.

9.8 Information Access

The Bank should provide information to all the present and potential customers relating to the new products, services, some services fee structure and other matters, which are likely to affect the customers. It should be made sure that all the customers have access to this information. Conveying information is of no use, unless, there is some feedback from the customers. The following measures are suggested to implement this suggestion. Brochures, hand outs, pamphlets and other printed reports must be provided to

customers, which should provide all the information necessary to attract and retain customers and to satisfy the customers need for more information. Personal contacts with the customers can help in providing information to customers.

All the customers must be provided a chance to get the desired information by personal contact with the Bank staff. Complaint and suggestion box should be maintained at the door of the Bank where the

customers can point out drawbacks in the customers services and put forward their suggestions on his improvement of the services quality of the Bank.

xc

9.9 Performance Audit

The financial audit of the bank is conducted on regular basis both as a surprise and routine audit. However, the performance and system audits are completely ignored which, other wise, should have been a compulsory part of the auditing services of the Bank. The immediate outcome of ignoring performance outcome is shortcoming in the non-financial aspects of this organization such as customer relations, lack of necessary facilities, motivation of employees, and the control of manager. In the light of the above facts it is suggested that the performance audit of the bank must be carried out on both regular and surprise basis to keep the Bank competitive in the run of for more customers, more deposits and high profitability.

9.10 Campaign for Increasing the Deposits

The numbers of account holders in a bank make a significant contribution to the deposits of the Bank and determine its business volume, profits and size of a bank. Therefore, ABL, G - 9 branch must a clear plan for increasing the number of accounts. The details of plan for increasing the number of accounts are given in the implementation plan.

9.11 Increases in Business Share

Along with concentrating on increasing the customer base, the Bank must also emphasize on securing the highest market share in other banking services such as issuance of letter of credit, foreign exchange, remittances, bills identification of productive secure and easily realizable advances etc. to achieve this strategy the Bank should have a clear plans with the consent of the higher management. The plan must be divided into different periods weekly, monthly, semiannual and annual. Every stage of the plan must be monitored and controlled on regular basis.

9.12 ATM Network Problem

xci

I have found some problems with ATM network. Many customers have complaints that their requests placed on ATMs dont carry out. It is mainly because of bad PTCL lines. Distortion in lines of PTCL restricts the execution of requests placed on ATM machines by customers. Although there is a network of dedicated lines for ATM machines, a request may not be successfully carried out because of complicated request processing. A successful execution of a request needs to be approved from three places:

The branch (online) with which the customer (placing the request) have the account Main branch of that area (city)

The head office (in Karachi)

So connecting to all of these three places simultaneously and getting the request approved is a complicated process. However management claims that there is nothing wrong with processing. The only problem lies with PCL lines. So to solve this problem the bank should hire technicians who can work during public holidays to make the ATM useable while it shows any distortion.

9.13 Cash Deposits Using ATM

Now-a-days in foreign countries ATM machines are also used for deposits of money and utility bills can b paid up through ATM. But in Pakistan these services have not been utilized yet. So if ABL upgrades its ATM technology so definitely it will get the competitive advantage over other banks.

9.14 Networking among Banks

In allied bank the networking is only done with in the bank, means the customer cant transfer his funds to other bank through online. The account holder who has the debit card

xcii

can transfer his money to other bank account through ATM. But the customer who doesnt have account but some one gave him a Habib bank cheque to transfer it online through near situated Allied bank. So the allied bank cant transfer it to Habib bank via online. So I recommend an idea that there should be a networking among different banks so that they can transfer funds via online.

9.15 Manual Vouchers System

As all the ledger system and vouchers are made manually which is a much time consuming job and it also requires much more efforts most importantly human error chances are there thats why if the organization implement SAP FINANCE MODULE in their current saving department that will help them creating automatic vouchers and ledger if any transaction is made by customer because SAP has the capability to keep all the records of a an individual at just one place and it has the capacity to store much data.

9.16 Online Loans

I have found that there is no online facility to apply for a loan. Where as, in other banks especially in foreign banks the customer who has an account in the same bank, can apply for a loan through Internet. So that he can save his time from going physically to the bank.

10. REFERENCES

xciii

1.
mmad Tanveer. Grade-1 officer. Branch manager, ABL G.9 Islamabad.

Muha

2.
mmad Tariq Abbasi. Customer Services Manager, ABL G-9 Islamabad. 3. 4. 5. 6. 7. 8. Asad Ullah Makhdoom. MTO, ABL I-8 Islamabad. Yousaf Shah. Grade-1 officer. ATM coordinator Zonal office Islamabad. Allied Bank Ltd Annual report (2007), Karachi. Allied Bank Ltd Annual report (2008), Karachi. Head office of Islamabad performance report (2007) Head office of Islamabad performance report (2008)

Muha

9.
/www.abl.com.pk

http:/

11. ANNEXES President and CEO

11.1 ANNEXURE I

Board of Director Head of Departments

Regional General Manager

Controllers of Operation

Branch Manager
xciv

Office G-I, II and other lower Staff

Organogram of ABL

Branch Manager
11.2 ANNEXURE II
(M. Tanveer)

Customer Service Manager

(M.Tariq Abbasi)

Remittance Deptt
(Ms. Farida Saeed)

CD Deptt
(Nabeel Ashraf)

Clearing Deptt
(Shahid Hassan)

Payment/receipts
(M.Irfan)

U.Bills
(M.Saleem)

xcv

Organogram of ABL G-9 Branch

CFO

Accounts Department 11.3 ANNEXURE III

Finance Department

Accounting & Operation Deptt

Accounting & Audit Deptt

Investment/Finan cing Planning Deptt

Portfolio Management Deptt

Control Deptt

Fund Raising Deptt

Lending Deptt

Asset Liability Management Deptt

Commerci al Loan Officer

xcvi Consumer Loan Officer

Organogram of Finance Department of ABL

xcvii