20.allied Bank - (Finance)

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1.1 INTRODUCTION
Established in Lahore in 1942 before independence, Allied Bank Limited is one of the
largest banks in Pakistan with more than 800 branches located in over 300 cities and
towns. The Bank has the largest data communication network with all its branches
offering real-time online banking. The Bank offers a full range of retail, commercial and
corporate banking services with a focus on service delivery through technology.
1.2OVERVIEW
Allied Bank is the first Muslim bank, to have been established on the territory that
became Pakistan. Established in December 1942 as the Australasia Bank at Lahore with a
paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux,
the Bank had attracted deposits, equivalent to Rs. 0.431 million in its first eighteen
months of business. Total assets then amounted to Rs. 0.572 million. Today Allied Bank's
paid up Capital & Reserves amount to Rs. 10.5 billion, 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.
1.3 BRIEF HISTORY
THE PRE INDEPENDENCE HISTORY (1942 TO 1947)
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 to hear the gibe that “Muslims could
not be successful bankers”. He 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.
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AUSTRALASIA BANK (1947 TO 1974)

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, Peshawar, Sialkot, Sargodha,
Jhang, Gujranwala 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 Bank’s 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. The
bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186
branches in West Pakistan.
ALLIED BANK (1974 TO 1991)
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 UK.
ALLIED BANK (1991 TO 2004)
As a result of privatization in September 1991, Allied Bank entered in a new phase of its
history, as the world’s 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 Bank’s 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
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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 Bank’s 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.
(2005 TO DATE)
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
Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their
free will.
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1.4 ONLINE BRANCH NETWORK

Online Banking facilities are available to customers maintaining accounts at all online
branches across the country. The following facilities are available:
• Cash Deposit for immediate credit to remote branch.
• Remote Cheque Encashment from any online branch.
• Instant Funds Transfer between any 2 online branches.
• Remote Balance Enquiry and Statement of Account.
In Addition to the above, account holders of all online branches can obtain Allied Bank's
Allied Cash+ Card for use at ATMs as well as at Debit Card POS terminals.
To locate a Branch simply select the city
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1.5 ATM NETWORK

1.5.1 ALLIED BANK ATM
Allied Bank is now introducing the Allied Cash+ Card also referred to as ATM card.
You will now have the convenience of withdrawing cash from any of our multiple ATMs
("All-Time Banking" locations) conveniently located in major cities like Karachi and
Lahore at any time of the day or night even on closed days/holidays. Other services
include customer being able to inquire about the balance of his/her account or printing an
abbreviated (mini) statement showing the most recent eight transactions up to the
previous working day.
1.5.2 1 LINK NETWORK
In continuation of ALL TIME BANKING services, with the country wide network of 735
branches, we are pleased to announce that ABL has enhanced ATM services by joining
the "1-Link Switch" which has following members Banks
§ ABN Amro Bank

§ Al Baraka Islamic Bank
§ Allied Bank Limited
§ Askari Commercial Bank Limited
§ Atlas Bank Limited
§ Bank AL Habib Limited
§ Bank Alfalah Limited
§ Bankislami Pakistan Limited
§ Crescent Commercial Bank Limited
§ Dubai Islamic Bank Pakistan Limited
§ Emirates Global Islamic Bank Limited
§ Faysal Bank Limited
§ First Dawood Islamic Bank Limited
§ Habib Bank Limited
§ KASB Bank Limited
§ Meezan Bank Limited
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§ National Bank of Pakistan

§ NIB Bank Limited
§ PICIC Commercial Bank Limited
§ Soneri Bank Limited
§ Standard Chartered Bank Pakistan Limited
§ Union Bank Limited
§ United Bank Limited
§ MyBank Limited
§ Tameer Micro Finance Bank Limited
The card holders of our bank will thus be able to access member banks ATMs for
balance inquiry and can withdrawal simultaneously vice versa. The card holder's
member banks will access our bank ATMs.Every ATM which is connected with "1-
Link Switch" has a Logo which indicates that "1-Link Switch" member can access the
ATM.
1.5.3 M-NET NETWORK

The Allied Bank AlliedCash+ card could be used in an M-Net ATM as well. In Pakistan,
the M-Net ATM facilities can be availed at any of the following banks and locations
§ JS Bank (American Express Bank)

§ Bank of Khyber
§ Bank of Punjab
§ Citibank
§ First Women Bank Limited
§ Habib Metropolitan Bank
§ HSBC Bank
§ Muslim Commercial Bank
§ Saudi Pak Commercial Bank
§ Prime Commercial Bank
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MERCHANDISER LIST
Now you could use your Allied Cash+ card at any outlet having the ORIX POS Terminal
1.6 PRODUCT AND SERVICES

1.6.1 CONSUMER PRODUCTS
1.6.1.1 Master Card
Allied Bank under license from Master Card International, U.S.A issues Master Card
to anyone, meeting the eligibility criteria. With the Allied Bank Master Card customer
will be assured of a service meeting the highest international standards maintained by
Master Card.
1.6.2 LENDING PRODUCTS
1.6.2.1 Seasonal Finance
Seasonal Finance facility is allowed against pledge of produce of Cash Crops harvested
in that particular crop season. The delivery of pledged stocks/goods is made against
appropriate cash payment.
1.6.2.2 Import Export Business
Allied Bank 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.
1.6.2.3 Running Finance
It 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.
1.6.2.4 Corporate leasing
Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim
Leasing Limited. Facilities include leasing for machinery, commercial vehicles, vehicles
and equipments. The Bank provides lease facilities for balancing, modernization.
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1.6.3 SERVICES:
1.6.3.1 Home Remittances
The Bank having a network of 735 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 Service, Allied Bank ensures that
beneficiaries' Accounts in Allied bank branches are credited with in 48 hours of receiving
home remittance information from overseas.
1.6.3.2 Remittances
Allied Bank can transfer funds to the remotest part of the country for payment/credit to
the customer himself or a third party, through Telegram/Telex/Telefax for payment/credit
on the same/next day. Telegraphic transfers can also be made abroad in Foreign
Currency. Carrying cash to strange alien location can prove to be risky as a single
incident can render one without monetary backup of any sort. Hence travelers’ cheques
are introduced by banks in order to protect against any contingency.
1.6.3.3 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.
1.6.3.4 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 the evening-banking on all working days. Bills can be paid through
Cash or Cheques. Consumers may drop bills with crossed Cheques into a drop box
available at the branches under "Cheque Drop-in" system.Utility Bill payment facility -
Pay your telephone, electricity, and gas utility bills on any of our ATMs without having
to wait in long queues outside your branch.
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1.6.3.5 Lockers
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.
1.6.3.6 Commodity Operation
It is a Cash Credit Financing to Government Department for procurement of various
commodities, as per allocation of the limits by SBP on Government of Pakistan
Guarantee.
1.7 VISION
To become a dynamic and efficient bank providing integrated solutions in order to be the
first choice bank for the customers.
1.8 MISSION
• To provide value-added services to our customers
• To provide high-tech innovative solutions to meet customers requirements
• To create sustainable value through growth, efficiency and diversity for
all stakeholders
• To provide a challenging work environment and reward dedicated team
members according to their abilities and performance
• To play a proactive role in contributing towards the society
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1.9 CORPORATE INFORMATION

BOARD OF DIRECTORS OF ALLIED BANK
Name Position Appointed As
Muhmmad Naeem Mukhtar Chairman Non Executive Director
Sheikh Mukhtar Ahmed Non Executive Director
Muhmmad Waseem Mukhtar Non Executive Director
Abdul Aziz Khan Non Executive Director
Sheikh Jalees Ahmed Non Executive Director
Farrakh Qayyum Government Nominee Non Executive Director
Nazrat Bashir Government Nominee Non Executive Director
Tasneem M. Norani Independent Director
Mubashar A. Akhtar Independent Director
Kamal Munnoo Independent Director
Khalid A. Sherwani President Executive Director

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1.10 FUNCTIONS
As a fully functional commercial bank, the activities of the Bank are organized around
the following areas:
• Commercial Lending: Provides both fund as well as non-fund based financial
facilities, focusing on short-term trade related self-liquidating credits.
• Consumer Banking: The Bank operates a growing credit card business, under
the “Master Card” franchise, with global acceptance capability and a wide-
ranging merchant base. The Rupee-based travellers’ cheques product is one of
ABL’s most attractive consumer products. The Bank also intends to substantially
increase its automated teller machines on a shared basis.
• Credit Department: With its 65 year banking history, ABL is highly experienced
in handling various types of credits, including syndicated lending, project
financing, agriculture credit, financing to small & medium enterprises and micro-
credit.
• Technology: Currently, there are more than 800 branches in Pakistan. All
branches are computerized. The ABL Information Technology Division is
working on improving the MIS of the Bank and developing the entire network on
real time.
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1.11 MANAGEMENT HIERARCHY OF ABL
Board of
Directors
Audit
Committee
President
Internal
Audit
Corporate & Commercial & Consumer Banking

Investment Banking Retail Banking
Treasury Risk Social Assets

Management Management
Finance Operations Information

Technology
Humane Compliance Corporate

Resources And Control Affairs
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1.12 MANAGEMENT HIERARCHY OF ABL (SATELLITE TOWN BRANCH)
Sir. Shiekh Naveed

(Branch Manager)
Miss. Naghmana Sir. Hafiz Waheed

OG-II OG-II
Sir Shahid Shah

Cashier
Sir. Saqib Yaseen Miss. Sobia Nasir

Teller Teller
Mr. Gulzar
Messenger
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2.1 INTRODUCTION
This is second part of the report that is based upon technical or practical experience
which I got in Allied Bank Satellite Town Branch during my whole training period. I
worked in three departments first one is Account opening department, second is lockers
and other is clearing department. The practical experience and knowledge that I got
during internship at ABL Satellite town branch was remarkable. Most importantly the
way the Managers and remaining staff cooperated with me was unforgettable. I freely
asked all the questions from the manager and the staff and they removed my all
confusions and queries.
FIRST DAY EXPERIENCE
“Doing something is better than doing nothing.”
First day, at any place always have some remarkable memories throughout our life.
Starting from the first day at Allied Bank Limited Satellite Town Branch I was very
excited and enthusiastic because at that time I thought I am free from college life and I
am going to start my professional life.
When I reached at bank I met to the manager he welcomed me and gave me some honor
as well. Then I started discussion with him. He gave me brief information related the
Bank environment and all of its activities. I was really very surprised when I got all those
information.
I was very curios and hurry to start my work. At basic level the Manager told me about
some important terminologies that are used in banking environment. Like OBC (Outward
Bills for Collection), OBR (Outward Bills for Realization), NIFT (National Institutional
Facility Technology), Current Account, Saving Account, Fixed Account, Online Deposit,
Basic Banking Account, KYC (Know Your Customer), and about DD (Demand Draft). I
also got little bit information related these terminologies. The explanation given by the
Manager related these terminologies created clear image of banking environment in my
mind.
LEARNING PROCESS
Next day begin with my learning process I observed many things closely and critically,
and also got some new ideas related them. This new environment opened my mind
related the banking world.
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2.2 INTRODUCTION OF ACCOUNTS

I got a chance to work in account-opening department, which is one of the basic
operations of the bank. Ms. Sobia Nasir helped me a lot and guided me about the whole
procedure and working of account opening and closing. First, I’d describe the various
types of accounts and then the procedure of account opening.
1. Current Account
2. PLS Saving Account
3. PLS Term deposit Account
4. Minor’s Account
5. Joint Account
6. Perda Nasheen Lady Account
7. Illiterate Person’s Account Account
8. Sole Proprietorship Account
2.2.1 CURRENT ACCOUNT

Current account may be opened with an initial deposit as may be prescribed by the Bank.
No interest or profit shall be payable on Current Account.
The Current Account shall not be overdrawn except by prior agreed arrangements with
the Bank. In the event of the Bank permitting, in its sole discretion, to allow the
Customer to overdraw the Account, the Bank shall charge markup/interest on the
overdrawn amount at its prevailing lending rate. The Customer shall forthwith on demand
pay the overdrawn amount with markup/interest.
Where overdraft or any other banking facility is being provided by the Bank in the
Account, credits received in the Account shall be applied first towards payment of
markup/interest, and then towards payment of principal amount of overdraft or any other
banking facility.
An overdraft facility approved by the bank in the account may be disallowed or
withdrawn by the bank at any time without prior notice to customer if the account in the
opinion of the bank is not satisfactorily maintained by the customer or the customer fails
to perform his obligations.
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2.2.2 PLS SAVING ACCOUNT

The amount(s) deposited in a PLS saving account shall be on profit and loss sharing
basis. The Bank's determination of profit or loss shall be final and binding on the
Customer for all purposes.
The deposits received by the Bank in a PLS Saving Account will be used by the Bank in
any manner the Bank considers appropriate. Profit/Loss earned on PLS Saving Account
will be credited / debited in the Account on half yearly basis, unless otherwise indicated
by the Bank.
2.2.3 PLS TERM DEPOSIT ACCOUNT
The term deposits shall be on profit and loss sharing basis and the rates of profit on the
deposits are not final and are subject to changes under the profit and loss sharing system.
The Bank's determination of rate of profit shall be final and binding on the Customer for
all purposes. The deposits received by the Bank will be used by the Bank under it’s PLS
system in any manner the Bank considers appropriate.
The term deposits shall be eligible for profit on the condition that it will not be withdrawn
before the maturity date. If withdrawal of the deposit before the maturity date is allowed
by the Bank at its sole discretion, the lower tenor profit rate will be applied for the period
deposit remained with the Bank.
There will be no automatic renewal in case of PLS Term Deposit. If the Customer wishes
to renew the Term Deposit for a further period he must notify the Bank in writing at least
3 working days before the expiry of the current term.
2.2.4 MINOR’S ACCOUNT
Let me first explain the term MINOR here. Minor is a person who’s below 18. His A/C is
titled as NAME OF THE KID (MINOR) + NAME OF GUARDIAN (GUARDIAN) and
the stamp is must used:
Guardian will operate the A/C Even if the Minor attains the age of Maturity.His guardian
could be the parents of the court could take the responsibility. At the age of 18, the a/c is
closed and the person can open the new a/c in his name. But before this, all the hold is of
the guardian.
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2.2.5 ILLITERATE PERSON’S ACCOUNT

This A/C can also be called the “photo account” in which pictures are pasted on
Specimen Signature Card and on the front page of A/C Opening Form. And no online
A/C is provided to them. Illiterate person is considered to be someone who’s either
having shaky signatures (i.e. not same always, or easy to copy) or is unable to read or
write. In case of shaky signatures, this stamp would be used wherever that person signs:
all cheques to be signed in the presence of & attested by an officer of the bank
And in case of thumb impression (where the person is unable to read or write), this stamp
is used wherever the person uses it:R/L thumb impression is to be affixed in the presence
of & attested by an officer of the bank.
2.2.6 PERDA NASHEEN LADY’S ACCOUNT
The meaning is obvious from the title that the lady is wearing a hijaab. In ABL, a veiled
lady is taken in the category of illiterate person. Each time she comes for any transaction
a lady officer takes her in separate to make sure that she’s the same lady, and then takes
her signs. And if she’s an illiterate then her thumb impression would be used.
2.2.7 JOINT ACCOUNT
Opening of an A/C by two persons is called a joint A/C. The procedures are quite same
for it. In it just an additional letter of “same address” is used so that all the
correspondence could be held on a single address.Now, the question is “who’ll operate
the a/c?” and the answer is operating conditions could be: single, or joint, or “anyone of
us” or “either or survivor”. All joint account holders are jointly liable for their joint
Account.Where the joint Account is operated with single signature; the Bank shall
honour and pay to the debit of the joint Account all cheques, drafts and orders signed by
any one of the authorized signatories. If the Bank prior to acting on instructions received
from one authorized signatory receives contradictory instructions from another signatory,
the Bank may refuse to act on either of them and insist upon an instruction signed by all
the joint account holders. In case of Joint signatures, both parties must sign to get the A/C
operated.In case of “anyone of us”, one of the persons is authorized to operate the A/C
and in case of his demise the A/C will be closed.In case of “either or survivor”, anyone of
the partners can operate the A/C and in case of death of a partner other can run the A/C.
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2.2.8 SOLE PROPRIETORSHIP ACCOUNT

A formally stamped written request on the official Letter Head of the business/Firm of
the Sole proprietor in order to open a Sole Proprietor Account must be submitted
along with AOF. This request for opening of a Sole Proprietorship Account should
comprise the following clause:
“I am a Sole Proprietor in the firm and as such, I am entirely responsible for all
transactions carried out in the name of the firm and I am personally liable for any
overdraft or other obligations arising in or in connection with this account with
commission and/or other banking charges and expenses incurred in connection with
this account.”
For this type of account, following documents are required to open an account.
• Attested copy CNIC of all the account holders
• AOF
• KYC form
• Cheque Book Requisition Slip
• “Letter of declaration” for the proprietorship concern on Letter Head
• Certified true copy of “Business Registration Certificate”, if any
REASON TO OPEN THE A/C:
When a person approaches the bank to get an A/C opened in his/her name with a request,
the first step is “knowing the reason” i.e. why does he/she want to open the A/C.
PROOF:
The next step is bringing the proof of what they are i.e. if they are business persons they
have to bring their NTN, LETTERHEAD, VISITING CARD; if they are students, they
are bound to show their fee receipts or letter from college etc. CNIC is a must
requirement from everyone.
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2.3 ACCOUNT OPENING PROCEDURE

To open an account with Allied bank is not a very difficult process. I start my practice to
opening an account with individual (Current A/c). First it was difficult for me to be very
alert while filling the account opening form but later when I filled two or three form I
came to know that how to fill and which field in the form is related to the requirement of
the customer. To open an account requires the following things:
1. Two photocopies of CNIC
2. Three passport size photographs
3. Reference of existing A/C holder
4. Initial Deposit (SBP requirements)
2.3.1 STEPS FOR ACCOUNT OPENING
Following steps are followed while opening an account
i. First step will be verification of the introducer of new account. The
introducer should preferably be an existing Account Holder of the
Bank/Branch.
ii. A copy of CNIC of the Customer will be attested by MO of the Branch
iii. Customer will be asked to fill AOF
iv. The customer will sign the AOF
v. The AOF along with relevant documents will be obtained
vi. AOF along with documents will be forwarded to MO for his approval
vii. MO will ensure that all the requirements for Account Opening have been
met and the style of signatures of Account Holder(s) on the AOF and SSC
are identical. MO will then sign in full against all the signatures given in
AOF and SSC and affix the stamp of “signature Admitted” near the
specimen signature of the Account Holder/Customer. MO will also approve
the KYC by signing in full.
viii. Now MO will obtain Account Number from the system and note it down on
the AOF, SSC, KYC and all other relevant underlined documents.
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ix. Then customer service officer will key-in the data of the new Account
Holder(s) in the system and new account transaction will be saved in the
system.
x. After that all forms and documents will be hand over to MO for
authorization and supervision in the system.
xi. MO will scrutinize AOF and all underlying documents and compare the
same with the information loaded in the system by retrieving the Account
Opening data i.e., name of the customer, title of the account, CNIC number
and Depositor’s code etc. in the Bank Smart.
xii. Once satisfied with the documentation and accuracy of the transaction in the
System, MO will authorize/ supervise the same and new account will
become operative.
xiii. Then deposit slip along with account number will be supplied to account
holder to make initial deposit.
xiv. After that it must be ensure that “Letter of Thanks” on the Bank’s format has
been sent to the new account holder through registered post/ courier.
2.4 ENTRY IN REGISTER
All customers’ accounts are numbered in numerical serial order in a register. After
three days I started to fill account opening forms. First of all Signature card is filled
just for the security purposes in order to make secure the signature of the account
holders. On signature cards the NIC number, title of account, name of signatory and
his specimen signature are mentioned. I also filled these signature cards and scanned
them with the account holders account number for the secure transaction. Then I filled
remaining particulars according to requirements of the account holder. Like type of
account, specific amount, operating instructions, zakat deduction, address, other bank
services to be used by customer, information of introducer and general instruction as
well.
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2.5 BASIC DOCUMENTATION

The basic Account Opening documents generally required to open and operate any
account are:
• The account opening form
• Know your customer (KYC) form
• The specimen signature card
• Copy of CNIC/passport
Other additional documents required at the time of opening different types of
accounts, in addition to the basic documentation.
2.6 ACCOUNT OPENING FORM (AOF)
First of all customer is asked to fill an account opening form which contains the
following sort of information.
• Title of the account
• Type of account
• Initial deposit
• Nominee
• Reference
• Residential information and other bio data of the customer
ACCOUNT OPENING APPLICATION
In this application following important things are mention.
Branch
In this head, branch address and its code is mentioned.
Date
Date is also mentioned when the customer opened the account.
Type of Account
Type of the account is mentioned which the customer wants to open either he wants
to open the current account , saving account , term account or other type of account .
Particulars of Account
In this head mention the Title of account. It means to mention the name of the customer
who wants to open the account.
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Initial Deposit
In this head mention the initial amount which the customer wants to deposit in his
account.
NIC/passport No
In this head mention the NIC /Passport No of the customer which is necessary.
Occupation /Business
Mention the business or profession of the customer who wants to open the account.
Residential Address
Mention the complete address of the customer.
National Tax No
If the customer has the national tax no also mention it.
Contact No
Mention the new customer’s telephone number (office &residence) mobile number and
email address.
In Case of Minor
Mention the date of birth of the minor .His/her date of attaining maturity is also
mentioned .Name of the guardian is mentioned.
Operating Instructions
In this head mention the instructions about the account operation .If the customer wants
to open the account singly then he/she will choose the option the account single. In this
case mention that single person will operate the account .If the joint account will open
then in this case mention the option either or survivor.
Zakat deduction
If the customer wants to pay the zakat then choose the option “yes” If the customer want
that the zakat should not deducted from his/her account then an affidavit declaration
will be submitted to the manager.
Address of contact person /Next of kin
Name and address and telephone number of the kin is required.
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Special instructions
If the customer wants to mention the special instructions about the account Operation and
other things then fill this head.
Other bank services to be used
If the customer wants to use other services of the bank mention them.
Introducer
In this head the information about the introducer is required .Introducer is the person who
introduces the new customer. It is necessary for the introducer that he has the account in
that bank.
Nature of account
Nature of the account is mentioned Following are the nature of accounts.
• Individual
• Partnership (registered/unregistered)
• Autonomous Bodies
• Joint Stock Company (public/private)
• Non trading organization /clubs /Associations
Others
The customer will choose any one from the above mentioned options.
Personal information
In this head the personal information of the customer is mentioned. Name of the persons
(if more than one) are mentioned who are authorized to operate the account. Cheque book
issued head is not filled because the cheque books are provided to the customer after one
week.
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ACCOUNT OPENING FORM

25
26
2.7 SPECIMEN SIGNATURE CARD

It contains the title of account, name of account holder and signatures of the customer.
The Management Officer (MO) will sign in full, against all the signatures on SSC and
affix the stamp of “Signature Admitted” close to the signature of the account
holder/customer. The SSC must be sent for the capturing of the signature into the system.
SIGNATURE CARD
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2.8 KYC FORM

This form is also filled while opening any account. It contains the information about
account holder like; profession or business, account in any other bank, residential details,
vehicle details, employer or business address etc. The purpose of KYC form is to know
whether account holder really earns much to hold the balance in its account that it
contains. The purpose is to avoid opening an account of a person who seems to earn
illegally or black money.
Know your customer document
This document is also necessary for the opening of account .This document is divide into
three sections .
• Section A
• Section B
• Section C
A section
a) Account Number
In this head mention the account number of the customer.
b)Title of Account
Mention here the name and CNIC.
c) Addresses
In this head the complete residential address of the customer is mentioned. Contact no is
mentioned in the telephones and the emails head.
d) Purpose of opening the account
In this head purpose of opening the account is also mentioned
• Personal Saving
• Business
• Others (Specify)
e) Occupation
In this head mention the occupation of the person.
f) Source of Income
In this head mention:
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• source of income of the customer

• Salary
• Family Business
• Investments
• Rentals
• Agriculture
• Professional
• Inheritance and others.
The customer will choose any one option according to his/her source of income
g) Monthly Income
In this head four options are given the customer will select any one option according to
his /her income.
Section B
In this section mention the nature of the business /profession in detail. Mention the
geographical areas of the business
Section C
Mention the major transaction of the customer .Some options are given the customer will
choose any one
• Cash
• Online
• Clearing
• D.D.issuance
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2.9 CHEQUE BOOK ISSUANCE

Cheque book are issued to the Account Holders after the completion of all Account
Opening formalities and successful completion of “Account Opening Form” in all
aspects. Customer will be required to fill and submit a duly signed “Cheque Book
Requisition Slip” for the issuance of Cheque books and an acknowledgement will be
obtained from the customer at the time of delivery.
When Cheque books are issued to a third person it is to be ensured that third person is
duly authorized by the Account Holder and his Signs and NIC number is checked.
When Cheque book is to be issued to an illiterate person, the affixing of thumb
impression must be witnessed by the MO. If Cheque books are held undelivered for
more than 30 days, a reminder is sent to the account holder.
All subsequent Cheque books after the first issuance will be issued against the Cheque
Book Requisition Slip which is extracted from previous Cheque book issued to the
Account Holder. I also issued many cheque books by completing a special form called
form “A”. On which dated, account number whether it is current or saving is
mentioned. After that quantity of cheques are also mentioned this is based on
customer’s demand. Name and address of the applicant is also mentioned on it. Then
starting and ending number of cheques are mentioned on the Cheque Issuance
Register. On the completion of this procedure cheque book is issued to the customer.
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2.10 GENERAL RULES

1. Not more than one account of each category i.e. Current or Savings may be
opened in any one name in one and the same branch except joint accounts with
any other individual(s) and accounts in the name of minor children in the capacity
of Guardian. Accounts in the name of minor children will be operated by only the
guardians even if the minor attains majority.
2. Accounts of illiterate persons / persons with shaky signatures will be opened at
the discretion of the Bank.
3. Accounts of Blind persons will preferably be opened in joint names with another
person who can read and write.
4. (a) In the event of death of an account holder(s) and in the absence of a contract
to the contra, the credit balance, in any account, in the name of an individual will
be payable to the legal heirs of the deceased individual account holder after
obtaining Indemnity Bond / Succession Certificate. If the account is in the name
of two or more persons, the credit balance will be payable to the legal heirs of the
deceased account holders along with the remaining account holder(s) on
production of Indemnity Bond / Succession Certificate as the case may be, except
in case where the joint account holder/s have specifically authorized remaining or
any one of the account holder to receive the balance in the account, the same shall
be paid accordingly to the instructions of the said joint holder/s.
(b) In case of operating instruction "Either or Survivor" in the event of the death
of either of account holder(s), the credit balance in the account will be payable to
the surviving account holders).
5. "SERVICE CHARGES" on all types of Current & Savings Accounts in local
currency.
6. "SERVICE CHARGES" will not be applicable on those accounts which are
declared as EXEMPTED by the Bank from time to time.
7. A distinctive number will be allotted to each account which shall be quoted in all
correspondence relating to the account and at the time of making deposits or
withdrawals.
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8. Any sum to be deposited in the account should be accompanied by paying-in-

which showing the name and number of the account to be credited. Such deposits
must be tendered at the cash counter only. The Deposit Slip will only be valid if it
is manually signed by authorized official/s of the Bank, and stamp of the Bank
affixed on the counter foil of the paying-in-slip. The depositor should satisfy
himself that he has received proper receipt for the deposit duly signed with the
Bank's stamp affixed on it.
9. Account holder can only withdraw sums from his account by means of cheques
supplied to him by the Bank for that particular account.
10. Cheques should be signed by the account holder as per specimen signature
supplied to the Bank and any alteration(s) thereon must be authenticated by
drawer's full signature.
11. Post-dated, stale, defective and mutilated cheques shall not be paid.
12. The Bank will take care to see that credit and debit entries are correctly posted in
the accounts of the account holders but in case of any error, the Bank shall be
within its right to make the correct adjusting entries without notice and recover
any amount due from the account holders. The Bank shall not be liable for any
damages, losses etc. consequent upon such errors.
13. Any change in the address should be immediately communicated to the Bank. The
post office and other agents for delivery shall be considered agents of the account
holders for delivery of letters, remittances, etc. and no responsibility shall be
accepted by the Bank for delay, non delivery or wrong delivery etc. including any
shortage of cheque leaves of cheque book sent by post /courier at the request of
the account holder.
14. The account holder wishing to close the account must surrender unused cheques,
if any to the Bank in order to draw the balance amount by paying the account
closing charges as in force.
15. The Bank would not accept any liability or claim on account of any error in its
systems or products due to failure of electricity or computers or for any other
reason whatsoever which prevents the Bank from making available any of its
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services / products to customers on a particular day or for any period from any of
its branches.
2.10.1IN CASE OF LOSS:
Of cheque
In case of loss of a cheque, to stop a cheque from encashment, the rules say the following
(no specific order):
• Customer has to come personally with an application to prevent the cheque from
encashment
• Rs. 210, per complaint of a cheque
• Rs. 520, on loss of complete cheque book, after filing an F.I.R.
Of requisition slip:
In this case the rules say the following:
• Indemnities for Requisition slip loss. Indemnity is and undertaking/request in case

of loss of requisition slip that is resulted in issuance of Form B.
• Application to issue Form B for Rs. 105.
• Issuance of Form B (requisition slip)
CLOSING ACCOUNT
If a customer wishes to close an account he must have to inform the bank abbot his
intentions in written application. He must return all the unused cheque leaves to the bank.
LETTER OF THANKS
I was an also avail opportunity to learn about banking rules. Suppose after opening
account the LETTER OF THANKS goes to that particular A/C Holder house for the
confirmation address of the account holder. If the LETTER OF THANKS is not receiving
any account holder than banker ask for more inspection regarding their address actually
the main purpose of that LETTER OF THANKS to confirmation the address.
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2.11 TIME REQUIREMENT FOR OPENING A/C

Whole process from filling account opening form to the allotment of account number, it
takes half an hour only, but if all the requirements are fulfilled. Usually it happens that
sometimes the customer could not find any introducer so to arrange any person for
introduction could take time or if the customer give one photocopy of CNIC instead of
two, so the process time exceeds due to the customer itself and not from the bank
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“FILLING CHEQUES
AND
DEPOSIT SLIPS”
35
3.1 CHEQUE FILLING

It was another duty I have ever done during my internship period. To fill a cheque
requires full attention on what you are writing. The account holders who are illiterate and
never know how to fill the cheques ask for help from the customer service officer. While
filling a cheque on behalf of customers I must had to check the following things:
1. Date of withdrawing amount
2. Writing exact amount
3. No cutting and over writing
4. Signatures or thumb impressions on right place
5. CNIC number must be mentioned in the back side of cheque
6. Who is the bearer
Personal Experience of Filling Cheques
While filling the contents of cheque I was very attentive about what I am writing on the
cheque. It should be written with proper attention that what is the date and what amount
the customer wants to withdraw. Because by increasing or decreasing the number of zero
in the amount column the amount can be totally changed and the customer will have to
bear the problem. It sometimes happened with me that I filled the cheque wrongly then
my in charge instructed me to cut the written word and take sign of the customer in
cutting place. My way of writing amount is like =______/-, and also I used to write the
numbers very close to each other so that the person who came to withdraw the amount
could not add any other number. So it was a simple task but requires proper attention of
the person.
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3.2 TYPES OF CHEQUES

1. Cross Cheque
2. Self Cheque
3. Order Cheque
4. By Name Cheque
CROSS CHEQUE
This type cheque is highlighted with two lines which mean that is “Cross Cheque” this
type’s cheque is usually for transfer cash from account to account. As for as banks rules
are concern no bank allow to any A/C Holder who comes with cross cheque and they
give him money in hand.
SELF CHEQUE
These types of cheques are easily pass if particular account holder one sign at front of the
cheque and two sign on the back as for as bank rules are concern.
ORDER CHEQUE
These types of cheques are usually not pass if some one has no any reference in the
particular bank branch from where he want to withdrawal money.
BY NAME CHEQUE
These types of cheques are usually mentioned with party name and these types of
cheques easily cashed if party given their verification.
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4.1 ONLINE DEPOSIT SLIPS

Online slip is basically used to transfer amount online with the help of Bank’s specific
software.Then I filled the online deposit slips which were little bit difficult for me at the
beginning but later on I used to with this process. In online deposit slip name, account
number, branch name, branch code of remote branch is entered then amount a specific
is mentioned in words and digits ,at the end the name, address and the signature of the
depositors are taken. The transferring of amount from local branch to remote branch
hardly took 25 seconds. After the transaction is done a documentation and transaction
codes are assigned by the head office in order to secure the online transaction.
Then I performed the activity of online deposits practically first of all remote branch
code is mentioned then a confirming screen occurred which verify the specific location
where cash is going to deposit after that code of accounts are mentioned for saving
account ABL use 1200 and for current account they use 1100 code after that the remote
account number is mentioned then system confirm these information at the end specific
amount is mentioned and code for that transactions are allotted by the head office
which are written on that online deposit slips.
In case of online deposit from remote branch that amount is supervised by the second
manager and two more entries are done first amount is credited to ABL Pak account
and debited to the customer’s account.
Online IBT Request
For Online Transaction Services online inter branch transaction slip is filled. Information
required for filling the online inter branch transaction slip
Applicant name is required
It means the name of the customer who wants to transfer the amount through online.
ID card number
The ID card number of the customer is also required who wants to transfer the amount.
Remote Title
In this head mention the name of the party (or firm) whose account has been credited
.Remote account number is also required for online transaction.
Remote Branch
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The branch where the customer wants to transfer the amount and also mention the code
of that branch, total amount in words as well as in figures are also mentioned.
4.2 Current Account Deposit Slip
For filling current account deposit slip Date, Month, Year is mentioned .Account number
of the customer .Title of account (name of customer) Total amount in Rs .Amount in
rupees (words) is also mentioned .In the portion of Particulars Cash has been written if
the customers want to deposit cash . If the customers want to deposit the cheque in
that case bank name , cheque number of the bank are also written.
4.3 PLS Saving Account Deposit slip
Some customers have saving accounts in the bank and they want to deposit cash or
cheque in their accounts. So they fill the PLS Savings Account Deposit slip. This slip is
filled in the same manner as current account deposit slip is filled.
PLS AND CURRENT DEPOSIT SLIPS
PLS and Current deposit both have same nature and behavior having different color and
account type. Then I started the practicing of PLS and Current deposit slips. First of all
the title of account, date and account number is mentioned and amounts in digits and
words are mentioned, one thing is keep clear in mind that these two specific slips
should be filled in a right manner. Because these deposit slips have four columns and
four rows as well. In first column only one digit is entered in second two digits are
entered in third three digits are entered and in fourth column paisas are mentioned if
they are.
Three digit Paisa

amount
Two digit
amount
One digit
amount
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After that the second manager verified the information on the slips by matching it with
online information which he already has stored and deposited that amount and pasted
his stamps. At that time I thought “I am part of this organization”.
5.1 DEBIT CASH VOUCHER (RED VOUCHER)

Debit Cash vouchers are used when the Bank do personal entertainment expenses under
the specific permission granted by the ABL Central branch Karachi. I performed the
activity of filling of debit cash vouchers. On that particular voucher purpose of expenses
and its amount is mentioned and then first and second manager sign them. Its contra entry
is physical cash that is given by the cashier for fulfilling the expenses.
5.2 CREDIT CASH (GREEN VOUCHER)

It is contra voucher of debit cash on this voucher all the entries are credited to the ABL
Pak Account.
5.3 DEBIT TRANSFER (WHITE VOUCHER)
It is filled when customer or account holder want to transfer cash from his account to
someone else’s account who is present at remote area. On this voucher instrument
number of cheque and amount is mentioned.
5.4 CREDIT TRANSFER (YELLOW VOUCHER)

It is contra voucher of debit transfer voucher because in banking environment there are
contra entries of every transaction. It ensures that amount is debited to Pak account.
6.1 LOCKERS
Lockers means the safe that are provided to the customers to keep their jewellery
important documents in this safe .I have learnt about the types ,its initial deposits and the
important documents required for the lockers .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. To keep the valuables safe, ABL also provides the LOCKERS
40
facility to its A/C holders…so, it needs no special verification and documentation

procedures. These lockers are in various sizes and definitely on various rates.
6.1.1 SIZES OF LOCKERS:
Lockers are available in the following sizes:
• SMALL – upto 0.4 cft
• MEDIUM – 0.4 cft to 0.8 cft
0.81 to 1.35 cft
• LARGE – 1.36 to 1.75 cft
1.76 to 2.00 cft
6.1.2 SECURITY IMPOSE ON LOCKERS
Small lockers
If the customer has a small locker in ABL bank .He has to pay Rs 1500 as annual fee.
The customer has to deposit Rs 3000 as security in addition.
Medium Lockers
If the customer has a medium size locker,he has to pay Rs 2000 as annual rent. The
customer has to deposit Rs 3000 as security in addition.
Large Lockers
If the customer wants to rent a large size locker, he has to pay Rs 4000 as annual rent .
The customer has to deposit Rs 4000 as security in addition.
LOCKER ENTRIES
• Locker Rent Register
• Locker Operation
Locker Rent Register
• In this register make sure that rent of lockers is clear.
Locker Operation
• In this register date of operating the locker, signature of locker holder, timings for
operating the locker, and signature of custodian is verified.
6.2 LEVER OF LOCKERS
There are 2 levers of lockers
1 key remain with manager & another key remain with customer.
6.2.1 LOSS OF KEYS
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If the customer loses the key of the locker then he/she has to pay Rs 200 minimum.
The depositors of current and saving accounts will be entitled on rent free locker as
detailed below.
Balance of Rs 1000(M) or above one small locker free
Balance of Rs 2500(M) or above medium locker free
Balance of Rs 5000 (M) or above one large locker free
6.2.2 MAINTAINING THE LOCKERS:
The locker maintenance involves three major issues:
• Locker Map
That presents the position of each locker.
• Locker Control List
Presents, which locker has been issued to whom and against which key.
• Locker Position
It makes the further issuance of lockers easier by demonstrating the issued and
remaining numbers and types of lockers.
6.2.3 OPERATING THE LOCKERS:
• The customer first contacts the official locker operator.
• Signs on locker attendance register
• Gets to his/her own locker after having that HEAVY door opened.
• The bank key along with the customer key is used to open the locker.
• Meanwhile, the officer leaves the room. The customer operates the locker and
then locks it with his/her own key alone.
6.2.4 CLOSING THE LOCKERS

For closing the locker only customer key is needed.
6.3 DOCUMENTS REQUIRED FOR LOCKER
a) Memorandum of Letting of Safe
b) Letter of Continuity
c) Form No 337
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6.3.1 MEMORANDUM OF LETTING OF SAFE

It is a special type of agreement between lessee and custodian (bank), in order to safe the
precious items of the customer. On this particular agreement name of the customer, safe
number, class of safe (large, medium or small), date of retaining safe and signature of
both parties are mentioned. After completing this document the safe is provided to the
customer. This document or agreement also contains some instructions at its back which
are very essential for customer point of view to keep in mind these instructions.
In this document the Company’s safe no is mentioned Class of the lockers are also
mentioned
• C for small lockers
• B for medium lockers
• A for Large lockers
6.3.2 LETTER OF CONTINUITY
Date, annual rent in words and in figures are mentioned in this document.
6.3.3 FORM NO 337

In this form the important information required is Name of the lessee, locker No class,
key no special instructions if any will be mentioned, signature of the bank officer is also
required for this document.
7.1 CLEARING OF CHEQUES
Nearly all the banks provide a wide variety of services to their depositors. One valuable
service provided by Allied Bank Limited Satellite Town Branch is that of clearing.
Clearing department also plays an important role in performing the activities of the bank.
Before presenting the function performed through clearing, we must have an
understanding of its definition.
We can define clearing as, "The transfer of funds from a branch of bank to the other
Branch of the same bank or the other bank on which the instrument is drawn, without
involving cash through "State Bank's clearing house"
The function which clearing department plays is that it provides a service to its customers
regarding the collection of their cheques of other banks, whether they are in city or
outside the city. The customer can get the money in his/her account at Allied Bank
43
Limited from the cheques drawn on another bank. The bank accepts the cheque in the
clearing department & later on collects these cheque from the other bank on which it is
drawn through the clearing house NIFT i.e., State Bank of Pakistan.
For example, sometimes the account holder of Allied Bank Limited presents a cheque
which is not drawn on Allied Bank Limited but the person has an account in Allied Bank
Limited. In this case bank accepts this cheque in clearing department & after collecting
the amount from that bank on which cheque is drawn; Allied Bank Limited will credit the
account of customer (account-holder). This function is called clearing function.
7.2 TYPES OF INSTRUMENTS
Following instruments can be presented at the clearing department:
• Cheques
• Demand drafts
• Pay orders
• FDD
Cheques
Some specific types of cheque are being entertained in the clearing department of Allied
Bank Limited Satellite Town Branch. These types of cheque are:
i. Local Cheque
By local cheque we mean collection of cheques from the banks which are the
members of the clearinghouse and which are located within the city.
ii. Out Station Cheque
By out station cheque we mean collection of cheque from the banks, which are
situated outside the city. It means that presenting bank and the bank on which the
cheque is drawn are not situated in the same city.
iii.In House Cheque
In house cheque are drawn on one branch of Allied Bank Limited and presented to
another branch of Allied Bank Limited such cheques are marked with transfer
stamp.
7.3 TYPES OF CLEARING
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Clearing department deals in two types of clearance. These are stated below:
Inward Clearance
Cheque drawn on Allied Bank Limited are presented to other Banks or handed over to
Allied Bank’s agent in clearing house. That is inward clearance for Allied Bank
Limited. So inward clearing results in outflow of funds to collecting banks reducing
the balance in the clearing account.
Outward Clearance
Similarly cheques which are drawn on other bank and presented to Allied Bank
Limited Dinga branch are known as outward clearance for Allied Bank Limited
Dinga branch.
So outward clearing results in inflow of funds from paying bank into the clearing
account maintained with the clearing house, increasing the balance in the clearing
account.
Outward clearing thus may be:
Ø Local clearing
Ø Outstation clearing
Excess of outward clearing over inward clearing produces a net increase in the
clearing account balance. Excess of inward clearing over outward clearing produces a
net decrease in the clearing account balance. The first case is referred to as favorable
clearing & the second case as unfavorable clearing.
7.4 TYPES OF COLLECTIONS

Inward bills for collection (IBC)
Inward collection means the cheque received & drawn on Allied Bank Limited for
payment. Inward bills for collection means cheques received from another branch for
clearing. These cheques first cleared & then transferred to the account of branch account
e.g. cheque deposited in Karachi branch for ABL, Lahore branch, will receive in Lahore
branch at first then issued for clearing in ABL.
Outward bills for collection (OBC)
Outward collection means the cheque of other banks. Outward bills for collection are the
reciprocal of IBC that is drawn on bank & deposited in other bank. For example, person
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A, who is in Lahore and payment, will be made by him. Now seller will deposit the
cheque deposit slip in his bank, ABL Lahore. ABL will prepare a draft & letter & send it
ABL Satellite Town. ABL Satellite Town will debit his customer A's a/c & credit
clearing. This draft will be then transferred back to Lahore through clearing where credit
will be given to customer & debit to clearing house.
Within 3 days payment should be received otherwise reminder will be send to the payer
to pay amount. This reminder will be either through courier service or TCS etc. If
payment is not received within 15 days then reminder should be send after 8 days of 15
days limit.
7.5 STAMPING
Three stamps will be used in case of IBC & OBC.
• Stamp of OBC (or IBC) whichever is the case.
• Crossing stamp.
• Payee’s a/c will be credited.
First two will be in front side of cheque while the 3rd stamp will be on the backside of
the cheque. Entry is made in the register of OBC (or IBC) & from the register the no.
of OBC (or IBC) is given on the cheque.
7.6 PROCEDURE OF CLEARING THE CHEQUES

Pay in Slip
The customer fills pay in slip, this slip is just like deposit slip. The cheque number,
date, amount, & account number must be written on this slip.
Stamping
The officer on receipt of cheque and pay in slip will stamp the pay in slip with "Cheque
Received" and give a portion of slip to customer and the remaining portion is attached
with the original cheque. The original cheque will marked with two stamps:
i) Allied Bank Limited
ii) Clearing Stamp
Before 3:30 P.M all cheques are counted and then scrutinized in bank wise and
sent to clearing house.
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7.7 STAMPING THE INSTRUMENTS

The instrument of payment accompanied by a pay-in-slip (cheque receipt) is received at
the counter of the bank by the concerned officer. If no discrepancies are noted then the
officer should sign the pay-in-slip & its counter foil.
The counter-foil & the pay-in-slip should then be stamped in the following manner.
i. The clearing stamp bearing the date of the next working day should be
affixed on the face of the cheques.
ii. Special crossing stamp containing "the name & branch name of bank"
should also be affixed on the face of the cheques.
iii. The third necessary stamp indicates the paying bank to "credit payee's
account". It is the confirmation of outward clearing.
iv. If "payee's account only" is mentioned on the cheque, the payee should sign
on the back of cheque for endorsement of cheque to another person.
7.8 TWO FORMS OF CLEARING

Clearing is of two forms:
Local Clearing
By local clearing we mean collection of cheques from the banks, which are member of
clearinghouse within the city. Banks take responsibility by endorsing these cheques.
Sort out these cheques bank wise; prepare the settlement sheet bearing the name of the
bank and number of cheques with total amounts.There is a time for presenting the
cheques in clearing house, if before that time cheques are not sent to clearing house
then they will be delayed for next day. On the specific time gate of clearing house has
been closed and nobody can enter into it. So next day bank will presents cheques in
clearing house. Cheques sent to clearing department must be debited to SBP and
credited to customer account, and when bank receive back these cheques then debits
47
customer and credits SBP. A simple example for understanding the entries made, is
that, when cheque comes to clearing house from Citibank (e.g. any customer of Allied
Bank Limited has made payment to a person who is customer of Citibank) then SBP
will credit the City bank and debit the account of Allied Bank Limited’ because
cheques are of City Bank.
Collection
In case if any bank or branch of bank is not the member of the clearing house then
bank present or receives cheques through collection.
7.9 ITEMS TO BE CHECKED ON CLEARING CHEQUES
When cheques are received from the clearing following items should be checked
immediately:
1. Cross stamp
2. Clearing stamp
3. Date (which should be current)
4. Endorsement stamp on backside
5. Amount in figures and words should be matched
NOTE
Bank, which is sending the cheque, makes its stamp on backside so that other bank
will pay him. This is called endorsement stamp when there is a stamp of SBP on
front side then there is no need of endorsement stamp.
7.10 CHEQUE RETURNED WITH MEMO
There may be a case when cheque is returned by the bank when it is received from
clearing which are mentioned below. There maybe any one or more than one reasons.
These reasons are written on the slip, which is then attached with the returned cheque by
marking (x) against that reason for which cheque is returned.
This slip is called "cheque returned slip" and contains following items:
i) Cheque no.
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ii) Amount of cheque,

iii) Name of a person who has drawn it and
iv) Date
This cheque return slip contains the list of following reasons:
Ø Refer to drawer
Ø Not arranged for
Ø Effects not cleared may be presented again
Ø Funds insufficient
Ø Crossed Cheque must be presented through a bank
Ø Payee’s discharge on revenue stamp required
Ø Post dated/ out of date
Ø Payment stopped by the drawer(s)
Ø Amount in words and figures differs
Ø Multination required bank’s guarantee
Ø Drawer's signature differs from specific filled in this office
Ø Not drawn on us
Ø Alteration requires drawer’s signature in full
Ø Funds drawn against not yet received, present again
Ø Cheque incomplete
Ø Bank’s crossing/ clearing stamp required
Ø Advice not received, we shall, however, pay if the collecting bank
guarantees disbursement
Ø Payee’s endorsement required
Ø Payee’s endorsement irregular
It is used specially for the clearing of the cheques. If cheques or Demand Draft are not
passed due to some reason then out of these mentioned options we select one are two and
we can dishonor the cheque or DD. The instrument number of cheque or DD is also
mentioned on it.
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I did the clearing of the cheques as well. If a remote branch sends a cheque to ABL for
its clearing after checking the availability of that account an advice is sent through
National Institutional Facility Technology known as NIFT to remote branch. On that
advice branch code of local and remote branches are mentioned. Then the amount after
deducting all commission and charges are mentioned then one proving sentence is
written on the face of that advice which is like “Your Clearing Realized”.
When all cheques are cleared then post man of NIFT takes those cheques with supporting
document of ADD on which instrument number of different cheques, DD’s are
mentioned and also the total sum of the amount is also written on it, in order to transfer
cheque or DD for clearing through NIFT.
The purpose of this analysis is to check the profitability and efficiency of the business. It
include following ratios;
1. Earning assets to total assets
2. Return of earning assets
3. Net margin to earning assets
4. Loan loss Coverage ratio
5. Deposit time capital
6. Loans to deposit
1. Earning Assets to Total Assets

Total assets describe the effectiveness of management of banks funds higher the ratio
indicates how best bank puts its assets to earn maximum return. SBP fixed a certain limit
of reserve which should be considered in evaluating this ratio (open market operation)
Earning Assets / Total Assets
2005 2006
= 165202849 / 192574268 = 211742559 / 252026776
= 85.7% = 84%
50
Change: (Unfavorable)
Earning assets to total assets
0.86 0.857
0.855
0.85
0.845
0.84
0.84
0.835
0.83
2005 2006
COMMENTS
The bank most important assets are earning assets (lending to other institution, loans,
investments) etc. bank efficiency depends upon the worth & volume of the earning in
total assets. The analysis of ABL’s earning assets with total asst shows 1.7% decrease.
Which is because of the change in investment pattern of ABL. Although the earning asset
of ABL has increased as compare to the base year. The major change in balances with
other banks which is decreased by 48% as compare to the base year. The bank has
invested its more amount in operating fixed assets which is not included in earning assets.
51
2. Return on Earning Asset

This describes the effectiveness of investment of earning assets higher the ratios better
the result. It is also known as profitability ratio of the bank.
Return on earning asset:
Net profit after tax/ Earning assets
2005 2006
= 3090133 / 165202849 = 4397250 / 211742559
= 1.87% = 2.07%
Change: (Favorable)
52
Return on earning assets
0.021 0.0207
0.0205
0.02
0.0195
0.019 0.0187
0.0185
0.018
0.0175
2005 2006
COMMENTS
This ratio explains the control of management over the spread of interest income to
interest expenses. Higher ratio in 2006 indicates the controllability of management over
the interest income. The net profit margin of ABL increased by 32% from the base year,
which might be due to the rise in earning assets. This ratio is calculated to check the
profitability of the bank. After the calculation of the concerned ratio it is observed that
the results are favorable to the bank. Because the profitability of the bank increased with
higher percentage in this year as compare to the base year. And overall expenses
decreased from base year which indicates the control of management over the spread of
interest income to interest expenses is favorable.
53
3. Loan Loss Coverage Ratio

This ratio explain the capacity of the bank to cover its loan loss through its yearly income
higher the ratio better the result. This also explains the level of protection of all
depositors. It is also based upon
• Quality of loan
• Efficiency of management
Pre Tax Income + Provisions for loan losses / Net charges off + Provisions for loan
losses
2005 2006
=( 4834195 +399608) / =( 6661094 + 583305) /
(160059 + 399608) (136189 + 583305)
= 9.35 times = 10.06 times
54
Change: (Favorable)
Loan Loss Coverage ratio
10.2 10.06
10
9.8
9.6
9.35
9.4
9.2
9
8.8
2005 2006
COMMENTS
This ratio indicate the level of protection available to customer in bank in term of there
deposit the higher ratio in 2006 means more protection to customer as compare to 2005
the ratio also indicate the efficiency of management to control its bad debts and to protect
its depositors from the loan losses. Whenever the bank advances the loan to the general
public it is always from the depositor’s amount deposited in the bank. Sometimes the
advanced loans become the bad debt and could not be recovered back easily. In the base
year the bank was not so efficient to recover the bad debts. But in the year 2006 the bank
has became more efficient.
55
2005 2006
= 161410268 / = 2060231324 /
14549647 17687753
=11.09 times =11.64 times
4. Deposit Time Capital

It indicates the portion of depts. With reference to equity.
• D<E because it provide a caution to the bank having more solvency
• E<D because high debts generate more interest.
Deposit / Capital
Change: (Unfavorable)
56
Deposit Time Capital
11.7 11.64
11.6
11.5
11.4
11.3
11.2
11.09
11.1
11
10.9
10.8
2005 2006
COMMENTS
The ratio is an alternative of debt to equity. And also it is two folded ratio. On the other
hand high equity indicate margin of safety available to the investor. The increase in
deposits is more than the increase in equity. As I have mentioned that the increase in the
deposits is favorable for the bank as well as unfavorable for the bank. Because the
deposits are the liability of the bank but on other side it is the main source for the bank to
generate revenues. By the increase in deposits this shows that increase in the investments
and liabilities of the bank but with the increase in the equity it implies more safety to the
share holders. The concerned ratio is increasing in the calculations and it is unfavorable
for the bank because the liability of the bank is also increasing and it provides lesser
protection to the investors.
57
2005 2006
= 7867392 / 165202849 = 10422406 /
211742559
= 4.7 % = 4.9 %
5. Net Margin to Earning Assets

This is the profitability measure of the bank it provides the strength of a bank to manage
the spread of interest income over interest expenses.
Net Margin / Earning Asset
Change: (Favorable)
58
Net Margin To earning assets
0.0495
0.049
0.049
0.0485
0.048
0.0475
0.047
0.047
0.0465
0.046
2005 2006
COMMENTS
This is another profitability measure of the bank. Although the calculations shows a
favorable results of bank with respect to the base year. Yet the bank has failed to control
the spread of expense over income. It indicates although the bank has increased its
profitability but earning assets are not the quality assets After calculating the concerned
ratio it is observed that in current year the net margin of the bank has increased with 32%.
In this year both the interest income and the interest expenses increase but still the
profitability of the bank is favorable. In this year the interest expensed in more than the
interest earned which shows that the bank has not managed very well to control its
income over its expenses but still the profitability of the bank is favorable. This profit is
because of the earnings generated from the banks earning assets.
59
2005 2006
=111206774/161410268 144033634/ 206031324
= 0.68 times = 0.69 times
6. LOANS TO DEPOSITS
This ratio shows the activity of the bank to advance its available deposits. Apart from
central bank requirement it is the effectiveness of management to utilize its available
deposits which ultimately provide high profit to the bank.
Loans to Deposits= Loans / Deposits

60
Change: (Favorable)
Loan to deposits
0.692 0.69
0.69
0.688
0.686
0.684
0.682 0.68
0.68
0.678
0.676
0.674
2005 2006
COMMENTS
This ratio is basically calculated to show the effectiveness of the management to convert
the deposits into advances. This also implies that the debt coverage of the bank has
slightly increased in 2006. The increase in loans shows that the bank deposits are
properly utilized. The profitability of the bank is directly dependent on the loans/
advances. In respective of the state bank’s policy 69% indicates that the bank is also
using some of its reserves in secured investment. Because while depositing money the
bank gives less percentage of interest but in the advances the bank receives more
percentage of interest. So with the more advancement of the cash the bank will ultimately
generate more income. So while calculating the concerned ratio, it is observed that the
bank’s management is working and utilizing the available deposits in more efficient and
effect way.
61
62
8.5 SOLVENCY RATIOS

Definition / Introduction
The ability of a business to pay its long term debts is called solvency. There are two
kinds of solvency one is periodic payment and second is original principle amount.
Periodic payment is the ability of a business to pay its fixed payment through its normal
operating income in one year.
And original principle amount is the ability of a business to pay its original principle
amount from its available resources.
Items Involved
♦ Earning before interest and taxes
♦ Interest
♦ Lease payment
♦ Preferred dividend
♦ Total assets
♦ Total equity
♦ Tangible debts
♦ Tangible net worth
Concerned Year
♦ Current Year 2006
♦ Base Year 2005
Ratios 2005 2006 Change Reasons of
change
Debt Ratio 92% 93% Unfavorable Total debts 31%
Equity Ratio 8% 7% Unfavorable Total equity 22%
Total assets 30%

63
COMMENTS
In consideration, the long term debt paying ability of Allied Bank Ltd. It is observed that
the solvency of the business is unfavorable towards the owner.
The percentage contribution of total debts in total assets and in relationship of debts and
equity shows that the owner is not in a better position for payment of its long term debts
to the outsiders. Although total assets and equity increased form the previous year but
due to lack of management of the Allied bank, they could not get out maximum from
their assets. The bank uses most of its proportion from the debtors. That is way the debt
ratio shows high percentage change in current year 2006 that is unfavorable with respect
to the owner.
In the year 2006 as it is observed that the bank has increased its assets and equity both
with 30 and 22 percent respectively that is high percentage than the base year. But change
in total assets is more than the change in equity that is way the equity of the owner
decreased from the previous year. Which make the results unfavorable with respect to the
Bank. So if the solvency of the Bank is unfavorable to the owner it is ultimately
unfavorable for the business.
64
8.6 MARKET ANALYSIS

Definition / Introduction
This analysis is done for those investors who want to invest in the securities of the Bank
and wanted long term benefits. This analysis provides the facility to the investor to make
their investment decisions on the basis of following ratios.
Items Involved
♦ Earning before interest and taxes
♦ Interest
♦ Market price per share
♦ Earning per share
♦ Number of shares outstanding
♦ Dividend per share
♦ Total equity
Concerned Year
♦ Base Year 2005
Ratios 2005 2006 Change Reasons of change
P/E Ratio 13 13.36 Favorable Market Price 47%
Book value per 32.4 39.4 Favorable Total equity 22%

share
Although dividend
Dividend yield ---- 2% Favorable was not paid in 2005
ratio and that was
reinvested which
shows investor’s trust
on the Bank.
Dividend ---- 26% Favorable Same reason dividend

payout ratio was not paid in 2005.
Retention ratio 100% 74% Favorable Payment of dividend

in 2006.
65
COMMENTS
In consideration the ability of Allied Bank to satisfy its investors has overall positive
impact on the business. Almost all the measures are taken favorable to the Bank. These
favorable results show about the worth of the Bank which has increased, this is due to the
increase in market price from the previous year. Book value per share also increased
which shows the strong internal strength of the share of the Bank. There is deep
relationship with book value and market value. In 2006 there is huge difference between
book value and market value which indicate the involvement of the speculation in the
share of the Bank. This thing informed to the investors about heavy capital gain on the
shares of the Bank.
The possibility of return on the investment of the customers’ increased by 2% from last
year. Because last year the Bank adopted the strategy of DRIPS (Dividend Reinvestment
Plan) this indicates that the Bank has strong worth in the investors’ mind. That’s way the
investors allowed the Bank to reinvest their dividend or capital gain and generate more
benefits for them. In 2006 the Bank announced and paid dividend of 26% of its profit to
its investors. Which attracted new customers as well that is the reason the price of the
share has increased by 47% from previous year.
This overall market analysis shows about the lot of opportunities available for the
investors, all the measures are favorable with respect to their expectations. The shares
outstanding remain the same whole year but due to the change in the net earnings of the
business the earning per share of the bank increased. Due to this increase in the net
earnings, now the bank is in good position to distribute this earning to its existing share
holders.
66
8.7 CASH FLOW ANALYSIS

Introduction
The statement allows the preparer to use the concept of cash that included not only cash
itself but also short term high liquid investments. It contains three important things,
(i) Statement is prepared on cash basis
(ii) Title is “The Statement of Cash Flow”
(iii) Detailed format is used
On the basis of these elements cash flow is made.
Items involved
♦ Operation cash
♦ Number of shares outstanding
♦ Total debts
♦ Cash dividend
Concerned Year
♦ Base Year 2005
Ratios 2005 2006 Change Reasons of change
Operating cash
per share 1.31 2 Favorable Operating cash 58%
Operating cash 3.3% 4% Favorable Change in operating

to total debts cash is more than
total debts
Operating cash
to cash ---- 8.5 Favorable Due to the payment
dividend of the dividend
67
COMMENTS
After analyzing the concerned ratios of the Allied bank, it is observed that the cash
position of the bank is much better than the base year. All the measures taken are
favorable to the business.
In the year 2005 the figure of operating cash was negative that shows the outflow of the
cash no in 2006 it is positive which indicate the inflow of cash. so this explains that in
year 2005 the bank had to face so much expenses than its income, which created a bad
impression on the prospective investors because when they will see that the bank has not
enough cash to pay its debts they will definitely skip from there.
But in the year 2006, it was analyzed that the cash position of the bank is much better
than the base year. Now after paying the expenses the bank has enough money to pay its
debts as well as to distribute in its share holders. This thing would attract the customers.
It also shows that the cash flow is significant in relation to total debts in both years,
which show the ABL has the ability to cover its total debts with the yearly cash flow.
Operating per share has +ve indication for the short run which indicates that the ABL has
the ability to make capital expenditure decisions and pay more divided than the EPS. The
Bank is also in a better position to pay its one year cash dividend which it already had
paid. Previously the Bank used DRIPS method now at this year they paid dividend; this
thing also clearly indicates that the business has adopted the method of tight credit policy.
Overall cash flow analysis shows that the net cash flow of the ABL from its operating
activities could attract customers’ in near future.
Cash flow statement of the business shows that how much inflows and outflows took
place in the whole year. Operating cash is basically the figure represents the cash position
of the business after pay all its expenses and addition of income generated through the
operating assets. It is the figure which shows that the cash position of the business to pay
or to distribute.
68
9.1 SWOT ANALYSIS

STRENGTHS
READY REFERRALS
Allied Bank is a good organization to work for and employees would readily recommend
this organization to their friends and relatives.
KNOWLEDGEABLE WORKERS
ABL employees provide premium services to their customers. They have a clear
understanding of their department’s goals and their own job responsibilities and work
expectations.
PROGRESSIVE AND NURTURING CULTURE
ABL has a progressive and nurturing culture ensuring growth and development of its
employees.
WELL DEFINED POLICIES AND OBJECTIVES
The bank’s objectives and policies are well defined and are communicated to all the
concerned employees.
STRICT COMPLIANCE TO SBP RULES AND REGULATIONS
ABL is working strictly according to the principles stated by the State Bank of Pakistan.
All depositor of ABL are in relief that their money security is guaranteed by government
of Pakistan.
HARD WORKING EMPLOYEES
One of the greatest strength of ABL is perhaps its employees who are very hard working
and leave no stone unturned in meeting deadlines or targets. It may be due to the fact that
the employment procedures are really tough. Moreover, ABL staff especially the lower
level employees, are dedicated to their work. They are ready to accept change brought by
latest restructuring efforts.
IMPLEMENTATION OF RULES AND REGULATIONS
ABL overseas implementation of same rules and regulations at all the branches. In a
similar vein same kind of check and balance is applicable on all the branches no matter it
are in Gujranwala or Karachi.
69
RAPID GROWTH
ABL is showing progressive growth at a very fast pace.
WEAKNESSES
STRICT PROCEDURES
Customers have to follow long lengthy procedure for opening of account as well applying
for debt, they use to ask most personalized details of a person which the customer hesitate
to give specially when the question is about their income details. This thing discourages
most of the people to invest in ABL.
SEATING CAPACITY
At ABL Satellite Town Branch Gujranwala the seating arrangement is although
wonderful but the seats are very few as compared to the number of customers.
PROVISION OF INFORMATION TO CUSTOMERS
ABL charges Rs.100 and Rs.150 for online cash remittances for current account and for
saving account respectively such fee deduction from customer’s account is not
communicated in a clear manner to the customer. So, customer is annoyed to see
deductions from his account.
COMPENSATION PACKAGE
Compensation package of employees is not compatible to those in the market.
FAVORITISM
Many employees feel favoritism and nepotism prevalent in the Bank.
LACK OF TRANSPARENCY IN APPRAISAL PROCEDURE
Employees feel lack of transparency and effectiveness in the appraisal procedure.
OVERTIME
Late sitting (at Gujranwala Satellite town branch) is the major issue in the work life of
the employees due to which they are unable to maintain a healthy balance between their
work life and family/social life.
70
CUSTOMER’S LACK OF INFORMATION

Moreover, customers of Home Loans do not have a clear picture of monthly
installments, increase in the mark up rates. So, it’s been many times that UN avoidable
situations arise.
OPPORTUNITIES
Reorganizing efforts being placed in ABL by its employees and management. ABL’s
current management has broader vision. ABL can take various steps to improve customer
services, streamline internal procedure and creating a delectating climate for technology
initiative.
EXPANSION
At ABL Gujranwala Satellite town branch expansion in the building is in progress and
will soon be completed. So, taking benefit of more space more employees should be hired
in order to meet the shortage of manpower.
SMALL BRANCHES
ABL should encourage all those branches which are behind the progress level by sending
experts in these branches.
TRAINING AND DEVELOPMENT PROGRAM
A comprehensive training program may be developed to up grade the core banking skills
of the existing staff as well as integrated high quality hiring.
These actions if taken by current management will provide a great opportunity to ABL
for making it future prosper and can make ABL not less than any modern bank in
Pakistan.
71
THREATS
Following are the major threats which ABL is facing:
COMPETITION
Major threats ABL facing is from its competitor especially from MCB, NBP, UBL &
Islamic Banks especially from Dubai Islamic Bank, Meezan Bank.
GIFTS
Recently banks and other financial institutions have introduced innovative schemes to
attract deposits, like gift cheque scheme by MCB. These schemes offer prizes on short
and long term fixed deposits, through lucky draws. Currently ABL is not offering any
such incentive to its customers.
NEW ENTRANTS
Potential competition from the new entrants in the Banking sector (Dubai Islamic Bank,
Global Emirates Islamic Bank).
TURN OVER
Employees turn over in the face of new competition.
72
10.1 PROBLEMS
• Lack of training to the staff members.

• Lack of learning environment
• Lack of efficient services.
• Lack of segregation of the department
• No time management
• Machinery not up to date (inefficient)
• Lack of marketing expertise
• Some times shortage of cash
• Systems have bad quality
• Too much burden on employees
• No lunch break
• Seating arrangement is a big problem
73
10.2 SUGGESTIONS & RECOMMENDATIONS

ABL is premier in Banking System. It needs a lot of improvement in its sectors. Some of
the recommendations & suggestion to the bank would be as follows:
PLANNED AND HEALTHY COMPETITIONS:
ABL should become very specific about its competitors, so that it can understand who its
competitor is in the first degree and who is in the second degree. Then the first-degree
competitors should be watched closely.
FORMATION OF A RESEARCH CELL:
A research cell should be established that continuously try to gather information about
the present action about its competitors and expected future actions. So in this way more
effective strategies can be formulated.
REWARD SYSTEM:
The performance reward linkage should be making strong as it is said, "A happy
employee delivers more than he receives from the organization." The ABL should also
try to make its employees happier.
SELECTION CRITERIA
There is immediate need, to reconstruct the personnel policies. Selection should be
through newspaper advertisements. In this way more intelligent, efficient and qualified
staff can be formulated.
ATTARACT DEPOSITS
ABL should combine all it power to keep itself progressing by launching new and
attractive schemes to attract new deposits so that it must have a competitive advantage
among other banks. Although presently the deposits at ABL are very high still to stay
competitive Bank should attract more and more deposits.
MORE FACILITIES
To attract the customer in the future, ABL has to make extensive efforts to provide more
facilities of retail and consumer banking plus the technology in the banking which will be
necessary for future banking.
74
SEATING ARRANGEMENT
Seating arrangement should be good. Presently ABL Gujranwala has insufficient seats for
customers. Bank’s management should facilitate good seating arrangement so the
customers and employees shouldn’t have to wait for long to complete their tasks.
BRANCH OUTLOOK
The outlook and interior lay out of the branches is another thing which needs to be
improved and with the modern style because the outlook also plays an important role in
attracting customers.
COMPLEXITIES
The procedure of taking services from the bank must be made easier and straight forward
not involving long difficult procedure for simple tasks.
BETTER CUSTOMER TREATMENT
Bank should guide and train the employees to provide detailed information to the
customers and be more courteous and polite.
PRODUCT PROMOTIONS
To remain in the market, bank needs to be vigilant in the eyes of customer. One way is
through promotion efforts, so that people may be aware of he services of the bank and
any addition which the bank makes in the portfolio of its services. Giving advertisements
in English newspapers is not enough.
SUNDAY OPENING
In order to provide added convenience to customer, the bank can also open its branches
on Sunday like many international banks.
75
GLOSSARY
Automated Teller Machine
Computer controlled terminals located on the premises of financial institutions or
elsewhere, through which customers may make deposits, withdrawals, or other
transactions according to their need.
Bills for Collection
A bill of exchange drawn by the exporter usually at a term, on an importer overseas and
brought by the exporter to this bank with a request to collect the proceeds.
Corporate Governance
The process by which corporate entities are governed. It is concerned with the way in
which power is exercised over the management and direction of entity, the supervision of
executive actions and accountability to owners and others.
Central Bank
The principal monetary authority of a nation, a central bank performs several key
functions, including issuing currency and regulating the supply of credit in the economy.
The SBP is central bank of Pakistan.
Cheque Clearing
The movement of cheques from the banks or other depository institutions where they are
deposited to those on which they are written, and funds movement in the opposite
direction.
Deferred Taxation
Sum set aside for tax in the Financial Statements that will become payable in a financial
year other than the current financial year.
Earning per Share
Profit after taxation divided by the weighted average number of ordinary share in issue.
Forward Exchange Contract.
Agreement between two parties to exchange one currency for another at a future date at a
rate agreed upon today.
Gross Dividends
The portion of profits distributed to the shareholders including the tax withheld.
76
Liquid Assets
Assets that are held in cash or in a form that can be converted to cash readily, such as
deposits with other banks, bills of exchange, treasury bills.
Market Capitalization
Number of ordinary shares in issue multiplied by the market value of share as at the year
end.
Net Dividends
Dividend net of withholding tax
Net Interest Income
The difference between what a banks earns on assets such as loans and securities and
what it pays on liabilities such as deposits, refinance funds and inter-bank borrowings.
Non Performing Loans
A loan placed on cash basis (i.e Interest Income is only recognized when cash is
received) because in the opinion of management, there is reasonable doubt regarding the
collect ability of principal or interest. Loans are automatically placed on cash basis when
a payment is 3 months past due. All loans are classified as nonperforming when a
payment is 3 months in arrears.
Price Earnings Ratio (P/E Ratio)
Market price of a share divided by earnings per share.
Return on Average Assets
Profit after tax divided by the average assets.
Repurchase Agreement
Contract to sell and subsequently repurchase securities at a specified date and price.
Return on average Equity
Net profit for the year, less preference share dividends if any, expressed as a percentage
of average ordinary shareholders’ equity.
Revenue Reserve
Reserves set aside for future distribution and investment.
Shareholders’ Funds
Total of Issued and fully paid share capital and capital and revenue reserves.
77
BIBLIOGRAPHY
All the information provided by making this Internship Report has been gathered during
doing Internship in Allied Bank Limited and from the following sources:
WEBSITES
• www.abl.com.pk
• www.pakistaneconomist.com
• www.businessrecorder.com
• www.dawn.com
• www.findarticles.com
BOOK
Financial Statement analysis by CHARLES H GIBSON 7th Edition
MANUALS
• From the Branch Manager Mr. Shiekh Naveed
• Clearing Officer Miss Naghmana
• Allied Bank Annual Report
• Lectures by Mr. Hafiz Imran, Professor of P.C.I.T.
• Account Opening Officer Miss Sobia Nasir
78
79

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AUSTRALASIA BANK (1947 TO 1974)

Islamabad Stock Exchange 8th August 2005

Lahore Stock Exchange 10th August 2005

Karachi Stock Exchange 17th August 2005

1.4 ONLINE BRANCH NETWORK

1.5 ATM NETWORK

§ ABN Amro Bank

§ National Bank of Pakistan

1.5.3 M-NET NETWORK

§ JS Bank (American Express Bank)

1.6 PRODUCT AND SERVICES

1.9 CORPORATE INFORMATION

Name Position Appointed As

Muhmmad Naeem Mukhtar Chairman Non Executive Director

Sheikh Mukhtar Ahmed Non Executive Director

Muhmmad Waseem Mukhtar Non Executive Director

Abdul Aziz Khan Non Executive Director

Sheikh Jalees Ahmed Non Executive Director

Farrakh Qayyum Government Nominee Non Executive Director

Nazrat Bashir Government Nominee Non Executive Director

Tasneem M. Norani Independent Director

Mubashar A. Akhtar Independent Director

Kamal Munnoo Independent Director

Khalid A. Sherwani President Executive Director

1.11 MANAGEMENT HIERARCHY OF ABL

Corporate & Commercial & Consumer Banking

Treasury Risk Social Assets

Finance Operations Information

Humane Compliance Corporate

1.12 MANAGEMENT HIERARCHY OF ABL (SATELLITE TOWN BRANCH)

Sir. Shiekh Naveed

Miss. Naghmana Sir. Hafiz Waheed

Sir Shahid Shah

Sir. Saqib Yaseen Miss. Sobia Nasir

2.2 INTRODUCTION OF ACCOUNTS

2.2.1 CURRENT ACCOUNT

2.2.2 PLS SAVING ACCOUNT

2.2.5 ILLITERATE PERSON’S ACCOUNT

2.2.8 SOLE PROPRIETORSHIP ACCOUNT

2.3 ACCOUNT OPENING PROCEDURE

2.5 BASIC DOCUMENTATION

ACCOUNT OPENING FORM

2.7 SPECIMEN SIGNATURE CARD

2.8 KYC FORM

• source of income of the customer

2.9 CHEQUE BOOK ISSUANCE

2.10 GENERAL RULES

8. Any sum to be deposited in the account should be accompanied by paying-in-

• Indemnities for Requisition slip loss. Indemnity is and undertaking/request in case

2.11 TIME REQUIREMENT FOR OPENING A/C

3.1 CHEQUE FILLING

3.2 TYPES OF CHEQUES

4.1 ONLINE DEPOSIT SLIPS

Three digit Paisa

5.1 DEBIT CASH VOUCHER (RED VOUCHER)

5.2 CREDIT CASH (GREEN VOUCHER)

5.4 CREDIT TRANSFER (YELLOW VOUCHER)

facility to its A/C holders…so, it needs no special verification and documentation

6.2.4 CLOSING THE LOCKERS

6.3.1 MEMORANDUM OF LETTING OF SAFE