Yousaf Raza Abl

6.
Excutive Summary
This report is the presentation of the working environment and salient features
of the Allied Bank Minerva centre Jhang Road Faisalabad. The Bank is very
prosperous and moving to highways of success, glory, wisdom and prosperity,
flourishment as well. Very attractive building at site, a large number of customers
those are trusting this organization exists and it has a cutting edge over its other
competitors in the market.
Working departments includes:
 Operation Department
 Cash department
 Remittance department
 Trade finance department
 Credit marketing department
 Credit administration department
 Credit card department
 Compliance and control department
Devoting and facilitating the customers and their satisfaction, by providing

them a variety of good and innovative products and a good quality services. Very
good culture is possessed by the bank. The employees are very devoting and very
happy as they are given good increments and are paid good salaries as well. Highly
motivating managing staff led the employees to this sort of devotion and sincerity.
The development of various sectors in Pakistan. The bank has already made
significant contribution in building and strengthen both corporate and retail banks
sector in Pakistan. Assessment of the needs and wants of customer is an on going
process at ABL.
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7. Objective of Studying the Organization
It is the age of information & competition. The scientific advancement
has made the life more dynamic &competitive worldwide. So one most
have practical knowledge and trained enough to live successfully in
present competitive situation because it is becoming difficult to survive
without creating changes &adapting ourselves according to these
changes.
The MBA students received during their study had completely theoretical
base. The ideas remained unsaturated, unless students don’t have any
practical study. So to provide the students and extensive exposure of
practical business aspects, department of business administration arrange
a compulsory 6-8 weeks internship program, for all of its MBA students,
in a well known organization. It familiarize with professional business
approach. To enhance their writing skill. In this way students also make
the written presentation of their experiences during their internship
program.
ABL is a leading organization in grain market was assigned to me for

internship. This report is about my experience & knowledge, which I
have gained during my internship program. In this report I have made a
humble attempt to express most efficiently and effectively what I
experienced & observed at ABL. I think that this report will be really
helpful for those who want to know about ABL Minerva centre near grain
market Faisalabad.
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8. Introduction of Banking Sector
Many of today’s banking services were first practiced in ancient Lydia,
Phoenicia, China, and Greece, where trade and commerce flourished. The temples in
Babylonia made loans from their treasuries as early as 2000 BC. The temples of
ancient Greece served as safe-deposit vaults for the valuables of worshipers. The
Greeks also coined money and developed a system of credit. The Roman Empire had
a highly developed banking system, and its bankers accepted deposits of money, made
loans, and purchased mortgages. Shortly after the fall of Rome in AD 476, banking
declined in Europe.
The increase of trade in 13th-century Italy prompted the revival of banking.

The moneychangers of the Italian states developed facilities for exchanging local and
foreign currency. Soon merchants demanded other services, such as lending money,
and gradually bank services were expanded.
The first bank to offer most of the basic banking functions known today was
the Bank of Barcelona in Spain. Founded by merchants in 1401, this bank held
deposits, exchanged currency, and carried out lending operations. It also is believed to
have introduced the bank check. Three other early banks, each managed by a
committee of city officials, were the Bank of Amsterdam (1609), the Bank of Venice
(1587), and the Bank of Hamburg (1619). These institutions laid the foundation for
modern banks of deposit and transaction.
For more than 300 years, banking on the European continent was in the hands
of powerful statesmen and wealthy private bankers, such as the Medici family in
Florence and the Fuggers in Germany. During the 19th century, members of the
Rothschild family became the most influential bankers in all Europe and probably in
the world. This international banking family was founded by German financier Mayer
Amschel Rothschild (1743-1812), but it soon spread to all the major European
financial capitals.
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The Bank of France was organized in 1800 by Napoleon. The bank had
become the dominant financial institution in France by the mid-1800s. In Germany,
banking experienced a rapid development about the middle of the 19th century with
the establishment of several strong stocks issuing, or publicly owned banks.
Banking in the British Isles originated with the London goldsmiths of the 16th
century. These men made loans and held valuables for safekeeping. By the 17th
century English goldsmiths created the model for today’s modern fractional reserve
banking—that is, the practice of keeping a fraction of depositors’ money in reserve
while extending the remainder to borrowers in the form of loans. Customers deposited
gold and silver with the goldsmiths for safekeeping and were given deposit receipts
verifying their ownership of the gold deposited with the goldsmith. These receipts
could be used as money because they were backed by gold. But the goldsmiths soon
discovered that they could take a chance and issue additional receipts against the gold
to other people who needed to borrow money. This worked as long as the original
depositors did not withdraw all their gold at one time. Hence, the amount of receipts
or claims on the gold frequently exceeded the actual amount of the gold, and the idea
that bankers could create money was born.
8.1 Central banking

Governments create central banks to perform a variety of functions. The
functions actually performed vary considerably from country to country. Broadly
speaking, central banks serve as the government’s banker, as the banker to the
banking system, and as the policymaker for monetary and financial matters.
Moreover, these central banks are owned either privately owned or owned by the
Government.
As the government’s banker, the central bank can act as the repository for
government receipts, as the collection agent for taxes, and as the auctioneer for
government debt. It can also act as a lender to the government and as the
government’s advisor on financial matters. As the banker for the country’s banks, the
central bank can act as the repository for bank reserves, as the supervisor and
regulator of banks, as the facilitator of interbank services such as check clearing and
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money transfers, and as a lender when banks need money to honor deposit
withdrawals or other needs for liquidity.
As the country’s monetary policymaker, the central bank controls the amount
of credit and money available, the level of interest rates, and the exchange rate (the
rate at which one nation’s currency can be exchanged for another nation’s). To
achieve its monetary policy objectives, central bankers use a combination of policy
tools. For example, the central bank may increase or decrease the amount of money
(coin and currency) in circulation by buying or selling government debt instruments,
such as bonds, on the open market. This policy tool is known as open market
operations. Since interest rates are usually related to how much money and credit are
available in the economy, the central bank can usually lower interest rates by buying
bonds from the public with money. This increases the amount of money in the
economy and lowers interest rates. To raise rates, the authority would sell bonds,
thereby reducing the amount of money available to the public. The central bank could
also cause a lowering or raising of interest rates by increasing or decreasing the
amount of money banks must hold as a reserve against their deposits. By increasing
reserves, the central bank forces banks to hold more money in their vaults, which
means they can lend less money. Less money available for loans makes loans harder
to get which, in turn, causes banks and other lenders to raise interest rates on loans.
Because central banks control the money supply, there is always the danger
that central banks will simply create more money and then lend it to the government
to finance its expenditures. This often leads to excessive money creation and inflation
(a continuous increase in the prices of goods), which can be caused by having too
much money available to purchase goods. Inflation occurred in the United States
when the government printed Continental dollars to pay for the Revolutionary War.
So many were printed that they became worthless, and a popular slogan of the day
was “It’s not worth a Continental.” The danger of inflation is particularly acute in
countries where the government owns the central bank. Government ownership of the
central bank is illegal in the United States, except in national emergencies. European
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countries agreed in the Maastricht Treaty of 1992 not to allow central banks to lend
money to their governments.
8.2. On –Line Resources
Automated teller machine
In recent years, banks have made their services increasingly convenient
through electronic banking. Electronic banking uses computers to carry out transfers
of money. For example, automated teller machines (ATMs) enable bank customers to
withdraw money from their checking or savings accounts by inserting an ATM card
and a private electronic code into an ATM. The ATMs enable bank customers to
access their money 24 hours a day and seven days a week wherever ATMs are
located. The card issued for use in ATMs is also called as Debit Card.
Credit card
Credit Card is the card that identifies its owner as one who is entitled to credit
when purchasing goods or services from certain establishments. Credit cards
originated in the 1930s; their use was wide-spread by the 1950s. They are issued by
many businesses serving the consumer, such as oil companies, retail stores and chain
stores, restaurants, hotels, airlines, car rental agencies and banks. Some credit cards
are honored in a single store, but others are general-purpose cards, for use in a wide
variety of establishments. Bank credit cards, are examples of the general purpose
card. Establishments dispensing almost every form of product or service are honoring
such cards, and now credit cards, someway or the other have eliminated the need for
carrying cash.
Online payments
Payments are sent to the other branches in the same city or in the other cities
using computers; this transaction is called as online payment – one of the new and
main resources of the banks. A one window operation in which the customer just have
to fill up an online voucher and sent the money to any location within 5 min. paying
some service charges to the bank.
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Telephonic transfer
Well old fashion in banking field. Telephonic transfer also called (T.T). In this
proceeduring is this that if any one wants to pay money somewhere he just have to fill
up a form and submit the amount to be transferred into the bank, the banks then
transfer the amount telephonically to the respective location. Now this trend is no
more used in modern banking.
Mail transfer
Again an old fashion in banking. M.T is the procedure of transferring amount
via mail. The mail delivery could be through courier companies, airships, railways or
any other mailing facility. It is very costly and time taking activity and is no more
practiced in modern banking today.
Online reporting system

One of the very important functions of the banks is reporting. Every bank has
to report on daily basis, weekly basis, monthly basis, semi-annually and annual basis
to their head offices. Here exists an online facility to report to the head office.
Employees are no more bother to mail or use any other way to report to the head
office. Basically, top management need information within no time and want to
remain updated about what is being happened and what is happening, so online
reporting system is very fast and quick to report to the managers and the top
executives. They use fax machines and Internets to report as quickly as they can.
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9. Over View of The Organization
9.1. Brief History of the Organization

ALLIED BANK LIMITED has
witnessed and experience of all political, financial and technological changes which
have been taken place in south Asian region since it was incorporated in 1942 at
Lahore. Its old name was Australasia.
In 1947 when bank was in nascent age, it had to
undergo a traumatic event which divided Asian sub continent in to two independent
seats namely Pakistan and India. Allied bank, being the only Muslim bank on the soil
of Pakistan last over 50% of its operations and assets which were on the soil of India.
The management was undauntedly faced the multiple challenges resulting from huge
human and financial losses on the one hand and the task of providing the newly
emerged nation with efficient and effective payment system, and banking facilities to
all the sectors of the economy on the other hand. The bank also rendered valuable
treasury services for the government of Pakistan and despite many constraints played
an effective role in socioeconomic uplift of the country.
In 1971 the bank lost more
than half of its assets and network due to secession of the East Pakistan. The bank not
only survived this serious crisis but also regained its financial strength maintaining the
growth rates in key performance.
In 1974 the government of Pakistan rationalized
institutions in the country.realising the robust financial strength of Australasia bank
limited among all the nationalized financial institutions. The government decided to
merge three financially weak institutions, namely shared bank limited, Lahore
commercial bank limited and pak bank limited into Australasia bank limited and
renamed it as Allied bank of Pakistan limited. Bank was the first Muslim bank to have
been established in Pakistan Established in December 1942 as the Australasia Bank in
Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of
Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431 million in its
first eighteen months of business.
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At the time, the Bank’s total assets amounted to Rs. 0.572 million. Today,
Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed
Rs. 143 billion and total assets equal Rs. 170 billion. The Bank’s journey has been
about dedication, commitment, professionalism and adapting to environmental
changes, leading to its immense growth and stability. It is these factors that have made
it a Bank the rest look up to.
9.2 Nature of Organization

The Pre Independence History (1942 to 1947)
In the early 1940s, the Muslim community was beginning to realize the need
for its active participation in the fields of trade and industry. Since the late 1880s,
Hindus had established a commanding presence in the areas of industry, trade and
commerce and were especially dominating in the Sub-continent area. Banking, in
particular, was the exclusive forte of Hindus and it was popularly and wrongly
believed that Muslims were temperamentally unsuited for this profession.
Mr. S.R. Jar Walla (sitting in the center). A legendary figure in the history of
the Bank. It was particularly upsetting for Khawaja Bashir Bux to hear that “Muslims
could not be successful bankers”. He decided to step-up to that challenge and takes
the lead in establishing this first Muslim bank by the name Australasia Bank Limited
in Punjab, which was to become Pakistan in December 1942. The initial equity of the
Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million by the end of
the first 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.
THE PRE INDEPENDENCE HISTORY (1942 TO 1947)
Australasia Bank was the only

fully operational Muslim bank in Pakistan on August 14th, 1947.However; it was
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, Balata,
Jalandhar, Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were
opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and
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Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed
trade in cloth and food grains thus, played an important role in maintaining consumer
supplies during the early months of 1948 affected by riots. 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. But the Bank did well despite losing a lot of its assets and
by the end of 1973 had 186 branches in West Pakistan.
Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was
dissolved and was renamed Allied Bank. The first year was highly successful;
profit exceeded Rs. 10 million, 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 the banking history. 116 new branches were opened
during 1974 and the Bank started participating in the Government’s spot
procurement agriculture program. Those seventeen years saw a rapid growth for
the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose
from Rs. 1.46 billion and Advances & Investments from Rs. 1.34 billion to Rs. 22
billion during this period. It also opened three branches in the U.K.
Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank
entered a new phase, and became 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 became one of the premier financial institutions
of Pakistan.
Allied Bank’s capital and reserves were Rs. 1.525 billion; its
assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied
Bank enjoyed an enviable position in Pakistan’s financial sector and was
recognized as one of the best amongst the major banks of the country.
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In August 2004, as a result of capital reconstruction, the Bank’s
ownership was transferred to a consortium comprising Ibrahim Leasing Limited and
Ibrahim Today, the Bank stands on a solid foundation built over 63 years of hard
work and dedication, giving it a strong equity, an asset and deposit base and the
ability to offer customers universal banking services with more focus on retail
banking. The Bank has the largest network of online branches in Pakistan and offers
various technology-based products and services to its diverse clientele through more
than 700 branches. Group
2005 TO DATE
In May 2005, Ibrahim Leasing Limited dissolved and the company was
vested into Allied Bank Limited. ALL the shareholders were issued ABL shares
instead of the all shares held by them. An application for the listing of ABL shares in
all the Stock Exchange Companies of Pakistan was made; ABL was formally listed
and the Bank’s share trading began on the following dates:
• Islamabad Stock Exchange: 8th August, 2005.

• Lahore Stock Exchange: 10th August, 2005.
• Karachi Stock Exchange: 17th August, 2005.
Today, all Allied Bank Limited shareholders can trade in the Bank’s shares at their
will.
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10. Business Volume
Business Volume 2004 2005 2006 2007 2008

Revenue 4,653,635 9,167,693 12,166,603 12,387,675 15,006,838
126,391,75 161,907,49 206,031,32 263,972,38
Deposits 2 1 4 2 297,475,321
110,946,97 144,033,63 168,407,28
Advances 59,484,812 2 4 0 212,972,008
Investment 57,321,020 44,830,058 46,953,241 83,958,463 82,631,118
350,000,000
300,000,000
250,000,000 Revenue
200,000,000 Deposits
150,000,000 Advances
100,000,000 Investment
50,000,000
0
2004 2005 2006 2007 2008
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11. Number of Employee
Sr.No. Name Designation
1 Muhammad Ishtiaq Branch Manager
2 Abdul Hfeez Operation Manager
3 Mujeeb Hussain Credit Manager
4 Amir Raza Foreign Exchange Officer
5 Azfar Khurshid Remitance Incharge
6 Yasir Ali Clearing Officer
7 Umar Farooq Customer Servis Officer
8 Asif Aslam Online Officer
9 Ghulam Mustafa Internal Control Officer
10 Shahid Ali Cashier
11 Hafiz Saleem Akhtar Teller
Total Number of Employee of ABL in Pakistan are Approximately 17,500.
12. Product Line

In line with the Bank’s aim to provide a host of products and services to its customers,
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substantial ground work has been done to establish a strong consumer banking
business. Furthermore, to achieve this objective, professionals from across the
industry have been recruited into areas of product development, sales, credit policy,
research, consumer analytics, call centers and service quality departments.
Products
1. Home Finance
2. Agri Finance
3. Credit Card
4. Other Financing Schemes
5. Royal Profit
6. Royal Group
7. Trade Finance
Credit card
Credit Card is the card that identifies its owner as one who is entitled to credit
when purchasing goods or services from certain establishments. Credit cards
originated in the 1930s; their use was wide-spread by the 1950s. They are issued by
many businesses serving the consumer, such as oil companies, retail stores and chain
stores, restaurants, hotels, airlines, car rental agencies and banks. Some credit cards
are honored in a single store, but others are general-purpose cards, for use in a wide
variety of establishments. Bank credit cards, are examples of the general purpose
card. Establishments dispensing almost every form of product or service are honoring
such cards, and now credit cards, someway or the other have eliminated the need for
carrying cash.
Credit Cards:
1. Inquiry
• Card balance
• Statement details
• Product information
• Application status
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2. Transactions
• Card activation
• Card lost/stolen
• Card replacement
• Credit Card bill payment
• Insurances
ATM/DEBIT CARD, CASH+SHOP VISA DEBIT CARD

It offers you convenience in shopping. You can spend money directly from your bank
account at over 49000 merchants nationwide and over 27 million merchants
worldwide, including Allied Bank’s largest network of over 500 ATMs in cities.
The ATM/Debit card provides the following facilities;
 Balance inquiry
 Mini Statement
 Cash Withdrawals/Fast Transfer
 Fund Transfer
 Bill Pay
 Pin Code Change
 Cheque Book Request
Allied Visa Credit Card:

In order to cater to growing financial needs of customers ABL is proud to introduce
Allied Visa Credit Card with the Lowest Service Charge ever! So now customers can
save money where it counts and spend lavishly at favorite places with greater
flexibility, convenience and most important-Affordability!
With Allied Visa Credit Card customer can enjoy a variety of state-of-the-art features
and unmatched value by spending at over 49,000 merchants across Pakistan and 27
million merchant outlets worldwide! And what more, customer can also use your
credit card at over 1 million ATMs internationally!
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Allied Visa Gold Credit Card:
With Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a
Gold Card internationally with unmatched savings greater flexibility, convenience and
security.
Features:
Buy Now, Pay Later:
With Allied Visa Gold Credit Card, free credit period allows customers to pay for
purchases up to 50 days after the date of purchase.
Flexible Repayment:
When paying credit card bill, Allied Visa Gold Credit Card gives the option to either
pay the entire amount according to the statement or a minimum of 5% of total
outstanding balance.
Cash Advance Facility:
As an Allied Visa Gold Credit Card member, customers are entitled up to 75% of
available credit limit in cash.
Allied Easy Installments (AEI):
The Allied Easy Installments (AEI) plan provides customers with the facility to pay
outstanding card balance in equal and affordable monthly installments spread over 3,
6, 12, 18, 24, 30 or 36 months.
Supplementary Cards:
Want to share the benefits of Allied Visa Gold Credit Card with others? Now
customer can! Treat up to two people with supplementary credit cards and pass on the
many privileges of Allied Visa Gold Credit Card to the chosen friends and family
members.
Balance Transfer Facility:
In case customers have outstanding balances on other cards, consolidate these onto
the Allied Visa Gold Credit Card with the lowest BTF rate and save more on the
outstanding payments than ever before.
Credit Protection Plus:
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With Credit Protection Plus, Allied Visa Gold Credit Card provides payment cover
against:
1. Death, due to accident or sickness
2. Permanent and Total Disability, due to sickness or accident
3. Temporary Total Disability, due to sickness or accident
4. Terminal Illness
Zero Loss Liability:
The Allied Visa Gold Credit Card’s Zero Loss Liability feature protects its customers
from paying for any unauthorized transactions on their Card in the event that it is lost
or stolen.
Free CIP Lounge Access:
As an Allied Visa Gold Credit Cardholder, its customers are eligible to avail the free
lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of
complimentary features. Also feel free to plug in your laptop and mobile phone into
the charging facilities provided or browse the internet or send and receive faxes while
you wait.
Visa Platinum Credit Card:
With Allied Visa Platinum Credit Card customer can enjoy exceptional benefits and a
host of local and international benefits like never before!
Features:
With Allied Visa Platinum Credit Card, customers can enjoy these facilities:
Visa Platinum Golf
Visa Platinum Dining
Visa Experiential Travel
Priority Pass Airport Lounge Program
Platinum Life Platinum
Life is a unique platform that showcases exclusive programs and events specially
designed for Visa Platinum Credit Cardholders. With Allied Visa Platinum Credit
Card, customers are eligible to join this exclusive platform and avail many exciting
services like Platinum Club, Platinum Dining, Platinum Golf, Experiential Travel and
much more.
Visa Platinum Club
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As a member of the Visa Platinum Club, you are part of an internationally reputed
rewards program that provides an unmatched quality of services and customized
luxuries to all Allied Visa Platinum Credit Cardholders.
Allied Cash+Shop Visa Debit Card :
Features:
Get Cash:
By using Allied Cash+Shop Visa Debit Card to withdraw cash directly from bank
account from over 3,500 ATMs in Pakistan - including Allied Bank's largest network
of ATMs – and over 1 million ATMs worldwide
Stay Alert
Now, be more secure and keep better track of spending. With Allied Cash+Shop Visa
Debit Card,customers can get SMS alerts when they make transactions on their Card.
Shop Anywhere
Use the Visa power of your Allied Cash+Shop Visa Debit Card to shop at over 49,000
retailers in Pakistan and over 27 million retailers internationally.
• Dine Out
• Enjoy Traveling
• Get Groceries
• Have Fun
• Fuel Up
13. Organizational Structure
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BOARD OF DIRECTORS:
“The people who draw the picture of the organization on the broader canvas of
strategy and planning, the pioneers of prosperity and world of wisdom that paves the
path to long term success”
Mohammad Naeem Mukhtar (Chairman / Non Executive Director)
Sheikh Mukhtar Ahmad (Non Executive Director)
Mohammad Waseem Mukhtar (Non Executive Director)
Abdul Aziz Khan (Non-Executive Director)
Sheikh Jalees Ahmed (Executive Director)
Farrakh Qayyum (Government Nominee / Non Executive Director)
Nazrat Bashir (Government Nominee / Non Executive Director)
Tasneem M. Noorani (Independent Director)
Mubashir A. Akhtar (Independent Director)
Pervaiz Iqbal Butt (Independent Director)
Mohammad Aftab Manzoor (Executive Director / Chief Executive Officer)
Audit Committee
Sheikh Mukhtar Ahmad (Chairman)
Farrakh Qayyum (Member)
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Mubashir A. Akhtar (Member)
Sheikh Jalees Ahmed (Member)
The board committees

Audit Committee
a) Sheikh Mukhtar Ahmad (Chairman)
b) Farrakh Qayyum
c) Mubashir A. Akhtar
d) Sheikh Jalees Ahmed
The management
Tahir Hassan Qureshi (Chief Financial Officer)
Iqbal Zaidi (Group Chief, Compliance & Control)
Asim Tufail (Group Chief, Consumer & Personal Banking)
Khawaja Mohammad Almas (Head Core Banking Projects)
Zia Ijaz (Group Chief, Commercial & Retail Banking)
Mujahid Ali (Group Chief, Information Technology)
Mohammad Aftab Manzoor (Chief Executive Officer)
Muhammad Yaseen (Treasurer)
Fareed Vardag (Group Chief, Risk Management)
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Shafique Ahmed Uqaili (Group Chief, Human Resources)
Tariq Mahmood (Group Chief, Operations)
Mohammad Abbas Sheikh (Group Chief, Special Assets Management)
Muhammad Shahzad Sadiq (Group Chief, Audit & CRR)
Waheed Ur Rehman (Group Chief, Corporate Affairs & Company Secretary)
Muhammad Jawaid Iqbal (Group Chief, Corporate & Investment Banking)
EXECUTIVE COMMITTEE:
Mr. Khalid A. Sherwani President & (CEO)
Mr. M. Naveed Masud Senior Executive Vice President
Mr. Akhter Ali Khan Head Credit
Mr. Tahir Saeed Effendi Head I.T & Financial Officer
Mr. Mohammad Yaqoob Head Islamic Banking & Planning Div
Mr. Masud A. Sidique Head Human Resource
Mr. Anwar Zaki Head Treasury
Mr. Khalid Mehboob Head Business Promotion
Mr. Sayed Mujtaba Gillani Head Special Vigilance Unit
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14. Major functional areas where the internship was carried out
Since there exists a number of department in the bank, but as per
requirement and need of the degree and nature of education, following is the list of
departments where I was rotated.
 Operations Department
 Accounts Department
 Trade Department
 Credit Administration Department
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15. Department
15.1. Account opening department
Deposit is the amount of money kept by the customer with the
bank. When a bank receives deposit from a customer, the relationship of a debtor and
a creditor is established whereby the customer becomes the creditor, and the bank a
debtor. When the bank receives the amount of deposit as a debtor, it becomes the
owner of it. It may, therefore, use it as it deems appropriate. But there is an implicit
agreement that the amount owned will be paid back by the bank to the depositor on
demand or after a specified time period.
Instruments
 Credit Card
 ATM (Debt Card)
 Trade Finance
 OD(Over Draft)
 Other Financing Schemes
 Remittances
Account Types
 Current Account(CA)
01-200-0000-0
01-206-0000-0
 Saving Account
01-100-0000-0
01-116-0000-0
01-151-0000-0
01-101-0000-0
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 Business Account
01-262-0000-0
 Premium Plus Operational Account (3707)
 Allied Profit Plus Deposit Account (3731)
 E-Savers Account (3736)
 Special Corporate Account (3730)
Accounts by products are of three types.

1. Current Accounts
2. Saving Accounts
3. Term Accounts
1. Current Accounts
Current account is called business account. Current deposits
may be withdrawn by the depositor at any time and as such the bank is not entirely
free to employ such deposits. These deposits are treated as current liabilities by the
banks. Bankers in Pakistan do not allow any profit on these deposits and customers
are required to maintain a minimum balance, failing which incidental charges are
deducted from such accounts. There are monthly charges of Rs.50 if a customer has a
balance below 10,000.
2. Saving Accounts
PLS Saving account stands for profit and loss sharing
account. PLS accounts also lies in the category of multi-transactional account. In
these accounts profit is accumulated after six months. In this account rate of profit is
low. There is no restriction of withdraw. Deduction of Zakat is 2.5% upon principal
amount if amount is higher than the amount declared by the administration every year
on 1st RamZan. The average of net balance at the end of each day in the account is
taken and a predetermined profit rate is applied to calculate the profit of six months.
These accounts can be opened individually, jointly or by societies and clubs.
 PLS Account
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 Current Account
 Allied Basic Banking Account
 Foreign Currency Deposit
 Monthly Profit Plus
 Rewarding Term Deposit
 Behtar Munafa Account
 Behtar Munafa Term Deposit
 Allied Munafa Account
 Allied Bachat Scheme
 Allied e-Savers Accounts
 Allied Business Account
3. PLS Account
Allied Bank offers the PLS Savings Account facility to its
customers with the following attractive features.
 Attractive return of up to 5.00% per annum

 Free Online Transactions, DD/TT/PO for depositors maintaining an
average monthly balance of Rs. 2.500 (M) & above.
 Free issuance of cheque book at the time of account opening.
Allied Basic Banking Account
In order to provide basic banking facilities to its lower-middle
class customers, Allied Bank has introduced the “Allied Basic Banking Account”
(ABBA).
 Account can be opened with an initial deposit of Rs 1,000/=

 It is a non-remunerative account with a no minimum balance
requirement.
 The Statement of Account is issued on a yearly basis.
 The Statement of Account is issued on a yearly basis.
25
 No service charges on the account for a maximum of 2-withdrawals
and 2-deposits during a calendar month. Additional transactions will
be subject to a service charge as per the Bank’s Schedule of Charges
for every withdrawal/deposit.
 Unlimited withdrawals from ATMs
Foreign Currency Deposits
Allied Bank offers the facility of opening Current, Savings and
Term deposit Accounts. Foreign Currency accounts can be opened in US Dollar,
Pound Sterling, Euro, and Japanese Yen at designated branches.
Monthly Profit Plus

Saving has now become all the more appealing with our
Monthly Profit plus Scheme, which earns you monthly profits on investments. The
scheme is designed for a period of 1 Year with the following profit rates:
Tenure 1 Year
Profit Rate 10.00% p.a.
Profit Payment Rs.833 * per month
 Approximate monthly returns calculated on the investment of Rs.100,

000
 Withholding tax, Zakat or other Government Levies are applicable
separately
Salient Features:
 Account Type: Term Deposit
 Term Period: 1 year
 Profit: Payable on monthly basis
 Minimum Deposit Amount: Rs.25,000
 Eligibility: Individuals & Institutions (other than financial institutions)
26
Additional Benefits:
 Chequing Account for monthly profit credit
 24 hour phone banking service
 Free internet banking facility
 SMS transaction alerts
 Allied Cash + Shop Visa Debit Card
Rewarding Term Deposit
A term de posit scheme which gives a high rate of return and the
flexibility of various tenure. Investment can be made with the minimum of PKR
25,000 only.
Rate of Profit
Deposit Amount 1 Month 3 Months 6 Months 12 Months
Rs. 25,000 & Above 7.00% 9.00% 9.50% 10.50%
Salient Features:
 Account Type: Term Deposit
 Term Period: 1-12 months
 Investment: Rs. 25,000 & above
 Profit: Payable on maturity
 Eligibility: Individuals & Institutions
Allied Advance Profit scheme

In keeping with our objective to bring you new and innovative
services and banking products, we now introduce Allied Advance Profit Scheme that
gives the entire profit upfront.
Product Specifications:
Minimum Investment Required – Rs.25, 000
Investment Terms:
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18 months.
Auto roll-over (optional).
Profit Payment:
Profit of Rs.13, 500* will be immediately credited in the customer’s
current account. On an investment of Rs.100, 000 Tax/Zakat will be applicable as per
rules.
15.2. Allied Bank Projected Rate of Profit.
W.e.f 1st July 2009
Description Rates per Annum PLS SAVING DEPOSITS 5.00%

ALLIED e-SAVER SCHEME
Up to Rs.300, 000 5.00%

Rs.300, 001 up to Rs.400, 000 6.00%
Rs.400, 001 up to Rs.500, 000 7.50%
Up to Rs.5, 000,000 5.00%
Rs.5, 000,001 to Rs. 25,000,000 6.00%
Rs.25, 000,001 to Rs .50, 000,000 7.00%
Rs. 50,000,001 to Rs.100, 000,000 7.50%
Rs.100, 000,001 to Rs.250, 000,000 8.00%
Rs.250, 000,001 to Rs.500, 000,000 8.50%
Above Rs.500, 000,000 9.00%
ALLIED MUNAFA ACCOUNT
Rs.500, 000 to Rs.5, 000,000 5.00%

Rs. 5,000,001 to Rs.25, 000,000 6.00%
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Rs.25, 000,001 to Rs.50, 000,000 7.00%
Rs.50, 000,001 to Rs.100, 000,000 7.50%
Rs.100, 000,001 to rs.250, 000,000 8.00%
Rs.250, 000,001 to Rs.500, 000,000 8.50%
Above Rs.500, 000,000 9.00%
REWARDING TERM DEPOSIT SCHEME
1 Month 7.00%
3 Months 9.00%
6 Months 9.50%
1 Year 10.50%
ALLIED ADVANCE PROFIT SCHEME
18 Months 13500 On an investment of Rs.100, 000
BEHTAR MUNAFA TERM DEPOSIT
1 Month
Up to Rs. 5,000,000 5.00%
Rs.5, 000,001 to Rs.25, 000,000 5.50%
Rs.25, 000,001 to Rs.50, 000,000 6.00%
Rs. 50,000,001to Rs. 100,000,000 6.50%
Rs.100, 000,001& above 7.00%
3 Months
Up to Rs. 5,000,000 7.00%

Rs.5, 000,001 to Rs.25, 000,000 7.50%
Rs.25, 000,001 to Rs.50, 000,000 8.00%
Rs. 50,000,001to Rs. 100,000,000 8.50%
29
Rs.100, 000,001& above 9.00%
6 Months
Up to Rs. 5,000,000 7.50%

Rs.5, 000,001 to Rs.25, 000,000 8.00%
Rs.25, 000,001 to Rs.50, 000,000 8.50%
Rs. 50,000,001to Rs. 100,000,000 9.00%
Rs.100, 000,001& above 9.50%
1 Year
Up to Rs. 5,000,000 8.50%

Rs.5, 000,001 to Rs.25, 000,000 9.00%
Rs.25, 000,001 to Rs.50, 000,000 9.50%
Rs. 50,000,001to Rs. 100,000,000 9.75%
Rs.100, 000,001& above 10.00%
PPA TERM DEPOSIT
30 days: Rs.50 million to less than Rs.500 Million 1.25%

3o days: Rs 500 Million and above 1.50%
90 days: Rs.50 Million to less than Rs.500 Million 2.00%
90 days: Rs 500 Million & above 2.50%
MONTHLY PROFIT PLUS
12 Months 10.00%
ALLIED BACHAT SCHEME (ABS)
30
Up to 13.33%
PLS SPECIAL NOTICE DEPOSIT
7 to 29 days
Less than rs.10, 000,000 5.00%
Rs.10, 000,000 & Above 5.00%
30 days & above
Less than Rs 10,000,000 5.00%
Rs.10, 000,000 & Above 5.00%
FOREIGN CURRENCY SAVINGS ACCOUNT

US DOLLAR:
Up to USD 1,000,000 0.05%

Above USD 1,000,000 0.25%
GBP STERLING:
Up to GBP 1,000,000 0.05%

Above GBP 1,000,000 0.25%
EURO:
Up to EURO 1,000,000 0.05%

Above EURO 1,000,000 0.25%
Term Deposit Rates for amount up to 1 million shall be Applicable as per Deposit
Rates Sheet as provided by Treasury On a daily basis.
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15.3. Operations Department
 Cash
 Clearing
 Transfercision making
 Remittance
 Accounts department
 Account Opening
Operations department of the allied Bank Limited is responsible for

the overall operations of the bank.
Chaudhry Muhammad Yousaf is operation manger.
He looks after the overall to the higher authority about all its departments. The detail
of those departments which are controlled under this department is as under.
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15.4. Lockers
Allied Bank Limited provides safe deposit locker facility to its customers for safe
keeping of their valuables like documents, securities and jewellery etc.
Important features of lockers facility are as follows:

Various sizes to choose from small, medium &
large. Annual locker rent ranges from Rs.1, 000/- to Rs.3, 500/-. Locker rent is waived
for customers maintaining a minimum deposit of Rs.2 million in current accounts or
above US $25,000/- in a current account or US $50,000/- in a savings account.
Locker Rates
The annual license fees of the following sizes of lockers will be as follows:
Locker Size Charges

Small Rs.1500/-
Medium Rs.2500/-
Large Rs.4000/-
Special Rs.6000/-
The license fees lockers will be payable in advance every year and no part of the same
shall be refundable in any circumstances.
In this way the customer should pay the securities to get the lockers.
 For small lockers security is 3000.
 For middle lockers security is 5000.
 For large lockers security is 8000.
 For special lockers security is 10000.
Due to any damage like fire, bank looted by the
robbers or any problem faced by the bank in which money and lockers lost in future.
It may be due to any accidental tragedy with the bank.
In this way bank will pay to the
customers according to their insured values, its own cost. It is the new policy of the
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bank for the customers benefit. In this way the bank provides the following benefits to
the customers according to their lockers positions.
 For small size locker, bank will give to the customers 500000 Rs.
 For middle size locker, bank will give to the customer 1000000 Rs.
 For large size locker, bank will give to the customer 1500000 Rs.
 For special size lockers, bank will give to the customer 2000000 Rs.
All securities are refundable.
15.5. Remittance
Remittances are a transfer of funds from people in one place to people in
another is called remittance. It is an important service provided by banks to customer
as well as non customers. Since it is not free services (remunerative).It is a source of
income for bank. It has two types.
1. Inward Remitance
2. Outward Remitance
Inward Remitance:
When branch receives funds from some other is called inward remittance.
Outward Remitance
When branch issues/send funds to other branch is called outward
remittances.
Modes of Remittances
Payment Order
Demand Draft
Telegraphic Transfer
Travelers Cheque
Call Deposit Receipt
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15.6. Clearing
Mr.Amir Raza and Mr.Hafeez are working in this department. Movement
of funds from one bank to another bank in same city without physical movement of
cash is called clearing. Clearing is also called Intra City Clearing. Previously clearing
house facility is used but now a days NIFT (National Institutional Facilitation
Technology) service is used in this process. NIFT is courier services that send itself
the Cheque of every respective branch and then collect the delivery report. The
clearing instrument may include Cheques, D.D’s, Po’s etc. The clearing is divided
into two types.
1. Outward Clearing
2. Inward Clearing
Outward Clearing
Outward clearing is receivable for our branch.
Inward Clearing
Inward clearing is payable to our branch. When outward clearing is
higher than inward clearing. We call it “Clearing in our favour”.ABL also offer now
same day clearing but bank commission and charges are high. Only for very high
value customers. If instrument is returned, cheque return charges as per schedule of
charges.
15.7. Collection
It is a transfer of funds from one branch or bank situated in a city to the other
bank or branch situated in an other city is called collection.
It is divided into two types.
1. OBC (outward bills for collection)
2. IBC (inward bills for collection)
Outward Bills for Collection
Collection of instruments drawn on other branches of the same bank or any
other bank provided they are located out of the city. To understand the procedure lets
35
suppose a party gives a cheque, issued from an out of the city bank or branch of our
bank, to deposit in his account. Bank gives a receipt to the customer and cheque is
given to bills department. In this department the cheque is registered to OBC register.
A preprinted schedule is attached to the cheque and it is sent to the drawee branch. If
the cheque is issued by ABL branch our branch will send it to ABL drawee branch
directly. If the cheque is drawn from a bank other than ABL, then our branch will
send the cheque to the ABL main branch of that city for collection from drawee bank.
The bank collects charges of OBC by the following ways.
 Federal Excise Duty (FED) is 16%.
 OBC Postage is 75Rs.
 OBC Commission is 0.25%.
Inward Bills for Collection
Collection of instruments drawn on our branch
which are issued by any other bank or any other branch of UBL situated out of the
city. It is simply opposite side of OBC. Our outward bills for collection become
inward bills for collection for the branches where we send them and vice versa.
It has further two classes.
1. Local bills for collection.
2. Foreign bills for collection
Collection with in one country is local bills for collection and collection out of the
country falls in foreign bills for collection in any currency.
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15.8. Accounts Department
This department coordinates all the banking activities and keeps them in a
sequence. It is responsible for the accounting of assets and liabilities of the branch.
This department is the backbone of all banking system. All the banking activities are
placed through this channel. The main functions of this department are:
1 Maintenance of books of accounts
2 Preparation and distribution of salaries to Bank’s staff
3 Dealing with the disposal of commercial and external audit reports
4 Preparation of budget and other financial statements
5 Meeting stationary requirements of the banks
6 Custody of daily vouchers
7 Keeps records of daily expenses
8 Statements Correspondence
15.9. Finance Department

Trade finance department is also called as the Trade Service Unit. The transfer
of credits to a foreign country to settle debts or accounts between resident of home
country and those of the foreign country or the foreign bills currencies etc used to
settle such accounts.
Foreign exchange department deals within exports and imports. . Mr. Najeeb
sahib is the manager of this foreign exchange department. The bank acts as exporter
importer bank for different parties who are in the business of import and also trying to
start exporting. The basic dealing of the department is under three heads:
 Imports
 Exports
 Financing
Imports
All goods and services brought into a country that were purchased from
organization located in other countries. Financing of the imports is done at
 Post Shipment
37
 Own Source
Post shipment means when the goods are received. The goods are at the port
and now the customer could not pay to receive those goods. Bank take the mortgage
documents and then if eligible collects those goods and place them in godams.
Customers gradually and slowly keep on paying the relevant amount and equal to the
paid amount bank handed him over the equivalent goods quantity.
At own source the bank will provide loan to the importers. This loan could be
in local currency where there will be a markup depending upon the bank. It could be
could be in foreign currency. The interest rate charged on foreign currency will be
applied under LIBOR (London Inter Bank Offered Rate) rate.
Exports
This branch is not providing services of exports but trying to provide this
service as soon as possible.
Financing
Financing is done for the industries and companies doing imports and exports.
Both types of financing are provided by the bank to its customers whether they are
exporting or importing in any local location or abroad. The account may be in local or
foreign currency.
15.10. L / C (Letter of Credit)

A letter of credit is written undertaking by a bank (issuing bank) given at the request
and accordance in a instruction of a buyer(the applicant) to the seller (the beneficiary)
to effect payment up to a stated sum with in prescribed time limit , against stipulated
documents and provider that the terms and conditions are complied with.
Another document involved in trading. ICC (International Chamber of
Commerce) is a plat form to deal with imports and exports. S.W.I.F.T (Society for
Worldwide Inter Financial Transaction/Telecommunication). It is another platform
which defines certain rules and regulations and codes related to IC. Normally, every
L/C contains information required for trading under certain head codes. L / C’s are of
two types:
38
 Revocable
 Irrevocable
Procedure for opening the letter of credit
The following steps are involved in opening a letter of credit.
Application for a letter of credit.
The first step to obtain a letter of credit for the importer is to prepare an
application on the prescribed form available from the bank.
Documents required for opening LC
 Application Form Of LC
 Performa Invoice
 Insurance Certificate
 I Form
 Annexure A And Undertaking
Security of the application
Cash margin
The importer is asked by the banker to deposit, with the bank in the form of cash
or securities, proper margin depending upon his credit worthiness.
Handling of the documents
When a letter of credit is received by the exporter, he after shipping the goods
presents the required documents and the draft to the bank in his own country.
Document
Which exporter submitted to his own bank?
1-Commercial Invoice.
2-Packing List.
3-Shipping Company Certificate.
4-Insurance Certificate.
5-Bill of Lading.
Payment by the importer to the bank
When the bank approves the application
of a customer to open a letter of credit, it does not lend money to the importer. The
39
bank only lends the importer to use the credit standing of the bank to the exporter in
the foreign country. The bank makes a contract with the importer that when the draft
is sent by the negotiating bank for payment, the importer will make the payment to the
bank not later then the day on which the bank is to honor the obligation. In case of
sight letter of credit the payment to the corresponding bank is to be made on the day
the draft and documents are received. When the usance (time) letter of credit is used,
the importer is to arrange the payment not later than the day on which the draft is to
mature.
The main Credit Facilities offer By ABL:
Credit means belief or trust. “The quality of being credible or trustworthy”.
Another words we can define credit as “trust in one’s integrity in money matters and
ones ability to meet payment when due”.
Structured Finance Department comprises a team of hand picked professionals,
dedicated to syndicated loans and structured products.
15.11. Kinds of Finance

Fund Based:
1) SME Finance
2) current Finance (CF)
3) term Finance (TF)
4) Finance against trust receipts (FATR)
5) Finance against imported merchandise (FIM)
6) Finance against foreign bills (FAFB)
7) Local bill purchase/discounted (LPB/LBD)
Non-Fund Based
1) Letter of credit (sight/Usance) (L/C)
2) Letter of Guarantee (L/G)
40
SME
Small and Medium Enterprise (SME) means an entity, ideally not a public limited
company, which does not employ more than 250 persons (if it is manufacturing /
service concern) and 50 persons (if it is trading concern).
An Individual, if he or she meets the criteria, can also be categorized as an SME.
The Commercial and Retail Banking Group (CRBG) caters to the needs of
commercial entities and small and medium enterprises. A dedicated team of
Relationship Managers first identifies the specific needs of each customer segment,
then designs and delivers a facility package, which is in conjunction with those needs,
and provides customers the full support and opportunity to take advantage of the
various business prospects available in the market.
RF/CF:
These are short term credit facilities (maturity of up to one year) lent to customers to
meet their day-to-day business/working capital requirements and finance their
inventories, receivables, etc.
Generally, in addition to collateral security, these facilities also entail security in the
form of hypothecation of stocks and receivable/pledge of stocks.
Export Refinance Facility
This is mainly the same as RF/CF, but as per the Terms and Conditions set by SBP, is
meant exclusively for exporters.
Foreign Bill Purchase/Bill Discounting Facility
This loan/facility is provided to exporters against their export bills under LC and a
contract to facilitate their cash flow, while they are waiting receipt of their payments.
LC (Sight /Usance
41
This facility allows importers to import goods and machinery.
FIM/FATR:
These facilities allow customer to finance imported goods against pledge and
trust receipts, backed to the collaterals.
Demand Finance Facility:
This is a Medium /Long term credit facility available in establish new projects for
BMR and capacity expansion with the repayment term of more than one year, which
can be paid back in installments. This facility meets clients’ long term needs such as,
financing factory construction or machinery expenses.
Inland LC (Sight/Usance):
This facility allows customers to purchase commodities within the country.
Letter of Guarantee (LG):
On behalf of the customers, the Bank issues a guarantee in favour of the
beneficiary, against the performance of a particular job/contract, within a
particular time.
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 customer’s behalf.
15.12. Loan And Advances

It is the credit function, which produces the major portion of banks
income, and as such, it is one of the most important areas of professional banker’s
concern and attention. Section 7 of Banking Companies Ordinance, 1962 have made
lending one of the obligatory functions of banks in Pakistan. In this competitive
environment, every bank is striving to design its credit portfolio to attract
customers.ABL too is pursuing and strictly adhering to the conservative yet dynamic
credit policy. The conservative approach lending policy and careful monitoring of
facilities enables the bank to maintain a high quality of risk asset portfolio. Credit
extension is the most important activity for all financial institutions because it is the
main source of earning. Allied Bank Limited is also capturing the market through its
strong credit portfolio. The bank in this intense competition follows a prudent lending
42
policy. While risks cannot be mitigated entirely, formal credit approval process of the
bank along with the inbuilt system of checks and balances has been put in place to
achieve highest quality of loan and credit portfolio.
The Credit In charge Mr.Ishtiaq Ahmad has to be very vigilant while
taking any step in the process of finance extension because he is culpable for any
negligence.ABL has a very organized and clearly chalked out policy and control
system for its Credit Administration.
Categories of Advances
The bank can make the advances in the following three ways.
1. Overdraft
2. Loan
3. Cash Credit
1. Overdraft
Under such arrangement the customer is allowed to withdraw the amount

excessive from his balance. But the limit of amount is sanctioned by the
manager and given for a fixed period.
2. Loan
When the bank make the advances in a lumpsum, to be repaid in lumpsum or in

forms of installments with interest at any future date, is known as loan. These
loans may be of short and long term.
3. Cash Credit
These advances are made against the security of the goods which may be made
like in the form pledge or hypothecation
43
15.13. Loan Approved By ABL
 Industrial Loans
 Commercial Loans
 Residential Loans
 Agriculture Loans
Agriculture Finance
The Bank, under the Agricultural Financing Scheme, as decided by the
State Bank Of Pakistan, extends short, medium and long term, farm and non-farm
credits. The farm credits are extended for production (inputs) and development
purposes. Non-farm credits are allowed for livestock (goats, sheep, and cattle),
poultry and factories including social forestry and fisheries (inland and marine,
excluding deep sea fishing). Details are as follows:
Production Loans
1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges,
water charges, vegetables, floriculture, etc.
2. Working capital finance to meet various farming expenses.
Development Loans
 Improvement of agricultural land, orchards, etc.
 Construction of God owns
 Tractors, Machinery & other equipments
 Tractors, Machinery & other equipments
 Farm Transportation, etc
Non-Farm Loans
Livestock
Poultry
Fisheries
44
16. Other Area or Department
16.1. Credit Marketing Department
The working team of the Credit Marketing Department consists of many

people including Mr. Muhammad Hafeez, Mr. Muhammad Azfar Khurshid, and their
team leader Mr. Muhammad Ishtiaq Shah.
In this department I have not practiced during my internship. Anyhow this is
the most valuable and important part of the bank. Credit Marketing department is
basically the department to deal with the business and the business on the corporate
level. They are not supposed to deal with the individuals. For example if some other
organization want to give credit cards facility to their employees and that organization
want to get the credit cards from the ABL then they must have to contact with the
credit marketing department of ABL in this context. This department is called credit
marketing due to the reason that the personnel working over here in this department of
the bank mostly do the field work in searching for the big organization to buy their
products and they introduce to those organizations the new products and services bank
can offer to them.
The focus of this department is how to sell the products. In fact there is
only one item for one individual customer but there is a bulk of items for an
organizational entity. So the bank team is more curious in finding the potential
borrowers from the market and usually those are the big business entities.
This department deals in enterprise banking. Meaning that they have to
deal basically with the organizations. Now according to the nature and type of
organization the rules and policies are varying. Business organizations are:
 Sales
 Partnership
 Corporation
45
There are different policies and business rules for the different type of
organizations. To these types of organizations the bank offers the lease, project
finance, credit cards, or finance. The corporate level lending / borrowing / financing
money markups are low as compared to that of the SME’s.
The major sections of the Credit Marketing Department are:
 SME (Small and Medium Enterprises)
 Corporate Banking
 Lease Finance
SME’s are those organizations that have financial turn over of less than Rs.
300,000,000 as per State Bank of Pakistan rules, and the other assumption of the
SME’s are that they have less than 50 employees working in the organization etc.
And the organizations having annual turn over more than Rs. 300,000,000 and having
more than 50 employees working, are supposed to be the corporate business entities
are per decided under the rules presented by the State Bank Of Pakistan.
16.2. Home Financing

Simply like the car finance and agri finance departments ABL also offers its
customers the home finance facility. Terms and conditions are predesigned by the
management for the home financing.
The very important product ABL offered to its customers is home finance. The basic
requirements for the home finance are:
 NIC copy
 BBFS (basic borrower fact sheet)
 Photocopy (optional)
 Bank Statement of last six months
 Salary slip
 Business Deed
 Current paid utility bills
 NOC from the other partners
46
Again before loaning and financing any customer they have to ask from
the manger, that is called the verification of the loan CLP is maintained against each
case and then after the proper analysis of the financial statements and borrowers basic
fact sheet the sanction advice is presented to the customer that whether still he / she is
willing in loan or not and if the customer is willing then the loan is disbursed in the
name of the applicant.
17. Duties of Banker

The following duties are given that are performed by a banker in our bank.
 CASH
 CLEARING
 OBC
 ORC
 INTERCITY
 ONLINE
 VOUCHER HECKING
 BILLING
 DD(Demand Draft) ISSUED
 P.O(Payment Order)
 DAC(Deposit At Call)
 BALANCE CERTIFICATE
 ACCOUNT OPENING
 DEPOSIT MOBILIZATION
 BALANCE INQUIRY
 A/C STATEMENT ISSUANCE
 CHEQUE BOOK ISSUANCE
 DEPOSIT SLIP FILLING
 DAY END CHECKING
17.1.Customer Record Check List
47
 Attested copy of valid CNIC
 Photograph/ CNIC of the account holder attested by gazetted officer
 Declaration that no other document bearing photograph is available
 Attested copy of NTN certificate
 Attested copy of passport
 Attested copy of memorandum
 Attested copy of service card, salary certificate or employer’s certificate
 Attested copy of board resolution
 List of directors/officers/trustees/office bearers
 Attested copy of latest form 29
 Attested copy of partnership deed
 Attested copy of trust deed, bye laws
 Attested copy of certificate of incorporation/registration
 Attested copy of membership certificate from trade body
 Attested copy of certificate of commitment of business
 Attested copy of authority to open and operate the account form competent
authority
 Attested copy of Zakat declaration/affidavit
 Declaration of sole proprietorship
 Attested copy of other documents
48
18. Role of Financial Manager
To carry on business, corporations need an almost endless variety of real assets. Many
of these assets are tangible, such as machinery, factories,and offices; others are
intangible, such as technical expertise, trademarks, and patents. all of them need to be
paid for. To obtain necessary money, the corporation sells claims on its real assets and
on the cash those assets will generate. These claims are called financial assets.
The financial manager involves the following duties,
 Operations
 Investment , Capital budgeting, decision
 Financing Decision
 Capital supplier
 Long term and Short term Insurance
 Adequate
 Separation of Investment
 Firm’s operation
49
19. Use of electronic data in decision making and different
types of software
SOFTWARE USED IN THE BANK

UNI Bank system is used in the Allied Bank through “Cyber Net System”.
Allied 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.
Link 1 Network
Additionally, Allied Bank is a member of the ‘1-LINK ATM sharing switch’
comprising of over 2,000 ATMs nationwide, therefore, giving its Allied
Cash+ShopVisa Debit Card holders access to even more ATMs across the country.
The "1-Link Switch" has the following Bank members
ABN Amro Bank KASB Bank
Meezan Bank Limited Allied Bank Limited
National Bank of Pakistan Askari Commercial Bank Limited
NIB Bank Limited PICIC Commercial Bank Limited
Atlas Bank Limited Soneri Bank Limited
Bank AL Habib Limited
Standard Chartered Bank Pakistan Limited Bank Alfalah Limited
Union Bank Limited Bankislami Pakistan Limited
50
United Bank Limited Crescent Commercial Bank Limited
Tameer Micro Finance Bank Limited Dubai Islamic Bank Pakistan Limited
Limited Al Baraka Islamic Bank Emirates Global Islamic Bank Limited
Faysal Bank Limited First Dawood Islamic Bank Limited
All ATMs connected with the"1-Link Switch" will show its Logo.
M NET Network:
The Allied Cash+Shop Visa Debit Card can also be used at M Net ATMs, for cash
withdrawal.
The "M Net Switch" has the following Bank members:
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
51
20. Sources of Funds
Sources of Fund 2004 2005 2006 2007 2008
Borrowing 12,538,430 9,693,785 18,410,425 22,933,656 27,778,151
Deposit and Other
Account 126,391,752 161,907,491 206,031,324 263,972,382 297,475,321
Sub-ordinate Loan 0 0 2,500,000 2,499,000 2,498,000
Share Capital 4,404,642 4,404,642 4,488,642 5,386,370 6,463,644
Reserves 716,562 1,019,899 6,133,209 6,050,713 5,804,776
Surplus on Revaluation
of Fixed Assets 808,244 1,635,542 1,458,106 1,469,851 1,550,497
Toatl 144,859,630 178,661,359 239,021,706 302,311,972 341,570,389
Analytical Comments:
The factors affecting on the different earnings of the bank are its main sources, such
as deposits, shares etc.The growth during the five years is increasing with different
prices. Similarly the growth of ABL in 2008 is greater than previous years. This
shows that the economic recovery is slower due to political/security situations or
delays in external flows can lower our assumption of credit off take.
In 2005 it increased by 23% than 2004, but in 2006 it is increased by 11%, in 2007 it
is decreased by 8% and in 2008 it also decreased by 13%.These are all %ages solved
by the previous years.
52
21. Generation of Fund
Generation of
Fund 2004 2005 2006 2007 2008
Interest 2,913,461 7,237,273 9,717,535 8,467,576 10,854,733
Commission 1,255,153 1,220,362 1,353,888 2,062,677 2,291,459
Dividend 15,230 46,146 193,255 147,184 1,420,364
Other Income 154,682 263,599 273,028 77,435 59,154
11,537,70 10,754,87
Toatl 4,338,526 8,767,380 6 2 14,625,710
The generation of fund is that involves the different types of incomes of ABL It
involves the incomes of interest, commission, dividend and other incomes. In this
table ABL generates funds in 2004 are 4338,526 and these funds increased every year
till 2008.In 2005 the fund increased by 2% than 2004 ,in 2005 32%, in 2006 7%
decreased and in 2008 it increased by 36%.These are all %ages according to previous
years.
53
22. Allocation of Fund
Allocation of Fund 2004 2005 2006 2007 2008

Cash And Balance 10,842,519 14,742,504 23,039,577 29,739,857 23,653,754
Balance with other
Bank 1,477,972 3,292,038 1,705,445 668,449 2,096,779
Investment 57,321,020 44,830,058 46,953,241 83,958,463 82,631,118
110,946,97 144,033,63 168,407,28
Advances 59,484,812 2 4 0 212,972,008
Fixed Assets 2,552,174 4,720,344 6,445,111 7,548,628 11,134,436
Reserves 716,562 1,019,899 6,133,209 6,050,713 5,804,776
Retaine Earning 1,835,612 3,700,445 311,902 1,497,915 5,329,660
Surplus on
revaluation of Fixed
Assets 808,244 1,635,542 1,458,106 1,469,851 1,550,497
Deffered Tax
liabilities 0 0 0 0 0
184,887,80 230,080,22 299,341,15
Toatl 135,038,915 2 5 6 345,173,028
In this way the ABL distributes his funds in different ways. Its total funds that are
distributed at different places can be calculated by every year’s percentages
calculations.
In 2005 the allocation of funds increased by 37% than 2004.but in 2006 the funds
decreased by 13% than 2005, but in 2007 the funds increased by 6% and in 2008 the
funds also increased by 15% than the previous years.
54
23. Financial Analysis:
23.1- Five Year Balance Sheet and Income Statement
Financial Statement 2004 2005 2006 2007 2008

Profit and Loss Account
Total Income 4,653,635 9,167,693 12,166,603 12,387,675 15,006,838
Operating Expenses 4,171,933 4,390,259 5,505,509 6,434,599 8,885,898
Profit Before Tax 481,702 4,777,434 6,661,094 5,953,076 6,120,940
Tax 289,929 1,744,062 2,263,844 1,876,918 1,964,254
Profit after Tax 191,773 3,033,372 4,397,250 4,076,158 4,156,686
Balance Sheet
Equity 10,255,844 13,035,236 17,687,753 19,878,242 22,355,614
Total Assets 154,926,483 192,169,660 252,026,776 320,109,723 366,680,192
Total Liabilities 144,670,639 179,134,424 234,339,023 300,231,481 344,324,578
Ratios
Earning Assets to Total
Assets 0.44 0.64 0.64 0.58 0.66
Return on Earning
Assets 0.0028 0.0247 0.0274 0.0218 0.0172
Interest Margin to
average Earning Asset 0.1844 0.0789 0.1146 0.1229 0.1150
Equity Capital to Total
Asset 0.0662 0.0678 0.0702 0.0621 0.0610
Deposit T`ime To
Capital 28.70 36.76 45.90 49.01 46.02
55
Loan To Deposit 0.10 0.06 0.09 0.09 0.09
Current Ratio 1.65 2.22 2.46 2.89 3.11
Working Capital 51,034,342 95,345,174 128,089,162 185,090,673 218,174,354
Cash Deposit 0.09 0.09 0.11 0.11 0.08
Liquid Asset To Asset 0.83 0.90 0.86 0.88 0.88
Return on Assets 0.001 0.016 0.017 0.013 0.011
Return on Equity 0.044 0.689 0.980 0.757 0.643
Average Profit Per
Branch 250.36 3960.02 5740.54 5321.36 5426.48
Debit Equity Ratio 32.85 40.67 52.21 55.74 53.27
Return on Deposit 0.002 0.019 0.021 0.015 0.014
Advances To Deposit 0.471 0.685 0.699 0.638 0.716
56
24. Ratio Analysis
Ratio analysis helps us in determining a logical relationship
between different heads of income statement and balance sheet. This logical
relationship is helpful in making various useful interpretations about the financial
position of the bank, liquidity of the bank and most of all the profitability of its
operations. Following ratios have been calculated:
The information contained in the four
basic financial statements is of major significance to various interested parties who
regularly need to have relative measures of the company’s operating efficiency.
Relative is the key word here, because the analysis of financial statements is based on
the use of ratios or relative values. Ratio analysis involves methods of calculating and
interpreting financial ratios to analyze and monitor the firm’s performance. The basic
inputs to ratio analysis are the firm’s income statement and balance sheet.
1. Earning Asset to Total Assets

Earning assets are the assets which are very important for
any company for the bank earning assets are the assets on which bank can earn its
profit which may includes loans, advances, operating fixed assets and other assets on
the loans and advances bank can make profit by giving or investing in some where so
ABL has increased it’s earning assets in the year 2008 as compared to the previous
year that show the good trend in the profitability of the ABL and the customer believe
on the Bank.
Ratio tells that on what percentage earning assets contribute the total assets.
well bank also has increased it’s earning assets ratio shows the more profitability of
the bank as it can be shown by the profit and loss account of the 2008 that shows the
net mark up income more for the year as compared to the previous year so bank is
going gradually to the more profitability by giving more advances and loans.
57
2004
Earning Asset to Total Assets = Earning Assets / Total Assets
= 67,987,955 / 154,926,483
= 0.44
2005
= 122,847,585 / 192,169,660
= 0.64
2006
= 160,640,106 / 252,026,776
= 0.64
2007
= 186,661,282 / 320,109,723
= 0.58
2008
= 241,476,135 / 366,680,192
= 0.66
2. Return on Earning Asset
This ratio indicates that how much of earning assets take part in making of the
profit before taxation.
2004
Return on Earning Asset = Profit after tax / earning assets
= 191,773 / 67,987,955
= 0.0028
58
2005
= 3,033,372 / 122,847,585
= 0.0247
2006
= 4,397,250 / 160,640,106
= 0.0274
2007
= 4,076,158 / 186,661,282
= 0.0218
2008
= 4,156,686 / 241,476,135
= 0.0172
3. Interest Margin to Average Earning Assets
2004
Interest Margin to Average Earning Assets = Borrowings / earning assets
= 12,538,430 / 67,987,955
= 0.1844
2005
= 9,693,785 / 122,847,585
= 0.0789
2006
= 18,410,425 / 160,640,106
= 0.1146
2007
= 22,933,656 / 186,661,282
59
= 0.1229
2008
= 27,778,151 / 241,476,135
= 0.1150
4. Equity Capital to Total Assets
Equity to total assets is a common measure used to analyze capital adequacy of
a bank. Well bank has increased its capital adequacy ratio in the year.
But bank’s total assets has increased but increase in the equity is so small because of
less profit in the year and this less profit is due to more provisions.
So this has not a so much impact on the profitability of the bank the result of
this ratio if viewed properly proved to be satisfactory.
2004
Equity Capital to Total Assets = Total equity / total assets
= 10,255,844 / 154,926,483
= 0.0662
2005
= 13,035,236 / 192,169,660
= 0.0678
2006
= 17,687,753 / 252,026,776
= 0.0702
2007
= 19,878,242 / 320,109,723
= 0.0621
2008
= 22,355,614 / 366,680,192
= 0.0610
60
5. Deposit Times Capital
2004
Deposit Times Capital =Deposit / capital
= 126,391,752 / 4,404,642
= 28.70
2005
= 161,907,491 / 4,404,642
= 36.76
2006
= 206,031,324 / 4,488,642
= 45.90
2007
= 263,972,382 / 5,386,370
= 49.01
2008
= 297,475,321 / 6,463,644
= 46.02
6. Loan to Deposit
Well there is a concept that bank’s loans are its assets while its deposits are
liabilities. But if a bank has low deposits then obviously it will give low loans because
bank gives it’s loans by the deposits and earn on the loans then pay mark up on the
deposits to the customers.
Well bank has increased its loans to deposits ratio in the year 2006 showing its
more deposits as well more loans and that is good for the bank to remain in the market
and to penetrate in the market.
2004
Loan to Deposit =Loans / deposit
= 12,538,430 / 126,391,752
61
= 0.10
2005
= 9,693,785 / 161,907,491
= 0.06
2006
= 18,410,425 / 206,031,324
= 0.09
2007
= 22,933,656 / 263,972,382
= 0.09
2008
= 27,778,151 / 297,475,321
= 0.09
7. Current Ratio
This ratio indicates the liquidity of the bank. well this ratio has been increased
during the year to a small extent due to
 Bank has increased its deposits so liabilities have been increased.
 Bank has increased its assets as well to overcome the liabilities.
So overall we can say bank is the liquid enough to pay its liabilities
2004
Current Ratio =Current assets / current liabilities
= 129,126,323 / 78,091,981
= 1.65
2005
= 173,811,572 / 78,466,398
62
= 2.22
2006
= 215,731,897 / 87,642,735
= 2.46
2007
= 282,774,049 / 97,683,376
= 2.89
2008
= 321,353,659 / 103,179,305
= 3.11
8. Working Capital
2004
Working Capital = Current Assets- Current Liabilities
= 129,126,323 -78,091,981
=51,034,342
2005
=173,811,572 -78,466,398
=95,345,174
2006
= 215,731,897- 87,642,735
=128,089,162
2007
= 282,774,049-97,683,376
63
=185,090,673
2008
= 321,353,659-103,179,305
=218,174,354
9. Cash Deposits
2004
Cash Deposit=Cash/Deposit
= 10,842,519 / 126,391,752
= 0.09
2005
= 14,742,504 / 161,907,491
= 0.09
2006
= 23,039,577 / 206,031,324
= 0.11
2007
= 29,739,857 / 263,972,382
= 0.11
2008
= 23,653,754 / 297,475,321
=0.08
10. Liquid Assets to Total Assets
2004
64
Liquid Asset to Total Asset=Liquid Assets/Total Assets
= 129,126,323 / 154,926,483
= 0.83
2005
= 173,811,572 / 192,169,660
= 0.90
2006
= 215,731,897 / 252,026,776
= 0.86
2007
= 282,774,049 / 320,109,723
= 0.88
2008
= 321,353,659 / 366,680,192
= 0.88
11. Return on Asset
2004
Return on Asset= Net Income/Total Assets
= 191,773 / 154,926,483
= 0.001
2005
= 3,033,372 / 192,169,660
= 0.016
2006
= 4,397,250 / 252,026,776
65
= 0.017
2007
= 4,076,158 / 320,109,723
= 0.013
2008
= 4,156,686 / 366,680,192
= 0.011
12. Return on Equity
2004
Return on Equity= Net Income/ SHE
= 191,773 / 4,404,642
= 0.044
2005
= 3,033,372 / 4,404,642
= 0.689
2006
= 4,397,250 / 4,488,642
= 0.980
2007
= 4,076,158 / 5,386,370
= 0.757
2008
= 4,156,686 / 6,463,644
= 0.643
66
13. Average Profit per Branch
2004
Average Profit per Branch= Net Income/No. of Branches
= 191,773 / 766
= 250.36
2005
= 3,033,372 / 766
= 3960.02
2006
= 4,397,250 / 766
= 5740.54
2007
= 4,076,158 / 766
= 5321.36
2008
= 4,156,686 / 766
= 5426.48
14. Debt Equity Ratio
2004
Debt Equity Ratio= Total Debts/SHE
= 144,670,639 / 4,404,642
= 32.85
2005
= 179,134,424 / 4,404,642
= 40.67
2006
67
= 234,339,023 / 234,339,023
= 52.21
2007
= 300,231,481 / 5,386,370
= 55.74
2008
= 344,324,578 / 6,463,644
= 53.27
15. Return on Deposits
2004
Return on Deposits= Net Income/Deposits
= 191,773 / 126,391,752
= 0.002
2005
= 3,033,372 / 161,907,491
= 0.019
2006
= 4,397,250 / 206,031,324
= 0.021
2007
= 4,076,158 / 263,972,382
= 0.015
2008
68
= 4,156,686 / 297,475,321
= 0.014
16. Advances to Deposits
2004
Advances to Deposits= Advances/Deposits
= 59,484,812 / 126,391,752
= 0.47
2005
= 110,946,972 / 161,907,491
= 0.69
2006
= 144,033,634 / 206,031,324
= 0.70
2007
= 168,407,280 / 263,972,382
= 0.64
2008
= 212,972,008 / 297, 475, 32
= 0.72
69
25. Horizontal Analysis
Horizontal analysis of a Bank reveals the trend of various balance sheet and profit &
loss account items and shows that whether the performance of various balance sheet
and profit & loss account items is improving, declining or remaining consistent a
specific period of time.
Balance Sheet
2004 2005 2006 2007 2008
Assets
Cash and balances with
100% 136% 212% 274% 218%
treasury banks
Balances with other banks 100% 223% 115% 45% 142%
Lendings to financial
100% 36% 118% 114% 98%
institutions
Investments 100% 78% 82% 146% 144%
Advances 100% 187% 242% 283% 358%
Other assets 100% 121% 171% 180% 292%
Operating fixed assets 100% 185% 253% 296% 436%
Deferred tax assets – net 100% 61% 57% 59% 92%
Total 100% 124% 163% 207% 237%
Liabilities And Capital

Bills payable 100% 97% 90% 138% 116%
Borrowings from financial
100% 77% 147% 183% 222%
institutions
Deposits and other accounts 100% 128% 163% 209% 235%
Sub-ordinated loans
Liabilities against assets
subject to finance lease
Other liabilities 100% 159% 160% 229% 425%
Deferred tax liabilities
Share capital 100% 100% 102% 122% 147%

Share premium 100% 41% 0% 0% 0%
Reserves 100% 142% 856% 844% 810%
70
Unappropriated profit /
100% -26% -89% -110% -135%
(Accumulated losses)
Surplus on revaluation of
100% 202% 180% 182% 192%
assets – net of tax
Total 100% 124% 163% 207% 237%
Profit & Loss Account:

2004 2005 2006 2007 2008
Total Income 100% 197% 261% 266% 322%
Less: Expenses:
Administrative expenses 100% 104% 129% 146% 197%
Provision against other
100% 27% 137% 80% 143%
assets
Provision / (reversal of
provision) against off
100% -85% -3% -43% -204%
balance sheet obligations –
net
Other charges 100% 271% 101% 3665% 5577%
Total non-markup/interest
100% 105% 132% 154% 213%
expenses
Profit Before Tax 100% 992% 1383% 1236% 1271%
Taxation 100% 602% 781% 647% 677%
Profit After Tax 100% 1582% 2293% 2126% 2168%
26. Vertical Analysis

Vertical analysis is a term used for analyzing financial statements by knowing that
how much of a balance sheet/ profit and loss account’s portion is being held by its
different items and sub items. For the purpose of balance sheet analysts use the
amount of total assets as base and analyze that how much portion of total assets has
been held by different balance sheet items, whereas for the purpose of analyzing profit
and loss account analysts use sales as the base. The analysis helps to reveal that how
much each item is contributing to total assets/ sales and analyze the patterns
developed from those outputs.
Balance Sheet
71
2004 2005 2006 2007 2008
Assets
Cash and balances with
7.00% 7.67% 9.14% 9.29% 6.45%
treasury banks
Balances with other banks 0.95% 1.71% 0.68% 0.21% 0.57%
Lendings to financial
10.44% 3.01% 7.56% 5.75% 4.31%
institutions
Investments 37.00% 23.33% 18.63% 26.23% 22.53%
Advances 38.40% 57.73% 57.15% 52.61% 58.08%
Other assets 3.84% 3.74% 4.03% 3.34% 4.74%
Operating fixed assets 1.65% 2.46% 2.56% 2.36% 3.04%
Deferred tax assets – net 0.72% 0.35% 0.25% 0.21% 0.28%
Total 100% 100% 100% 100% 100%

Bills payable 1.64% 1.27% 0.90% 1.09% 0.81%
8.09% 5.04% 7.30% 7.16% 7.58%
institutions
Deposits and other accounts 81.58% 84.25% 81.75% 82.46% 81.13%
Sub-ordinated loans 0.00% 0.00% 0.99% 0.78% 0.68%
Liabilities against assets
0.00% 0.00% 0.00% 0.00% 0.00%
subject to finance lease
Other liabilities 2.07% 2.65% 2.03% 2.29% 3.71%
Deferred tax liabilities 0.00% 0.00% 0.00% 0.00% 0.00%
Share capital 2.84% 2.29% 1.78% 1.68% 1.76%

Share premium 6.87% 2.25% 0.00% 0.00% 0.00%
Reserves 0.46% 0.53% 2.43% 1.89% 1.58%
-4.08% 0.86% 2.23% 2.18% 2.33%
(Accumulated losses)
Surplus on revaluation of
0.52% 0.85% 0.58% 0.46% 0.42%
assets – net of tax
Total 100% 100% 100% 100% 100%
Profit & Loss Account:

2004 2005 2006 2007 2008
Total Income 100% 100% 100% 100% 100%
Less: Expenses:
Administrative expenses 88.28% 46.38% 43.48% 48.58% 53.91%
Provision against other
3.23% 0.43% 1.69% 0.97% 1.43%
assets
72
Provision / (reversal of
provision) against off
-2.01% 0.86% 0.02% 0.32% 1.27%
balance sheet obligations –
net
Other charges 0.15% 0.21% 0.06% 2.07% 2.60%
Total non-markup/interest
89.65% 47.89% 45.25% 51.94% 59.21%
expenses
Profit Before Tax 10.35% 52.11% 54.75% 48.06% 40.79%
Taxation 6.23% 19.02% 18.61% 15.15% 13.09%
Profit After Tax 4% 33% 36% 33% 28%
27.Trend Analysis
Years
Trend Analysis
2004 2005 2006 2007 2008
1. Earning
Assets to Total
Assets 0.44 0.64 0.64 0.58 0.66
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2004 2005 2006 2007 2008
Earning Assets of the bank in 2004 were 0.44 from their

total assets, but in 2005 the earning assets increased by 0.2 and these are
in total are 0.64 and it will remained same till 2006.In 2007 the earning
assets declined by 0.06, but in 2008 earning assets again increased by
0.66.It is going to increase due to every years asset value.
73
Years
Trend Analysis
2004 2005 2006 2007 2008
2. Return on 0.002 0.0246 0.0273 0.0218
Earning Assets 8 9 7 4 0.01721
0.03
0.025
0.02
0.015
0.01
0.005
0
2004 2005 2006 2007 2008
The return from earning assets in 2004 was 0.0028, but in 2005, 2006,
2007 the average increased than 2004 and in 2008 the earning assets
decreased than 05, 06, and 07.It decreased due to no return of all profits.
Years
Trend Analysis
2004 2005 2006 2007 2008
3. Interest
Margin to
average 0.184 0.0789 0.1146 0.1228
Earning Asset 4 1 1 6 0.11503
0.2
0.15
0.1
0.05
0
2004 2005 2006 2007 2008
The interest margin to average earning Assets increased

or decreased by the borrowings and earning assets. It has 0.1844 in 2004,
74
but in 2005 it decreased by 0.1054 and in 2006 it again increased 0.0357 and till
simultaneously increased. It is up and down due to heavy borrowing.
Years
Trend Analysis
2004 2005 2006 2007 2008
4. Equity
Capital to Total
Asset 0.0662 0.0678 0.0702 0.0621 0.061
0.075
0.07
0.065
0.06
0.055
2004 2005 2006 2007 2008
In this trend shows the total equity to total assets for every year. It has
0.0662 in 2004 and it increase by small ratio in 2005 &2006.It become 0.0621 in
2007 and decreased 0.0011 in 2008.It is increased or decreased due to Equity loss and
gain.
Years
Trend Analysis
2004 2005 2006 2007 2008
5. Deposit Time
To Capital 28.7 36.76 45.9 49.01 46.02
75
60
50
40
30
20
10
0
2004 2005 2006 2007 2008
Trend shows the Bank’s Deposit to Capital and shows every

year’s ratio increased or decreased. It’s ratio in 2004 is 28.7 and it
increased regularly up to2007 and very small decreased in 2008.It is
going to increased due to Bank’s deposits.
Years
Trend Analysis
2004 2005 2006 2007 2008
6. Loan To
Deposit 0.1 0.06 0.09 0.09 0.09
0.12
0.1
0.08
0.06
0.04
0.02
0
2004 2005 2006 2007 2008
The trend analysis shows the Bank’s Loan to Deposit. These loans
and deposits were 0.1 in 2004.In 2005 it reduces to 0.04 but in 06, 07, and 08 it is
going too increased by 0.03.This ratio increase due to loans.
76
Years
Trend Analysis
2004 2005 2006 2007 2008
7. Current
Ratio 1.65 2.22 2.46 2.89 3.11
3.5
3
2.5
2
1.5
1
0.5
0
2004 2005 2006 2007 2008
This ratio shows the Bank’s current assets and current

liabilities that are increasing from 2004 to 2008 with high speed. It
increase due bank’s Assets and Liabilities.
Years
Trend Analysis
2004 2005 2006 2007 2008
8. Working 51,034,34 95,345,17 128,089,16 185,090,67

Capital 2 4 2 3 218,174,354
77
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
2004 2005 2006 2007 2008
The working Capital of the bank is very large and it is going to

increased for next years. So its trend is upward till 2008.It increase due heavy assets
of the bank.
Years
Trend Analysis
2004 2005 2006 2007 2008
9. Cash Deposit 0.09 0.09 0.11 0.11 0.08
0.12
0.1
0.08
0.06
0.04
0.02
0
2004 2005 2006 2007 2008
Cash Deposit of the Bank is increased by different variations till

2008.It is only due to the cash collection.
78
Years
Trend Analysis
2004 2005 2006 2007 2008
10. Liquid
Asset To Asset 0.83 0.9 0.86 0.88 0.88
0.92
0.9
0.88
0.86
0.84
0.82
0.8
0.78
2004 2005 2006 2007 2008
The Liquid Assets to Total Assets of the Company were 0.83 in

2004 .In 2005it increased by 0.07 and becomes 0.9, but in the next years it decreased
by 0.03 and0.02 till 2008.It increases due to new Assets.
Years
Trend Analysis
2004 2005 2006 2007 2008
11. Return on
Assets 0.001 0.016 0.017 0.013 0.011
0.02
0.015
0.01
0.005
0
2004 2005 2006 2007 2008
79
The net income to Total Assets of the Company was 0.001 in
2004, but in next years it increased by Different ways. It is due to Total income and
Assets.
Years
Trend Analysis
2004 2005 2006 2007 2008
12. Return on
Equity 0.044 0.689 0.98 0.757 0.643
1.2
1
0.8
0.6
0.4
0.2
0
2004 2005 2006 2007 2008
It is based on net income and Shares Holder Equity, it is 0.044

in 2004.It increased by 0.645 in 2005&06 but in 2007&08 it decreased by 0.123.It is
due to share holder’s equity.
Years
Trend Analysis
2004 2005 2006 2007 2008
13. Average
Profit Per
Branch 250.36 3960.02 5740.54 5321.36 5426.48
80
7000
6000
5000
4000
3000
2000
1000
0
2004 2005 2006 2007 2008
It is the average profit per branch. It remained 250.36 in

2004 and increased with high speed till 2008 .Now its average is 5426.48 in 2008.It is
going to increase due to more branches income.
Years
Trend Analysis
2004 2005 2006 2007 2008
14. Debit
Equity Ratio 32.85 40.67 52.21 55.74 53.27
60
50
40
30
20
10
0
2004 2005 2006 2007 2008
It is the Ratio that depends on the Total Debts and Share

Holder Equity. In 2004, it was 32.85 and in the next 3 years it increase randomly. but
in 2008 it is decreased by 2.47 than previous. It increased due to Debts received.
81
Years
Trend Analysis
2004 2005 2006 2007 2008
15. Return on
Deposit 0.002 0.019 0.021 0.015 0.014
0.025
0.02
0.015
0.01
0.005
0
2004 2005 2006 2007 2008
It is the ratio of Net Income and Deposits of the Company. It

contains 0.002 in 2004 and they randomly increased and decreased till2008.It
decreased due to Deposits reception.
Years
Trend Analysis
2004 2005 2006 2007 2008
16. Advances
To Deposit 0.471 0.685 0.699 0.638 0.716
0.8
0.6
0.4
0.2
0
2004 2005 2006 2007 2008
82
It is Ratio of Advances to Deposits of the company. These were
0.471 in 2004 and increased randomly till 2008.It is going to increase due to more
advances.
28. Organizational analysis

Data 2008 of Financial
Statement ABL MCB BALF
Assets
Cash and balances with treasury
banks 23,653,754 39631172 32687335
Balances with other banks 2,096,779 4043100 21581043
Lendings to financial institutions 15,793,183 4100079 3315500
Investments 82,631,118 96256874 75973238
Advances 212,972,008 262510470 192671169
Other assets 17,369,691 19810476 8989186
Operating fixed assets 11,134,436 8070401 13773293
Deferred tax assets – net 1,029,223 0 0
366,680,1 434,422,5 348,990,76
Total 92 72 4
83
Bills payable 2,952,490 10551468 3452031
institutions 27,778,151 22663840 13690222
Deposits and other accounts 297,475,321 330274155 300732858
Sub-ordinated loans 2,498,000 0 2571169
Liabilities against assets subject
to finance lease 0 0 0
Other liabilities 13,620,616 21253250 11291280
Deferred tax liabilities 0 437137 208465
Share capital 6,463,644 6282768 7995000
Share premium 0 0 0
Reserves 5,804,776 36768765 3166056
(Accumulated losses) 8,536,697 0 3447467
Surplus on revaluation of assets
– net of tax 1,550,497 6191189 2436216
366,680,1 434,422,5 348,990,76
Total 92 72 4
500000000
450000000
400000000
350000000
300000000
ABL
250000000 MCB
200000000
150000000 BALF
100000000
50000000
0
Share premium
Unappropriated
Investments
Total
Deposits and
Other assets
Bills payable
Deferred tax
Liabilities
Deferred tax
Assets
Balances with
Comments:
In the competition of two banks MCB and BALF with the ABL, through their balance
sheet, the graphical represents shows the each bank’s situation. In this way MCB is at
very high position while ABL is on the second position and BALF is on third
position.
Each bank has its own sources of income; it includes its assets and liabilities. So MCB
has large assets and liabilities than the others two.
84
29. Future Prospects of the Organization
ABL operates through an extensive countrywide network of 766 branches of which
most are located in large metropolitan areas, namely Karachi, Islamabad, Faisalabad,
Lahore, Multan, Peshawar and Hyderabad.
ABL is a scheduled bank and provides retail, commercial, corporate banking and
investment banking services.
FUTURE PLANS OF THE BANK
The Board and the management strongly believe that ethical corporate culture has a
positive impact on its long-term strategic success. The Bank is committed to
maintaining a strong corporate culture founded on ethical business principles and
moral values. The Bank will continue to strive for sustained growth and to become a
leader in the banking industry by undertaking a number of initiatives namely
i) Renovation of branches
ii) Launch of bank assurance products
iii) Aggressive Mobilization of Deposits with a focus on reducing cost
85
iv) Commencement of Asset management operations through a wholly owned
subsidiary.
Corporate governance is one of the top priorities of the Board of Directors and the
management. The Bank complies with all regulations of SBP and SECP and other
regulatory requirements. The Bank will also endeavor to implement international best
practices of governance and ensure transparency and safeguarding the rights of all the
stakeholders.
30. Weaknesses:
1. The Branch has a good staff combination on the basis of experience, but their
training capabilities are not up to the requirements of the fast changing banking
environment.
2. The controls of Heads are not effective.
3. In spite of the presence of technology many jobs are done manually.
4. ABL is not enhancing the new obligors.
5. Fewer incentives in back office as compared to the branches.
6. ABL credit group do not sanction the loan to the lawyers, politicians and the female
having no blood relative.
7. In back offices the employees are less so it creates more work burden on the
existing one.
8. The Organization is very much mechanistic and provides no flexibility to
encourage credibility.
86
31. Conclusion:
The Organization is well managed with the organized structure and efficient
employees. Due to its growth in online branch system, it has brought future in
financial organizations. It will produce more facility for employees and customers in
future.
87
32. Recommendations
Following are some observations and suggestions during the internship.
1) When giving the loan, the Bank must carefully analyze the past six
months transaction history of the borrower. This will help in judging
the dealing behavior and financial status of the client. In most cases,
this thing is not properly done and it is the major reason of default of
many clients.
2) The Bank should keep the proper cheque on stock which is

hypothecated. A textile owner may ret the loan on same 10,00 bales of
cotton from checking system of the Bank.
3) The Bank should have the moving cameras in their branches for security
purposes.
88
4) The Bank should try to give more loans to the small borrowers as the
past history shows that most of the loans given to the corporate
borrowers have converted into bad debts.
5) The Bank has a lot of financing schemes but there is very little
advertisement of these schemes. So Bank should increase its
advertisement.
6) When any one comes to operate the lockers, then the things which he
keeps in locker should be checked through metal detector for security
purposes.
7) Staff turnover particularly of trained staff results in financial and other

losses. The amount spent by the bank on employment, induction and
training of outgoing officers constitutes to beat till another officer
should ready prove his work. The exodus of bank officers in the past has
worsened the situation.
8) Most of the bank employees are sticking to one seat only, with the result
that they become master of one particular job and loose their grip on
other banking operations. In my opinion all the employees should have
regular job experience all outÄlook towards banking. The promotion
policy should be adjusted.
9) Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according to
their requirements. Foreign experts can also be called for this purpose.
10)Every year some of the employees should be sent for training to other
countries and employees from other branches should be brought here.
More reading material should be brought / provided in the reference
Room, it should be relevant and its purpose should be to educate the
employees with the advance studies in their field. The employees should
89
be provided the opportunities to attend and participate in seminars and
lectures on banking.
11)With the internship letter should also be requested to provide us the

financial reports.
33. Reference
Data collected from ABL Manager Minerva centre branch Jhang road Faisalabad.
Allied Bank Limited [On line]
Available: http://www.abl.com/thebank/financials.asp
Bank Alfalah Limited [On line]
Available: http://bankalfalah.com/about/financial_performance.asp
Muslim Commercial BAnk [On line]
Available: http://www.mcb.com.pk/ir/fin_data_rep.asp
90
34. Annexure
Annexure A – Annual Reports of ABL
Annexure B – Annual Reports of MCB
Annexure C – Annual Reports of BALF
91

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6.

Devoting and facilitating the customers and their satisfaction, by providing

ABL is a leading organization in grain market was assigned to me for

The increase of trade in 13th-century Italy prompted the revival of banking.

8.1 Central banking

Online reporting system

9.1. Brief History of the Organization

9.2 Nature of Organization

THE PRE INDEPENDENCE HISTORY (1942 TO 1947)

Australasia Bank was the only

Allied Bank (1974 to 1991)

Allied Bank (1991 to 2004)

• Islamabad Stock Exchange: 8th August, 2005.

Business Volume 2004 2005 2006 2007 2008

Total Number of Employee of ABL in Pakistan are Approximately 17,500.

12. Product Line

ATM/DEBIT CARD, CASH+SHOP VISA DEBIT CARD

Allied Visa Credit Card:

13. Organizational Structure

Mohammad Naeem Mukhtar (Chairman / Non Executive Director)

Sheikh Mukhtar Ahmad (Non Executive Director)

Mohammad Waseem Mukhtar (Non Executive Director)

Abdul Aziz Khan (Non-Executive Director)

Sheikh Jalees Ahmed (Executive Director)

Farrakh Qayyum (Government Nominee / Non Executive Director)

Nazrat Bashir (Government Nominee / Non Executive Director)

Tasneem M. Noorani (Independent Director)

Mubashir A. Akhtar (Independent Director)

Pervaiz Iqbal Butt (Independent Director)

Mohammad Aftab Manzoor (Executive Director / Chief Executive Officer)

Farrakh Qayyum (Member)

Sheikh Jalees Ahmed (Member)

The board committees

Tahir Hassan Qureshi (Chief Financial Officer)

Iqbal Zaidi (Group Chief, Compliance & Control)

Asim Tufail (Group Chief, Consumer & Personal Banking)

Khawaja Mohammad Almas (Head Core Banking Projects)

Zia Ijaz (Group Chief, Commercial & Retail Banking)

Mujahid Ali (Group Chief, Information Technology)

Mohammad Aftab Manzoor (Chief Executive Officer)

Muhammad Yaseen (Treasurer)

Fareed Vardag (Group Chief, Risk Management)

Tariq Mahmood (Group Chief, Operations)

Mohammad Abbas Sheikh (Group Chief, Special Assets Management)

Muhammad Shahzad Sadiq (Group Chief, Audit & CRR)

Waheed Ur Rehman (Group Chief, Corporate Affairs & Company Secretary)

Muhammad Jawaid Iqbal (Group Chief, Corporate & Investment Banking)

Mr. M. Naveed Masud Senior Executive Vice President

Mr. Akhter Ali Khan Head Credit

Mr. Tahir Saeed Effendi Head I.T & Financial Officer

Mr. Mohammad Yaqoob Head Islamic Banking & Planning Div

Mr. Masud A. Sidique Head Human Resource

Mr. Anwar Zaki Head Treasury

Mr. Khalid Mehboob Head Business Promotion

Mr. Sayed Mujtaba Gillani Head Special Vigilance Unit

 ATM (Debt Card)

 Other Financing Schemes

 Premium Plus Operational Account (3707)

 Allied Profit Plus Deposit Account (3731)

 E-Savers Account (3736)

 Special Corporate Account (3730)

Accounts by products are of three types.