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PREFACE In the name of Allah who Is most merciful and beneficial.

Allah has given me many abilities and with these I was able to Prepare this report. This is the internship report of Allied Bank of Limited. The detail of the work I have been done at Bank goes as below.

D ED I CI A T I O N I dedicate this assignment to my Parents and Teachers who have Always been a source of inspiration for me, and to Mr Mubashir (Grade-2 Officer Main Branch RWP) who gave me great knowledge about the banking sector.

NATIONAL UNIVERSITY OF MODERN LANGUAGES Faculty of Information Technology & Management Sciences REGISTRATION FORM PERSONAL INFORMATION Name of student: Bilal Ahmad Course: M.B.A (Human Resource) Roll no: 9844 Phone no: 03345040190 Fathers Name: Azmat Ali Session: JAN2009-DEC2010 Shift (Mor/Eve): EVENING E-mail: IPM456@GMAIL.COM

Organization name: Allied BANK Limited Topic: INTERNSHIP REPORT Brief Description: My internship report is based on the human resource analysis of ALLIED BANK LIMITED. During the analysis I have found the HR position of ABL is satisfactory over the years. I have searched the causes for such performances and given recommendations to improve the performance. The available time limit for completing internship research report is 6 weeks immediately after completion of course work.

______________________________ Students Signature TOPIC APPROVED / NOT APPROVED ______________________________ Supervisor

_______________________________ Head of Department


It is hereby certified that the report has been thoroughly and carefully read and recommended to the faculty of management sciences for acceptance of final internship report by Bilal Ahmad, Roll No: M-9844 session (Jan2009-Dec2010) Morning, in partial fulfilment of the requirements for the degree of Master in Business Administration of National University of Modern Languages Islamabad. Dated:

Supervisor Name


Supervisor Signature______________________ Panel Member Name______________________ Panel Member Signature___________________

Head of Department _____________________________


All the praise for ALMIGHTY ALLAH, the Creator of this universe who guides us to overcome the difficulties in crucial situation, and all respects are for HIS HOLY PROPHET MOHAMMED (P.B.U.H), who enables us to recognize our creator and understand the philosophy of life. Beyond all the material available, I am very thankful to Mr Mubashir who gives me appropriate knowledge about Allied Bank of Limited. And through his motivational behaviour I was able to complete my internship. I am also thankful to the employees of ABL who helped me in the preparation of this report. Secondly I acknowledge the inspiring guidance, encouraging attitude, valuable comments and technical guidance, received from my respective teachers of University. Finally, I am very thankful to my family and my sweet friends for their prayers, love and encouragement and their faith in my abilities. The completion of my work is the result of their co-operation and moral support. Without their co-operation and support, a project like this is difficult at best.

Executive Summary
I had completed my internship in the ABL Sargodha road branch. I worked at various departments of the bank. Such as account opening, pension, and did some work at clearing and remittances. The working environment in the Bank was very conducive and friendly. The main purpose of internship is to learn, by working in practical environment and to apply the knowledge acquired, during the studies, in a real world scenario in order to tackle the problems. My intentions were to know how to work in financial institutions, to know about the office environment and to know how to deal with different kind of people. In this report the analysis of the organization has been done and the recruitment aspects have been evaluated to analyse the current position of the organization. Along with it, the background analysis, the business process analysis, and the internal environment and external environment of the organization have been discussed and the recommendations for the improvement have been made. This document provided details of my achievements in term of practical implementation and understanding of working environment in banks. I had started my internship from Allied Bank Limited Sargodha road Branch. From 15thmay to 30thJune. During the internship, I have learnt basic banking work and a lot of practical work, which I had not acknowledged before. I worked in different departments and learnt basic operations of the departments that departments are. Account opening department, Clearing department, Remittance department, HR department etc. I have spent most of my time in HR department and hence I learnt what professional attitude to adopt while dealing with new employees and pay decisions. I have found out that how pay and promotion are equalized to satisfy the employees. In addition, this document provided aspect of Allied bank limited and its branch. This report is composed of the ABL History, ABL introduction, organizational structure, it is different Analysis such as critical analysis and SWOT analysis etc. e.g. ABL is the one of the leading bank that is first Muslim bank incorporated in the soil of Pakistan in 1942.in Lahore as Australasia bank. ABL organizational and financial structure is very trustworthy. ABL has some weakness but by using its strength ABL can over come the weakness as ABL is the strong and leading bank, But It also has faces many threats but it has many opportunity to overcome the threats.

Table of Contents: Chapter -1 1. Introduction ----------------------------------------------------------------------1.2 Overview of the ABL Bank --------------------------------------------------- Chapter -2 Organization Structure --------------------------------------------------------- Chapter - 3 Plan of your Internship Program -------------------------------------------- Introduction of the Bank Starting & Ending date of Internship Department in which you got Training Organization Hierarchy Chart Number of Employees Main Offices Comments on the Organization Structure History Nature of the Organization Business Volume Product Line Competitors

Page# 7-14 7 10

15-22 15 -22


Training Program ------------------------------------------------------------- Chapter - 4 Structure of the Finance Department -------------------------------------Introduction of all Department Description of the Department I am work in

24 - 42

43- 45

Chapter 5

Department Hierarchy Number of employees working in Finance Department Finance & Accounting Operations Accounting system of the Organization Finance system of the Organization Use of electronic data in decision making Mobilizations of funds Generation of funds Sources of funds Allocation of funds 85-89 85 87 88 89

Functions of the Finance Department------------------------------------------

SWOT Analysis of the ABL Bank ----------------------------------------------Conclusion & Recommendation -------------------------------------------------References & Sources Used ------------------------------------------------------Annexes ------------------------------------------------------------------------------

1. INTRODUCTION: What is Bank? A system of trading in money which involved safeguarding deposit and making funds available for borrowers Or simply, A bank is an institution, which Accept deposits and give advances. Definition of Bank: An organization usually a corporation Chartered by a state or federal government, which does most or all of the following: Receives demands and deposits, Honour instruments drawn on them, In addition, pays interest on them; Discounts notes makes loans, and invest in securities; collects checks, drafts, and notes; certifies depositors checks; and issue draft, and cheesier. About Allied Bank: Allied Bank Limited is the first bank incorporated on the soil of Pakistan. It was incorporated in Lahore before independence in 1942 as Australasia Bank and was renamed as Allied Bank of Pakistan Limited in 1974 and Allied Bank Limited in 2005. In August 2004 as a result of capital reconstruction, the Banks ownership was transferred to a consortium comprising of Ibrahim Leasing Limited and Ibrahim Group. Allied Bank Limited is the one of the top and renowned bank it has excellent reputation. In the wake of its success one of the most important factors, apart from its energetic management and prudent approach, is the QUALITY of its SERVICES, which gives it a great periphery over its competitors ABL is providing the most modern and technologically advanced services to its customers according to the customers need and demands, and hence the ABL is meeting the customers expectation very finely. BANK has always strived to facilitate its customers by introducing various high quality hi-tech services.

Today the Bank stands on a solid foundation of over 66 years of its existence having a strong equity, assets, and deposits base offering universal banking services with higher focus on retail banking. The Bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clients through its network of 779 branches in over 300 cities and towns. The bank has in place the largest ATM network in the country with more than 502 ATMs in more than 145 cities and towns across Pakistan Main Sector of the Organization: Main sector of the ABL are the: Credit department (Advances department) Foreign currency department (Deposit department) Customer management services The credit department and the foreign currency departments are the main departments in which the organization is dealing at a large scale and dealing is set in motion in customer management services department. These departments are playing a vital role in banking sector. These departments give the bank a real business. Credit Department: The main function of the credit department is to lend money to the borrowers on the interest and hence bank earns a lot .ABL is serving the customers by giving the short term, medium term, long term, farm and non firm credits. The bank lends money against some guarantee or pledges or some property. ABL the is giving the clean advances against promissory notes, giving secured advances against tangibles and marketable securities and now also lending money against life policies and immoveable property. Foreign currency department: The ABL is also giving the facilities of foreign currency account as well as Pak rupee account. Foreign currency department is also playing a vital role in the banking and it becomes immense source of earning. In the allied bank, the foreign currency account can be opened in many currencies but the four main currencies are: US Dollar (USD) Euro (EUR) Japanese yen (JPY)

Sterling Pond Current account Saving account Term deposit account

Foreign currency account can be opened in many accounts such as:

Customer management services: This is the department, which is dealing with customers and convinced them towards to open the accounts and persuading them to indulging in many other activities of bank, these departments serving the customers in the various ways. The above two departments activities are actually starting from here it can be say that customer service department is composed of the foreign currency departments and credit departments. VISION To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers. MISSOIN To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements To create sustainable value through growth, efficiency and diversity for all stakeholders To provide a challenging work environment, and reward dedicated team members To play a proactive role in contributing towards the society VALUES Integrity Excellence in Service High Performance Innovation and Growth

Nature of the Organization: Allied Bank Limited is Scheduled Bank. Allied Bank Limited (Allied Bank) provides retail, commercial and corporate banking services. The bank is listed on all stock exchanges in Pakistan ABL is a Private Bank. year Total Assets investments Advances Interest earned Share capital EPS Imports Exports Other information: No. of Employees No. of branches 8,713 779 8,325 766 8,181 757 2009 418,374,331 94,789,492 237,344,038 41,121,503 7,110,008 10.02 196,211 2008 366,695,669 82,646,595 212,972,008 30,570,540 6,463,644 5.85 194,186 2007 320,109,723 83,958,463 168,407,280 21,201,422 5,386,370 5.73 150,698 Business volume:

Different schemes: Allied Umrah Aasan Allied Tahafuz Deposit Scheme Allied Karzas Scheme Allied Bachat scheme Finance Facility: Cash Finance Demand Finance Running Finance etc Agricultural Finances etc

Accounts facility: Current Account Saving account Other Accounts Banking provides: Internet Banking Allied basic Banking Foreign currency banking Deposits: Allied profit plus term deposit Allied profit deposit Allied monthly income scheme etc Large ATM Network: 24/7 availability

Competitors: These are the some competitors. Habib bank limited Soneri bank Alfalah bank United Bank Limited The bank of Punjab Soneri Bank Limited Bank Al-Habib Limited

Comments: The organizational hierarchy represents the different designations in organization. In addition, every lower level position officer/employee is responsible for the upper level designation person. Moreover, Assistants play a very vital role in the organizational structure. Assistants assist their officer and make the work/job easy and quick. Moreover, every one is responsible for his work for their officer. Hence, it creates a good control in overall structure and thus the overall ABL structure full filling the overall requirement of the organization.





Branch Manager

Operation Manager

Department In charge




Comments: The successful management depends on these factors: Fully and hearted contribution of all the members/employees. Successful organizational/management structure usually depends upon the fully and active contribution of the each member of the organization: Such as contribution of: President Board of directors Supervisors All employees etc.

And the organization/management structure also depend upon the The manner of doing the work at each level is also very important Branch have above both factors, every employee is responsible for senior officer in the branch and work with fully attention and devotion, Moreover, the overall branch is under the control of board of directors etc. and hence overall working of the branch is best. As the branch is under the control of: Presidents and board of directors, Every junior employee of the branch is under the control of his senior officer/employee, it creates the dual control on the branch, hence branch is working with full awareness and with intimation, and hence the branch structure is fully fulfilling the requirement of the organization. Head Quarters: There are Four Provincial Headquarters of Allied Bank Limited situated at Lahore (Punjab), Karachi (Sindh), Peshawar (NWFP & Azad Kashmir) and Quetta (Baluchistan) Number of employees: Total number of employees in branch is 14. In over all Allied Bank numbers of employees are: Number of 2009 8713 2008 8325 2007 8181


Departments: Customer service Department Cash department Advances Department Foreign currency Department Clearing Department Foreign currency Department Remittance Department OBC Intercity Introduction of all departments:

HR Analysis
Human resource analysis of ABL is mainly depends on the following four categories. 1. Recruitment and Selection 2. Training and Development 3. Performance evaluation 4. Compensation Recruitment and Selection. Recruitment, assessment, and selection are the three key steps for hiring employees. Of these, recruitment and selection are typically the most challenging for employers. The keys to finding the right candidates at the right time and hiring them are being strategic and thinking about the organization's future. ABL follows two methods for recruitment. External Recruitment. ABL develop relationships with guidance and career counsellors at colleges and universities and ask for help in recruiting for open positions. Reach out to professional organizations that are in line with the organization's mission, and ask to them to list open positions in their newsletters and emails to members. ABL consider working with a

recruitment firm in this method of recruitment, especially when the position is at a higher level or requires a specific skill or type of experience. Internal Recruitment ABL also use this type of method of recruitment for hiring potential employees. In this method, ABL focuses on skills and experience an applicant must possess. Post an open position internally ABL assess qualified candidates within the organization. Consider interns, volunteers, temporary workers, or consultants who may have been working in a similar capacity to the open position. Selection Methods Once the applicant pool has been narrowed and candidates have been assessed, it is time to make a selection decision. ABL think long-term. Is the applicant qualified for the present job as well as future positions? Look for a candidate with solid experience and new ideas and a fresh perspective. Weigh his or her willingness to learn. In addition, no matter the industry, market conditions inevitably will change ABL selects someone who not only can adapt, but also can flourish under those conditions. ABL never discount candidates who are making career changes. For example, someone with five years of corporate-sector experience can bring a strategic view to a non-profit organization, while someone from a non-profit who has made the most with limited resources can bring a fresh approach to a corporation. ABL consider other needs such as diversity, and to follow the guidelines of the Equal Employment Opportunity Commission. Training and Development In general, education is 'mind preparation' and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individual in terms of ability, understanding and awareness. ABL fuscous these points regarding Training and Development:

Develop workers to undertake higher-grade tasks. Provide the conventional training of new and young workers. Raise efficiency and standards of performance. Meet legislative requirements e.g. health and safety. Transfer learning from observation of trained workers. Receiving coaching from seniors. Learning via involvement in research, report writing, and visiting other works or organizations.

Lectures and talks by senior or specialist managers. Discussion group (conference and meeting) activities. Briefing by senior staffs. Role-playing exercises and simulation of actual conditions. Video and computer teaching activities. Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation exercises and inspection and reporting techniques.

Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify needs to modify or extend what is being provided, to reveal new needs, and redefine priorities and most of all to ensure that the objectives of the training are being met. The latter may not be easy to ascertain where results cannot be measured mathematically. In the case of attitude and behavioural changes sought, leadership abilities, drive and ambition fostered, etc., achievement is a matter of the judgment of senior staffs. Exact validation might be impossible but unless overall the judgments are favourable, the cooperation of managers in identifying needs, releasing personnel, and assisting in training ventures will cease. In making their judgments senior managers will question whether the efforts expended have produced:

More effective, efficient, flexible employees. Faster results in making newcomers knowledgeable and effective than would follow from experience. More effective or efficient use of machinery, equipment and work procedures. Fewer accidents both personal and to property; Improvements in the qualifications of staff and their ability to take on tougher roles. Better employee loyalty to the organization with more willingness to innovate and accept change.

Performance evaluation In ABL Performance appraisal defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skill development. In ABL appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may

require some form of counselling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter. Compensation In ABL Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. (Also see the Related Info (including Benefits). Compensation is payment to an employee in return for their contribution to the ABL, that is, for doing their job. ABL associate compensation/pay ranges with job descriptions in the organization. The ranges include the minimum and the maximum amount of money that can be earned per year in that role. Employees have certain monies withheld from their payroll checks, usually including federal income tax, state income tax, FICA (social security) contributions, and employee contributions to the costs of certain benefits. Professional, management and other types of skilled jobs are classified as exempt. Exempt jobs get a salary, that is, a fixed amount of money, usually a fixed amount per month. It's not uncommon for exempt positions to receive higher compensation and benefits than non-exempt jobs, although non-exempt jobs often can make more money than exempt jobs simply by working more hours. Unskilled or entry-level jobs are usually classified as non-exempt. Non-exempt jobs usually get a wage. Non-exempt jobs also get paid over-time, that is, extra pay for hours worked or on certain days of the week or on holidays Customer Service Department: This is the main department of the branch. And this department is dealing with customer and provides them services of giving the information about the Banks products and Services. And also help the customer in different ways, also response to the complaint. Cash Department: This is also the very important and main Department of ABL branch as this department is dealing in cash which come in the bank or goes from the bank. Cash is in different form of currency. Its basic function is dealing with Receipts and Payments.

For example, Accept deposits in terms of cash Give advances in terms of cash Collect utility bills etc Other sources Advances Department: This Department is also play a vital role in banking this department give advances to the customers etc To accept deposits and lend or give advances is the basic and primary Function of this bank. The bank lends money in the form of: Advances, against promissory notes Secured advances against tangible and marketable securities. Etc. Foreign Currency Department The function and role of foreign currency department is very important and pivotal in the banking sector. It became the big source of a earning in bank. As it is dealing in the foreign currency. The foreign currency account can also be open in many accounts same like as Pak rupee account, such as, Saving account Current account Term deposit account. The bank deal in three type of foreign currency account US Dollar (USD) Euro (EUR) Japanese yen (JPY) Sterling Pond Clearing Department: This department is used for clearing for example clearance of cheque and the work of this department is very sensitive and time taking.

The clearance is dealing with those activates when bank receive or pay the amounts or cheque of the other banks for instance the receiving or sending amount to Mezan bank Habib Bank Limited, National Bank of Pakistan, Soneri bank. Intercity and OBC actually the part of the clearing department with little bit difference functioning. Remittance Department: The main task of the Remittance department is: Transfer funds from one bank to another on demand And the collection takes place in this department. Remittances include: Demand draft (DD) Cash order or credit order Online inter branch transaction

PLAN OF INTERNSHIP PROGRAME: Brief Introduction of My Branch: I have done my internship form allied bank limited base branch. It is located on Sargodha road bole di jhuggi FaisalAbad. This branch has almost 15 employees. Branch code is 0534 and GHAZANFER HAYAT is the Branch Manager GHAZANFER HAYAT of this branch. It is a very diligence branch and it is situated from 36 years it is dealing in various Tasks. It is situated in the commercial area as there is many schools are located near branch and many rich peoples buildings are located near the ABL Base branch fsd. As, many teachers comes many a times for opening different types of accounts, joint accounts, single accounts and for different other activities and also they deposit huge amounts, and many servants also comes daily in this bank for availing banking services and also many rich people indulging with banks activities and hence the Base ABL branch doing a very good business. Thus, It has serving the all those customers in various aspects from 36 years with a high quality of products and services. Its mode of dealing is very attractive as, It gives advances and also performing the job of deposits at very attractable and reasonable rates. It is providing and introducing the new and innovative products in the area .It has a very good progress and earns high profitability. And has a good reputation.

STARTINNG ENDING DATE OF INTERSHIP: Starting date: 15 May Ending date: 30th June

NAME OF DEPARTMENT AND DURATION: Account opening Remittance Clearing OBC Intercity Training program: Detailed description of the Activities performed by the departments: I have done my internship from ABL branch. The job performed by these departments is different and this division is useful for accurate performance and well managed functioning of each departments. I have work in these departments: Account opening Remittance Clearing Calling and sorting OBC Intercity : 15 May to 21st May : 24 May to 28 May : 1st June to 8 June : 16 June to 23 June : 24 June to 30th June

Calling and sorting: 9 June to 15 June

Details Description of the departments activities: All these departments are performing different particular activities detail of which is as follows: Account opening department: The function of this department is to open the account. And this department plays vital role in banking as this is hold the back bone position in banking. The higher the persons come for Open the Account, the banking proceeds in the same proportion. The ABL serving the large number of persons/clients by providing them the facility of opening the different types of Account, such as the following accounts o Types of Account: The account opening section deals in the opening of following types of accounts. 1. Individual/ Joint Account 2. Sole Proprietorship/ Partnership/ Joint Stock 3. BBA(Basic Banking Account) 1. Individual/ Joint Account In it, they may open the following accounts Current Saving ASDA Document required for opening the account are Original ID Letter Head (in case of businessman) In case of illiterate person photograph of the person attached. 2. Sole Proprietorship/ Partnership/ Joint Stock In it, they may open the following accounts Current Saving ASDA Document required for opening the account are For Sole Proprietorship Copy of NIC (see original NIC)

Letter Head of business NTN For Partnership Copy of NIC (see original NIC) Attested copy of Partnership Deed duly signed by all partners of the firm. Attested copy of Registration Certificate with Registrar of Firms. In case the partnership is unregistered, this fact should be clearly mentioned on the Account Opening form. Authority letter, in original, in favour of the person authorized to operate on the account of the firm. Copy of registration certificate( if registered) Company Letter Head Two references For Joint Stock Certified copies of: Resolution of Board of Directors for opening of account specifying the person(s) authorized to operate the company account. Memorandum and Article of Association Certificate of Incorporation. Certificate of Commencement of Business. Copy of NIC (see original NIC) 3. BBA (Basic Banking Account) This account is open by salary persons and for students. For opening the account following documents are required: Copy of NIC (see original NIC) Salary Letter or bonfire letter for students Initial deposit Rs.1000 The major activities/functions performed by this department are: Activities are: Account opening. Issuing of Cheque book

Issuing of ATM card. The process of the account opening is as follows: The first set of steps in the process of account opening is the verification of the applicant/account opener who wants to open the account: The steps that are used in verification are: FIRST STEP: To Obtain Attested Copy of Valid CNIC: The first and for most step is to obtain the identification card from the applicant and check it carefully and then obtain the attested copy of the identification card and carefully see expiry date of the date of the identification card. If the date of the identification card is expired then the account cannot be opened mean this national identification card is not valid. This is the basic requirement for opening the account. If identification date is not expired mean valid CNIC, then proceed further. And the account holder must know the identity card number of his Next of kin. Next of kin may be his mother/father, wife/husband; sister/brother etc blood relation is must with next of kin. SECOND STEP: To Obtain Attested Copy of Service Card, Salary Certificate of Employee Certificate: The second step is to obtain the Service certification letter if the applicant is employed. This is the necessary document in case of unemployed (having no job). THIRD STEP: The third step is to obtaining of different documents for verification of the person. These include the document according to the Types of Accounts. Every type of account contain different document. But attested copy of Valid CNIC and attested copy of service card are the basic documents are that is necessary for opening every type (such as personal, business, sole proprietor) of account. After receiving the necessary required documents the next step is the Filling of the Account Opening Form. The Account Opening Form of Allied bank includes this form/ sheets as follows with attachment arrangement: Specimen Signature Card: it is being filled at the last but it is attach at the front of the Account opening form.

Checklist of detail document Account Opening From Account Detail Customer profile: CDD/ KYC form Allied cash + shop visa Debit/ATM Card Application Form

Specimen Signature Card (SSC): When whole the form of Account opening is fill then it is fill (usually). This card is attached at the front in Account opening form/document it contains following data: Title of Account Account number Operating instructions Special instructions Name Signature

It should be remember that all signatures should be same and matched with the signature of valid identity card. Title of Account consists of the name of the account holder. Account number is given from computer and note on the account opening register it is done at the last of the process and then fill account # in every require place. Checklist of detail document: It contains the different items of the document that is obtain form the customer under Prudential Regulation. And it is attached with the customer profile in account opening form. It should be checked carefully. Check those items of document that is obtaining from the customer/account holder. Fro example: These items are usually checked: Attested copy of valid CNIC Photograph/ CNIC of the account holder(s) by Gazette officer/City Nazim Attested copy of Service Card, Salary certificate or employee certificate Etc

Account Opening Form Detail:

Account opening form contains these data: a) Account Detail b) c) d) e) f) g) h) The type of account which any person want to be open, he has to select that. Nature of the Account, Currency (in which want to operate).

Additional information (in case of Personal Account) Additional information (in case of Business Account) Other instructions Declaration (it contains signature of applicant) For bank use only (it contains Account number, Marketing etc) Terms and Conditions Acknowledgement

Customer profile: It contains the personal information about the customer. The applicant can be filling the application himself. It usually includes: Currency (in which want to operate). Particular of deposits. (Period for operation). Complete address. Telephone number Name. Date of birth. Nationality etc. Then signatures of the account holders and the bankers and manager. Signature of the introducer, his account number and address etc.

CDD/ KYC form: It contains: Title of account Different verifications Sources of income

Risk profile CDD/KYC category Account number Allied cash + shop visa Debit/ATM Card Application Form: It contains the information about visa Debit card ATM card and account type information etc. Completion of Account Opening Form: It is checked carefully that account opening form is complete in all respects and signed by the account holder and introducer.

Stamps in Required in Account opening forms: There are three stamps put on the Account opening form. Attested stamp Signature verify stamp Photo admitted if Photo account

Issuance of check book and ATM card: After the completion of filling of Account opening form the check book is issued and ATM cards if applicant want ATM card (issuance of ATM card taking more time than check book issuance).The issuance of check book and issuance of ATM card is in account opening department. The cheque book is issued after 2 or 3 days from opening process of the account. The Account No. is stamped by the rubber stamp on each Cheque. Then it is given to the applicant/account holder. When all Cheque books are issued to the customers then these are recorded in the CD Book or PLS saving book. All Cheque books are recorded with their a/c number and name of the account holder. These all work or activities is done in the Account opening Department. REMITTANCE: Transferring of funds from one place to another place through instruments A central Account named as Pak account is used by all branches of ABL for dealing with each other. All remittances made by the different branches are controlled by the Pak Account.

Pak Account: Pak account is minted all the accounts of the branches thats dealing with each other. And every branch that is listed in the Pak account is given a specific code through which every branch entered in Pak account and dealing with other branches. Usually two types of remittance are used: Outward remittance Inward Remittance

Remittance outward: Suppose, Mr. A comes to the ABL branch and ask to make Demand draft of the amount of Rs. 75,000/- on the name of beneficiary whose Bank is the ABL Islamabad branch. Now branch (my branch) receives the amount from Mr. A, and prepare the Demand draft of RS. 75,000/- and then send it to the ABL Islamabad branch. And branch will inform to the Central Office that it has sent a Demand Draft of amount Rs. 75,000/- to the ABL Islamabad branch. ABL branch (sender of DD) will be debited with the amount of Rs. 75,000 And Islamabad branch (receiver of DD) will be credited with the amount of Rs.75, 000 in Pak account This is the procedure of Remittances Outward in Pak account Inward Remittance: When the branch receives the Demand draft from the ABL Islamabad Branch then this is called the inward Remittance. Then the sender branch that is ABL Islamabad branch will be debited in the Pak account. And the receiver branch will be credited in pak account... The remittance can be made through the following mode of transference. The remittance can be made through the following mode of transference. Demand Draft Pay order Inter branch transaction or online banking transaction

Demand Draft or DD:

Demand draft is the type of the cheque or written order which is drawn on the customer demand. It s drawn by a branch of a bank upon the branch of same bank or other banks it is the order to pay certain sum of money or to the order of specified person. In ABL bank Demand draft is issued by the ABL, or other banks on the demand of customer. Before issuing the DD, it must be carefully check that demand is in order.

Parties Involved in DD o Purchaser o Issuing Branch o Drawee Branch o Payee Procedure for making/ issuance Demand Draft: First of all a form called Fund Transfer Form has to be filled. It is compulsory to fill the entire mandatory places, such as currency of instrument, type of remittance Particulars of applicant, applicant signature, beneficiary details etc. And at the last the authorized officer puts his/her signature on DD form and three stamps are pasted on it; o Transfer stamp o Signature verified stamp o Crossing check stamp (in case if half payment is made through cash form, then a check is fill up for this and attached with the DD form). And at the last the operational manager scrutinizes on this and then for keeping it in bank record all the records are transferred into the computer Charges for issuance DDs, Rs.150/- is charged for account holder through his account or 0.10% Min Rs 500/- through cash ( A/c holder and walk-in-customer) or 0.20% Min

Cancellation charges: Rs 300/- (flat) Issuance of Duplicate DD charges: Rs 250/- charged for account holder through his account

Rs 500/- through cash (A/c holder and walk-in-customer) Filling/ issuance of Pay order: Pay order is used to transfer money within city. It is very safe and convenient method to sending money from one place to another place. Pay order: Pay order is used to transfer money within city Pay order and DD is the same instrument but the difference is that the DD is used for transferring the fund to out of the city while the pay order is used to transferring of fund within the city, This ABL branch also issues the Pay order that is written authorization for payment. Pay Order involves the following parties: Purchaser May be a person, firm, company or local authority. Issuing/paying branch is one which issues/pays on presentation. Payee is a person named there in.

Procedure: First of all the Application form is given to the customer to fill. And then two signatures are taken on the form one for request and other for receiving the instrument. All the particulars of application form are checked and bank commission charges and withholding tax is written on the top of the application form. PO can be made through Check and Cash Payment received through Cheque: The customer can give cheque for total amount of instrument plus bank charges if the he is maintained his account with the branch. Cheque and application form is then given to the officer of Cash Department for the payment of cheque. After proper inspection, Officer of Cash Department posts the cheque and signs the application form in token of payment received. Payment received in the form of Cash: If the customer wants to pay cash, then cash is deposited by the customer along with the bank charges and withholding tax. Application form is then given to the Remittance in charge for issuance of instrument. He writes all the particulars of the application form in the system and allots a number to the

instrument. Two authorized officers of the branch sign it. Instrument is then given to the customer when instrument is presented for payment. In case of PO, remitter account is credited and PO A/C of branch is debited. At presentation, Beneficiary is debited and PO A/C of branch is credited Charges for issuance of pay order: Rs.75/- is charged for account holder through his account Rs 500/- through cash ( A/c holder and walk-in-customer)

Cancellation charges: Rs 150/- charged for account holder through his account Rs 500/- through cash (A/c holder and walk-in-customer) Issuance of Duplicate DD charges: Rs 200/- charged for account holder through his account Rs 500/- through cash (A/c holder and walk-in-customer) After completion the issuance of DD/PO these are recorded in the registers: Demand Draft/PO Issue Register: After filling and making of DD/PO, for keeping manual record these are recorded in the DD/PO issue register and this register contains the following details: Date Draft Number Name of purchaser Favouring Amount Amount of Exchange

Demand Draft/PO Payable Register: When a DD/PO is paid and received then an entry is made in the Demand draft payable register. This register has the following particulars. Date on which it is received Draft number and its date Favouring Amount Paid on

CLEARING DEPARTMENT: Clearing: The word clearing is derived from the word CLEAR and it can be defined as: A system by which banks exchange Cheques and other Negotiable instruments drawn on each other within a specified area and thereby secure payments through the Clearing House at a specified time in a efficient way Or in short: Any bank is doing clearing that makes the uses of the central clearing house located in a certain specific location for the transfer of credits and cheques between banks Clearing House: An Office where different banks exchanges cheque and settle accounts. There are two banks involved in clearing process, one is the collector bank and other one is the payee bank. And a body called NIFT is also involved. Collector Bank: Collects or receives the cheque of the other bank given to their customer Payee Bank: Receives the cheques and pays it after having all necessary requirements NIFT: National institute of Facilitation Technologies (Pvt.).Ltd An institution called NIFT is the bridge between both the bank and all transactions between two banks are done through the help of NIFT. It modernizes the payment system and its process in Pakistan started with the implementation of first Auto med Clearing house (ACH) in Karachi in 1996. Stamps Required: Clearing stamp of next date on front of bill Crossing stamps( bank name stamp) Clearing stamp on front of deposit slip Types of Clearing: There are two types of clearing which are: Out word Clearing Inward Clearing

Out Award Clearing: When the ABL give the payment to the other bank through clearing this is called outward clearing for ABL bank. And this is recorded in the When through clearing payment is given to the other bank than this entry will be recorded in outward clearing register. Outward clearing registers: When through clearing payment is given to the other bank than this entry will be recorded in outward clearing register. The register contains the following information: From whom it is received Drawer Drawee Cheque number Account number Amount

INWARD CLEARING: When through clearing payment is given to the other bank than this entry will be recorded in outward clearing register. This is out ward clearing register. Inward Clearing Register: When payment is received from the other bank than entry is recorded in inward clearing register. The register contain following information: Serial number Date Amount Remarks

Process of Clearing (Inward / Outward): If the cheque receives or sends by one bank to the other bank then the process of clearing is start. For example if account holder of ABL receives the cheque of other bank like City Bank, UBL etc, and he submits it in ABL branch to be cashed. At the same time the clearing process starts. Here the local cheques that are drawn on ABL are received on a counter along with paying slips, which should be properly and dully filled. Then counter folio-putting stamps for cheques number received for collection for ABL. In addition, officer duly signs it.

These cheques are scrutinized and cheques for local clearing are separated from OBC. These are then entered in clearing register and cheques for collection are entered in OBC register and handed over the Bills Department for collection. Clearing officer checks and verifies title of all the cheques, date, signature, and then every particulars of the cheque. Hence, these, Cheques are scrutinized properly and paying slips are separated from cheques. Cheques of each bank are sorted and arranged branch wise. Then Debit and credit vouchers are made for clearance purpose. In addition, these vouchers are attached with every cheque after filling the amount, Cheque #, and Name of bank of that cheque that is going to being cleared. And at the Top the Today date and Our Branch name (ABL) is written by clearance officer. And then three stamps are affixed on the cheque these stamps are: Today Date stamp front of the cheque Crossing stamp (bank name stamp of clearing) on the front of the Cheque Payee account credit stamp on the back

Pass these cheques along with vouchers/advices, all the cheques are entered into the clearing system of the bank. Then Print out of the clearing is taken and details are attached with the cheques of each bank. Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of each bank. Then total number of cheques presented to all banks and their total amount is written on the foot of that schedule, which is tallied with the clearing register. First clearing sent: Next morning, these cheques along with voucher are delivered to the respective banks in clearing house of NIFT between 9:00 to 9:30AM. In the same manner, other banks present their clearing drawn on ABL. Total number of cheques and their amount delivered to other banks and received from them are written on the Clearing House schedule branch for their payment. After proper scrutiny of cheques, verification of signatures and confirmation of balance in the account, the Officer Cash Department pays these cheques by cancelling and posting them in the system. Some important concepts should keep in mind while doing the job of clearing of cheque: Date: Cheques should not be post dated or out of date. Figures: Amount in words and figures should match. Signature: Drawers signature must be clear.

Payees Name: Payees name should be written, and endorsement should be as per the beneficiary of the cheques Intercity: Cheques must not be of other cities. Intercity clearing cheques for consumer departments are not entertained There should be no over writing, every thing is written clearly. Cheque Return: Cheque can be returned and it cannot be passed due to these reasons: Fund insufficient/Insufficient balance Mismatching figures Signature differ Filling incomplete Similar many other reasons may be.

If any cheque is not passed due to insufficient balance, mismatching figures, filling incomplete or any other reason, Officer Cash Department returns the same cheques by attaching cheques return memo containing reason for return. This cheque is entered into the cheques returned register and bank charges are deducted according to the schedule of charges. Second Clearing: Second clearing in ABL is at 2:30PM to check the destiny of the cheques presented to other banks in the morning. If any cheque is to return, that is delivered to the same bank in second clearing. In the same manner, if any cheques presented by ABL Bank in first clearing are returned, they receive it and once again give schedule of clearing figure to the Officer Clearing House NIFT containing number of cheques and their amount delivered and received unpaid. Intercity: It is the same as clearing but the difference is that the branch transfer or receives the cheque etc to or by the other city branch or banks. And this includes that branches that are of local station for that bank (sender and receiver bank). For ABL these are the local cities thats used in intercity. Islamabad Karachi Pindi Peshawar


Process of intercity Clearing: Almost the intercity Process is the same as clearing with little bit difference. E.g. for Intercity Clearing a stamp of intercity instead of clearing posted on face of bill, then amount, account number and city name is entered in a separate register and deposit slip is attached in a specific file. And a stamp is posted on back of bill. A separate slip is filled for every city given by NIFT. In the specified envelope is used for every city given by NIFT with printed name of city. One advice is made for him. Three copies are prepared for each advice. One advice goes to CSO for record. One goes for cashier and one goes to the clearing department for entry in the computer. When we release the intercity/clearing then we will Debited the advice and cheque will credited. And when we lodge the intercity/clearing then advice will be credited and cheque will be debited. OBC (out ward bill for collection): It is the same as clearing and intercity but the difference is that the branch transfer or receives the cheque of the banks that are out of station. The out of station cities for the ABL are: Okara branch of askari bank MCB changa manga branch MCB bransh thata Ubl shadi wall branch gujrat

OBC COLLECTION PROCEDURE: It is mention on the cheque that the person To Whom It May Concern can cash it from the certain branch of the bank in favour of which its drawn. The customer presents the cheque to his branch, which sends a document called OBC to the bank that has to make the payment. The clearing department of the receiving bank follows a prescribed Procedure and credits the amount to sending bank through a central account maintained by each bank with SBP. ABL sends the cheque to its own branch if available for collection from the payers banks otherwise the OBC is directly sent to other bank. MAINTAINING REGISTER for OBCS:

We have a register in which we have the serial no for OBC with other details like amount, date, sending and receiving branches codes. Every OBC is entered in the register on daily basis. If OBC is not cleared due to what ever fault, we take it back as a return but after that we call the concerned person and we also write name of person. OBC are of two types: IBC or inter bank collection: When the cheque received by the bank for clearing this is calls IBC. OBC or outward bank collection: When the cheque is send by Allied bank limited to the other bank for clearance this is OBC for Allied bank limited.

Calling and sorting Department: In this department the work of calling is done and then sorting is done. Calling is related with customer dealing. Bankers call those persons who open the various accounts with ABL and bankers confirm from those that they will open the account or not. The bankers call its trust worthy and regular customers and telling them about the new products and services and tend them to towards the purchases of new services. And also call the customers when the sensitive issues are being deal. For Example: MR. A is the customer of the ABL, and ABL has to allot the pin number of the ATMs card of MR. A then the banker calls MR. A and get all information about its account. After proper and complete verification the ABL will allot the pin number. If ABL finds any kind of fraud then bank will never allot the number, and then start the verification again. Calling also includes the process in which bankers tell the customer that their ATMs card are prepare please take your ATMs cards from Banks. Thus calling is the process of giving information to the customer particularly information about the new products and services. Sorting: Sorting is process of arrangement

Calling and sorting is basically related to the matching or telling of whole day work at the end of the working day Process: Sorting is the process of arrangements of account slips/cheque etc are arrange in the increasing order. All vouchers are collected first, and then sort them according to the accounts for example the current account voucher, PLS saving Account vouchers, staff members vouchers etc they all are separate first and then all vouchers of each category are arrange according to the increasing order of their account numbers. Calling and Sorting also includes the checking of Bank history, Customers Credit History, study of loan and financing that are given to the creditors. It can be say that calling and sorting is the revision process and complete observation process.

Work done by me during internship: I have done six weeks internship form allied bank Branch. And during my internship I was work in different departments and I had been assigning with different tasks according to the departments. During my internship I have learn many things which I found very interesting. One the first week, the branch Manager told me about the employees of the Bank and handover me to the Madam Mubashra and this madam tell me some basic information about the bank and the first week, I did work in the Account Opening Department. Account Opening is the function is to opens the accounts. First day Madam Mubashra Supervisor of the bank gave me some basic information about the bank. She told me about the departments of the bank and some other basic information about the bank, cheque, records, deposits slips, current slip etc. Second day she told me that now I have to start work in the different departments. I started my internship from account opening department. Account Opening Department:

I have started my internship from Account Opening department. Second day of my internship the Customer service officer Madam Maira informed me and taught me that how to open the accounts. She told me about the different Accounts, such as Current Account, Saving Account, joint Account, Business Account. Third day I have assigned the work of Opening the Accounts, and I enjoyed this work a lot. I had opened the different accounts but I observed during my 6 one week in Account Opening Departments that the most clients come to open the personal account and most of them are servants. The most of the working is conducted in this department and this department having a lot of burden of work. Tasks Assigned to me in Account Opening Department: To open the Account Filling of Account opening Form Filling of check list Filling of KYC form Taken sign on Specimen Signature card Allot the Account number Enter the Account number into the relevant Account Opening Register Calling the clients/customers if any omission or mistake found in the Account Issuance of Cheque book. Calling them after receiving the ATM card of the customers/issuance of ATM card Telling them the remaining balance and other account information account Filling of different slips Closing the Account Process Detail: How to Open the Account? When persons came for opening the Account I had verified the person first and I have received copy of identity card after seeing the original identity card and job/service certificates in case of servant, student identity card in case of student, property certificate, and then I was starting the filling of Account opening form, I had filled the Account opening form specifications such as, of the

The type of account which any person want to be open, he has to select that. Nature of account whether individual or proprietorship or other. Currency (in which want to operate). Particular of deposits. (Period for operation). Complete address of the person who want to open the account (applicant) Complete address of the next of kin of the applicant Telephone number of the applicant and next of kin number Nature of business etc. Detail of other accounts. Complete Personal information. which is required for Account opening form such as; Name of the applicant, his father/husband, mother/wife name, and name of his next of kin Date of birth. Nationality etc. Then signatures of the account holders and the bankers and manager. Signature of the introducer, his account number and addressed KYC form: After filling the form of account opening I had filled the KYC form (known your customer). Taking sign on Specimen Signature Card: When this form is filled then signature of the person who want to open the account are to be taken on the Specimen Signature Card. And I had checked the signature carefully; this signature must be matched with the identity card signature. Then it is recorded in the computer. Specimen Signature Card is available in Annexes. Allot the Account number: After filling of all required documents I had allot the Account number to the new opened account which is being processed till now. Enter the Account number into the relevant Account Opening Register: After allotting the account #, I put it in all the spaces of account opening form, SSC card etc and then enter this account # in the relevant Account opening register, for example the account # of joint account will be enter in the joint Account Opening Register.

Calling the clients/customers if any omission or mistake found in the Account: I did all the work of opening account very carefully, but if there found any mistake or signature differ problem or any type of mistake or omission then I had called those customers and rectify the errors. Issuance of Cheque book: After the completion of all the formalities of Account opening form the customer receives the letter of thanks. Then he will get the cheque book within a week and my job was to receiving the cheque book and I had to verify the customer signature and I had to issue the cheque book manually. There is a requisition slip with every cheque book for the purpose of re issuance of cheque book when all the leaves of first cheque book are being used. The following information is printed on the front of cheque book. Title of Account Account number of customer The stamp of ABL

And it also contains the signature of the authorized person and this all information is printed on every page of cheque book. Calling them after receiving the ATM card of the customers/ issuance of ATM: After some days of opening account the ATMs are issued by the bank. My job was to receive the ATMs card of applicants and then calling them. I had called all the ATMs clients and told them to bring their ATMs card it is issued. I had issued the ATMs card and received the sign on the ATM record register and sign of those customers who had received their ATMs card by me. Telling them the remaining balance and other account information of the account: Here I was assigned the work of telling the remaining balance, payments etc I used to tell to the customer about their receipts, payments, charges and remaining balance etc and I told these Account information only those persons who are the real account holder of that account I never told these information to any other persons who asking these even to his relative one. I had asked the account number and then after opening the account on pc I used to ask the title of the account and after proper verification I used to tell the Account information to the real account holder. After telling I also record it on the book that I opened and told this account information to its account holder.

Filling of different Slips: Here I had assigned the work of filling of different slips of the customers who didnt know how to fill the slip. I had filled different slips but I mostly I had filled these slips thats are Current Account Slip PLS Saving Account deposit Slip

How to fill the Current Account Slip: This slip is used for current account only for withdrawing the money from current account. It is very easy to fill; I had filled the following information in this slip Title of Account (name of Account holder) in two spaces Phone # of the Account holder Account # in two places Amount in figures as well as in digits in two places which the Account holder wanted to take out. And word Cash in the particulars. And then getting the sign of the Account holder.

PLS Saving Account deposit Slip: I also had used to fill these slips and PLS saving account slips are used in case of saving Account and it is used for depositing the cash or cheque etc. this slip is just like a current account slip with the same filling only with the difference in the particulars filling and it include the stamp when I had received the cheque for depositing then I had entered the cheque # of the bank that and name of those bank from which the amount is being transferring/ adding into the ABL account of the account holder.. (Available in annexes) Remittance: Transfer of fund from one place to the other within the city or out of the city It is the one of the major function of banking sector. I worked in this department four days i.e. form 24th May to 28th May. Tasks Assigned to me in Remittance Department: Madam Mubashra is the officer of this department. During four days I have worked in two Assignments in this department.

Issuance of Demand Draft (DD) Demand Draft Issue Register Demand Draft Issue Payable Register: Filling/ issuance of Pay order Online inter branch transaction Keep record of all issued and paid pay order

Process: Demand draft (DD): The first and the most popular way of remittance is Demand Draft. The DD has the following information which I had filled during issuing the DD: A bank Demand draft has following particulars: Payees name Date of issue Amount in words and figures Drawee Branchs name and code Address Serial number (Note: Complete procedure is given above.) Demand Draft Issue Register: After filling and making of DD I had to record this on the DD issue register and this register have the following details: Date Draft Number Name of purchaser Favouring Amount Amount of Exchange

Demand Draft Issue Payable Register: When a DD is paid and received then an entry is made in the Demand draft payable register. This register has the following particulars. Date on which it is received Draft number and its date

Favouring Amount Paid on

Filling/ issuance of Pay order: Pay order is used to transfer money within city. It is very safe and convenient method to sending money from one place to another place. Pay Order involves the following parties: Purchaser May be a person, firm, company or local authority. Issuing/paying branch is one which issues/pays on presentation. Payee is a person named there in.

Process: I issue the pay order by making the pay order on the receipt and this receipt is Issue and payable by other bank. Here I had to make the record of all issued and paid pay orders. As pay order is in the written form thus certain document filled by the client/customer and by me. Detail of the procedure is already described above (In departments activities/operation) Online inter branch transaction: Online Transferring of funds from one place to another place This is also the very fast, convenient and popular way of transferring of funds from one place to another place. In this department I mostly issue/prepare the online inter branch slip. Online inter branch transaction Slip: This slip is used to transfer fund from one place to other far place. I also filled these slips as well as above slips. And this slip contains the following information: Applicant name, Applicants NIC No., address and Tel No. Remote Branch name and code, Remote Account title, A/C No, Amount in Rs as well as in words Signature of the Applicant etc

And after filling, I received the identity card copy and attach it with the online slip. And put a stamp on it. Clearing Department: Clearance means to clear the cheque of other branches: Tasks Assigned to me in Clearing Department: In this department I had done these works. Sorting of cheques Made vouchers Stamping on Cheques Recorded all inward clearing cheques/vouchers Inward Clearing Register Recorded all outward cheques/vouchers in clearing outward Clearing Register Returned cheque record Recorded the reason of returning and attached the reason Slip with cheque

Process: Firstly I had to sort out all the cheques branch wise and then I used to scrutinize the each cheque the cheque should be free of error thats are going into clearing, all particulars should filled properly, the sign should be matched the amounts in figures and words should be matched, and stamp of clearing of other bank should be put on all cheques if there is any mistake exist in the cheques then those cheque will be returned. And I had filled the returning reason slip and then attached this slip with the Cheque and then I had to record this in the clearing returned register. And those cheque thats free from errors I had selected them and then made their vouchers and advices and stamped them and then recorded all the vouchers and advices in their respective register. I.e. inward clearing in inward clearing register and out ward clearing cheques in out ward clearing register. (Note: This is the Short process its detail Process is given above) Intercity: Intercity is the same as of Clearing but the difference is that clearing is dealing those cheques of other branches thats are come from with in the city and intercity is used for out side city cheques but local cheques (NIFT having) Tasks Assigned to me in Clearing Department: In this department I had done these works. Sorting of cheques

Made vouchers Stamping on Cheques Recorded all inward intercity cheques/vouchers Inward Intercity Register Recorded all outward Register Returned cheque record Recorded the reason of returning and attached the reason Slip with cheque intercity cheques/vouchers in clearing outward Intercity

Process of intercity: The detail process is given above. OBC Department: I had also worked in this department and the detail is given above. Calling and Sorting Department: Detail of this department is given above.

Structure of the finance department: Departmental Hierarchy

Finance director

Account officer

Assistance Account officer

Number of Employees in finance department:

There are 3 (three) prudent and efficient employees work in the finance department in the branch. Finance and Accounting operations: The bank finance operations are usually done by the finance group along with the help of subordinated employees. And the main operations that are done by finance group are: Planning and MIS: In this head the following operations are takes into place: Planning (finance related) Translation of operational and financial data into strategic information. For an effective and efficient decision making (MIS). Financial and Regulatory Reporting: Finance Group provides timely, relevant and reliable information to the shareholders, regulators and other stakeholders while following the statutory requirements and international best practices. Taxation: Taxation management is also the main operation in the finance and accounting departments. Finance Group manages the Bank wide tax matters and activities to bring tax efficiency while complying with the tax laws. Accounting Process: ABL uses the Appropriate Accounting policies to performing the Accounting Operations. And these accounting policies have been consistently applied in preparation of financial statements. Accounting estimates are based on reasonable and prudent judgment and International Accounting Standards have been followed in preparation of financial statements and any departure there from ahs been adequately disclosed in the Annual Accounts.

Function of Finance Department: Accounting System of the organization: Fully computer base accounting system Double entry system is used which is very reliable Generation of funds: Lending the loans to the customer Lending to financial institution.

Finance System of the organization:

The finance system of the organization is based on two main factors that are: Borrowing Lending

Use of Electronic data: The bank is using the Uni bank software for entering data; That is very reliable. Sources of funds: The sources of the branch where I have done the internship are mainly through: Depositing Receiving interest on lending money Borrowing from state bank of Pakistan Advances from other financial institutions General Banking income.

Allocation of funds: Banks allocates the fund usually to these parties: Lending to financial institution Lending to people such as loan,


SWOT analysis: SWOT Analysis is the abbreviation of

S: Strength W: Weakness O: Opportunity T: Threats And Strength and weakness represent the internal environment of the organization And weakness and Opportunity represent the external environment of the organization Hence, SWOT analysis is the critical and complete but comprehensive study of the organization. Strength of the ALLIED Bank Limited and branch: The First Muslim bank and that is established first time in the soil of the Pakistan is not the other bank; it is the Allied Bank Limited. And hence it has earned a great reputation. Allied Bank has a well-engineered structure and a timely execution and hence having a successful transaction. ABL financially a strong bank and having a tested and effective strategy thats why the ABL not effected by the financial crisis and bad condition of economy, and continuous toward growth and getting competitive growth. Solid foundation as by PARCA long-term term rating of AA and short term rating of A1+. It has a very large impressive network of branches i.e. 779 in over 300 cities and towns. It has local branched as well as international branches. Having the strength of more than 502 ATMs in more than 145 cities and towns. Brand name is the greatest strength of this bank. Salaries are very reasonable, so the employees are not financially fearful. The ABL branch is situated in the Commercial Area which enhances the strength of this branch and hence this branch increases and attracts the number of customers and expends its volume. The branch has 2 telephone connection and one fax machine this increases connectivity which makes communication easier with different branches. The branch is linked through an Online Network of Branches, it enables them to serve customer in better way ABL has the large network of ATM and they expend their branches.

Weakness of the ALLIED Bank Limited and branch Weaknesses In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. Not highly automated The bank has still some of the traditional ways of operations in this advanced technological environment. Manual book-keeping Although the bank has computerized accounting system but, still the bankers use to make their entries in the accounting register. Low job satisfaction Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL, was quite low. Lack of specialization This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. The employees are constantly rotated from one job to another job of totally different characteristic in the view of giving them the know-how of the working in all the departments. Centralization There is a high degree of centralization in the bank. Almost all the decision-making is in the hands of the upper management. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office.

Lack of training facilities Presently there is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes. It takes a bit time for the fresh one to learn the banking the result is huge amount of blunders, mistakes etc. resulting in monetary and non-monetary losses for the bank. There is pressure not only on the new learner but also on the person placed upon with this responsibility. Opportunities Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. It deals in bulk business. A large amount of foreign investment is attracted. Strong potential for growth Steady increase in Customer Deposits Overseas Operations Branches In Remote Areas Islamic Banking Sharp increase in imports and exports

High employees turnover: As discussed above, the job satisfaction level of the employee is very low resulting in high turnover, which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments. High charges The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high. It may result in decrease in the number of its exiting customers. Further more, this could be very alarming situation for the bank in case some of the competitors grasped the opportunity and lowered its rates. The result would be either the lost of market share or decrease in the charges resulting in lowering the banks income.

Less attractive rate of return Commercial banks face considerable competition in attracting deposits from individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed accounts, which banks find difficult to match. Stiff competition SCB is currently facing strict competition from the foreign banks especially the American who banks enjoy a good market position. Collectively U.S. banks hold approximately 9 percent of all commercial banks' assets. At present, three American banks are operating in Pakistan: American Express Bank, Bank of America, and Citibank. Less experienced staff Owing to huge turnover of the employees, the no. of experienced and well-trained staff is very low. Majority of the staff working in the bank branches is quite young and inexperienced. If the bank failed to bring down its high employees turnover, then it would be lacking the most important resources of any organization i.e. the experienced staff. PEST analysis A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities, see the shifting requirements of the buyers, evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. Political and Legal Environment Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Banks are strongly affected by the political and legal considerations. Current political situation of Pakistan is not very encouraging. No one can make plane long term objectives or goals in Pakistan because of political destabilization in Pakistan. Because of political destabilization many foreign and local investors are not showing their interest regarding investment in Pakistan. This environment is

composed of regulatory agencies and government law that influence and limit various organizations and individuals. Some of main political factors which effects banking sector in Pakistan.

Tax policy Employment laws Environmental regulations Trade restrictions and tariffs Political stability

Business legislation has following main purposes To protect banking companies from unfair competition. To protect consumers from unfair business practices adopted by banking companies To protect the interest of the society from unbridled business behaviour. Economic Trends The World Bank considers Pakistan a low-income country. GDP is around $166 billion at the official exchange rate. The population numbered some 167 million in 2008 with a 1.81% growth rate. No more than 55.0% of adults are literate, and life expectancy is about 64 years. In FY 2008-2009, the GDP growth rate was 3.7%, and unemployment was estimated at 14%. Year-over-year consumer price inflation averaged 13.6% in 2009. Main inflation drivers include food and utility prices, the Pakistani rupees depreciation versus the U.S. dollar, and higher international commodity prices. Low levels of spending in the social services and high population growth have contributed to persistent poverty and unequal income distribution. Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas. The countrys economy remains vulnerable to internal and external shocks due to internal security concerns and the global financial crises. According to banking market it requires better consumer market in volume along with higher borrowing power. The available borrowing power depends on Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates Cost of living


Socio-Cultural Environment Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labour). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). A society is shaped by beliefs, norms and values. People in a society consciously and unconsciously interact with: Themselves Others Organization Society Nature Improved customer relation Health consciousness Age distribution Career attitudes Emphasis on safety

Following are the main factors. Which arise because of change in socio-cultural environment?

Technological Factors Forces of technological advancement- have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. New technology is creating deep rooted affects which could be observed in long run. The improvement techniques involved in on line banking. Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition. It is observed that employees have mostly sluggish and hard attitude towards the customers.

There is a high part of favouritism, and mostly employees are hiring on the basis of nepotism and references. ATM and online facility is yet provided by branch but its functioning is not very appropriate. Often the ATM machine and online system is not working and hence many a times the customers get disappointed by the services of the branch and they go another bank for transferring the online transactions ABL has not yet providing the car financing and house financing, which is a very large weakness. Instead of presence of technology many jobs are done manually, which can be done easily by using the computerized system. There is lack of efficient and proper Research development activities which is very essential for collecting the essential data which is used for future planning and strategy. Such as; Macro Environmental data Micro environmental data

The organizational members are not fully cooperative. There is a lack of commitment and professionalism on part of the employees. The staff usually tries to avoid do full working and trying to do modest work (escape from additional work) and they usually delay their work. Delays were observed because the prescribed procedures are not followed. The filing system is not up-to-date. Much time is wasted while searching for a week old data and documents. There is less emphasized on the long term relation with customers those have low deposited (less protocol) Branch has less furniture than requirement, and less sitting arrangements. The job distribution is not proper. Opportunity: ABL is not yet giving the facilities of car financing and house financing to their customers. It is a big opportunity for ABL to expending its business at a more large scale by starting the business of car and house financing. Branch has the deficiency of honest and hard work employees branch can increases its progress by availing the more technical, professional and hard work employees.

ABL bank is giving the facility of collection of utility bills and also giving the facilities of giving the payments to the servants which are very large number of servants, ABL branch can attract those customers to open their accounts and to depositing activities etc. hence it is a big opportunity for the branch for expending business. ATM and online facility is yet provided by branch but its functioning is not very appropriate. Often the ATM machine and online system is not working and hence many a times the customers get disappointed by the services of the branch and they go another bank for transferring fund by online transactions etc. If they overcome these weaknesses then they have and opportunity to attract and retain the large customers. As, there are coming large numbers of customers daily for ATM and online transaction. The branch is located in a commercial area hence its location is the big opportunity for the bank to attracting the customers at a large scale. The branch has the opportunity to availing the new schemes such as HAJJ SERVICES, HUNDI and WESTERN UNION etc. The bank has the facility of internet it is a big opportunity the bank can expand it self by increasing its use in more appropriate way. The bank has a large network all over the world it can cover the major market of the Pakistan if it will make it possible to fast delivery of funds. The allied bank is one of the strong and leading banks so, it has many competitors. The HBL is located in front of branch that is a big threat for ABL branch. Pakistan is facing a very critical situation it is suffering from continuous downfall of the economy since last few years it is the biggest threat for all banks. If this situation will not be stopped than it is a big threat for Pakistans banks for achieving the banks objectives. Dissatisfied customers is the one of the biggest threat to the branch, As discussed above (in opportunities) ATM and online services is yet provided by branch but its functioning is not very appropriate. Often the ATM machine and online system is not working and ATM machine some times is not filled by the funds from the main branch of ABL, and hence many a times the customers get disappointed by the services of the branch and they go another bank for getting the online transactions. If this draw back will not be sort out early, the customers will terminate towards other bank such as towards its neighbour bank HBL.

Many private banks are providing the better competitive services than ABL that is the very sensitive threat for ABL. ABL as compare to other top banks is yet not providing many services such as car financing, house financing services and many other new services. Hence it can loose its reputation Conclusion: Although the country is suffering from the financial crises, slow economic growth, and lack of political stability, however, still the ABL continues to fulfil its commitment by contributing in a structured manner, by focusing on Agriculture sector and SME, strengthening cooperate and commercial relationships, product innovation, creativity, technological advancement, and continuous focus on service quality due to its strong foundation and well-built strategy. Customer is the focus of every thing for ABL and ABL is working tirelessly to enhance relationship with customers by understanding them and then offering relevant products and services all the times and ABL tirelessly continues to working very hard to strengthen the relationship with customers and number of initiatives has been taken by ABL to strengthen its overall function. During three years analysis of ABL such as form 2007 to 2009, I observed that ABL has impressive profit growth as form 2007 to 2009 its profit after tax rose by Rs. 4,076 million to Rs. 7,122 million. And it resulted in increase in increase in ROA and ROE by 1.42% to 1.81%, and ROE by 23.545 to 30.50% by average. Thus I have concluded that the ABL is a financially strong bank and having the long term rating of AA and short term rating of A1+ by pacra.and serving and continuously attracting the large number of customers by offering them the innovative, reliable and better competitive products and services and capture a great part of the market in the country by having a large number of depositors and customer. This branch is also very progressive and it is expanding business very rapidly and serving the customers very efficiently from 36 years.

During my internship training of 6 weeks in ABL branch, I have analyzed some problem in the Bank. Keeping in view those problems followings are my recommendations:

Change in Behaviour of employees: The customers are the very important and essential part of the business they are the real strength of the business and having the worth of back bone for the business so, they should be behaved, benevolence, and served in a better way. So, I will recommend for the P.A.F branch ABL that they should be stopped the carelessness and the sluggish behaviour towards the customers and they should realize that customer is the focus of every thing. Elimination of favouritism: There is a great part of favouritism it should be eliminated immediately and enhance the performance by benevolent the opportunities to the fresh, well educated and able people. Sitting Arrangement: There is no proper sitting arrangement; the branch should be focus on proper sitting arrangement and should furnish the branch hence the branch will be able to manage customers in a well manner. Job Training Programs The bank should place emphasis to held an arrange the effective training and development programs for its new as well as existing employees this will definitely increase their performance and efficiency level Equalize the load of work: I have found the inequality of work division in the Branch I will recommend that all the departments should be given the equal load of work; it will result in high performance and create high outcome and it also create a friendly environment in the bank. Team based Management: The higher authorities should form the team based management rather than centralized management it will enhance the management skills and decision making power of the employees and elevating the morale of the employee and this would also be a factor of motivation for all employees and they will be involved in all banking operations and overall effectiveness of the bank will be boost. Expansion in business: The ABL should strongly focus on providing new services to meet its customers expectation and for expansion financing, etc. e.g. the ABL should focus on the business of personal loaning such as House financing. THANKS