INTERNSHIP REPORT

ON
ALLIED BANK PRIVATE LIMITED

Saleeja Fatima

Department of Management Sciences

Lahore College for Women University

2016

In The Name Of

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

A Report on Allied Bank Operations

Submitted by:
Saleeja Fatima
Roll no:
992
Year of submission:
2016
Submitted to:
Miss. Fozia
Department of management sciences
lcwu

title of the report

Submitted by

cordinator

registrar

Saleeja fatima

Miss. Fozia

xxxxxxx

DECLARATION

An Internship report submitted to the department of Management sciences, Lahore College for
Women University, Lahore in partial fulfillment of the requirement for the degree of BBA.

DEDICATION

I dedicate all my efforts and struggles of the educational life to my dear parents, without them
Im meaningless. Also I devote the work of this internship report to respectable and honorable
teachers who taught and supported me in developing my personality as a competent professional.

Contents List:

Executive Summary 9
Introduction..11
History of ABL.12
Logo, Slogan.15
Vision ...16
Mission 17
Market standing18
Branch Operations Chart..21
Corporate profile13
Management hierarchy.14
Policy formation process16
Marketing mix ..22
Products & services
Financial statement
SWOT analysis
Training program
Problems
recommendations
Conclusion.25
References..26

Executive Summary:
A position of the business and financial performance of an organization which facilitates
strategic decision making for the management is a key resource for investors in today's
world. Although, I don't have any hands-on experience in carrying out such an analysis
but I believe that the academic knowledge. After being clear in mind on which topic to
work on, choosing a Bank for carrying out a business and financial analysis was another
hard but an important decision. The analysis could only be effective and made attractive
for the reader if sufficient data was available for the organization chosen, so I choose
Allied Bank Ltd, Green Town.
Before the knowing of bank operations and functions, it is important to know its History,
previous financial condition, its growth level etc. So its History showed that Allied Bank
Limited, made a hard struggle and developed its financial condition. In preIndependence History prove that Muslims are successful bankers.
Today, Allied Bank is moving towards strong development. Its financial position of
current year shows that Allied Bank has large assets and investment as compared to
previous years. The Bank stands on a solid foundation of over 67 years of its existence
having a strong equity, assets and deposits base offering universal banking services with
higher focus on retail and SME banking. The bank has the largest network of on-line
branches in Pakistan and offers various technology based products and services to its
diversified clientele through its network of more than 601 branches.
In 2011, ABL received the following two Prestigious awards fortifying its place as a key
player in the Banking Industry. The Bankers Magazine Bank of the Year 2011. ABL
received this prestigious award. ABL has fast online banking system. Although , ABL
performing at best level but there are some problems which are facing by employees, and
the bank. But these problems can be sought out through management, compensation to
employees and training seminars.

PREFACE
We are living in a time of extraordinary change. The environmental and economic threat is
frightening large on the entire sphere of Pakistan economy. Pakistani firms must design and
make better products and services and should find better ways to market them. What was once
regarded enough is no longer competitive. What were once limitless resources are now to be
used more efficiently. Today an organization is on the leading edge. I have tried my best to peep
into the generic as well as real cumulative problems faced by the pioneer of banking industry in
Pakistan. Several chapters have been included in the report but they seem to be very
conventional in nature giving supplementary justification to the fact that ABL is the most
conventional of the conventional bank.

INTRODUCTION

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

10

HISTORY OF ALLIED BANK PAKISTAN

Allied 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. At the time, the Banks total assets amounted to Rs. 0.572
million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5billion, deposits
exceed Rs. 143 billion and total assets equal Rs. 170 billion.
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.
Australasia Bank (1947 to 1974)
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,
Batala, Jalandhar, Ludhiana, Delhi and Angra(Agra)) were closed down. New branches were
opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur.
Later, the network spread to Multanand 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 Banks business in India, Australasia Bank made a
profit of Rs. 50,000 during 1947-48. By the end of 1970 it had 101 branches. Unfortunately, it
lost 51 branches in the separation of East Pakistan. But the Bank did well despite losing a lot of
its assets and by the end of 1973 had 186branches 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 Governments spot procurement agriculture
program.
Those seventeen years saw a rapid growth for the Bank. Branches increased from 353in 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.
11

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered a new phase,
and became the worlds first bank to be owned and managed by its employees. In 1993 the First Allied Bank
Modaraba (FABM) was floated. After privatization,
Allied Bank became one of the premier financial institutions of Pakistan. Allied
Banks 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 enviableposition in
Pakistans financial sector and was recognized as one of the best
amongst the major banks of the country. In August 2004, as a result of capital
reconstruction, the Banks ownership was transferred to a consortium comprising
Ibrahim Leasing Limited and Ibrahim Group. Today, the Bank stands on a solid foundation 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 technologybased products and services to its diverse clientele through its network of more than 700
branches.
Allied Bank (2010 to Date)
In May 2010, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank
Limited. ALL the shareholders were issued ABL shares insteadof 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 Banks share trading began on the following dates:

Islamabad Stock Exchange8th August 2010

Lahore Stock Exchange10th August 2010

Karachi Stock Exchange17th August 2010Today, all Allied Bank Limited shareholders can trade
i
n the Banks shares at
their will.

Business Philosophy

12

Our Corporate Social Responsibility philosophy (CSR) has focused around some key areas
over the years, such as education, healthcare, sports promotion, environment, promotion of
art and artists, staff welfare and engaging the staff in healthy activities

13

Logo of Allied Bank:

Slogan:

ap kay sath sath

14

Vision:

To become a dynamic and efficient bank providing integrated solutions in order to be the first
choice bank for the customers.

15

Mission:

To provide value-added services to our customers.

To provide high-tech innovative solutions to meet customers requirements.
To create sustainable value through growth, efficiency and diversity for all
stakeholders.

16

Market Standing

The Bank has seized numerous opportunities along the way and is ready to do it again without
losing sight of strategic goals, balanced product mix, careful risk management and effective cost
control measures.
Today Allied Bank stands as one of the Pakistans largest banks with a broader foot print, steady
domestic market share and over 12,000 employees. The years have been punctuated with several
milestones, some more important than others, but all helping to turn Allied Bank into a 21st
century financial institution.
Deposits Rs. 667.9 billion (2013: Rs.608.4 billion)

Up by
10%

Loans & Investments Rs. 734.8 billion (2013: Rs. 630.4

billion)

Up by
17%

Total Assets Rs.842.3 billion (2013: Rs. 734.2 billion)

Up by
15%

Profit (After Tax)(2013: Rs. 14.6 billion)

15 Billion

EPS (2013: Rs. 12.79 )

13.11

ROE (2013: 30% )

26%

17

MANAGEMENT SYSTEM

Banks are managed by board of director or similar group of men who areresponsible to the
owners, creditors and the government for the well being oftheir institutions. The government
selects all or some of directors of ABL.Management of ABL are given as follows:
Asim Tufail
(Group Chief, Consumer & Personal Banking)
Fareed Vardag
(Chief Risk Officer)

Iqbal Zaidi
(Group Chief, Compliance)

Mohammad Abbas Sheikh

(Group Chief, Special Assets Management)
Mohammad Aftab Manzoor
(Chief Executive Officer)
Muhammad Jawaid Iqbal
(Group Chief, Corporate & Investment Banking)
Muhammad Shahzad Sadiq
(Group Chief, Audit & CRR)
Muhammad Yaseen
(Group Chief, Treasury)
Mujahid Ali
(Group Chief, Information Technology)
Shafique Ahmed Uqaili
(Group Chief, Human Resources)
18

 Khawaja Mohammad Almas

(Head, Core Banking Projects)
Tahir Hassan Qureshi
(Chief Financial Officer)
Tariq Mehmood
(Group Chief, Operations)
Waheed ur Rehman
(Company Secretary)

Zia Ijaz
(Group Chief, Commercial & Retail Banking

19

Branch Organization chart:

Branch
Manager

MG-10(Day
End/calling)

MTO(Account
opening
officer)

Customer
Service
Manager

MTO(ATM cash
book officer)

MG-11(Day
End/ calling)

MTO(Clearing
officer)

Teller

MTO(CD
Incharge)

Cashier

Messenger

20

Corporate profile

21

Management hierarchy

CEO

Senior
Executive
President
Senior vice
President

Executive
President

Assistant vice
President

Original
Branch
Manager

Branch
Manager

22

STAFF ORDER OF FAISAL TOWN BRANCH

The staff order of the Faisal town branch is as follows:
Branch manager

Customer service manager

Officer

Teller

Cashier

Messenger

23

Policy Formation process

Privacy Policy
This Privacy Policy outlines how Allied Bank Limited manages its customers personal
information received through www.abl.com. It also describes the sorts of data held, including
how it is gathered, maintained, used, and disclosed.
We encourage visitors/clients to check ABLs corporate website for any updates to the Banks
Privacy Policy.

Collecting Personal Information

ABL collects only personal information necessary for the Bank to conduct its business operation.
The Bank obtains information from the following sources:

Information received from Complaints, Enquiries, Requests, Suggestions, and Write to

Us forms
Information received from Job Applications
Information authorized by clients to us, to resolve their queries or review their online
transactions with us.

Using Clients Information

The Bank may use personally identifiable data collected through www.abl.com to:

Contact Users/Clients regarding products and services offered by Allied Bank Limited
Enhance Users experience, &
For research regarding the effectiveness of the website, marketing campaigns, and
advertising and sales efforts.

Maintaining Clients Information

ABL recognizes that the proper use and safeguarding of personal information is an important
social responsibility. As such, ABL makes every effort to ensure that customers personal
information is properly used and safeguarded with industry standard security measures.

24

Protecting Clients Information

The Bank stores and manages clients personal information, endeavouring to keep it current and
accurate, whilst employing appropriate security measures and safeguards to prevent data
leakages.
ABL also maintains necessary supervision and oversight of resources deployed on www.abl.com
who handle personal information.
Disclosure to Third Parties
ABL does NOT disclose personal information to third parties without the customers
consent, unless compelled by law to do so.
ABL reserves the right to modify this Privacy Policy or any part thereof at any time, taking into
account new developments in information technology, changes in societal demands, and other
relevant factors. Through these efforts, the Bank aims to improve management of its customers
personal information in a more efficient manner. Please check this policy from time to time for
any changes.

Managerial policies

Senior Level Management position in ABL

Allied Bank, with its existence of 70 years, has built itself a foundation with strong equity, assets
and deposit base. The Bank has a major network of 961 + online branches and 794+ ATMs in
Pakistan. Allied Bank requires the following accounting professionals to fill in vacant positions
in its Audit function in the cities of Karachi, Lahore and Islamabad.

Senior Level Management Position Eligibility Criteria

Qualification:
Associate Chartered Accountants (ACA) or Fellow Chartered Accountants (FCA).
Experience:
25

At least 10 years of experience at senior level management position in finance, accounting,

compliance or audit functions.
Age:
Maximum 50 years as on July 31,2016.

Main Responsibilities

To lead any Audit sub function within the Audit & Risk Review area;

To manage, motivate and train all staff to ensure that they possess requisite skills for
execution of their job responsibilities;

To review and evaluate bank wide policies, product programs, systems and procedures
prior to their implementation and recommend necessary changes;

To review and evaluate the day to day affairs of the bank to establish that all policies,
systems, procedures and directives/decisions of the BoD as well as Board Sub Committees are
fully implemented, while ensuring adherence to laws and regulations;

To identify and highlight control gaps and recommend improvements in internal control
systems;

To review and evaluate the accuracy and reliability of day to day transactions and other
financial records to establish unusual transactions, misappropriation of assets, frauds and
forgeries simultaneously ensuring that appropriate action is taken by the management;

To review management and financial information systems;

To ensure adherence to the audit plan and timely issuance of audit reports;

To conduct internal control evaluation and risk assessments to identify gaps and areas
requiring management intervention to prevent frauds, embezzlements, misappropriations,
misuse and wastage and ensuring that objectives of the organization are achieved
economically, efficiently and effectively;

To prepare plans based on audit assessments including tasks, assignments and timelines
for completion for each task and main activities, personnel to be employed, and reporting
results of audit

To conduct any other related task that may be assigned by the management.

Middle Level Management Positions Eligibility Criteria

26

Qualification:
Association of Chartered Certified Accountants (ACCA) and/or Associate Chartered
Management Accountants (ACMA) or Chartered Accountants (CA inter) part qualified.
Experience:
At least 02 years of experience excluding the article-ship wherever applicable at middle/junior
level management position in finance, accounting, compliance and audit functions.
Age: Maximum 40 years as on July 31,2016.

Main Responsibilities

To perform audit tests in line with engagement plans, branch audit check lists and to draft
exceptions/audit observations accordingly;

To discuss audit findings with Auditee and to draft audit reports accordingly;
To vigilantly assess the associated risks while performing audit activities and to perform
additional tests, where required: To execute audit of branches and to allocate functional
activities to team members;

To monitor audit proceedings to ensure completion of engagement within the Allocated

time

To ensure that working papers of branch audits include appropriate audit evidences in
support of the conclusions reached;

To prepare and to discuss draft audit reports, preliminary audit ratings with branch
management and to obtain their acceptances;

To obtain various audit/investigation reports reviewed by line management and QA;

To conduct any other related task that may be assigned by the line management.
If you fulfill the eligibility criteria, as mentioned above, and have a desire to grow in banking
career with a strong willingness to take up the challenge, please apply to the Chief, Human
Resource, Allied Bank Limited, by sending your resume in Microsoft Word Format as an
attachment to the email address careers@abl.com, latest by Monday, July 07,2014.
Please note that only the shortlisted candidates shall be contacted
Allied Bank is an equal opportunity employer and encourages females and minorities to apply.
27

Hard copies of CVs by mail or through courier, as well as phone calls, shall not be entertained
and will be considered as a disqualifier.
The Bank reserves the rights to accept or reject any applications without assigning any reason(s)
thereof.

28

MARKETING MIX

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.

ABSTRACT
Bank marketing in general and Customer Relationship Management (CRM) in
particular are of vital importance for Indian banks, particularly in the current
context when banks are facing tough competition
from other agencies, both local and foreign, that offer value-added services.
The Role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public relations. Then the
focus shifted to advertising and
sales promotion. That was followed by focus on the development of a sales c
ulture. Today bankingsector all elements of the marketing concept
customer satisfaction, profit integrated framework and social responsibility
are all equally important. When applying marketing to the banking industry,
the bank marketing strategy can be said to include the following:-

A very clear definition of target customers:

The development of a marketing mix to satisfy customers at a profit for the

bank.
Planning for each of the source markets & each of the use markets. Main
principal aspects of Bank Marketing are- Customer Oriented Services, Design
& Delivery of Such Services Corporate Objectives of the Bank, Environmental
& Other Constraints.
Thesecond element in formulation of marketing strategy in banking sector is
development of proper marketing mix (product, place, price, promotion,
people, process, physical evidence) so as to satisfy the needs of the target
group of customers. With the help of 4Cs (customer solution, customer cost,
communication, convenience) use of marketing mix in banking sector is
increasing day by day. The bank marketing mix concept is very important for
29

every bank in tough competition. Use of 7p and 4c for bank and

implementation of these concepts in banking sector shows the Role of
marketing in bank in present Era. In bank marketing, marketer uses both
Collective" and Selective"
approach to attract and convince the target customer .It
isthe aggregate of functions, directed at providing services to satisfy custom
ers financial (and other related) needs and wants, more effectively and
efficiently.

Keywords:

Bank Marketing Mix, Social Responsibility, Collective & Selective approaches,

Customer Relationship Management.

INTRODUCTION

The Role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public relations. Then the
focus shifted to advertising and sales promotion. That was followed by
focus on the development of a sales culture. Although all the elements of the
marketing concept customer satisfaction, profit integrated framework and
social responsibility will remain important, customer satisfaction must
receive the greatest emphasis in the years ahead. The chief concerns of
most bank executives still focus on legal and regulatory issues, according to
most surveys. Community banks are particularly concerned with eliminating
barriers that give unfair advantages to financial services competitors, such
as credit unions. However, another concern pertains to technology.

30

Marketing Concepts

Its application to Banking, when we apply marketing to the banking industry,

the bank marketing strategy can be said to include the following:

A very clear definition of target customers.

The development of a marketing mix to satisfy customers at a profit for the

bank. Planning for each of the source markets & each of the use markets (A
Bank needs to be doubly market oriented it has to attract funds as well as
were of funds & services. Organization & Administration

31

Marketing =?

Marketing is the sum of all activities that take you to sales. Marketing is all
about creating a pull, sales is all about push and about managing the four Ps

product

price

place

promotion

32

33

Allied Bank Limited categorizes its Products and services into three types:

Personal Banking
Business Banking
Services

Personal Banking:

Life style Banking

Every day Account
Saving and Term Deposits
Credit and Debit Card
Domestic Remittance Pay anyone
Insurance
E- Banking Services

Business Banking:

Transactions Account:
Trade Services
SME Financing
Cash Management Solution
Home Remittance to Pakistan
Cooperate and Investment Banking

Investment banking:
Debt syndications & Capital markets,
Project finance
Advisory desks

34

Corporate banking:
Working capital loans
Term loans

Services:

Following are the services provided by the Allied Bank:

Branches and ATM:

With branches across Pakistan and one of the largest banking machine networks in the country,
youll always have quick and convenient access to your ABL Accounts and our wide array of
banking services.
Explore the services we offer in-branch and at our full service ATMs

In-branch services:

Open a new account

Withdraw, deposit and transfer funds
Apply for Debit/credit card
Convert one currency into another
Request bank statement
Request a bank draft
Make a bill or credit card payment
Rent a safe deposit locker, and more.
Account holders of all online branches can obtain Allied Cash+Shop Visa Debit Card for use at
ATMs as well as at POS terminals. By using your Allied Debit Card at ABL ATM, you can
perform the following activities:

ATM FEATURES:

Withdraw cash (up to your daily limit)

Transfer money between your accounts
35

Make bill payments, and credit card payments (for ABL Credit Cards only)
Make deposits (through selective 4 ABL ATMs only)
Get mini-statements for your bank and credit card accounts, and more

Extended hours banking:

ABL is pleased to offer Extended Hours Banking Services for its valued customers, with an aim
of accommodating their busy schedules and making their modern-day banking tasks even
simpler & easier. 25 selected branches will remain open from 9:00am to 8:00pm from (Monday
to Friday) and from 9:00am to 5:00pm on Saturdays across the country.
Keeping the doors open for Extended hours services reflects our commitment of continually
providing better financial solutions and tailored-services centered around our customer
requirements, which will enable them to do banking at convenience whilst suiting their life-cycle
needs.
The branches will continue to offer regular banking services (except FX transations) during
extended hours, which include:

Cash receipt transaction

Cash payment transaction
Online transactions
Collection of utility bills
Issuance of demand draft / pay order
Clearing of cheque and other related instruments, and other banking services.

Online banking:
Enjoy Real-time Online Banking service at any Allied Bank Branch. Allied Bank is the
only bank in Pakistan offering 100% online branch network. Wherever you go
around the country, you can access and do transaction through your ABL bank
account from any Allied Bank Branch.

36

Deposit Cash for instant credit into the account

Withdraw Cash through cheque from any ABL Branch
Make Balance Enquiry and get Account Statement from any Allied Bank Branch
Transfer funds from one ABL account to any other ABL account across the country
Maximize the productivity of your business or financial management with Allied Banks Online
Banking facilities. It is a secure, efficient and convenient way to collect your payments faster,
optimize the timing of disbursement of funds, and maintain better control over your funds.

Safe Deposit Lockers:

Lockers are available at Allied Banks branches for all our account holders with singly as well as
joint operating instructions. As an additional security and track recording, whenever our account
holders visit their locker, they are supervised by our cordial staff along with the verification of
signatures to ensure safe, verified and vigilant entry.
If you are an Allied Bank Account holder, contact your branch and avail the locker facility now.
Some key features and charges of Allied Banks safe deposit lockers are:

KEY FEATURES:

Wide Availability
Lockers are insured according to their size.
Privacy and comfort to operate lockers
Lockers available in various sizes. i.e. Small, Medium , Large and Extra Large with
flexible rental fee.
Lockers are rented out for a minimum period of one year.
The rent will be recovered from your deposit account maintained with us.

CHARGES
SR.#

Locker Size

Small

Medium

Large

Extra Large

Annual Locker
Rent

Rs.
3,000/-

Rs.
4,000/-

Rs. 5,500/-

Rs. 7,000/-

Rs.
100,000/-

Rs.
125,000/-

OR
Security Deposit

Rs.
40,000/-

Rs.
70,000/-

37

Utility bills payment:

Allied Bank facilitates you pay your utility bills by offering numerous banking channels. Choose
as per your convenience, for the payment of following bills:

Utility

Telco

Internet

Credit Card

PTCL Vfone

PTCL Evo Prepaid

KESC

Telenor Prepaid

PTCL Evo Postpaid

LESCO

Telenor PostPaid

Wateen

PTCL Landline

Ufone Prepaid

Wi-tribe

PTCL Defaulter

Ufone Postpaid

SNGPL

Warid Prepaid

SSGC

Warid postpaid
Zong Prepaid
Zong Postpaid

AT ABL BRANCHES:
Pay your utility bills over the counter at Allied Banks more than 840 nationwide branches. Our
friendly staff will help you through the payment process.

VIA ALLIED DIRECT-INTERNET BANKING:

Allied Bank provides Fast, Secure and Convenient bill payment system through Allied Direct
Internet Banking.
You just have to register yourself on Allied Direct!
Registering with Allied Direct enables you to pay your bills online by bypassing the hassle of
standing in long queues or headaches due to late payment fees.
38

Just enter your billing details in our Internet banking, and start paying your utility bills, month on
month, absolutely hassle-free.

VIA SMS BANKING:

Allied Banks customers who are SMS Banking users can now pay their utility bills using their
mobile phone handsets without any GPRS or internet connectivity, just via a few SMSes. To
make utility bill payments using SMS facility, please follow this service command:

Type PAYBIll(space)Billing Companys Name(space)Consumer

Name(space)Amount & send SMS to 9080.

Receive SMS to confirm Details of Payment. Reply Y (to Confirm) and <strongN (to

Cancel)
Upon confirmation, receive an automated call and enter your Mobile PIN
After verification of your Mobile PIN, you will receive a confirmation SMS.

AT ATMS:
You need not to carry cash to pay your bills.
Allied cash+Shop Visa Debit Card holders can make payments anytime at any ABL ATM Booth
conveniently and securely. Customers will receive auto-generated slip after the bills are paid.

VIA ALLIED PHONE BANKING:

With Allied Phone Banking, paying utility bills is just a call away. Just dial our0800-22522 toll
free number any time of the day, and leave the rest to our agents.

To Avail Utility Bill Payment via Phone Banking, all you need is:

An active Allied Cash+Shop Visa Debit Card

T-PIN (Telephonic Personal Identification Number) which can be generated by calling
Allied Phone Banking from the telephone/mobile number you have mentioned at the time of
opening your account at Allied Bank Limited.

39

Branches &
ATMs
Other
Services of
ABL

Online
Banking

Customer
Support

Downloads

Utility Bill
Payments

Safe
Deposit
Locking

ALLIED PHONE BANKING:

Taking convenience in banking to a whole new level, Allied Phone Banking offers you 24/7
convenient and secures services. Carry out a host of transactions, that too on your own time, by
simply calling our toll free number at 0800-22522

Avail the following services with allied phone banking:

General Inquiries

Account opening procedure

ATM locations
Allied Bank Schedule of Charges
All Allied Bank product related information
Branch locations

40

Financial Services

Debit Card activation

Account balance inquiry
Debit Card transaction inquiry
Last 10 transaction details
Funds transfer request within Allied Bank
ATM PIN Generation
24 hours Debit/Credit Card blocking
Bill payment (KESC, LESCO, SSGC, SNGPL)
Mobile top ups (Warid, Ufone, Telenor)
Cheque book request
Pay Anyone facility
Credit Card activation
Allied Bank Credit Card bill payment
Credit Card transaction inquiry
Credit Card limit inquiry
TPIN generation (to avail Self-Service Banking)

Non-Financial Services

24-hour complaint registration

Credit Card address change request
E-statement request
SMS alert activation
Statement through fax (Credit & Debit Card)
Email alerts (Credit Cards)

41

CUSTOMER SUPPORT:
At Allied Bank, we give our customers diversified options to interact with us and let them
experience the joy of banking with us, every time they contact us through any of our touch
points.
Interact with Allied Bank for information, queries, suggestions, complaints because we love to
learn from our customers
Email us
General Info:

info@abl.com.pk

Human Resource:

Group.Chief.Hr@abl.com.pk

Complaint Management Unit:

complaint.management@abl.com.pk

Security center:
Confidentiality of our customers is foremost at Allied Bank.
We adopt multi-faceted approach to security and ensure the provision of safety patches and
responsible awareness to our customers to fight off any possible threats.
The advance of web technologies has brought the society countless advantages, but the cyber
world also provides opportunity to a sinister side as well. As technology became more and more
integrated in our lives, the potential risk has also grown in parallel, be it from hacked computers
or harvested personal information.
At Allied Banks Security Center, you can read about latest fraud alerts, preventive measures and
information on how to remain protected from all potential threats.

42

OTHER SERVICES:
Other services at Allied bank are:

HAJJ SERVICES:
Hajj Service at Allied Bank is available to all pilgrims. The forms and other related services are
provided by the Bank. Hajj applications are available with all branches during Hajj season,
immediately after the Hajj policy is announced by the Government of Pakistan

DEMAND DRAFT:
Demand draft is a popular banking instrument in the trade circles to transfer funds from one
place to another. Allied Bank offers speedy issuance and payment of drafts at the branches.

PAY ORDER:
Customers of allied bank can walk-in to any Allied Bank branch and make Pay Order to transact
payment to a named payee.

ALLIED BANKERS CHEQUES:

Allied bankers cheuqes (ABC) replaces traditional payment instruments like Demand Drafts and
Pay Orders. This instrument provides added assurance as its unlikely to be returned unpaid due
to lack of funds.

43

PERSONAL BANKING:

EVERYDAY ACCOUNTS:

An appropriate bank account leads to achieve transactional and savings objectives. Figure out
exactly where your money goes. Have an accurate picture of what you spend and what you save.
In these times, SAVING your hard earned money and spending conveniently for your daily
routine expenses remain priority and your everyday account should be able to work for you.

LIFESTYLE BANKING:
Banking was traditionally seen as rigid and monotonous. However, the transformation of new
and innovative branch concepts and services has made it possible for us to connect to the
lifestyle of our customers.
Lifestyle banking concept in Allied Bank provides a range of specialised services to serve the
needs of our customers who are accustomed to experiencing banking relationships beyond
conventional banking services and facilities. Our lifestyle based innovative products & services
offer our customers a productive, more relaxed and more rewarding experience when they visit
us. The concepts of Women Branch, Allied Rising Star Youth Saving Account and Allied
BaIkhtiyar, all correspond to the atmosphere and environment consistent with the needs of the
specific customer segment. By being within the reach of our customers wherever they are and
however they want, we enable them to access their banking services with ease and convenience.
By positioning ourselves with these innovative lifestyle products for the women and younger
generation, we seek to engage them holistically to play an active role to address all of their
banking needs.

44

SAVINGS AND TERM DEPOSITS:

Saving Accounts give you the ability to earn profit along with the flexibility to withdraw funds
whenever you require offsetting a financial emergency or need. The profit is earned as per the
mechanics of Saving Accounts which are mostly on the basis of Minimum Deposit maintained in
the account.
Alternatively, investing in a term deposit product gives you a safety of knowing that your profit
will not fluctuate.

TERM DEPOSIT MECHANICS:

Term deposits are investment options offered by banks where you deposit your savings for a
certain term or period of time upon which it would earn a particular percentage as profit.
Lets say you decide to place your deposit for a term of 1 year at Allied Bank. Your deposit will
be kept secured till the maturity date. If you do need to withdraw your funds prior to its maturity
date, then there are pre-mature encashment charges that will apply.

AT THE MATURITY DATE OF YOUR TERM DEPOSIT YOU MAY

CHOOSE:

To withdraw your principal deposit along with the profit that your savings earned, or
You roll over the funds altogether or partially for another term to gain more profit.

45

There is a core principle that relates to the term deposit i.e. The longer the period of time for
which you are prepared to commit your funds with the bank, the better will be the rate and
greater will be the income

CREDIT AND DEBIT CARDS:

A decade ago, it wasnt all that unusual to be out for dinner or at the cash counter at a grocery
store and suddenly realize that you dont have enough cash to cover the bill.
Today, we can conveniently pull out a debit or credit card and settle the bill electronically there
and then. It is difficult now to imagine a time when the card-based payment option were not
available.

Debit cards are issued with a bank account so the money spent or withdrawn, is automatically
deducted from the account. It is a convenient alternate to cash, especially when it is directly used
for shopping at merchant locations on their POS (Point of Sale) machines.
With Credit Card, you can spend more than you have, or leveraging the credit balance, you can
reschedule your payments as per your convenience and typically get better rewards and better
insurance protection. Credit cards allow spending while paying the money back later.
Customers using debit and credit cards enjoy the convenience that these cards bring in, for
improved financial management.

DOMESTIC REMMITANCES:
Domestic Remittance is a significant financial service and a need for many people across
Pakistan. To provide both Allied Bank account-holders and walk-in customers with a convenient
banking channel for remitting money, we offer a domestic remittance service called Pay
46

Anyone. Through this safe, fast, and reliable service, you can send/pay money to anyone within
Pakistan with no mandatory requirement for the beneficiary to have an account with any bank.
Currently, this feature is available via:

Branch counter for both i) Account Holders and ii) Walk-in Customers
Allied Direct Internet Banking for Allied Bank Customers
Phone Banking for Allied Bank Customers
Allied SMS Banking

47

PAY ANYONE THROUGH BRANCH CAHNNELS:

Customer will visit his/her parent ABL branch and fill-in remittance application form

with transaction details and particulars of beneficiary

Particulars of the beneficiary will include Beneficiary Name, CNIC #, CNIC Expiry

Date, beneficiary Cell Number, address, Remitter Cell Number and purpose of Transaction
Customers account for Pay anyone transaction will be debited
On completion of transaction, a 16 digit Reference Number will be generated and shared

with the remitter for onward intimation to the beneficiary

As soon as the transaction is successfully completed, SMS will be sent out to the

remitters Cell Number

After completion of transaction, Funds will be immediately available at any branch of
Allied Bank for payment at counter

PAY ANYONE FOR WALK-IN CUSTOMERS:

Walk-in Customers can Pay Anyone through Allied Banks branch counter with no mandatory
requirement for themselves as well as their beneficiaries to have an account with any bank. The
process of Pay Anyone for walk-in customers is as follows:

Remitter will visit any ABL branch and fill-in an application form with transaction details

and particulars of beneficiary

Remitter will present a copy of his/her own CNIC/SNIC
On completion of transaction, a 16 digit Reference Number will be generated and shared

with the remitter for its intimation to the beneficiary

As soon as the transaction is successfully completed, SMS will also be sent to the

remitter at his/her prescribed cell number, stating the reference number and other details of the
transaction
After completion of transaction, Funds will be immediately available at any branch of
Allied Bank for payment at counter

48

PAY ANYONE THROUGH ALLIED DIRECT:

Pay Anyone feature can be accessed via Allied Direct by logging in to your internet banking
account and navigating into the funds transfer section or via Call Center by calling 0800-22522.
The 2 modes of payments are described below:

i. Pay in Cash
Allied Direct users can remit funds in cash which to be collected from any Allied Bank Branch
all over Pakistan. As input, following information will be required by the system:

Select Payee
Enter Beneficiarys Name, CNIC, Email, and Mobile Number
Mention Description, Amount, and Financial PIN to initiate the transaction
Once the data is provided and confirmed, 16-digit reference number is displayed to the sender
and also sent to the senders email address. In case of call center, reference number is verbalized
to the customer. The sender can then communicate this reference number to the beneficiary.
Beneficiary can then present his/her 16-Digit Reference Number along with the Copy of CNIC to
collect money from any Allied Bank Branch after 6-12 hours of transactions.

ii. Pay by Check

Internet Banking customers can transfer funds through a bankers cheque (Allied Express
Cheque) which is delivered to the specified beneficiarys address and payable at any branch of
ABL. To send funds, following information will be required:

Select Payee
Enter Beneficiarys Name, CNIC, Address, City, Email, and Mobile Number
Mention Description, Amount, and Financial PIN to initiate the transaction

49

Once the data is provided and confirmed, Allied Express Cheque (AEC) will be dispatched to the
Beneficiarys Address within 3 working days.

PAY ANYONE THROOUGH ALLIED SMS BANKING:

Use your mobile device to type the following syntax and pay anyone anywhere anytime:

Type PAB (space) Payees CNIC (space) Amount (space) Payees Mobile Number
Send this SMS to 9080
Receive SMS to confirm Details of Payment: reply Y (to confirm) or N (to cancel)
Upon confirmation, receive an automated call and enter your Mobile Pin
After verification of your Mobile Pin, you will receive a confirmation SMS

E-BANKING SERVICES:
As customers become more technology literate, Allied Bank delivers services that fit customers
lifestyles and offer more choice as to where, when and how they conduct transaction. Customers
are digitally enabled and have less time to connect, interact and transact.
Allied Bank differentiate itself not just by offering multi-dimensional channels to the customer
but also by enhancing their experience of utilizing those channels and find them convenient and
familiar.
E-Banking services make customers well positioned in creating better everyday life for their
customers. They have gathered a wealth of experience and expertise in providing electronic
transactions to the individual and corporate clients. Allied bank handles more than 23 Million
electronic transactions annually.
Security, Speed and Ease of use are the principles of e-banking infrastructure. Allied Bank is
committed to the ability to speed the customers through to a successful transaction and improve
their efficiency levels while carrying out their financial decisions. Electronic services vary
domestically as well as globally but the challenge resides in delivering solutions that are
efficient, providing customers with the convenience and confidence they require in performing
transactions.

50

BUSINESS BANKING

CORPORATE AND INVESTMENT BANKING:

It is responsible for maintaining and augmenting the Banks asset portfolio which primarily
includes corporate & institutional lending along with provision of other ancillary services to its
corporate clientele including Corporate Finance Products, Commodity Financing, Project
Financing, Corporate Advisory, Cash Management, Remittances, Trade Financing etc.
The group has played a leading role in the economic development of the country as it has been
instrumental in financing of a large number of projects of national importance and is considered
one of the leading players in the Pakistani market when it comes to corporate lending. Its pre
eminence in the local banking environment can be gauged from the numerous local and
international awards received by its Investment Banking Division.
Also, based on the sheer number of completed transactions, the Corporate and Investment
Banking group continues to lead the industry league table whilst enhancing the Banks footprint
internationally. As a first step, it is targeting the lucrative GCC region.

TRESURY GROUPS:
ABL Treasury is one of the most active players in interbank foreign exchange and sovereign debt
securities market. We strive to provide the best prices to our valued clients with an objective to
grow a mutually beneficial long term relationship.
With ABLs extensive network of branches and correspondent banking relationship Allied bank
is well positioned to help the clients in meeting their transaction / payment requirements.

Sales Desk
Foreign Exchange (FX) Desk
Money Market Desk

51

TRANSACTION AND BUSINESS ACCOUNTS:

Allied bank real-time and efficient process of transferring funds from one place to another makes
them one of the leading banks in Pakistan offering state of the art Transactional Banking
products and services.
Transaction Banking is not just about transferring funds from one account to another; its about
the efficiency, security and adaptiveness in its process that define a true experience of transaction
friendly banking.
Allied Banks Transactional Banking comprises of products and services which include RealTime Online Banking, Electronic Banking on ATMs, Internet Banking on Personal Computer or
Mobile Phones and host of remunerative and non-remunerative deposit products to serve our
Business customers.

HOME REMITTANCES TO PAKISTAN:

ABL has been significantly important in helping the growth of home remittances to Pakistan
through its streamlined and trusted services. We are working continuously to develop innovative
ideas into service features that allow us to process and payout remittances even faster resulting in
greater customer satisfaction.
ABLs real-time online branch network one of the largest networks in Pakistan, consists of 880
branches in 300 cities and town, providing comprehensive domestic distribution of remittances
to Beneficiaries across Pakistan.

52

A host of renowned international banks, exchange houses and money transfer companies from
across the world, including the Middle East, Europe, Asia-Pacific and North America, have been
using our services with utmost trust and satisfaction.
A number of options are available to non-resident Pakistanis through our service, including
Direct Credit to Account, Cash Payment over the Counter and issuance of Allied Express
cheques, a payment instrument that is honored across the entire ABL network of branches.

CASH MANAGEMENT SOLUTIONS:

Offering a wide range of transactional banking services to meet the Customers
complex cash management needs

FINANCIAL INSTITUTIONS:
ABLs Financial Institutions team is in charge of establishing and maintaining institutional
banking relationships with correspondent banks across the globe. The division aims to facilitate
all areas of international banking operations inclusive of Trade, Treasury, Guarantees and nostro /
vostro relationships. ABL has internationally renowned banks such as JP Morgan Chase,
Citibank, Standard Chartered Bank, Deutsche Bank, Commerz bank, Mashreq bank etc. in its
existing list of correspondent banks, thus enabling ABL to adequately cover the need of its
clients.
The bank also has trade finance facilitation agreements in place with International Finance
Corporation (IFC) Asian Development Bank (ADB).

CASH MANAGEMENT:
The Cash Management team focuses on our Corporate customers need for Collections and
Payments across the country. Tailor- made products and transactional structures are developed
for customers as well as a host of MIS reporting options for receivables management and
handling of disbursements/ payouts.
Through our value added proposition, ABLs cash management team strives to deliver the best
combination of services to corporate clients and their suppliers, dealers, vendors and employees
nationwide

TRADE SERVICES:
IMPORT/EXPORT BUSINESS:

53

Allied bank, with its variety of export products and expertise, can help customers mitigate risks
involved in export transactions, which in turn, will help their export business flourish. We offer a
wide range of import products delivered by our expert trade team who ensures quick and
efficient processing of transactions.
Below is a list of few services Allied bank provides to help any business having
importing/exporting needs:
TRADE FINANCE:
Allied Bank provides highly efficient trade finance services for import/export businesses through
a large number of authorized branches where trained and motivated staff is available to handle
the business on the customers behalf.

SME FINANCING:
ABL has realigned its focus towards SME Business with a vision to capitalize on the banks
countrywide footprint and long-standing customer loyalty to become a preferred cum prudent
provider of a Total Banking Solution to the Small & Medium Market segment.
With this renewed focus and strategy, ABL offers its customers a wide range of products &
services, meeting the needs of various types of businesses. Having best available technology and
a branch network spread across the country, we are well positioned to cater to all sorts of
business specific requirements.

AGRICULTURE FINANCING:
The Bank, under the guidelines of the State Bank of Pakistan, extends short, medium and long
term Agriculture credit facilities to farming community of Pakistan on easy terms to increase the
credit flow to Farm and Non-Farm segments of Agriculture sector.

54

Farm credit is extended for the purpose of production of crops to meet working capital expenses
and Development of Agri land.
Non-Farm Credit facilities are offered for Livestock (Cow, Buffaloe, Goats, and Sheep etc.),
Poultry (Eggs, Day Old Chicks, Layer, Broiler, Hatchery) and fisheries (inland and marine,
excluding deep sea fishing).

FARM LOANS:
Production Loans

Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges, water
charges, vegetables, floriculture, forestry etc.
Working capital finance to meet various farming expenses.
Development Loans
Improvement of agricultural land, orchards, etc.
Construction of Godowns
Purchase of Tractors, Machinery & other equipments
Installation of Tube wells
Farm Transportation, etc.

NON-FARM LOANS:
Livestock
Working Capital

Purchase of animal fodder and feeds, Vaccinations, Vitamins and other medications for
animals including artificial insemination
Overhead expenses i.e. labor, fuel, electricity etc.
55

Term Loan

Purchase of mature milk yielding buffaloes/cows, Purchase of Young animals for rearing

for dairy farming

Purchase of Milk storage chilling tanks and milk carrying containers, feed grinders,

tokas, feed mixing machines and feed/milk containers etc.

Construction/Procurement of permanent sheds, water tanks, water pumps etc.
Poultry
Working Capital

Purchase of Eggs, Birds / Day old chicks, bird feed and feed raw material and vaccination
Overhead expenses i.e. labor, utility bills, Cost of fuel for generators & vehicles,
transportation etc.

56

Term Loan

Purchase of Equipment/Machinery for Broiler/Layer farm & Hatchery

Farm construction for broiler, layer, hatchery and procurement of other items required for
the establishment of poultry farming industry etc.
Agriculture Revolving Credit Scheme

Loan Tenure: 3 Years (Clean up once a year)

One time documentation for 3 years
Loan limit will be based on the Indicative per Acre limit prescribed by ABL/SBP and/or
requirement of the applicant

SELECTION CRITERIA:

Valid CNIC Holder

Preferably be an account holder with ABL
Have a permanent residence and be a self-cultivator
Not be a defaulter of any other Financial Institution/Clean ECIB
Be reputable in the business
Have Repayment Capacity
Be able to produce proper securities

ISLAMIC BANKING
ISLAMIC BANKING DEPOSITS:
At Allied Bank, Islamic Banking Group endeavors to be your first choice Sharia Compliant
Financial Services Provider by offering following Deposit Accounts:
1. Allied Islamic Current Accounts Non Remunerative

Allied Islamic Current Account

57

Allied Islamic Basic Banking Account

2. Allied Islamic Current Accounts Remunerative

Allied Islamic Anmol Plus Account (for individuals only)

Allied Islamic Business Plus Account (for business accounts only)
3. Allied Islamic Saving Accounts

Allied Islamic Savings Account (Regular)

Allied Islamic Sahulat Account
Allied Islamic Khalis Munafa Account
4. Allied Islamic Investment Certificates

Allied Islamic Investment Certificates (TDR)

Allied Bank-Islamic Banking Group will also be offering Corporate and Structured Islamic
Finance Solutions to our Corporate and individual clients in order to meet their financial needs.
We are constantly tailoring highly competitive and Shariah compliant financial modes for our
customers.

Islamic Banking Instruments:

Mudarib:

Mudarib is a manager with whom the profits are shared once the work is undertaken by the
individual contracted in the Mudaraba. The manager is usually the working partner or
entrepreneur rather than the financier and provides the management, business acumen, and the
products / services the business entails. Bank works as Mudarib in a Mudaraba contract for the
funds received from depositors.
Rabbulmal:

Rabbulmal is the owner of capital who invests the capital (the capital owner or financier) in a
Mudaraba contract. Depositors are Rabbulmal.
Mudaraba:
Mudaraba is a partnership in profit between capital and the work whereby one party provides
capital (Depositors / Rabbulmal) and the other party provides services (Bank / Mudarib). The
Mudarib announces its willingness to accept the funds, the sharing of profits being as agreed
58

between two parties and the losses being borne by the Rabbulmal except if they were due to
misconduct, negligence or violation of the conditions agreed upon by the Mudarib.
Qard:

Qard means to give anything having value in the ownership of the other by way of virtue so that
the latter could avail of the same for his benefit with the condition that same or similar amount of
that thing would be paid back on demand or at the settled time
Chequeing Account:

It is an account maintained at a bank which allows the customers freedom to deposit and
withdraw any sum with the Bank without any restriction(s).
Tiered Rate Account:
An account / deposit that attract enhanced rates of profit, based on different tires of balance(s) as
may be decided at the discretion of the Bank as Mudarib and announced from time to time. The
profit will be shared as per the different tiers announced from time to time whereas the loss will
be shared in proportion to the contributed funds utilized in any specific pool.

ISLAMIC INVESTMENT CERTIFICATES:

Salient Features:
1. Investment certificates will be issued based on the mode of Mudaraba for the
period of 1 month, 3 months, 6 months, 1 Year, 2 years, 3 years, 4 years and 5
years through Allied Islamic Saving / Current account. The deposit will be
accepted for different periods at the discretion of the Bank from time to time
2. Profits or Loss will be shared on Monthly, Quarterly, Half Yearly or Maturity
basis or may be decided / declared from time to time at the discretion of the Bank
3. Investment certificate will be issued in the multiple of minimum Rupees 25,000
4. The Bank will utilize all such deposits as the Bank may deem appropriate in
Shariah compliant modes of financing / investments
5. Following options will be available at maturity of the certificate or as approved
by the Bank from time to time:
i. Roll-over with Principal and Profit
ii. Profit Encashment (in linked current / saving account) and Principal Roll-over
iii. Principal and Profit Encashment at maturity (in linked current / saving
account)
6. In case of early/premature encashment, the applicable weightage on such
Certificate (TDR) shall be that of the Certificate (TDR) of the nearest completed
tenor. For instance, a five year Certificate (TDR) encashed after one year shall be
assigned the weightage applicable on one year Certificate (TDR).
59

Pre-mature encashment will be allowed on the profit rates declared for the
corresponding period for which investment remained with the Bank, as follows:
i. For completed years (i.e. 1, 2, 3, 4), rates for the corresponding completed years
will be selected
ii. For the period exceeding completed years, last declared rate for the regular
saving accounts will be selected
iii. For the TDR having maturity less than one year, last declared rate for the
regular saving accounts will be selected
iv. No premature charges or termination fees will be charged on any type of
investment certificate

60

ISLAMIC BRANCHES:
Details of Allied Banks Islamic Branches are as under:
Code

Name

Location

Tel #

PK002510
3

Deans Trade
Centre,
Peshawar

Deans Trade Centre,

Peshawar Cantt.
Peshawar.

(091)5250215,
(091)5250216,
(091)5250244,
(091)5250245

PK002510
1

Johar Town,
Lahore

859 R-1, Main

Boulevard, Johar
Town, Lahore

(042)3531511720

PK002510
2

Chandni
Chowk,
Rawalpindi

B-218, Esha Plaza,

Satellite Town,
Chandni Chowk,
Rawalpindi

(051)457145961

PK002510
4

G.T. Road,
Gujrati

Abid Fans Colony,

G.T. Road, Gujrat

(053)353356667

Kotwali Road,
Faisalabad

Plot No. 10, Kotwali

Road, Diglus Pura,
Dhobi Ghat,
Faisalabad

(041)2604051-2

PK002510
7

Sohrab Goth,
Karachi

Shop No. 23-24,

Highway Trade
Centre, Main Super
Highway, Sohrab
Goth, Karachi

0333-2191970

PK002510
8

Qandhari
Bazar, Quetta

Qandhari Bazar,
Jinnah Road, Quetta

(081)2837735,
(081)2821732

PK002535
8

Small
Industrial
Estate
Sahiwal

Plot No.19-20/B,
Admin Block, Small
Industrial Estate,
Sahiwal

(040)4502707-8

PK002547
6

Phase V DHA,
Lahore

2 C.C.A.Phase V,
D.H.A., Lahore

(042)3718231011

PK002510
5

61

Nishtar
Chowk,
Multan

Plot No.123-A,
Nishter
Chowk, Near Food
Festival, Sher Shah
Town, Multan

(061)4580242,
4589429

Al-Fayyaz
Colony,
Faisalabad

Plot No.108, Square

No.7, Chak No.214Rb, Khewat No.118,
Khatooni
No.1240, Al-Fayyaz
Colony, Faisalabad

(041)855581415

PK002597
6

G.B.S. Road,
Multan

Plot No.96/C, Shah

Rukan-E-Alam
Colony, General Bus
Stand Road, Multan

(061)6770146-7

PK002592
9

International
Islamic
University
Islamabad

H-10, International
Islamic University,
Islamabad

(051)4441999

PK002569
4

PK002588
8

62

SHARIA BOARD MEMBERS:

Mufti Ehsan Waquar

Chairman Shariah Board

Muhammad Iftikhar Baig

Resident Shariah Board Member

Mufti Mahmood Ahmad

Shariah Board Member

63

ABL PRODUCTS

COMMERCIAL PRODUCTS
CONSUMER PRODUCTS
CORPORATE PRODUCTS

64

COMMERCIAL
The Commercial & Retail Banking Group (CRBG) offers a variety of asset andliabilitybased retail products to its customers. The Groups main focus has been
on introducing various financing and investment products for its valuableclientele, and
contributing to the steady growth of the financial industry
Deposit Account
Various deposit accounts are as follows:
i. 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.

Current Account

Allied Bank offers the Current Account facility for individuals as well as for institutions
and commercial customers.

There are free Online Transactions, DD/TT/PO for depositors maintaining an average
monthly balance of Rs. 0.5 (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.

65

The Statement of Account is issued on a yearly basis.

The account will be closed automatically if the balance remains zero for
one year.

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
Banks Schedule of Charges for every
withdrawal/deposit.
Unlimited withdrawals from ATMs

Allied Business Account

Allied Business Account is a non-profit current account with countless benefits and services. If
you are a businessman, trader or an individual, Allied Business Account is an ideal proposition
for you

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

Rewarding Term Deposit

A term deposit 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

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, 000Investment Terms: 18 months Auto roll-over (optional)

66

Profit Payment:
Profit of Rs.13, 500 (on an investment of Rs.100, 000) will be immediately
credited in the customers current account

Behtar Munafa Account

If you want a chequing account that earns you attractive returns, paid on monthlybasis, then this
is the account for you.

Behtar Munafa Term Deposit

If you want to fix your money now to secure your future, this is the product for you

Allied e-Savers Accounts

Saving has never been so flexible! The Allied e-Savers Account is a unique savings plan where
you can earn returns as high as 7.5% with the convenience of 4 withdrawals a month!

67

FINANCIAL STATEMENTS

BALANCE SHEET
PROFIT& LOSS A/C
CASH FLOW STATEMENT

68

FIVE LATEST YEAR BALANCE SHEETS

Rupees in 000
2010

2011

2012

2013

2014

23,042,011

29,739,857

23,653,754

26,435,683

1,703,011

668,449

2,097,611

1,280,591

19,050,239

18,419,241

15,793,183

28,122,932

Assets
Cash
Balance

and 14,742,711
with

Treasury Banks
Balance

with 3,292,041

other banks
Lending

to 5,777,382

financial
institutions
Investments

44,926,652

46,953,241

83,958,463

82,449,475

94,673,100

Advances

111,206,774

144,033,634

168,407,280

213,020,108

237,382,522

6,445,111

7,548,628

11,150,129

12,459,586

638,168

662,431

1,031,049

17,388,612

17,986,438

Operating fixed 4,720,662

assets
Deferred

tax

680,093

assets
Other Assets

7,227,953

10,161,361

10,705,374

Total Assets

192,574,268

252,026,776

320,109,723 366,583,921

418,340,852

Liabilities
69

Bills Payable

2,448,620

2,278,007

3,494,384

2,952,490

3,162,429

Borrowings

9,693,785

18,410,425

22,933,656

27,778,151

39,818,532

206,031,324

263,972,382

297,474,543

328,872,559

2,500,000

2,499,000

2,498,000

5,497,000

Other liabilities

4,471,948

5,119,267

7,332,059

13,644,838

11,067,164

Total Liabilities

178,024,621 234,339,023 300,231,48

344,348,022

388,421,058

22,235,899

29,919,794

Deposits

and 161,410,268

other accounts
Sub-ordinate

loans
Deferred

tax

3,374

liabilities

Net Assets

14,549,647

17,687,753

19,878,242

Share capital

4,488,642

4,488,642

5,386,370

6,463,644

7,110,008

Reserves

5,693,484

6,133,209

6,050,713

5,804,776

6,582,845

Unappropriate
d profit

2,731,979

5,607,796

6,971,308

8,475,791

12,164,662

Surplus on
revaluation of
assets

1,635,542

1,458,106

1,469,851

1,491,688

4,062,279

14,549,647

17,687,753

19,878,242

22,235,899

29,919,794

70

71

FIVE LATEST YEAR INCOME STATEMENTS

Rupees in 000

Markup/Return/

2010

2011

2012

2013

2014

9,892,051

17,215,507

21,201,422

30,594,020

41,144,667

2,024,659

6,793,101

10,019,004

17,262,519

22,421,218

7,867,392

10,422,406

11,182,418

13,331,501

18,723,449

583,305

2,712,936

1,372,155

3,162,963

(14,623)

719

1,840,249

1,067,608

Interest earned
Less
Markup/Return/
Interest expense
Net markup/
Interest income

Provision against 399,608

nonperforming
loan

and

advances
Provision

for 20,411

dimunination

in

the

of

value

investment
Provision against
Lending

280,595

to

financial
institutions

72

Bad debts written 160,059

136,189

1,187

2,736

704,871

2,714,842

3,215,140

8,467,576

10,116,361

14,212,283

off directly
580,078

Net

7,287,314

9,717,535

4,511,166

markup/Interest
income

after

provision

Add Non markup /Interest income

Fee,

1,220,362

1,353,888

2,062,677

2,314,930

2,800,306

Dividend income 46,146

193,255

147,184

1,426,378

1,378,919

Income

282,285

194,879

958,964

761,934

376,792

1,439,387

150,537

1,101,477

Commission

from 250,224

dealing

in

foreign currency
Gain on sale of 124,383
investments
Un realized gain

25,706

(30,180)

(1,463)

3,201

(365)

Other income

272,762

273,028

77,435

59,934

35,986

2,449,068

3,920,099

4,913,944

6,078,257

Total

non 1,939,583

markup/
interest income
9,226,897

12,166,603

2,387,675

15,030,305

20,290,540

Less Non markup/interest expenses

73

Administrative

4,259,532

5,290,578

6,018,346

8,177,398

9,517,584

114,171

207,853

159,384

405,108

(81,784)

125,060

215,741

expenses
Other provisions
Worker Welfare

Fund
Other charges

18,999

7,078

256,869

265,817

67,377

Total expenses

4,392,702

5,505,509

6,434,599

8,973,383

9,718,918

Profit before tax 4,834,195

6,661,094

5,953,076

6,056,922

10,571,622

2,215,092

1,887,299

1,830,073

3,551,493

Less Taxation,
Current year

1,331,468

Prior years

22,000

Deferred

390,594

48,752

(10,381)

132,988

(129,181)

Total Tax

1,744,062

2,263,844

1,876,918

1,963,061

3,422,312

Profit after tax

3,090,133

Unappropriated
profit

4,397,250

(44,283)

4,076,158

4,093,861

7,149,310

2,751,431

5,640,497

6,990,868

8,508,151

7,148,681

9,716,655

11,084,729

15,657,461

brought

forward
Profit available for 3,045,850
appropriation

74

75

RATIO ANALYSIS FOR THE LAST FIVE YEARS

CURRENT RATIO

Formula = Current Asset / Current Liabilities

Rupees in 000

Current

2010

2011

2012

2013

2014

187,853,606

245,581,665

312,561,095

355,433,792

405,881,266

178,024,621 234,339,023

300,231,481

344,348,022

388,421,058

1:1

1:1

1:1

Asset
Current
Liabilities
Ratio

1.1 : 1

1:1

Interpretation:

Current ratio of Allied Bank Ltd over period of 2010 -2014 has not very much fluctuate and
remain 1.It is good sign for the bank, because current ratio of the organization should be in the
ratio 1:1.
There is no difference in the current assets and current liabilities of the organization in this
assessment period so that Current Ratio is not extra fluctuate.

76

 ACID TEST RATIO

Formula = Liquid Assets / Current Liabilities

Rupees in 000

Liquid Asset

Current

2010

2011

2012

2013

2014

167,316,852

217,537,496

282,276,857

307,444,341

357,448,804

178,024,621 234,339,023

300,231,481

344,348,022

388,421,058

0.94 : 1

0.89 : 1

0.92 : 1

Liabilities
Ratio

0.94 : 1

0.93 : 1

Interpretation:

It tells us that for the payment of its liabilities the firm/ bank have how many liquid resources at
the time of calculating this ratio. This ratio measure to meet current datas with most liquid
(quarter current asset) which is fluctuate trend in the evaluation period. Acid test ratio is much
fluctuate in the whole evaluation period. It is high in 2010 and 2012 in 2011 it is little less but in
2013 and 2014 it is again increasing.

77

 DEBT TO EQUITY RATIO

Formula = Total Debt / Share holder Equity

Rupees in 000

Total Debt
Share

2010

2011

2012

2013

2014

178,024,621

234,339,023

300,231,481

344,348,022

388,421,058

14,549,647

17,687,753

19,878,242

22,235,899

29,919,794

holder
Equity
Ratio

12 : 1

13 : 1

15 : 1

15.5 : 1

13 : 1

Interpretation:

In the Debt to Equity ratio high ratio is a good sign for organization. There is fluctuation in the
period of 2010 to 2014. Ratio gradually increases in the first four years from 2010-2013 then
decreases in the year 2014 due to increase in total debt of the organization.

DEBT TO ASSETS RATIO

Formula = Total Debt / Total Assets
78

Rupees in 000
2010

2011

2012

2013

2014

Total Debt

178,024,621

234,339,023

300,231,481

344,348,022

388,421,058

Total Assets

192,574,268

252,026,776

320,109,723

366,583,921

418,340,852

Ratio

0.92 : 1

0.93 : 1

0.94 : 1

0.94 : 1

0.93 : 1

Interpretation:

Debt to Assets ratio almost same but there is slightly difference and less then 1 in the evaluation
period and show good ratio of the organization.

INTEREST COVERAGE RATIO

Formula = E.B.I.T./Interest Expense

Rupees in 000
2010
Earning
Interest

4,834,195
2,024,659

2011
6,661,094
6,793,101

2012

2013

5,953,076

6,056,922

10,019,004

17,262,519

2014
10,571,622
22,421,218

Expense
Ratio

2.4 : 1

1:1

0.6 : 1

0.4 : 1

0.5 : 1

Interpretation:
79

Interest Coverage Ratio constantly reduces in the period of 2010 to 2013 & then some lightly
increases in 2014. The highest ratio is good sign for the bank.

80

 RETURN ON INVESTMENT

Formula = Net Profit after Tax/ Total Assets

Rupees in 000
2010
Net Profit

2011

3,090,133

2012

2013

2014

4,397,250

4,076,158

4,093,861

7,149,310

After Tax
Total Assets

192,574,268

252,026,776

320,109,723

366,583,921

418,340,852

Ratio

0.02 : 1

0.02 : 1

0.01 : 1

0.01 : 1

0.02 : 1

Interpretation:

The Ratio of return on investment fluctuate in the evaluation period in 2010 & 2011 is same, and
some decline in the year 2012,2013 and again vast increase in 2014 but same with first two years
of the evaluation period.

ASSETS TURN OVER RATIO

Formula = Total Earning / Total Assets
Rupees in 000
2010
Total

9,226,897

2011
12,166,603

2012
2,387,675

2013
15,030,305

2014
20,290,540

Earning
81

Total Assets

192,574,268

252,026,776

320,109,723

366,583,921

418,340,852

Ratio

0.05 : 1

0.05 : 1

0.01 : 1

0.04 : 1

0.05 : 1

Interpretation:

There is also fluctuation in the assessment period of ABL. The ratio is same in 2010, 2011 and
there is decrease in 2012 due to some decrease in markup , interest earned and assets and then
again increase during the year 2013 & 2014.

LOANS TO TOTAL ASSETS RATIO

Formula = Total Loans / Total Assets

Rupees in 000
2010

2011

2012

2013

2014

2,500,000

2,499,000

2,498,000

5,497,000

Total Loans

Total Assets

192,574,268

252,026,776

320,109,723

366,583,921

418,340,852

Ratio

0.01 : 1

0.008 : 1

0.007 : 1

0.013 : 1

Interpretation:

82

Loan to total assets ratio shows the empirical relation between loan and assets acquired by the
bank. Lower the ratio is better for the institution.
The loan to assets ratio of ABL is fluctuate in the whole period, in 2010 there were no any loans
by the organization, from period 2011 to 2013 the ratio constantly decreases and then again
increases in the year 2014.

83

 INTEREST EXPENSE TO INTEREST INCOME RATIO

Formula = Interest Expense / Interest Income

Rupees in 000
2010

2011

2012

2013

2014

2,024,659

6,793,101

10,019,004

17,262,519

22,421,218

7,867,392

10,422,406

11,182,418

13,331,501

18,723,449

0.65 : 1

0.9 : 1

1.29 : 1

1.2 : 1

Interest expense

Interest income
Ratio

0.26 : 1

Interpretation:

Interest Expense to income ratio constantly increase in the whole period of 2010 to 2014. In
early three years ratio is less then one due to low expenses but in last two years ratio is more then
1 due to increase in interest expenses.

84

 MARK UP TO NON MARK UP INCOME RATIO

Formula = Mark up Income / Non Mark up income

Rupees in 000

Mark_up/Return/

2010

2011

2012

2013

2014

9,892,051

17,215,50

21,201,422

30,594,020

41,144,667

3,920,099

4,913,944

6,078,257

6.23 : 1

6.77 : 1

Interest earned
Total non markup 1,939,583

2,449,068

income
Ratio

5.1 : 1

7:1

5.4 : 1

Interpretation:

Markup to Non Markup income ratio flactuate in the whole period. A big increase in 2010 to
2011 and then some decrease in 2012, and then ratio constantly increase from 2012 to 2014.

MARK UP EXPENSE TO MARK UP INCOME RATIO

85

Formula = Mark Up Expense / Mark Up Income

Rupees in 000

Mark_up/Return/

2010

2011

2012

2013

2014

2,024,659

6,793,101

10,019,004

17,262,519

22,421,218

9,892,051

17,215,50

21,201,422

30,594,020

41,144,667

0.47 : 1

0.56 : 1

0.54 : 1

Interest expense
Mark_up/Return/

Interest earned
Ratio

0.2 : 1

0.39 : 1

Interpretation:

Mark up to Non Markup expense ratio of the ABL constantly increase in the evaluation period a
continuous change from year 2010 to 2013 but very slightly change in last year 2014.

ADMIN EXPENSE TO TOTAL MARKUP RATIO

Formula = Admin Expense/ Markup Income

Rupees in 000
2010

2011

2012

2013

2014

86

Administrative

4,259,532

5,290,578

6,018,346

8,177,398

9,517,584

9,892,051

17,215,50

21,201,422

30,594,020

41,144,667

0.3 : 1

0.3 : 1

0.2 : 1

expenses
Mark_up/Return/

Interest earned
Ratio

0.4 : 1

0.3 : 1

Interpretation:

Admin expense to markup ratio was at highest point in 2010, and then were constant in the years
2011, 2012 and 2013, because in the this period admin expense and markup income both were
same and with the same ratio but there is slightly decrease in the year 2014.

87

 NON MARK UP EXPENSE TO NON MARK UP INCOME RATIO

Formula = Non Mark Up Expense / Non Mark Up Income

Rupees in 000
2010
Total Non Mark 4,392,702

2011

2012

2013

2014

5,505,509

6,434,599

8,973,383

9,718,918

2,449,068

3,920,099

4,913,944

6,078,257

2.25 : 1

1.64 : 1

1.83 : 1

1.6 : 1

up expenses
Total

non 1,939,583

markup Income
Ratio

2.26 : 1

Interpretation:

Non Mark up expense to non mark up ratio fluctuate in the period of 2010 to 2014. And always
more then one which is not good for Allied bank.

RETURN ON EQUITY (ROE)

Formula = Net Profit after Tax / Share Holder Equity

Rupees in 000
2010
Net Profit After

3,090,133

2011
4,397,250

2012
4,076,158

2013
4,093,861

2014
7,149,310
88

Tax
Share holder

14,549,647

17,687,753

19,878,242

22,235,899

29,919,794

0.2 : 1

0.25 : 1

0.2 : 1

0.18 : 1

0.24 : 1

Equity
Ratio

89

Interpretation:

Return on equity ratio also fluctuate in the whole period of 2010 to 2014. In the assessment
period the change is very slightly due to change of the profit in the evaluation period.

EARNING PER SHARE

Formula =Net Profit after Tax / Total no. of shares

Rupees in 000
2010
Net Profit

3,090,133

2011

2012

2013

2014

4,397,250

4,076,158

4,093,861

7,149,310

448,864,200

448,864,200

538,637,000

646,364,400

711,000,758

0.007 : 1

0.010 : 1

0.008 : 1

0.006 : 1

0.010 : 1

After Tax
Total no. of
shares
Ratio

Interpretation:

Earnings per Share ratio is very small and lower then 1. In 2010 to 2011 it is increased and then
from period 2011 to 2013 it is constantly decreased in three years due to high increase in assets
and low increase in net profit and then also increase in the year 2014.

HORIZONTAL ANALYSIS OF THE BALANCE

90

SHEET FOR THE LAST FIVE YEARS

2010

2011

2012

2013

2014

156%

202%

161%

52%

20%

64%

39%

to 100%

330%

319%

273%

487%

Investments

100%

105%

187%

184%

211%

Advances

100%

130%

152%

192%

214%

Operating fixed 100%

137%

160%

236%

264%

94%

97%

152%

141%

148%

241%

249%

166%

190%

Assets
Cash
Balance

and 100%

179%

with

Treasury Banks
Balance

with 100%

other banks
Lending
financial
institutions

assets
Deferred

tax 100%

assets
Other Assets

100%

100%

131%

217%

91

Liabilities
Bills Payable

100%

93%

143%

121%

129%

Borrowings

100%

190%

237%

287%

411%

and 100%

128%

164%

184%

204%

tax -

115%

164%

305%

248%

132%

169%

193%

218%

122%

137%

153%

206%

Deposits

other accounts
Sub-ordinated
loans
Deferred
liabilities
Other liabilities

100%
100%

Net Assets

100%

Share capital

100%

100%

120%

144%

158%

Reserves

100%

108%

106%

102%

116%

Unappropriate
d profit

100%

205%

255%

310%

445%

Surplus on
revaluation of
assets

100%

89%

90%

91%

248%

100%

122%

137%

153%

206%

92

HORIZONTAL ANALYSIS OF BALANCE SHEET

For the purpose of Horizontal Analysis of Balance Sheet for the last five years 2010 to 2014. I
select 2010 as a base year and evaluate assets and liabilities of all other four years on the base of
2010 and compare all this period. Cash and Balance with Treasury Banks, overall increase
156% in 2011, 202% in 2012 and in 2013 161% and 179% in 2014, in other words we can say
that during these years only 56% in 2011, 102 in 2012, 61% in 2013 and 79% in year 2014 as
compare to base year, but I compare overall comparison of the organization. Balance with other
banks, go up from 2010, 52% in 2011, then little increase in as 20% in 2012, then 64% in 2013
and 39% in the year 2014.

Lending to financial institutions, constantly increase but with

fluctuations. It rise 330% in year 2011, then 319% in 2012, 273% in 2013, and 487% in 2014.
Investments repeatedly increase up to 2012 then bit decline. So 105% increase in 2011, 187% in
2012, and 184% increase in 2013 but in 2014 high percentage increase is 211.

Advances

of the organization constantly grow in whole evaluation period, if we compare it 130% growth in
2011, 152% expansion in 2012, and 192% expansion in 2013,but a high growth of 214% in
2014. Operating fixed assets of the organization also show a constantly growth in whole
evaluation period same like as advances as 137% in 2011, 160% in 2012, 236% in 2013, and a
high growth 264% in the year 2014. Deferred Tax Assets are also increasing gradually upto
2013, but there are nothing such assets in 2014 as 94% increase in 2011, 97% in 2012 and 152%
increase in the year 2014.

Other Assets also have same condition similar to advances

and operating fixed assets and are increasing gradually as 141% in 2011 148% in 2012, 241% in
2013 and high increase in the year 2014. Total Assets of the organization are also continually
rise from base year to final year which shows increasing in assets of the organization every year
131% enhance in 2011, 166% in 2012, 190% in 2013, and 217% growth in 2014.

Bills Payable is the first item of liability side, which shows increasing in liabilities of the
organization every year. In 2011, 93% enhance as compare to base year. And 143% increases in
2012, 121% increase in 2013, but in 2014 growth rate in 129% in bills payable. Borrowings
93

There is gradually increase in the borrowing of the organization in the selected period. Thus
190% decrease in 2011, but in 2012 237% increase in Borrowings and 287% in 2013, and a high
increase 411% in the year 2014. Deposits and other accounts are same like that of borrowing
and regularly rise with the passage of time, 128% increase in 2011, 164%,184% and 204%
growth in 2012,08and 09, as compare to base year. Sub-ordinated loans There are no subordinate loans in the year 2010, and there in not any base year for comparison, so I cannot
compare such loans of all other years with base year. Deferred tax liabilities are also not present
in the first four year 2010, 06, 07 and 08 and only present in the year 2014. Therefore we cannot
compare such liabilities with any other financial years. Other liabilities raise gradually, 115% in
2011, 164% in 2012, 305% in 2013 and 248% in 2014 as evaluate to 2010 that is base year.
Liability side of the balance sheet also go up continually, 132%, 169%, 193% and 218% from
2011 to 2014, as measure up to to base year.
After subtracting liabilities from the assets side of the balance sheet the

Net Assets are also

continually grow up as compare to base year, 122% in 2011,137% in 2012, 153% in 2013 and
206% growth in 2014.

94

HORIZONTAL ANALYSIS OF INCOME STATEMENT FOR THE LAST

FIVE YEARS

2010

2011

2012

2013

2014

100%

174%

214%

309%

416%

100%

336%

495%

853%

1107%

100%

133%

142%

170%

238%

Provision against 100%

146%

679%

343%

792%

-72%

4%

9016%

5230%

85%

1%

2%

Markup/Return/
Interest earned
Less
Markup/Return/
Interest expense
Net markup/
Interest income

nonperforming
loan

and

advances
Provision

for 100%

dimunation

in

the

of

value

investment
Bad
written

debts 100%
off

directly

95

Net

100%

122%

468%

554%

778%

100%

133%

116%

139%

195%

markup/Interest
income

after

provision

Add Non markup /Interest income

Fee,

100%

111%

169%

190%

230%

Dividend income 100%

419%

319%

3091%

2988%

Income

113%

78%

383%

305%

100%

303%

1157%

121%

886%

Un realized gain

100%

-117%

-6%

13%

-1%

Other income

100%

100%

28%

22%

13%

non 100%

126%

202%

253%

313%

26%

163%

Commission

from 100%

dealing

in

foreign currency
Gain on sale of
investments

Total
markup/

interest income
100%

132%

220%

Less Non markup/interest expenses

Administrative

100%

124%

141%

192%

223%

100%

182%

140%

355%

-72%

expenses
Other provisions

96

Other charges

100%

37%

1352%

1399%

355%

Total expenses

100%

125%

147%

204%

221%

Profit before tax 100%

138%

123%

125%

219%

Less Taxation
Current year

100%

166%

142%

138%

267%

Prior years

__

__

__

__

__

Deferred

100%

13%

-3%

34%

-33%

Total Tax

100%

130%

108%

113%

196%

Profit after tax

100%

142%

132%

133%

231%

HORIZONTAL ANALYSIS OF INCOME STATEMENT

For the purpose of Horizontal Analysis of Income Statement for the last five years 2010 to 2014.
I select 2010 as a base year and evaluate incomes and expenditures of all other four years on the
base of 2010 and compare all this period. Markup Earned of the Allied bank constantly
increase in the whole period, it increase 174% in 2011, 214% in 2012, 309% in 2013, and highest
increase in the year 2014 as 416%. Markup Expense of the Allied bank is same like Mar up
earned and are increasing gradually in the evaluation period, thus 336% in 2011, 495% in 2012,
853% in 2013 and highest increase in year 2014 as 1107% as compare to base year. These
expenses increase gradually due to increase in deposits of the bank every year.

Net

Markup also rises constantly due to rise in markup income. And 133% growth in 2011, 142% in
2012,170% in 2013 and 238% growth in 2014 in the evaluation period. Provision against
nonperforming loan and advances rises from 2011 to 2012 as 146% in 2011, 679% in 2012
97

and decreases as 343% in 2013 and again highest increase in 2014 as 792%. Provision for
dimunation the value of investment there is much fluctuation in the evaluation period. In 2011
it is in negative as -72% then it is rises as 4% in 2012, after it there is huge increase ind 2013 as
9016% and 5230% in 2014. Bad Debts written off also fluctuate in the evaluation period as
85% in 2011 and then huge decrease in 2012 as 1%, and 2% in 2013, there are no bad debts in
2014. Net Markup after Provision also fluctuate in evaluation period in 2011 it is increases as
133% then it little decrease in 2012 as 116% after it again increase 139% and 195% in
2013,2014. Non Markup Income, include Fee or Commission gradually rise with
111%,169%,190%a and 230% from 2011 to 2014 on the base of 2010.Divident income in 2011
the growth is 419% and then decrease in 2012 as 319%, and in the next year it is highly
increased as 3091% in 2013 and 2988% in 2014. Income from Foreign Currency in 2011 it is
increased as 113% then decrease in 2012 as 78% and in 2013 there is highest increase as 383%
in 2013, in 2014 decrease as 305%. Gain on sale of investment fluctuate in the whole % in 2012
then there is huge decrease as 12period, first there in increase in 2011 as 303% and % in 2013
after it again increase as 886% in 2014. Unrealized Gain also fluctuate in the evaluation period
in 2011 it is great decrease as -117% in 2012 is -6 and in 2013 it is increased as 13% but in 2014
it is again as -1%. Other Income is same in 2011 as 100%, after it is continually decreases as
28%,22% and 13% in the year 2012,2013 and 2014. After addition of all these income 126%
increase in 2011, 202% in 2012, 253% in 2013 and 313% increase in 2014. Non Markup
Expense include Administrative Expenses rises gradually the whole period as 124% in 2011,
141% in 2012, 192% in 2013 and highest increase as 223% in 2014. Other provision also much
fluctuate the whole period, first it increase as 182% in 2011, then decrease in 2012 as 140%
again it increased as 355% in 2013 and there in huge decrease in year 2014. Other Charges
expense also vary in the whole period in 2011 it is 37% and there is increase in 2012, 2013 as
1352% and 1399% and in 2014 it is again decrease as 355%. Profit before Tax due to
fluctuation in the expenses it is also fluctuate in the whole year. It rises 138% in 2011 then fall in
2012 as 123% again in 2013 & 2014 it is gradually increase as 12% and 219%. Total Tax is ebb
and flow with 130%,108%,113%,196% from 2011 to 2014. Profit after Tax is increase as 142%
in 2011 then fall in 2012 as 132% and after it continually increase as 133% and 231% in year
2013 and 2014.

98

VERTICAL ANALYSIS OF BALANCE SHEET FOR THE LAST FIVE

YEARS

2010

2011

2012

2013

2014

and 7.7%

9.1%

9.3%

6.5%

6.3%

with 1.7%

0.7%

0.2%

0.6%

0.3%

to 3%

7.5%

5.8%

4.3%

6.7%

Assets
Cash
Balance

with

Treasury Banks
Balance
other banks
Lending
financial
institutions
Investments

23.3%

18.6%

26.2%

22.5%

22.6%

Advances

57.7%

57.2%

52.6%

58.1%

56.8%

2.6%

2.4%

3%

3%

0.3%

0.2%

0.3%

4%

3.3%

4.7%

4.3%

Operating fixed 2.5%

assets
Deferred

Tax 0.4%

Assets
Other Assets

3.7%

100%

100%

100%

100%

100%

99

Liabilities

Bills Payable

1.3%

0.9%

1.1%

0.8%

0.7%

Borrowings

5%

7.3%

7.2%

7.6%

9.5%

81.8%

82.5%

81.2%

78.6%

1%

0.8%

0.7%

1.3%

2%

2.3%

3.7%

2.7%

93%

93.9%

94%

92.8%

7.6%

7%

6.1%

100%

100%

Deposits

and 83.8%

other accounts
Sub-ordinate

loans

Deferred

tax -

liabilities

Other liabilities

2.3%
92.4%

Net Assets

100%

6%
100%

7.2%
100%

Share capital

2.3%

1.8%

1.7%

1.7%

1.7%

Reserves

3%

2.4%

1.8%

1.6%

1.6%

Unappropriate
d profit

1.4%

2.2%

2.1%

2.3%

2.9%

Surplus on
revaluation of
assets

0.9%

0.6%

0.5%

0.4%

1%

100

7.6%

7%

6.1%

6%

7.2%

VERTICAL ANALYSIS OF BALANCE SHEET

For the purpose of Vertical Analysis of Balance Sheet for the last five years 2010 to 2014. I
evaluate assets and liabilities of the organization that how much its share includes in total. Cash
and Balance with Treasury Banks have 6.3% share out of 100% in 2014, 6.5% in 2013, 9.3%
in 2012, and 9.1% in 2010, 7.7% in 2004. Balance with other banks have 0.3% contribution in
2014, 0.6% in 2013, 0.2% in 2012, 0.7 in 2011 but 1.7% in 2010, out of 100% total assets.
Lending to financial institutions have 6.7%, 4.3%, 5.8%, 7.5% and 3% share in 2014 to 2010
out of 100%. Investments include 22.6% in 2014, 22.5% in 2208, 26.2% in 2012, 18.6% in 2011
and 23.3% in 2010.The largest contribute in assets is Advances that have contribution of 56.8%
in 2014, 58.1% in 2013, 52.6% in 2012, 57.2% in 2011 and 57.7% in 2010. Operating fixed
assets and both have same ratio 3% share in 2014 and 2013, 2.4% in 2012, 2.6% in 2011 and
2.5% in 2010 in total assets. Deferred Tax Assets there are not any asset in 2014, and 4.7%
share in 2013, 0.2% in 2012, 0.3% in 2011 and 0.4% in 2010. Other Assets There is 4.3%
contribution in 2014, 4.7% in 2013, 3.3% in 2012, 4% in 2011 and 3.7% in 2010.
On liability side Bills Payable is the first item and it has 0.7% share in total liabilities in 2014,
0.8 in 2013, 1.1% in 2012, 0.9% in 2011 and 1.3% in 2010. Borrowings include in total liability
9.5%, 7.6%, 7.2%, 7.3%, 5% from 2014 to 2010.The largest contribution in liabilities is
Deposits and other accounts that is 78.6% in 2014, 81.2% in 2013, 82.5% in 2012, 81.8% in
2011 and 83.8% in 2010 out of total liabilities in all five years. Sub-ordinate loans include in
total liabilities 1.3% in 2014, 0.7% in 2013, 0.8% in 2012 and 1% in 2011 but no share in 2010.
Other liabilities have 2.7% share in 2014, and 3.7% in 2013, 2.3% in 2012 & 2010, but 2% in
2011. Total Liabilities have 92.8% in 2014, 94% in 2013, 93.9% in 2012, 93% in 2011 and
92.4% in 2010.
After subtracting total liabilities from total assets we Net Assets have 7.2% in 2014, 6% in 2013
& 2012, 7% in 2011 and 7.6% in 2010.
101

VERTICAL ANALYSIS OF THE INCOME STATEMENT FOR THE LAST

FIVE YEARS

2010
Mark_up/Return

2011

2012

2013

2014

83.6%

87.6%

84.4%

86.2%

87.1%

Fee, Commission

10.3%

6.9%

8.2%

6.5%

Dividend income

0.4%

1%

0.6%

4%

2.1%

1.4%

0.8%

2.7%

1.6%

1.1%

1.9%

5.7%

0.4%

2.3%

Un realized gain

0.2%

(0.2%)

(0.01%)

0.01%

Other income

2.3%

1.4%

0.3%

0.2%

0.1%

16.4%

12.4%

15.6%

13.8%

12.9%

/
Interest earned
Non markup
Income

Income

5.9%

from

dealing in foreign
currency
Gain on sale of
investments

Total

non

markup/
interest income
Total Income

100%

100%

100%

100%

100%

102

Less Non markup/interest expenses

Mark-up/
Return/Interest
expense

17.1%

34.5%

39.9%

48.6%

47.5%

36%

27%

24%

23%

20.2%

4.9%

3.6%

10.8%

9.1%

9.5%

0.1%

1.1%

0.6%

1.1%

(0.2%)

0.4%

0.5%

Administrative
expenses
Provisions

&

Bad Debts
Other Provision
Worker Welfare
Fund
Other charges

0.2%

0.04%

1%

0.8%

0.1%

Total expenses

58.3%

66.1%

76.3%

82.9%

77.6%

Profit before tax 41.7%

33.9%

23.7%

17.1%

22.4%

Less Taxation
Current year

11.3%

11.2%

7.5%

5.2%

7.5%

Prior years

0.2%

Deferred

3.3%

0.3%

(0.04%)

0.4%

(0.3%)

Total Tax

14.7%

11.5%

7.5%

5.6%

7.2%

16.2%

11.5%

Profit after tax

27%

22.4%

15

VERTICAL ANALYSIS OF INCOME STATEMENT

103

Vertical Analysis of the organization from 2010 to 2014. I get interest income plus non interest
income as 100 % as base and compare all other income statement figures with it I evaluate all
the incomes and expenditure for all five years. Mark up earned is the main source of income
and mark up expense is the main expenditure of bank. Markup are 87.1% in 2014, 86.2% in
2013, 84.4% in2012, 87.6%in 2011 and 83.6% in 2010 of interest income,
.Total non markup income is 12.9% in 2014, 13.8% in 2013, 15.6% in 2012, 12.4% in 2011 and
16.4% in 2010 out of total income. So total income is 100%.
Then less non markup expenses 77.6% in 2014, 82.6% in 2013 and 76.3% in 2012, 66.1% and
58.3% in 2011 and 2010.
We get profit before tax 22.4% in 2014, 17.1% in 2013, 23.7% in 2012, 33.9% in 2011 and
41.7% in 2010 out of total income of bank. And the total taxes of these five years are 7.2%,
5.6%, 7.5%, 11.5%, 14.7% from 2014 to 2014. After subtracting total tax we obtain Profit after
Tax, 15.2% in 2014, 11.5% in 2013 and 16.2% in 2012, 22.4% in 2011 and 27% in 2010 out of
total revenue of bank.

104

The SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules
and regulations, services and other related activities, the analysis include the analysis of ABL
Bank Branches in the light of the entire branch and Bank specific variables which directly or
indirectly affect the operations of the branch. The tool selected for the analysis of organization is
SWOT analysis. SWOT analysis is an acronym that stands for Strengths, Weaknesses,
Opportunity and Threats.
This is a careful evaluation of an organizations
strengths to avail an opportunity by overcoming its weaknesses and phasing out all the threats to
its survival in order to grow and survive.

105

STRENGTHS
Allied Bank Limited has certain strengths which are different from the other
Banks.
ABL is the first Muslim Bank of the world, which is owned and managed by its
own employs. This is the biggest strength of the Bank.
A feeling of ownership is
presents in every employ, which not only helps in increasing the productivity of
employes but also creates sincerity with the Bank in them.
Strength is the high motivation of employees to their work because they know that what
so ever they do. It will be in their own benefit. They know that the
profit, which they will earn, will be distributed among the employees. So they
work with high motivation and concentration.
Salaries are very reasonable, so the employees are not financially disturbed and
they devote their selves fully to their work.
They have wide area network in all over the Pakistan, so that they cover a lot of
portion of cash transactions and make customer satisfied.
The Bank has very strict rules and regulations about the customer's complaints.
The customers are treated as very special persons in the Bank.
The branch is linked through an online network of BRANCHES, thus enabling them to serve
customer in better way.
This branch is provided with latest computer which increases the speed of computer work.
The branch is situated in commercial area were business activities perform greater as compare to
residential area. Thus it increases the number of customers.
The Branch has the most experienced and the least experienced staff, which is a good
combination of experienced heads and exuberance of youth.
All Pakistan branch network in remote areas.

106

WEAKNESSES
No entertainment facilities are available in the Bank when customer goes to the
Bank and wait for a longer time. Thesefacilities can be the newspaper. Magazines, etc.
The Branch has a good staff combination on the basis of experience, but their training
capabilities are not up to the requirements of the fast changing banking environment.
The technical training of the staff is negligible e.g. in case of the absence of computer there is no
alternate trained personal who can record the daily transactions.
The organization is very much mechanistic and provides no flexibility to encourage creativity.
The organizational environment is not cooperative.
In spite of the presence of technology many jobs are done manually such as the letters, drafts for
fax messages and other calculations, which could be easily, done in MS Word and Ms Excel.

107

OPPORTUNITIES
The policies of the new government to uplift the economy and pursue financial
sector reforms are expected to yield positive results in the banking industry of the
country. The ABL is very well praised to avail promising opportunities.
As a result of the different steps taken by the Government regarding the
betterment of the economy. Small borrowers are attracted to get the financing and
start small businesses. So, The ABL has an opportunity to attract the customers by
giving them attractive schemes.
They have wide area network in all over the Pakistan, if ABL can make it possible
the fast delivery of fund from abroad through online banking, It can cover the
major market of Pakistan which still is capturing by 'Hundi'.
A considerable portion of the labor force of the area is serving overseas. Their families can be
encouraged to use ABL as channel for remittances.
The Internet facility in the area provides an opportunity to ABL to get Online.
The Bank has the basic infrastructure, which can facilitate the online process. The location of the
ABL, Ashraf abad branch itself provides an opportunity to ABL to get more and less cost
deposits

108

THREATS
First threat is that of political influence
The biggest threat in the banking sector is the continuous downfall of
thecountry economy since the last few years. If this downfall remains formore few sears
then it may be the great barrier in achieving the Bank's objectives.
High-pressure interest groups are developing which poses a constant there at to Allied Bank.
The biggest threat to the operational success of the branch is the better
Competitors services. Many private sector banks are offering higher rates of
return to customers than Allied Bank of Pakistan.
One of the biggest to the ABL, Ashrafabad branch is the increasing rate of dissatisfies customers.
Most of these customers were observed to be dissatisfied with the delays in their servicing.
New Privates Bank coped with emerging new Technology of IT

109

TRAINING PROGRAMS
Activities of interns:
Internship is a prerequisite for completing the practical side to fulfill the BBA program.
Theoretical sessions alone cannot make a business student efficient and perfect in handling the
real life business situation. Only a lot of knowledge will be little important unless it is applicable
in practical life. So we need proper application of our knowledge to get some benefit from our
theoretical knowledge to make it more fruitful. When we engage ourselves in such fields to make
proper use of our theoretical knowledge in our practical life situation, only then we come to
know about the benefit of the theoretical knowledge. Such an application is made possible
through internship. The internship program has the following three phases:
1)
Orientation of the organization: to introduce the internee with the structure, function and
performance of the organization.
2)
The project part: pertaining to a particular problem or searching topic matching with the
internees capacity, interest on the organization.
3)
The report writing: to summarize the internees analysis finding and achievements in the
preceding two phases.

Scope of the study

The field of my study is the operation of Allied Bank LTD. For conducting this study an overall
knowledge of the total banking system will necessary because the departments banking are
linked with each other due to some partial proceeding. The scope of the organization part covers
the organization structure, background, objective, function, departmentalization and business
performance of JBL as a whole

Objective of the report

The objectives of the report is to make us known the practical situation of commercial banks of
Bangladesh in overall activities and prepare me to face the complex situation of banking in this
country .The primary objective of this report is to commonly with the requirement of JBL.
However the objectives of this study are something broader. Objectives of the study are
summarized in the following manner.
110

General objectives:
The general objective is to Know General banking procedure of ALLIED Bank Ltd.

Specific objectives:

To apply theoretical knowledge in the practical field.

To develop our skill on the banking sector

To know the customer service of banking sector.

To observed the practice of modern technology in banking sector.

Practical knowledge about transaction.

To assess the strength and weakness

Methodology of the study

At the time of my internship period, I tried to use both primary and secondary data that I have
gathered from different sources which are given below:

Source of data:
These sources are as follows:

Primary source:
Primary data are collected through two ways. These are:
a) Face to Face Conversations: some primary data are collected by taking interview and by
discussion with the executives and officer of ABL.
b) Observation: Here primary data are collected through spending three month in the ABL during
the working hour. Here I observed the total banking process of ABL.

111

Secondary source:
Secondary data are collected from the following sources:
a)

Annual reports of ABL

b)

Published documents

c)

Official files

d)

Data available with the website of JBL.

e)

Different publication of Bangladesh bank and Bangladesh economic reviews.

Limitation of the study

Every matter has got some limitation. So this is also not an exception. The limitations of this
internship report are been sated below:
Due to time and cost restriction, the study is concentrated in selected areas. To continue study in
such a vast are requires a big deal of time. As an internee I had only three month which is not
enough.
As a financial organization a bank has some restriction to serve all the real data of the bank to the
general people as a result the study is mostly depends on official files and annual reports.
Available data also could not be verified. In most cases I simply did not have any option but to
furnish with data without verification.
ABL as a commercial bank they are very busy and they could not able to give me enough time
for discussion about various topics

112

PROBLEMS:
While working at ABL Faisal town branch, I have attained a newer kind of experience. After
collecting and analysis data I have got some problem of the ABL. These problems completely
from my personal viewpoint, which is given below:
Lack of update products is a drawback of the general banking area of the ALLIED Bank. New
products such as student loan, medical loan, marriage loan are not available in ABL.
From the clients view introducer is one of the problems to open an account. It is general problem
to all commercial bank.
They face troubles with those clients who have not any knowledge in banking transactions and
banking rules.
As the deposit is heart of running the banking activities ALLIED Bank Deposit growth not good.
Because ALLIED Bank deposit rate is low other than commercial bank such as Dhaka Bank,
Prime bank Mercantile Bank, HSBC Bank, Bank Asia etc.
ABL has not recruited competent people to filling its lower and mid level position they recruit
only once a year. This is really tough to recruit high skilled employees.
Lack of proper training arrangement of employees

113

RECOMMENDATIONS FOR THE ORGANIZATION

Working with Allied Bank was a lifetime experience for me because not only it has made me
able to step into my practical life but it also provided me with the exposure of a multinational
organization. I have learnt a lot from my internship with Allied Bank. The overall working
experience, the workplace environment, the help from the seniors and many more was excellent.
If anyone who seeks his career in the banking sector in Pakistan, probably Allied Bank is the best
place he can find.
While doing my internship training of 8 weeks in Allied Bank of Pakistan, I have analyzed some
problem in the Bank. Keeping in views those problems followings are my recommendations:
1. The bank has a lot of financing schemes but there are little advertisements of these schemes so
ABL should more advertise its schemes.
2. Most of the bank employees are stick to one seat only, which result that they become master of
one particular job and lose their grip on other banking operations. So, all employees should have
regular job rotation.
3. Some of the talented employees should be sent to other countries for their advance trainings.
4. In back offices the employees are still depend on manual work which causes slow
performance. It should convert their system to an automated one.
5. ABL should promote the paperless banking.
6. In some groups or wings, approach towards employees is still bureaucratic, late promotion,
favoritism in appraisals and lack of sufficient incentives are some problems arising
dissatisfaction so the employees should be promoted on fair policies to increase more satisfaction
among them.
7. ABL should introduce the Islamic products because it has the potential market.
114

8. 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.
9. The Bank should keep the proper cheque on stock which is hypothecated. A textile owner may
ret the loan on same 10,000 bales of cotton from checking system of the Bank.
10. 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.
11. 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.
12. All the Bank Branches should be getting online to provide the quality and speedy services to
the customers and also remain competitive in the market.
13. The circle of ATM machines should extend in all the major cities of Pakistan.
14. With the internship letter should also be requested to provide us the financial reports.
Because when we demanded the financial reports they said that this is confidential. And they are
not allowed to provide these statements to any trainee.

115

CONCLUSION

At present there is no such organization in the world that is free from problems and challenges.
Every concern has to strive and struggle a lot to be more profitable and to get more competitive
edge.
The management of ABL is taking strategic steps to enable the bank to emerge as a strong and
progressive institution. It is continuing to make efforts to refine its products and operations to
make them more compatible. New deposit schemes have been introduced and an action plan to
maintain revenue growth in future.
During my internship I have learned many new things in spite of the knowledge gained at
university and also came to conclusion that education alone is not enough, practical training in
every field is crucial to become a successful manager.
The bank has great image due to the trust but it needs to use it effectively to increase market
share. Also the flaws in branch operations such as misallocation of resources should be rectified.
As the business and economic conditions remain uncertain, ABL continues to develop the new
products like it has been doing in past.
During my internship training at ABL Regency Plaza Branch Faisalabad I have learned a lot. It
was a geed experience for me. In 1991, the ABL became the first Pakistans Privatized bank.
After privatization, the profitability and performance of the bank has increased. Today ABL
represents a bank that has grown with time.

116

GOOD FEATURES

The staff of foreign exchange department is highly professional. All the members of this
department are highly educated and trained they work in a proper way and follow all the rules
and regulations, that is why this department of this branch is most professional and highly
profitable department of the whole ABL.

117

REFERENCES

Syed Sajad Hussain Shamsi

(Branch Operations Manager, ABL Green Town, Lahore)

Mr. Moazzam Ali Moazzam

(MG-12, ABL Green Town Lahore)

http:www.abl.com

Annual Report Of 2011

Allied Magazines

118

Annexure-A

119

Annexure-C
Management chain of command

President

Senior Vice President

Vice President

Executive Vice
President
Senior Executive Vice
President

Regional General
Manager
Branch Manager

120

Note:

Every organization has its management system. The structure of Head office of the Allied Bank
Ltd is controlled by a panel called board of directors. The board of director is also divided into
three main head that is Board audit committee, Board HR committee and Board Risk
management committee. It has the President and DCEO, CEO Secretrait, Business manager and
also control other head like HR, Compliance & internal control, Risk, Financial officer and Head
of operations & IT.
Heads of Treasury, Corporate, Retail banking, Commercial banking, Agri banking, Strategic
Development, Assets management and Islamic banking report to DCEO, which is liable to report
to President and this reports send to board of directors for further evaluation and decision
making. All the investigations are moved towards Board of Director.

121

122

123

124