Académique Documents
Professionnel Documents
Culture Documents
on
Submitted By:
Basit Nazir
BBA (7th)
In the name of
Internship report
2013
Dedication
I dedicate to my parents,
Whose pray for my success,
And to all my loved ones
Whom I love from the core of my hearts
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Preface
To become expert in any particular field only theoretical knowledge
does not provide a concrete base. Practical work and research base
on assignments are an integral part of our study. This practical work
known as internship, that plays the vial for student to come across the
practical aspects of the theoretical concepts of the books.
Bookish knowledge is of no value, without exposure to the practical.
The internship program enables us to evaluate and understand the
practical application of all the terms and techniques that we have
studied during our course work. It also provides us an opportunity to
see and observe the working environment of the organization.
I was assigned to complete my internship comprising practical work
of 6 weeks, at the Allied bank limited. In this internship report I have
tried my level best to explain each and every significant aspect of the
branch comprehensively.
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ACKNOWLEDGEMENT
A person who is not thankful to his benefactor, is not thankful to Allah
MUHAMMAD (PBUH)
Basit Nazir
BBA 7th (M)
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Table of Contents
S. No.
Chapter: 1
Chapter: 2
Chapter: 3
Chapter: 4
Topic
Preface
Acknowledgement
Executive Summary
Our Banking System Today
Introduction & History
History & Background
Australasia Bank
ESOP revolution
Ibrahum Group Assumes Control of ABL
Vision
Mission
Core Values
Objectives
Company Information
Organogram of Allied Bank
Branch Network
Number of Branches
Page No.
ii
iii
v
vi
1
2
3
4
5
6
6
7
7
8
14
16
17
18
19
19
19
20
20
20
21
21
22
Product
Price
Placement
Promotion
HR Activities
23
25
26
26
27
29
Products
Services
30
33
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Chapter: 5
SWOT
Strength
Weakness
Opportunities
Threats
PEST Political
Economical
Social
Technological
Chapter: 6
Chapter: 7
2013
36
37
37
38
38
49
39
40
40
Financial Analysis
41
Balance Sheet
Profit & Loss Account
Horizontal Analysis of Balance Sheet
Horizontal Analysis of Profit & Loss Account
Vertical Analysis of Balance Sheet
Vertical Analysis of Profit & Loss Account
Ratio Analysis
42
43
44
45
46
47
48
Work done by me
54
Conclusion
59
Recommendation
60
Internship Letter
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Executive Summary
This report is about my internship program with allied bank
limited. In this comprehensive report, I have discussed about every
major aspect of the bank, Which I observed and perceived during my
internship program. In this report you will find the detail about the bank
right from its incorporation to the current position. Along with it, the
processes, policies and procedures of the bank are also discussed in
detail.
During my internship program, I mainly worked in general
banking. Al the departments have been discussed in detail and all the
policies and procedures has been described thoroughly. As the main
purpose of internship is to learn by working in practical environment and
to apply the knowledge acquired during the studies in a real world
scenario in order to tackle the problems using the knowledge and skill
learned during the academic process, in this report the detailed analysis
of organization tell us the financial, technical, managerial and strategic
aspects evaluated to analyze the current position of organization.
In the end, the learning and experience section consist of all the
policies, processes, practices and procedures which I have undergone
through and learned during my internship program. This report also
contains my participation, perception about the employees satisfaction,
motivation level and the working environment of the organization.
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Limited entered in the new era of its history a worlds first bank to be owned and managed by
its employees. The 850 executives and 7200 staff members spread over 800 branches
throughout the Pakistan established in high degree of cooperation and family feelings.
ESOP revolution:
ESOP stands for Employees Stock Ownership Plan. This concept is introduced first
time in Pakistan from Allied bank. This concept was not familiar, but Allied bank introduce
under the active of Mr. Khalid A. Sherwani. This concept is definitely recorded in the
history of Pakistan.
Under this concept of ESOP, the ownership of enterprises is transferred to its employees,
who are in the profitable position to running these enterprises. The more advantages of ESOP
is to support the workers in free enterprise system, in job securities, better profitability and a
distinctive corporate culture indicate family feelings & professional society. Privatization
policy is said a corrective action, but this fact of ESOP is a good initiative for the Govt. of
Pakistan. This fact lead to economic freedom, remove unemployment, poverty and improve
life quality.
September 10, 1991 the bank became the first bank of Pakistan that is rebuilt and jointly
owned by its employees through the ESOP concept. This fact developed by the management of
Allied bank under the head of M. Khalid Latif.
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ceremony held at SBP, Karachi. In the auction, the consortium of Ibrahim Leasing Limited
And Ibrahim Group were the successful bidder as they offered the highest bid of Rs. 14.2
billion for acquiring these additional shares, which constitutes 75.35% of the revised
capital of ABL.
After the approval of scheme by the Federal Government, the State Bank issued the
Letter of Acceptance (LOA) to the consortium of Ibrahim Leasing Limited And Ibrahim Group
on July 26, 2004 in terms of which the full payment of Rs. 14.2 billion was made on August
19, 2004. On receipt of full payment by the Allied Bank of Pakistan Limited and verification of
the sources of funds by the State Bank of Pakistan, the control of the Bank was handed over to
consortium of Ibrahim Leasing Limited And Ibrahim Group.
VISION:
To become a dynamic and efficient bank providing integrated
solutions and the first choice of bank for all customers.
MISSION:
To provide value-added services to our customers.
To provide high-tech innovative solutions to meet customer requirements.
To create sustainable value through growth, efficiency and diversity for
all stakeholders.
To provide a challenging work environment, and reward dedicated team members.
To play a proactive role in contributing towards the society.
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COREVALUES:
The core values of Allied Bank are these:
Integrity
Excellence in Services
High performance
Innovation and Growth
OBJECTIVES:
Allied Bank has following objectives:
Earn profit by providing values to its customers.
Provide superior services to its customers.
Provide assistance in the development of the commerce and trade
industry.
Allied bank have another responsibility to give service to their
communities.
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Company Information:
a. Board of Directors:
The board of directors of Allied Bank Limited consists of the following 9 members.
M. Naeem Mukhtar
M. Waseem Mukhtar
Mubashir A. Akhtar
A. Akbar Sharifzada
Khalid A. Sherwani
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b. Board Committee:
1. Audit committee of Board:
Primary responsibilities of the board audit committee are to identify the appropriate
measures, that taken by the management to protect Bank Assets, Consistency of accounting
policies, review of financial statement and close coordination with them to fulfill to legal and
code of business power requirements. Three persons are the members of this committee;
Mubashir A. Akhtar (Chairman)
Pervaiz Iqbal Butt
A.Akbar Sharifzada
3. e-Vision committee:
The main key mission of this committee is to provide a right direction to his customers
for e-banking adoption.
committee of Board;
Sheikh Mukhtar Ahmad (Chairman)
Muhammad Waseem Mukhtar
Mubashir A. Akhtar
Khalid A. Sherwani
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c. Management Committee:
This Figure shows the all Committees of Allied bank of Pakistan. Management
Committee (MANCO) controls all these committees. Every committee is responsible for his
decision and responsibilities and duties.
Management
Committee
(MANCO)
Assets Liability
Committee
(ALCO)
Human Resource
Committee (HRC)
Central Administratiive
Action Commettee
(CAAC)
Risk Management
Committee (RMC)
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Khalid A. Sherwani
Rizwan Ata
Zia Ijaz
Tariq Mehmood
Mujahid Ali
Saif-ul-Islam
Chief, Compliance
Fareed Vardag
Muhammad Raffat
Company Secretary
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d. Business Volume
The Business volume of Allied Bank increase in 2012 with every aspect. During 2012,
the management of Allied Bank increasing the low cost deposits 399.6 billion to 5.147 Rs.
Billion. Company total assets increase at 23% ratio and the earning per share (EPS) is increase
from 10.71 to 12.34. But, the ROA remain constant at 2%.
This figure show the company total business volume of 2012.
Deposits
Up by
29%
Up by
22%
Up by
23%
Up by
15%
Total Assets
Rs. 631.9 billion (2011; 515.7 billion)
Profits
Rs. 11.7 billion (2011; 10.1 billion)
EPS
Rs.
ROA
Advance and Deposits (Rs. In billion)
12.34
2%
Earnings per Share
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a. Corporate Structure:
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President
Senior Executive Voice President
Executive Voice President
Senior Voice President
Voice President
Teller
Messanger
Technical Staff
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Branch Network:
Allied Bank has 885 nationwide branches of which approximately 67% i.e. 573 are
located in large metropolitan area, namely Karachi, Islamabad, Faisalabad, Lahore, Multan,
Peshawar and Hyderabad. The network of 855 branches enables the bank to generate a
substantial and stable deposit base, provide a wide range of banking products and other financial
services and diversify lending risks geographically, as well as on the basis of credit and customer
type.
Allied Bank divided into four Centers i.e. North, Central-I, Central- II and South. These
Centers have the regions and the regions further have the sub branches of Allied Bank Limited.
The detail is given there:
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Number of Branches
Reginonal Office Location
Center
Computrized
Total
49
61
67
100
16
32
Abbotabad
22
16
56
Faislabad
32
69
Gujranwala
23
36
10
35
67
67
Sialkot
20
42
Multan
37
63
21
39
104
104
37
59
Sukkur
14
34
Quetta
36
36
558
855
Peshawar
Rawalpindi
Islamabad
Mardan
Sargodha
North
Center-1
Lahore
Gulberg
Bahawalpur
Center-2
Bahawalnagar
Karachi city
Sadar & Society Kirachi
Nazam abad Karachi
Hyderabad
Total
South
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Cash department
Accounts department
Remittance department
Clearing department
2. Cash Department
It provides its users with following facilities:
(a) Accept deposits:
When a customer wants to deposit any amount in its account it goes to the relevant
officer who accept deposit and give a receipt to the customer. The cashier in cashier long book
enters the amount deposited by the customer on its credit side.
(b) Collection of utility bills:
The branch also provides the facility of utility bills collection of electricity, gas and
telephones. The branches collect utility Bills during banking hours. Bills can be paid through
cash or cheques.
3. Accounts department
One of the important functions of bank is to accept deposits from general public. Following
are the types of accounts provided by the bank:
Current accounts.
PLS saving accounts.
PLS term deposit.
Special notice deposit.
The classification is based on the duration and purpose for which the deposits are kept at the
bank. Following are the features of these accounts.
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4. Remittance Department:
One of the major functions of bank is remittance. This department provides this facility
through following instruments.
Demand draft
Telegraphic Transfer
Payment order
Deposit at call
5. Clearing Department:
When the branch receives cheques of other banks than one process of getting payment
against these cheques is that you sent a person who will take money on your behalf but in these
cities where State bank exist this function is performed by clearing. In State bank of Pakistan
there is a clearinghouse. It involves two clearing procedures,
Outward Clearing Register:
Inward Clearing Register:
6. Advances Department:
The basis function of the bank is to accept deposit and lend money to the borrowers
against a spread so to be able to give some profit to the depositors as well as to earn profit for the
bank. While lending the money to the borrowers the bank should observe the following lending
principals:
Safety principles
Profitabiity Principles
Purpose Principles
Liquidity Principles
Security Princiles
Spreading of Risk Principle
Nartional Interest & Suitability Principles
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7. Credit Department:
The main function of the credit department is to lend money to the customer. Allied Bank
Ltd. Lends money in the form of clean advances against promissory notes as well as secured
advances against tangible and marketable securities. Beside these ABL also lend money against
life policies and immovable property..
Lien
By Cash Credit
By Overdraft
1. Dollar
2. Euro
3. Pound
The account is open with 1000 dollar if it is less 5-dollar per month is deducted. For
opening the account NIC & introduction is required of the same bank. If any person wants to
import goods from foreign, an account is required and for international trading the FC is needed.
ABL provide foreign currency on Pak rupee at booking rate and the central office sent Rates.
Different accounts can be open like joint account or company account. The thankful letter is sent
for opening the foreign currency account to account holder and introducer. When any transaction
is made the bank inform stock exchange daily. The foreign currency note is counted and
recorded in the cash memo book. The people in the foreign country sent the amount through
S.W.I.F.T. Weekly and monthly report of all the transaction is given to the stock exchange.
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Marketing mix is a procedure consists of 4ps that is use to find customers needs and
wants. Allied bank limited also depend on these procedure. Customers needs and wants are
controlled by through 4s. This procedure consists of 4 variables.
Product
Place
Price
Promotion
We discuss one by one in detail.
Product:
Any physical thing or service offered to customer is known as product. Product depends
on company item or planned to operation. When a customer makes the decision about purchasing
any product then decision of that person depends on packaging of the product, appearance of the
product, warranty of product, guarantee of the product etc.
The allied bank limited of product or services are listed below.
Current Account
Saving Account
Fixed Account
Allied Basic Account
Cash Finance
ATM Card
Cash Shop
Debit Card
Allied Business Account
Agri. Revolving Finance
Running Finance
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1. Current account
This type of account is usually used by business men. In which customer draw cash any
time and deposit cash any time. No profit or loss calculated in this type of account. Zakat cannot
be deducted on this type of account
2. Saving Account
This account mostly uses those people who save money and want to deposit their amount
of savings in the bank for short time period or long time. The deduction of Zakat applies on this.
Fixed amount of profit given to the customer after fixed time period.
3. Fixed Account
In this account customers deposit money for long period of time and get profit on this
saving amount. Zakat is deducted in this type of account.
4. Credit Card
The allied bank limited provides the facilities of credit card to our customer and get some
specific interest against these facilities.
5. Cash Shop/Debit Card
ABL provide these services to our customer. The customer of ABL can pay any payment
of restaurant, departmental store etc. without cash.
6. ATM Card
ATM stands for automated teller machine. ABL provide ATM card to our customer.
Customers can get cash at any time of day through ATM card.
7. Allied Business Account;
This type of account use for only business purposes when the customer account have five
lace in our bank account the bank provide these services free of cost like online services etc.
8. Cash Finance
The ABL bank pledges the fixed assets of the customer against provision of loan to our
customer for specific time. The assets are pledged for a security purpose.
9. Running Finance
It is vice versa of cash finance.
10. Agri. Revolving
Agri. Revolving is only for those people who run agricultural land. The bank pledges the
land for the sake of security purpose and gives loan to our customer for specific time period.
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Price;
Price is the amount which is paid by the customer against any product or services. When
the organization set prices of any product or services then company keep certain point while
setting it that are competitors price, customers response, quality of goods and services etc. The
pricing strategies of ABL includes following terms.
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Placement;
Where the product is ready to offer to the target customer that is called the placement of a
company and consumer can purchase this product or service. But place decision of company
depends upon the channel of distribution. That means to serve the product of targeting customer
with sequence that must be easy for customer and company both. So the distributions systems of
products or services depend on proper channel in include channel members, types of good level
of services and marked coverage. Following concept are used by ABL use in the placement
strategies.
The branches of ABL all over the Pakistan which can facilitate its agreed culture,
industrial and commercial sectors. The ABL provide loan to large industry that is life blood of
county. So this facility is given to industrial sector of Pakistan.
PROMOTION;
It means activities that communicate with the customer. The decision related to
promotion is connected with communicating and selling product and services to the customer.
The price of product on promotion stage is very low. In these the value of customer and worth of
consumer must be determined.
Allied bank limited use the promotion activities that are listed below;
Advertising
Personal Selling
Public Relations
Print Media
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The Human resource management composed of the seven basic HR activities here we
discuss only few of them which are related to our company. Lets discuss few of them:
Strategic HR planning:
The HR planning means the right person at the right job at the right time. The HR
planning we forecast our demand and supply while expands our business. The United Bank
Limited follows the business level and competitive strategy because of the very large number of
its competitors in the market. The ABL gain the advantage in the differentiation because they
offer different types of the online and offline services to their customers.
Job analyses:
Job analyses are the procedure in which you determine the duties and responsibilities of
the job and the characteristics of the people to who should be hiring for it.
The job analyses include the job description, job specification and job evaluation.
Techniques in Job analyses:
The ABL use the qualitative method to analyze the job. The techniques that are used by
the UBL top management or analyst are the interview and the open-ended-questionnaire.
HRIS (Human Resource Information system):
The HRIS is the database in which the employees each and every document is recorded
and it is up to date with the passage of time. The ABL HRIS system is helpful when the internal
supply of the candidate is required. The ABL HRIS system gave the complete information about
the employees which are available for the job.
Training and Development:
Training refers to the methods used to give new or present employees the skills which
are necessary to perform the job. Development includes the employees, management,
organizational and career development which develop employees, career skills management
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which enhance the executive abilities, organizational cultural development and career
development for the employees.
Health, safety and security:
The ABL bank provides the compensation and benefits in the shape of the medical
treatment, repair the vehicles and provides the safety to the employees while they are doing their
work. Employees asked for their compensation if any of the above condition occurs. Benefits
which are provided by the ABL are paid time off, retirement, disability insurance and free
education and training programs. The insurance bank provides the financial support to the
employees while they are injured or ill on the job.
Employee and labor relation:
This HR activity deals with the persons who are working in the company and they have
several kinds of issues with the top level management. So, they elect the CBA (collective
bargaining agent) which directly connect with the top level management and in case of any
discomfort they told the top management on time and properly tell the whole story to the top
management. The UBL is also following the same procedure to enhance their good will among
the low level employees. The UBL management all the policies regarding to the well faire of the
worker or low level employees they first contact with CBA gave the whole policy to them and
then the CBA makes formal on behalf of the workers.
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Products:
Allied Bank offers a full suite of products and services, tailor-made to cater to the
requirements of each segment of its customer base. We aim to provide comprehensive solutions
for all our customers, wherever they are located on their financial graph. From customers just
beginning a banking relationship to those with more sophisticated banking needs, we can bring
the full capability of Allied Bank to their doorstep. Customers have the advantage of nationwide
network of over 873 online branches with well informed and friendly staff, as well as 618 ATMs
strategically located to help provide ease of banking. Allied Bank provides these types of
Products.
1. Branch Banking
With a vast network of 873 branches, ABL is committed to provide real time online
banking solutions to its customers in an efficient and convenient manner.
2. Banking on Saturday
For convenience of customers, full ranges of non-stop Banking Services are being offered
to the customers on Saturday from 10:00 AM to 02:00 PM. At present, around 300 branches
operate on Saturday for public dealings.
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6. Current Account
ABL offers current account to cater the needs of various customer segments. On
maintaining a daily minimum balance of Rs 0.5 million, a range of free services like issuance
of Pay Order and free online transactions etc., can be availed.
7. ABL Bancassurance
ABL Bancassurance offers Investments
education/marriage, accidental and terrorism.
and
Protection
plans
for
child
8. Theme Branches
Modern technology and signature themes are adopted for attaining a significant position
as a preferred Bank. We have six women branches located across Pakistan which offers
exclusive services and provides a conducive environment for the female customers to
conveniently do banking with us. We have also launched youth branches with an aim to
specifically provide banking services to the younger generation as per their life style and a youth
friendly environment.
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16.Corporate Banking
The Corporate Banking works on a long term relationship based on a business model to
provide a single point within the Bank for meeting all business requirements of our corporate and
institutional customers, including public sector enterprises, with the primary objective of
enhancing customer service. Dedicated relationship an agers for each of our corporate client
ensures customer satisfaction, which remains our top priority. Our relationship oriented outlook
focuses upon providing a complete array of tailored financing solutions that are practical and
cost effective. Our main products include Working Capital Facilities, Term Loans, Structured
Trade Finance Facilities, Letters of Guarantee, and Letters of Credit, Fund Transfers /
Remittances, Bill Discounting, Export Financing and Receivable Discounting.
17.Investment Banking
The Investment Banking (IB) arm of the Bank is a multifaceted business unit geared
towards meeting the complex financing needs of its clientele by providing a full suite of
financing solutions to corporate clients which includes debt syndications and capital markets,
project finance and advisory services. Project Finance desk offers services to project sponsors for
development of a credit-worthy and bankable financial structure for the project with appropriate
risk allocation. It also extends syndicated project finance solutions to project sponsors desirous
of setting up green field projects. The Advisory Desk offers a broad array of services/products
ranging from advising on IPOs, Underwritings, Divestments, Debt Restructurings, Privatization
and M&A Deals. Within these broad service areas a full suite of solutions is available with
Allied Bank Investment Banking.
Services of ABL:
1. Agriculture Finance
Allied Bank Limited is also involved in agricultural
financing across the country and offers vast range of agricultural
financial facilities through more than 150 Agri designated
branches. Allied Bank offers multiple and diversified range of
Agri Products for both Farm & Non-Farm sectors.
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Size of Lockers:
Locker Size
Security
Rent
Small
Medium
Large
Rs. 1500
Rs. 3500
Rs. 5000
Rs. 750
Rs. 1500
Rs. 2500
3. Import Export
Allied Bank provides highly efficient trade finance services for import/export businesses
through a large number of authorized branches where trained and motivated staff is available to
handle the business on the customers behalf.
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5. ATM Network
Allied Bank has a vast network of over 460 ATMs installed
in over 130 cities, which continues to grow at a rapid pace.
1 Link Network:
6. M-Net Network
The Allied Cash+Shop Visa Debit Card can also be used
at M-Net ATMs, for cash withdrawal.
7. UTILITY BILL
Customers can pay their utility bills (e.g. electricity, gas, telephone) at any of the Banks
branches. For further convenience, bills are collected on all working days during normal banking
hours and also at certain times during the evening. Furthermore, customers can also pay their
bills using any of the Banks ATMs or via Internet Banking.
8. HAJJ SERVICES
The Hajj Service is available to all pilgrims. The forms and
other related services are provided by the Bank. Hajj applications
are available with all branches during Hajj season, immediately
after the Hajj policy is announced by the Government of Pakistan.
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STRENGTH
Allied Bank Limited has certain strengths which are different from the other Banks.
ABL is the first Muslim Bank of the world, which is owned and managed by its own
employs. This is the biggest strength of the Bank. A feeling of ownership is present in
every employ, which not only helps in increasing the productivity of employs but also
creates sincerity with the Bank in them.
Strength is the high motivation of employees to their work because they know that what
so ever they do, it will be in their own benefit. They know that the profit, which they will
earn, will be distributed among all the employees. So they work with high motivation and
concentration.
Salaries are very reasonable, so the employees are not financially disturbed and they
devote their selves fully to their work.
They have wide area network in all over the Pakistan, so that they cover a lot of portion
of cash transactions and make customer satisfied.
The Bank has very strict rules and regulations about the customers complaints. The
customers are treated as very special persons in the Bank.
WEAKNESS
No entertainment facilities are available in the Bank when customer goes to the Bank
and wait for a longer time. These facilities can be the newspaper, magazines, etc.
Advertisement of ABL is not such goods as of other banks.
Outlook of the ABL branches is not attractive to the people.
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OPPORTUNITIES
The policies of the new government to uplift the economy and pursue financial sector
reforms are expected to yield positive results in the banking industry of the country. The
ABL is very well praised to avail promising opportunities.
As a result of the different steps taken by the Government regarding the betterment of the
economy, small borrowers are attracted to get the financing and start small businesses.
So, the ABL has an opportunity to attract the customers by giving them attractive
schemes.
THREATS
First threat is that of political influence. Three boards of directors are of government. So
that they can influence on the decisions of the ABL.
The biggest threat in the banking sector is the continuous downfall of the country
economy since the last few years. If this downfall remains for more few years then it may
be the great hindrance in achieving the Banks objectives.
The privatization of other banks is also a threat for the Bank. Due to the privatization of
the different bank e.g. MCB, the competition has increased a lot. Furthermore many
private banks have come in the sector due to which it is becoming more difficult day by
day to attract the customers.
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Pest analysis some time called STEP analysis or PESTEL analysis. It stand for Political,
Economical, Social, Cultural and Technological analysis. This analysis should be conducted by
ABL for the sake of determining the factors that can effect on operations and other function of
the branches. After this the results of this analysis are used by the bank to take advantage of
opportunities and to make contingency plan for threat.
So we discussed each factor with essential detail.
POLITICAL FACTOR
If we see the political situation in country. They can effect on the economy of the
country. This political situation can also effect on banking system.
SBP have regulatory authority of banking system. So the policies of SBP affect the major
cause in both directions. Trade policies are also affected but major reason is global changes that
affect the economy. In these days financial sector face depression that also effect on banking
system.
ECONOMIC FACTOR
Economic factor can also influence the banking system of Pakistan. The profit rate is
declining very fast during last few years. Here multiple reasons are responsible for this decline
but major reason is cost of starting new business is very high. Another reason is inflation that
also effect on profitability and other operations of business. The saving capacity of people is
declining day by day through inflation. Interest rate can also effect on banking business
sometimes interest rate is very high and economy move to negative figures.
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SOCIAL FACTOR
Social factor can influence the people and market. These factors change the values,
norms, choices, attitude and behavior of the society. In these days changes are growing fast from
market to market and person to person. So convert the behavior of customer through these
changes.
The social and cultural factors are different with each aspect such as norms, values,
behavior etc. Not all groups have same preference. The liking and disliking of every customer
are not same every customer has its own preference about product and services. So these
preferences are different from region to region or market to market.
In Pakistan customer can switch from conventional banking to Islamic banking system.
So ABL offer product and service according to the customer needs and wants.
TECHNOLOGICAL FACTOR
Modern technology can also impact on the success of banking system. If the banks use
modern and new technology then advancement and growth chances are very high.
Technology can also influence the social culture. Traditional system of banking is totally
changed with technological system. In these days allied bank limited use new and modern
technology for the sake of proving better service to our customer. But adoption of new
technology is requiring high capital. If the bank fails to use modern technology then the bank
cannot get market share and retained the customer.
Allied Bank Limited is adopting new and modern technology for the sake of increasing
market share and competing with competitors easily.
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Balance Sheet
Balance sheet
2010,2011,2012
Assets
Cash and balances with treasury banks
2010
2011
2012
31,265,658
36,479,765
43,351,653
579,700
1,679,121
1,029,286
11,488,944
1,361,754
10,720,935
Investments
121,158,730
195,789,638
267,403,346
Advances
253,102,710
244,439,837
271,084,275
15,371,118
18,095,123
19,871,173
483,152
751,908
Other assets
16,516,396
17,292,402
18,454,814
Total assets
449,966,408
515,888,612
631,915,482
Bills payable
4,118,791
4,015,317
6,203,051
Borrowings
20,774,450
49,993,200
38,916,192
371,280,948
399,560,790
514,707,055
5,494,800
5,492,600
5,490,400
_______
Liabilities
64,584
12,307,789
13,347,347
15,618,340
413,976,778
472,409,254
580,999,622
35,989,630
43,479,358
50,915,860
Share capital
7,821,009
8,603,110
9,463,421
Reserves
7,516,910
8,762,745
10,906,250
15,853,255
20,395,717
22,558,411
31,191,174
37,761,572
42,928,082
4,798,456
5,717,786
5,719,446
35,989,630
43,479,358
50,915,860
Net Assets
Represented By
Inappropriate profit
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2010
2011
2012
100%
116.68
118.84
100%
289.65
61.30
100%
11.85
787.29
Investments
100%
161.60
136.58
Advances
100%
96.58
110.90
100%
117.72
109.82
100%
155.63
0.00
Other assets
100%
104.70
106.72
Total assets
100%
114.65
122.49
Bills payable
100%
97.49
154.48
Borrowings
100%
240.65
77.84
100%
107.62
128.82
Sub-ordinated loans
100%
99.96
99.96
100%
108.45
117.01
100%
114.11
122.99
100%
120.81
117.10
Share capital
100%
110.00
110.00
Reserves
100%
116.57
124.46
Inappropriate profit
100%
128.65
110.60
100%
121.06
113.68
100%
119.16
100.03
100%
120.81
117.10
Liabilities
- - Liabilities against assets subject to finance lease - - - Deferred tax liabilities 12 - Other liabilities
Net Assets
Represented By
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2010
100%
100%
100%
100%
100%
100%
2011
115.15
118.83
111.47
88.14
17.76
-24.95
2012
109.98
138.62
81.44
41.43
-48.34
100%
100%
73.69
119.83
15.93
95.93
100%
100%
100%
100%
113.19
239.76
153.65
60.56
97.12
754.13
143.00
133.73
100%
100%
100%
100%
226.01
27.38
123.80
120.79
108.18
235.09
129.49
100%
100%
100%
100%
100%
100%
117.15
34.49
-163.47
122.54
376.44
118.59
128.23
103.42
-418.73
123.92
81.35
131.22
100%
122.90
127.83
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
118.52
41.80
24.70
121.06
123.81
130.32
81.02
130.18
127.60
123.78
89.66
-107.93
101.53
140.95
166.50
86.08
166.27
156.03
128.14
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Vertical Analysis
When using vertical analysis, the analyst calculates each item on a single financial statement as a
percentage of a total. The term vertical analysis applies because each year's figures are listed vertically
on a financial statement. The total used by the analyst on the income statement is net sales revenue, while
on the balance sheet it is total assets. This approach to financial statement analysis, also known as
component percentages, produces common-size financial statements. Common-size balance sheets and
income statements can be more easily compared, whether across the years for a single company. Vertical
analysis is a technique for identifying relationship between items in the same financial statement by
expressing all amounts as the percentage of the total amount taken as 100 in a balance sheet.
2010
2011
2012
100%
100%
100%
100%
100%
100%
100%
100%
100%
7.07
0.33
0.26
37.95
47.38
3.51
0.15
3.35
6.86
0.16
1.70
42.32
42.90
3.14
0.00
2.92
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
- - Liabilities against assets subject to finance lease - - - Deferred tax liabilities 12 - Other liabilities
100%
100%
100%
100%
0.78
9.69
77.45
1.06
0.98
6.16
81.45
0.87
100%
100%
100%
2.59
91.57
8.43
0.01
2.47
91.94
8.06
100%
100%
100%
100%
100%
100%
1.67
1.70
3.95
7.32
1.11
8.43
1.50
1.73
3.57
6.79
0.91
8.06
Net Assets
Represented By
Share capital
Reserves
Un-appropriated profit
Surplus on revaluation of assets - net of tax
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2010
100%
100%
100%
100%
100%
100%
2011
100.00
51.51
48.49
5.23
0.44
0.14
2012
100.00
62.91
37.09
2.57
-1.26
100%
100%
5.81
42.69
1.31
35.78
100%
100%
100%
100%
5.78
5.17
1.24
1.68
5.19
17.04
1.21
3.88
100%
100%
100%
100%
0.01
0.13
14.01
56.70
0.55
27.86
63.64
100%
100%
100%
100%
100%
100%
25.64
0.22
0.28
0.61
0.52
27.26
29.39
0.69
0.75
0.64
0.12
31.58
100%
29.44
32.06
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
9.55
0.30
-0.20
9.65
19.79
30.59
0.06
30.64
50.43
573.80
7.56
0.91
8.47
23.59
40.92
0.06
40.98
64.56
640.05
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Liquidity ratio:
Liquidity ratio, expresses a company's ability to repay short-term creditors out of its total
cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows
the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it
means fully covered.
Current ratio
Current ratio is a measure of the current adequacy of company's current assets to meet its current
obligations. It must be greater than 1. If it is less than 1, liabilities exceed current assets.
Current Assets
Current Liability
Ratios in %age
414857145
249094261
1.665462477
362622738
286502761
1.2656867
Current Assets
Current Liability
Ratios
414857145
249094261
165762884
362622738
286502761
76119977
Net-working capital
Formula= current assets-current liabilities
Year
2011
2012
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Net-worth
It shows the trend of companys total assets and total liabilities.
Formula=Total assets-total liabilities
Year
Total Assets
Total Liability
2011
515698939
472359135
2012
631915482
580999622
Ratios
43339804
50915860
Profitability Ratio
There are many measures of profitability. As a group, these measures enable the analyst
to evaluate firms profits with respect to the given level of sales, a certain level of assets or the owners
investment. Without profit, a firm cannot attract the outside capital.
Mark-up earned
Ratios in %age
51814273
1.09
49502633
0.32
15108482
2011
15870352
2012
Explanation:
This ratio shows decreasing trend. It decreases 2011 to 2012 that decreasing trend
is not good indication for the banks financial health.
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Gross Profit
Interest Earned
Ratios in %age
2011
25171039
51814273
48.57
2012
18360947
49502633
37.09
Interest Earned
Ratios in %age
2011
10139681
51814273
21.10
2012
11675814
49502633
23.58
Revenue
Total Assets
Ratios in %age
2011
51814273
515698939
.10
2012
49502633
631915482
.07
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Total Assets
Ratios
2011
10139682
515698939
.019
2012
11675814
631915482
.018
Total Deposits
Ratios
2011
15108482
399561676
.038
2012
15870352
514707055
.0308
Shareholders Equity
Ratios
2011
10139682
8683110
1.167
2012
11675814
9463421
1.234
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Total assets
Ratios
2011
10139682
515698939
.0196
2012
11675814
631915482
.0185
Year
Total Liabilities
Shareholders Equity
Ratios
2011
472359135
8683110
54.399
2012
580999622
9463421
61.394
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My first day in Allied Bank Bahawalnagar city branch manager Mr. Asif Hameed has
introduced me with other employees of bank. After that I visited every department one by one
and observe what is happening there. They all provide me the basic information which I needed
.They are all very cooperative. They also provide me a lot off information about bank affairs, in
which I have no knowledge.
Some of my observation and experience are discussed below.
Working in Branch:
First day at bank, the manager asked some questions to me about bank. The bank
manager has made some conversation with me and asks some question. After that he provides
me the following information. Then, start my work as an internee in Allied Bank City branch
and perform working in different departments like,
Account Opening Deptt.
Token Deptt.
Remittance Deptt.
Demand Draft
Pay order
Accepting of Deposits
Clearing Deptt.
department. One of the important functions of bank is to accept deposits from general public.
Bank borrowing funds from outside parties is more important because the entire banking system
is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial
banks do not receive these deposited for safekeeping purpose only. When the bank receives the
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amount of deposited as a depositor, it become the owner of it. The bank may therefore use these
deposits, as it deems appropriate. Deposits are referred to as the life blood small for any
banking sector. So, I also know about the types of Account.
Current Account
Saving Account
Fixed Account
PLS saving Account
Token Deptt.
In token department, token are issued for the encashment of cheques Demand draft,
Telegraphic transfer, Mail transfer and miscellaneous expanses voucher of bank before issuing
term we check the following
Date should be current or previous not advance.
Specimen Signature of account holder should there.
Signature of bearer should on backside of cheques.
Amount should be same both in figure and words.
In case of DD (Demand Draft), checking sign of authorized officer of bank if there is any
discrepancy in above-mentioned point, no token would be issued. Before issuing token, we
stamped on backside of cheques and write the no. Of token both front and backside of cheques,
etc. After all the process, the entry of cheques would be posted on the given register, which
includes token number Code number and amount. After banking hours, Total amount on register
would be tallied with the cash department amount, that which has been paid. Any cheques that is
returned from the current department because of any discrepancy, is debited from the total
amount on the register in token department.
Remittance Deptt.
Another important department in ABL Bahawalnagar Branch is Remittances Department
in which I shall perform work. The remittances department transfers the funds from one bank to
other bank and from one place to another place.
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In remittances department the collection take place. The ABL made payment of only open
cheques on the counter and prohibits the payment of crossed cheques. ABL transfers money
from one place to another by the following means.
Demand Draft
Demand Draft is another way of transfer of money from one bank to another bank.
Unlike pay order, a form is required to be filled for the issuance of the demand draft in which
necessary particulars about the beneficiary and sender are given. The sender deposits the amount
of DD plus commission and other charges on the bank counter, from where he is given a receipt
and in accordance with this receipt he is issued
The following are the main essential of draft:
It is a Negotiable Instrument.
Filling a form and depositing the amount written on it prepare 2} Draft.
It is a written order to its branches or to another bank to pay the stated amount on draft.
PAYMENT ORDER
Pay order is the most convenient simple and secure way of transfer of money. It is issued
by, drawn upon and payable by the same branch of the bank. It is neither transferable nor
negotiable and as such it is payable to the payee named there in. The following are the parties to
a pay order.
Purchaser is a person, firm, company or local authority.
Issuing/paying branch is one which issues/pays on presentation.
Payee is a person named there in.
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Telegraphic Transfer
This type of transfer is simple. After filling in the application form the concerned officer
shall fill the TT form. Then it is sent to the required bank, which on receiving it immediately
makes the payment to the customer and afterwards the vouchers are sent to that bank by ordinary
mail.
Clearing Department:
When the branch receives cheques of other banks than one process of getting payment
against these cheques is that you sent a person who will take money on your behalf but in these
cities where State bank exist this function is performed by clearing. In State bank of Pakistan
there is a clearinghouse. It involves two clearing procedures,
Outward Clearing Register:
Inward Clearing Register:
Cheque
During my work, I learn about cheque & his types. As a customer you keep money in the
bank, you are supposed to withdraw money whenever you want. But when you want to make
some payment and you have shortage of time you can draw the cheque on the bank and bank pay
your cheque amount. In this way the bank saves the time of his customer. Banks give you an
option. You can order them to pay someone, on your behalf. You can do this by giving a cheque
to the payee. A cheque is like an order to the bank. When the payee shows it to your bank, the
bank will pay the money. There are two types of cheque.
1. Open Cheques
Open cheques are those which are payable at the counter of the bank.
There are two types of open Cheques:
a. Bearer Cheques
According to instruction the payment is made to the man who holds the cheque Drawer order
the bank to make payment to the person who hold the cheque
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b. Order Cheques
Drawer orders the bank to make payment to a specified person whose name is mentioned in
the cheque. The bank pays only when it satisfied about the identity of payee.
2. Cross Cheque
A cheque with two small parallel lines is a crossed cheque. You cannot cash such a
cheque across the counter. It will only be credited to a bank account. Such a cheque has to go
through clearing. There are two types of Crossing
General Crossing
Special Crossing
c. General Crossing
The drawing up of two simple parallel transverse lines on the face of the cheque at the top
left hand corner with or without the words & co, Not negotiable or Account Payee only in known
as general crossing.
d. Special Crossing
A type of cheque deems to be crossed especially when it bears across its face the name of the
banker either with or without the words not negotiable. In case of special crossing the payment
can only be made to the bank named therein the cheque.
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Conclusion
At present there is no such organization in the world that is free from problems
and challenges. Every concern has to strive and struggle a lot to be more profitable and to get
more competitive edge.
The management of ABL is taking strategic steps to enable the bank to emerge as a
strong and progressive institution. It is continuing to make efforts to refine its products
and operations to make them more compatible. New deposit schemes have been introduced
and an action plan to maintain revenue growth in future.
During my internship I have learned many new things in spite of the knowledge gained at
university and also came to conclusion that education alone is not enough, practical training in
every field is crucial to become a successful manager.
The bank has great image due to the trust but it needs to use it effectively to increase
market share. Also the flaws in branch operations such as misallocation of resources should be
rectified.
As the business and economic conditions remain uncertain, ABL continues to develop the
new products like it has been doing in past.
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