Title Page Name of the organization ALLIED BANK OF PAKISTAN Internee Name: - AQSA ASLAM Student ID: - MC080404357

Session: - 2008 - 2011

Submission Date: - 11th Feb 2011
Virtual University of Pakistan

INTERNSHIP REPORT

INTERNSHIP REPORT
ON ALLIED BANK LIMITED

INTERNSHIP REPORT

INTERNSHIP REPORT

INTERNSHIP REPORT

DEDICATION
I dedicate my report to The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere of life. I also dedicate this to my Beloved Parents for all their love & attention which has made it possible for me to make it up to this point, also my whole family they always back me in every step of my life as well as the Internship Advisor Mr. Zeeshan Afzal who bestowed me with the courage, the commitment and the awareness to follow the best possible route, by his unmatchable style and by best possible training.

Acknowledgment

In the name of Allah, the most merciful and beneficent All praise to Almighty Allah, the most Gracious and compassionate. Who created the Universe and bestowed mankind with the knowledge and blessings of Allah be upon the Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and Sunnah, the everlasting source of guidance and knowledge for humanity. I also pay my gratitude to the Almighty for enabling me to complete this Internship Report. Words are very few to express enormous humble obligations to my affectionate Parents for their prayers and strong determination to enabling me to achieve this Task. I am thankful to all my staff members of ABL Link Road Model Town I found every one helpful and co-operative for providing the theoretical and practical knowledge about the function and operation of the bank. I take this opportunity to record my deep sense of gratitude and appreciation to my Internship Advisor one of my favorite Mr. Zeeshan Afzal for his constant encouragement and inspiring guidance with his Wisdom. I also appreciate the cordial co-operation from all my concern Managers in the different departments of Allied Bank limited especially Mr. Zulfiqar bukhari (CSM ) wise manger and other departments management for providing me requisite information and knowledge for compilation of my complete Internship.

INTERNSHIP REPORT

Executive summary
I was directed by my university to do the internship of 6 to 8 month after the completion of 3rd semester. For this purpose I joined Allied bank limited on 30th SEP, 2010 as an internee Allied bank limited it has been good experience to work with the Allied bank limited. The purpose to join Allied bank limited was to get the experience and professional skills. The salient features of this report are Allied bank limited background, its vision, missions and goals of the bank. Allied bank is amongst the leading commercial bank in the country and has always played a pioneering role in introducing innovative, technology based banking services the role played by its human resources is highly valued both in terms of their skills and dedication in implementing unique banking services . My work is about to share all the experience which I gain during my internship period. It is related to general operations and management of Allied Bank Limited Link Road Model Town branch, Lahore. During my internship program, I get exposure of practical life and organizations doing business in real life and know that how and what sort of changes in Information Technology brings in management activities. As it was very first experience of work so they rotated me in different departments account opening, clearing ,issuance of cheque book, ATMs, lockers, online transaction, remittances, advances, during the internship I kept on consulting my internship advisor every week. 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. Finally, this report is a nutshell comprises of my practical learning, recommendations and suggestions.

INTERNSHIP REPORT

TABLE OF CONTENTS
DESCRIPTION PAGE #

Introduction to Banking sector .. 7 History of Allied Bank Limited .. 8 Services as competitive tool . 10 Products . 11 Business Volume . 13 Future Plans OF ABL 14 Competitors 15 Organizational Structure 16 No of Employees . 17 Board of Directors 17 Main offices of ABL .. 18 Department 19 Comment on Organizational Structure 25 Plan of your internship 25 Introduction to ABL (link Road Branch) 27 Starting and ending dates of internship 27 Names of Dept in which Training Occurs 28 Training Program . 29 Description of Dept 32 Branch Hierarchy chart 34 Critical Analysis 37 Risk faced by ABL .38 SWOT Analysis . 40 Conclusion 43 Recommendation .. 44 References & Sources 44

INTERNSHIP REPORT

Introduction to banking Sector (ABL) Banking sector has following objectives:

Main objective of banking sector is to earn profit. To provide services to their customers and assistance in the development of commerce and trade. To provide assistance in the development of the commerce and trade industry. Focus on blending skills and experience towards creating and enabling environment. Core focus is to inculcate a culture of collaboration intended to deliver world class customer service. Allied bank also have another responsibility to give service to their communities. It watches the growth and development of his community especially the commerce and business of the area.

HISTORY OF ALLIED BANK LIMITED

ABL was established in Lahore before independence in 1942 Allied Bank Limited is one of the largest banks in Pakistan with more than 700 Branches connected to an online network. In August 2004 the Bank was restructured and the ownership was transferred to Ibrahim Group.

OVER VIEW:
ABL is the first Muslim bank established in the territory that later on became Pakistan. It was established on December 3, 1942 as Australasia Bank at Lahore with capital of 0.12 million. At that time the chairman was Kh. Bashir Baksh. ABLs story was one of the dedications, commitment to professionalism and adoption to changing environmental changes. The bank history is divided into many phases. During 25 years of united Pakistan the bank advanced East Pakistan was separated in Australasia Bank lost its 50 branches and a lot of capital as well. Never the less the growth remains steady. In 1974 all the banks were nationalized including Australasia Bank. The small provincial banks were merged into Australasia Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan Limited. Then it started its operation as public sector financial institution

INTERNSHIP REPORT

SERVICES as COMPETITIVE TOOLS

Services are the main tool through which the bank acquires new customers and retain them. These services are not merely meant to earn profit, but also to keep pace with the changing needs of the customers and modern days banking Trends. This branch provides many services to its customers which really serves it as its Competitive strategy. All the performance of a bank mainly depends on the services provided by its customers, better and higher the services greater the performance. All the new customers and the already existing ones really get attracted by the performance of the branch. These services include: Home Remittances Remittances Hajj Services Utility Bills Lockers Commodity Operations Along with these core services provided by the bank, online banking and Internet banking serve as supplementary services. These products and services are mainly directed towards customer satisfaction and ABL uses it for the customer satisfaction as their competitive strategy. Some of the many benefits availed by the customers are mentioned as follow in banks own style.

1. ONLINE FACILITY:
Now the bank gives you the absolute convenience of instant access to a host of banking facilities and personalized services 24 hours a day, 7 days a week, 365 days a year. Simplify the way you bank and experience a higher level of convenience.

2. UTILITY BILLS
This branch collects utility bills as electricity and telephones through cash and cheques. Utility bill payment facility pays your telephone, electricity bills through ATM of the Branch without having to wait in long queues outside your branch

PRODUCTS
PRODUCTS OFFERED BY ABL
Branch offers products towards the customers. The following products are available for The customers: Lockers Cheque Books Allied Cash+ Card

INTERNSHIP REPORT

Demand draft (DD) Payment order (PO) Online Banking Link Networks

LOCKERS:
ABL Link road branch given its customers the facility of lockers, so that they can secure their important things in the lockers, for example gold, important documents or anything which a person wants to keep safely. ABL lockers are available in three different sizes large, medium, and small on a yearly fee. There is no need to open account to get the facility of lockers.

Serial No

1 2 3
Cheque books:

Locker Size Small Medium Large

Annual Locker Rent 1500 2000 4000

Cheque book issued according to the nature of account .There are two types of cheque books, the first one is of 25 leaves and the second one is of 50 leaves. For current account 50 leaves book we issued and for saving account there are 25 leave books. The charges will be rupees 125 for 25 leaves and 50 leaves cheque book charges are 250 rupees. Cheque book issued after one week for opening of account, the first cheque book is free and if customer wants to reissue next cheque book.

Allied Cash+ CARD:

Allied Bank ATM Card also referred to as "Allied Cash+", can also be used as a debit card at merchant locations/service outlets having ORIX POS Terminals and displaying the ORIX logo.

Pay order (PO):

Pay Order is a bank instrument issued by a bank in Pak rupees at the request of a customer. Pay order is for local use. Pay order is surety for the person that cheque will not be bounce back. The person whom we giving the pay order will have the surety to get the money. It is cancelled at customer request.

INTERNSHIP REPORT

Payment of Pay order: Via Cash Rs 800 Via Account Rs 88

Demand Draft (DD):

Demand draft is one of the most popular banking instrument in the trade circles to settle business deals and transferring funds from one place to another. It is for outstation. DD is also a form of crossed cheque, in this remote person has the surety that cheque given to him will not be bounce back.

Call Deposit Receipt (CDR):

CDR is normally for bid. It is the surety that if you will not get the contract then u should have your money back. CDR is not transferable. CDR is not cancelled at the customer request. It is only cancelled by the person who is favoring the CDR.

Online Banking:
Allied Online Banking is a unique service being offering from Allied Bank. Through this service, your account in Allied Bank is available to you from any of our branches countrywide. No matter where you are in the country and whichever branch your account is maintained at, you can have your cheque cashed at any of our 784 online branches located in 250 cities. You can also use the service, from any branch, to deposit cash for instant credit into your account or any other account in Allied Bank. Similarly, the account-to-account Funds Transfer facility is also available for instant remittance Your cheque drawn from a remote branch for credit into a beneficiarys account or encashment of a specified amount can also be presented by a third person at any branch. Allied Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of our branches countrywide. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services.

Link Networks:
In continuation of ALL TIME BANKING SERVICES, with the country wide network of 779 branches, ABL has also enhanced ATM services by joining the 1-LINK SWITCH which has following member banks. AL BARAKA ISLAMIC BANK ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LIMITED ATLAS BANK LIMITED BANK AL HABIB LIMITED BANK ALFALAH LIMITED BANKISLAMI PAKISTAN LIMITED

INTERNSHIP REPORT

EMIRATES GLOBAL ISLAMIC BANK LIMITED FAYSAL BANK LIMITED FIRST DAWOOD ISLAMIC BANK LIMITED HABIB BANK LIMITED KASB BANK LIMITED MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN SONERI BANK LIMITED STANDARD CHARTERED BANK PAKISTAN LIMITED UNITED BANK LIMITED MY BANK LIMITED

Business Volume:
Year over year, Allied Bank Limited has been able to grow revenues from 1.6B to 3.6B. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold, SGA expenses and income tax expenses. All of these improvements led to a bottom line growth from 4.1B to 7.1B. Share capital. The authorized capital of ABL, as at 31 December 2010 was PKR 5,000 million, divided into 500million ordinary shares of PKR 10 each. The decision to increase the authorized share capital from2, 000 million to 5,000 million was taken by the Board of Directors of ABL in the AGM. On behalf of the Board of Directors, we are pleased to present the financial results of Allied Bank Limited for the nine months period ended September 30, 2010.

Future Plans of ABL:

Some future plans of ABL are as follows: Installation of ATMs in every major city of the country. Computerization of all the branches through out the country. In the first instance a target of 250 branches has been set. Among them about all the branches of Lahore and Karachi have been computerized. Now the next target is Multan Circle Shares Investment Scheme i.e. Bank will trade in shares of different renown companies to earn profit. Purchase of Sick Units, rebuild them and make them profit earning institutions.

INTERNSHIP REPORT

Competitors:
There are many competitors of ABL which are discussed below Muslim Commercial Bank Bank Alfalah Askari Bank Limited United Bank Limited

Organizational Structure:

PRESIDENT ASSEISTANT VICE PRESIDENT (AVP)

SENIOR VICE PRESEDENT

SENIOR EXECTIVE VICE PRESEDENT CEO

EXECTIVE VICE PRESEDENT (EVP)

INTERNSHIP REPORT

 OG-I SUPPORTING STAFF OG-II OG-III

No of Employees:
There are 18000 Employees working in different departments of Allied Bank Limited. No bank can be expected to operate efficiently unless all employees within a department, division or section know: From whom they are to receive the work they are to do. What they are supposed to do with the work after they receive it. How they are supposed to handle the operation of item. When they are supposed to do work, perform the operation. To whom they give the item or function after finishing

BOARD OF DIRECTORS
The people who draw the picture of the organization on the broader canvas of strategy and planning, the pioneers of prosperity and world of wisdom that paves the path to long term success Following are the names of the Chairman, Chief executive officer, and Board of Directors of ABL.

1. CHAIRMAN
MOHAMMAD NAMEEM MUKHTAR

2. CEO
MR KHALID A SHERWANI (PRESIDENT & CEO)

3. DIRECTORS
PERVAIZ IQBAL BUTT FARRAKH QAYYUM ABDUL AZIZ KHAN INTERNSHIP REPORT

AHEIKH JALEES AHMAD MUHAMMAD WASEEM MUKHTAR SHEIKH MUKHTAR AHMAD TASNEEM M. NOORANAI NAZRAT BASHIR MUBASHIR A. AKHTAR

4. EXECUTIVE COMMITTEE
Mr. Khalid A. Sherwani President & (CEO) Mr. M. Naveed Masud Senior Executive Vice President Mr. Akhter Ali Khan Head Credit Mr. Tahir Saeed Effendi Head I.T & Financial Officer

Main Offices of Allied Bank Limited

Today, Allied Bank operates a total of 283 domestic branches/offices, including its subsidiaries Allied Savings Bank (20 branches), Allied Leasing and Finance Corporation, and the PNB Life Insurance, Inc.-formerly New York Life Insurance Philippines . There are main two offices of Allied bank limited; Central Office Karachi Registered office Kashmir Road Lahore

DEPARTMENTS
Following are the departments of ABL: 1 2 3 4 5 6 Cash department / Remittances Clearing department Online facility provider department Utility bills paid department Advance and credit department Hajj services

ONLINE FACILITY PROVIDER DEPARTMENT

Online banking is a wide spreading concept in banking sector. Online banking facilities are available for the customers to maintain their accounts Cash deposit for immediate credit to remote branch Remote cheque Encashment from the branch Instant funds Transfer between any two online branches Remote balance inquiry and statement of accounts.

INTERNSHIP REPORT

This department mainly performs the basic operation of fund transfer and other functions facilitating the transfer and enquiries. I observed the basics of the department.

Utility Bills
All branches of the Bank collect utility bills of electricity, gas and telephones. For convenience of the customers, the branches collect Utility Bills during banking hours and also in the evening banking on all working days. Bills can be paid through Cash or Cheques. Consumers may drop bills with crossed Cheques into a drop box available at the branches under "Cheque Drop-in" system. Utility Bill payment facility can also be availed through any of the ATMs without having to wait in long queues outside the branch.

CLEARING DEPARTMENT
There are two types of clearing: Inward clearing Outward clearing

CLEARING CHEQUES:
This department receives the cheques and other negotiable instruments drawn on local branches of other banks. NIFT has a clearing house, in which cheques and other negotiable instruments are brought by each local bank representative and the claims of each bank on other is offset and a settlement is made by the payment of difference. Clearing system is helpful for both the customers and bank in saving money, time and labor.

OUTWARD CLEARING:
Suppose a customer deposits cheque in ABL link road branch, drawn on Habib Bank Faisal town branch. Then the representative of ABL will take this cheque to the Clearing house in SBP, where representatives of all banks gather daily. Now in first clearing this cheque will be exchanged with the representative of Habib Bank. In the second clearing, if the cheque is honored, he will tell it to the ABL representative and so the SBP credits the account of ABL and debits the Habib Bank through the clearing account. This is called Outward Clearing.

INWARD CLEARING:
Suppose a person deposits a cheque in Habib Bank of any branch, drawn on any ABL branch; let it be the ABL main branch. The representative of HBL will exchange this cheque with the ABLs representative in the first clearing in Clearing House. If the cheque is honored by the ABL main branch then SBP will debit and credit the respective accounts. This is called Inward Clearing.

INTERNSHIP REPORT

PAK ACCOUNT:
All the inter-bank adjustments will be affected through head office account called Pak account. It will be essential for the branch to advise pak account of each transaction so that they may also pass the necessary entries in their books. The NIFT will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered to or received from the branches. The amount of the advice will agree with the total amount appearing in the schedule of cheque delivered/received. The head office will similarly send advice to the branches of the returns, if any. Copies of all advices will be sent to the head office.

INTER-BRANCH CLEARING AND COLLECTION:

Branch receives the cheques and other negotiable instrument drawn on other branches of the same bank. Main branch of ABL handles the transfer and delivery of cheques. The same clearing cheque procedure will be adopted in the transfer deliveries except in case when the facility of SBP is not availed. In case of cheques drawn on one branch and collected by another branch for the credit of its constituents, the branch delivering the cheques will send a consolidated debit advice. If any cheque is returned unpaid, a credit advice will be sent to the branch returning the cheque.

COLLECTION CHEQUES OR OBCs:

The collection cheques/OBCs are the cheques, which we have cleared for our Customers when some of our customers receive the cheque that is of some other city. These types of cheques are known as collection cheques or the other name we gave them is OBC.

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

MAINTAINING REGISTER for OBCs:

I maintain the register in which we have the serial no for OBCs with other details like amount, date, sending and receiving branches codes. Every OBC is entered in that register on daily basis. If OBC is not cleared due to any fault, we take it back as a return but after that we call the concerned person and we also write name of the person

INTERNSHIP REPORT

REMITTANCES
Allied Bank can transfer funds to the remote part of the country for payment/credit to the customer himself or a third party, through Telegram/Telex/Tele fax for payment/credit on the same/next day. Telegraphic transfers can also be made abroad in Foreign Currency

HAJJ SERVICES:
The Bank serves the intending pilgrims by helping them in performing this religious obligation. The bank provides the forms and other related services. However, the terms and conditions for accepting the Hajj forms from intending pilgrims are in accordance with the Hajj Policy announced by the government, each year. Hajj applications are available with all branches during Hajj season, immediately after the Government of Pakistan announces the Hajj policy

Advances
The bank can make the advances in the following three ways; 1. Overdraft 2. Loan 3. Cash Credit 1. OVERDRAFT: Under such arrangement the customer is allowed to withdraw the amount excessive from his balance. But the limit of amount is sanctioned by the manager and given for a fixed period. 2. LOAN: When the bank makes the advances in a lump sum, to be repaid in lump sum or in forms of installments with interest at any future date, is known as loan. These loans may be of short and long term. 3. CASH CREDIT: These advances are made against the security of the goods which may be made like in the form pledge or hypothecation. The bank credits the borrower's account with the amount making as loan. The amount can not be withdrawn in lump sum. While interest is paid on the amount drawn from the bank.

INTERNSHIP REPORT

Cash Department

Cash department deals with the cash, which either comes in the Bank or goes out side the Bank. Cash can be in any form of currency.

SOURCES OF THE CASH:

There are different sources through the cash inflows the Bank. These sources are as follows: Deposits Demand Draft and telephonic transfer commission Prize bonds, FEBCS, NDSCS etc..

DEPOSITS:
This is the major source of the cash inflow. When someone deposits the cash in the Bank in any currency, it means that the cash is coming in the Bank.

DEMAND DRAFT AND TELEGRAPHIC TRANSFER COMMISSION:

These are the second major sources of the cash inflow of the Bank. When the Bank issues the DDs and TTs on the behalf of customer then the Bank takes certain charges as commission. These DDs and the TTs can be issued in any currency on the demand of the customer.

PRIZE BONDS, FEBCS, NDSCS etc:

Prize bonds, FEBCs, and NDSCs are other sources of cash. These instruments are sold to the general public and cash is received from them. Though this cash is ultimately transferred to SBP but still the Bank has to manage this cash

INTERNSHIP REPORT

Comments:

ORGANIZATIONAL STRUCTURE
Organizational structure determines the manner and extent to which roles , powers and responsibilities are delegated , controlled and coordinated , and how information flow between levels of management . This structure depends entirely on the organizations objective and strategy chosen to achieve them .In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and division.

www.abl.com.pk
Organizational structure - Wikipedia, the free encyclopedia

Plan of Your Internship Program

This internship program is so important to boost our carrier in a practical form. Virtual university policy to do internship is really a rewarding effort and Allied Bank Limited providing the opportunity to work under such a practical environment which can be so important in my coming future professional life. Its my honor that I got the opportunity to take part in the internship program of Virtual University of Pakistan.

Introduction of Allied Bank Limited (ABL) Bank Profile Type Industry Bank Logo Founded As Australasia Bank, 1942, Lahore Pakistan Private Banking, Finance and Insurance

INTERNSHIP REPORT

Products Headquarters

Financial Services central office Karachi, Salaar centre Lahore.

Net income Revenue Employees Website

1.325 billion 18.699 billion Unknown http://www.abl.com

INTERNSHIP REPORT

Introduction of Allied Bank Limited (Link Road Branch)

Starting and Ending Dates of Internship

I started my internship training program in Allied Bank Limited (Link Road Branch) from 30 SEP 2010 to 22 NOV 2010. During my internship I learned a lot of things which can be helpful in my future life. Overall it was a great experience of my training in ABL.

INTERNSHIP REPORT

Names of Department in which I got training and duration of the Training

Clearing Department Remittance & ATM Advances / Loans ( 30 SEP 2010 TO 18 OCT 2010 ) ( 18 OCT 2010 TO 25 OCT 2010 ) ( 25 OCT 2010 TO 9 NOV 2010 )

CSO / Operation Dept ( 10 NOV 2010 TO 22 NOV 2010 )

Training Program
My internship program is from 30 SEP 2010 to 22 NOV 2010. During this internship I learned a lot of things about Banking. In the branch I perform different types of duties in different department. I was rotated in different departments in different weeks, so that I could get the experience of different tasks in the bank. But my duties were always supervised by the employees of the branch. All the employees of the Bank was so cooperated and explain all me about all departments. The environment of bank is nice and I didnt found any difficulty working in every department because all the department heads were very co-operative.

Description of Departments
Remittance & ATM:

Remittance is the transfer of funds from one place to another or from one person to another. It is an important service provided by bank to customers as well as non customers. Since it is not a free service it is a source of income for banks. In this Department online transfer of money, issuing of cheque books, issuing of ATM, Remittances slips etc.

ONLINE TRANSFER :
Online transfer is a very interesting department as well. Any person who wants to Transfer some amount from minimum 500/- to 500,000/- can transfer from our branch to another branch of ABL within minutes. The fee charged for this service for within city is Rs: 175/- and inter city is 375/-.The only thing which I had to do was to fill the slip of online transfer in which the most important columns were: Applicants name Name and code of remote branch

INTERNSHIP REPORT

Title of the remote account Account number of remote account Amount to be transferred in words Amount to be transferred in numbers A copy of NIC

Cheque book issue :

Whenever a person opens an account with branch, for this purpose he has to fill a requisition slip, and then after about six days of opening of account he gets his cheque book, which comes from Karachi. And first cheque book is free of cost. There are two types of cheque books: The first type of cheque book has 50 leaves. The second type of cheque book has 25 leaves. There is also another requisition slip inside each cheque book, which is used for the purpose of reissuence of a new cheque book if the leaves of first cheque book start finishing. There is written the title of account holder, his account number, the stamp of Allied bank and the signatures of the authorized person on every page of cheque book and also on the requisition slip.

Clearing Department:
The word clearing has been derived from the word clear and is defined as, A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way is called clearing

CLEARING HOUSE
It is a place where cheques are presented, collected from bank branch. It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearing house .

NIFT:
NIFT stands for National Institutional Facilitation Technologies. Clearing House of SBP has shifted a tiresome part of its work to a private institution Named NIFT. NIFT collects cheques, demand drafts, Pay orders, Travelers Cheques, etc. from all the branches of different banks within city through its carriers and send them to the branches on which these are drawn for clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for each branch showing the number for instruments and amount in its favor and drawn on it and sends it to each branch. A similar sheet for each bank is also sent to clearing house of SBP where accounts of banks are settled in the same manner clearing. Instruments which are drawn on the INTERNSHIP REPORT

branches of some other bank of the same city or of the same area, which is covered by a particular clearing house, are processed for clearing.

Types of Clearing
Outward clearing:
When cheque is received two copies of voucher are prepared one copy and instruments along with clearing stamp, realization stamp, add list and two vouchers of clearing summary are sent to NIFT in a sealed bag. And clearing records are recorded in clearing register.

Inward clearing:
Instruments received from NIFT are posted in Computers after checking

Advances / Loans:
The basis function of the bank is to accept deposit and lend money to the borrowers against a spread so to be able to give some profit to the depositors as well as to earn profit for the bank. While lending the money to the borrowers the bank should observe the following lending principals: Safety Principle It means that the lended money will come back along with interest or service charges etc. The borrower should not invest the money borrowed in unproductive or speculative business. Liquidity Principle The money which has been lended to the borrower should be returned to the bank on demand or as per repayment schedule provided by the client. The sources of repayment should be clear and definite Purpose Principle The purpose of the advances should be legitimate and productive. It should been sured that the banks, funds are not being utilized for speculative business. The credit restrictions by the central bank should not be violated & it should also be ensured. It is always beneficial for the bank to finance for short-term requirements.

Operation Department / CSO:

In this Department Deposit slips, Account related information, Balance information can be included.

Deposit slips:

INTERNSHIP REPORT

Deposit slips can be different for current and saving account. Deposit slip means the slip for deposit of cash and also the deposit of cheque. If we want to deposit cash in our account, we can fill the slip and deposit it in our account. If there is a cheque, then we describe all the essentials of cheque and fill the slip.

Remittance Slip:
If we have payment from out side the country then remittance payment slip is filled. Remittance Payment slip includes: Transaction Code Applicant Name Address Beneficiary Name Country Name Signature Phone number

Account Balance:
If a customer wants to check his balance in account first he can fill a form then balance can be known. The following requirements can be done, Account Number Customer name Statement of account Signature Account Opening Requirements: Following Requirements can be fulfilled before opening an account. After the form is fill all the details can be send to headquarter for activation of account. Signature card Requisition Slip The main account opening Form Acknowledgement Know your customer Profile If a person wants to use ATM there is ATM application form These all forms can be filled by the customer and following things are required by the customer. A copy of NIC

INTERNSHIP REPORT

A copy of job evidence or student ID card number

Detailed Description of tasks Assigned to me

Tasks:
During my 6 to 8 weeks internship I was rotated in almost all departments of Allied Bank Limited (link road branch). During this I can learned a lot of things which I discussed. My senior staff was very co-operative and told me about all the departments of bank .

Service Quality Department:

In this Department I spent about one week. In this department I learnt how to fill up the deposit slips for the transfer of amount to an account. Also I learnt how to fill up forms for payment order, demand draft and also the slip used for the online transfer of amount. In this department also the remittance slips are filled for the person who have payment from outside the country and can get the verification slip. If any person wants to have his account statement then there is also a form for the record of it. In this department I also learnt how to fill account opening form.

Clearing Department:
I spent about three weeks in clearing department. I observed the whole process carried down in clearing department. In this department two types of clearing is done .Inward clearing and Outward Clearing. I learnt all the process of inward clearing. In inward clearing first of all date, amount and endorsing stamp can be checked, and then it can be posted. Then advice can be prepared and handed to NIFT person. In outward clearing first of all I learnt how to stamp all cheques and posting procedure and making advice. In this department I also learnt how to make intercity and OBC.

Remittance and ATM Department:

In this department I learnt how to make payment order, demand draft. Also I learnt how to transfer the amount online to other branches. In this Department, also the remittance of payment can be done .In this department I learnt how to issue cheque books and ATM cards.

Advance Department:
I spent one week in this department. I learnt the procedure how to sanction to customers. All loaning procedure cam be done by this department .I also come to know how many types of loans, also all the requirements that a customer has to carry for loan purpose learnt in this department.

INTERNSHIP REPORT

Bank Hierarchy Chart:

BRANCH MANAGER

CUSTOMER SERVICES MANAGER (CSM)

CASHIER TELLER
___________________________________________________ ___________________________________________________

LOWER STAFF

Structure of ABL Link Road Branch

Number of Employees:
There are 15 Employees working in ABL branch. Every employee wants his best work with ABL. I can describe how many employees working in different department of allied link road branch.

INTERNSHIP REPORT

1. 2. 3. 4. 5. 6. 7.

Manger Vise manger Remittance department head Operation Department head Cash counter ( 4 members ) Billing department (2 members ) Clearing Department ( 2 members )

Functions of Bank: Finance system of bank:

Financial position of the ABL can be judged from different financial heads that on which level it stands, with respect to the other banks.

Total Assets:
Total assets of the bank increased from Rs. 72 (billions) in 1997 to Rs. 89 (billions) in 1998, thereby increasing at the rate of 23.3% over the last year. This is the highest rate of growth for the last five years, and better than other banks...

Advances:
Advance, net of provision, have increased from Rs. 36 (billions) in 1997 to Rs. 43 (billions) in 1998 thus increasing by 18% during the year. Though the advances to private sector have declined country-wide yet in case of Allied Bank share of credit to private sector remains unchanged as compared to previous year. Investments: Investments have increased from Rs. 20 (billions) to Rs 26 (billions) in 1998. Thus increasing by 27% during the year under review. It is encouraging to observe that during last two years the priority of the management has remained to increase investments after, of course, meeting the genuine credit needs of our customers. Deposits: The peer banks floated various high cost deposit mobilization schemes during the year. However, Allied Bank, depending upon its quality of services and experienced field force successfully mobilized additional deposit of over Rs. 13 (billions) during the year reflecting a growth of almost 21% over the previous year. Equity: Equity has remained one of the main concerns of the management. In order to increase equity, the bank issued 100% right shares in 1995 and 25% in 1996, also ploughing back profits through bonus shares of 25% each in 1995 and 1996. As a result of revaluation of the domestic land and buildings of the bank the reserves of the bank have increased by almost Rs. 1.5 (billions) thereby increasing the equity of the bank almost 100%. Now the total equity stands at 3.002 (billions).

INTERNSHIP REPORT

Profitability: Pretax profit of the bank increased from Rs. 29 million in 1997 to Rs. 170 million in 1998. Thereby reflecting a growth rate of almost 490%. The main reason for this profit increased was rise in yield from 387 million in 1997 to Rs. 769 million in 1998.

Other types of Finance: SEASONAL FINANCE:

Seasonal Finance facility is allowed against pledge of produced Crops harvested in that particular crop season. The delivery of pledged stocks/goods is made against appropriate cash payment.

AGRICULTURAL FINANCE:
Bank under Agricultural Financing Scheme envisaged by the State Bank Of Pakistan extends short, medium and long term, farm and non-farm credits. The farm credits are extended for production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats, sheep and cattle), poultry, factory including social forestry and fisheries (inland and marine excluding deep sea fishing).

TRADE FINANCE:
Allied Bank provides highly efficient trade finance services for import/export business to his clients through large number of authorized branches where trained and motivated staff is available to handle the business on behalf of customer.

RUNNING FINANCE:
It is a short-term loan allowed by the bank for a period of one year. The running finance account can be operated on daily basis. The mark-up is recovered on the products of daily outstanding balance. The running finance is suitable for meeting day-to-day financial needs of the business

DEMAND FINANCE:
It is disbursed in lump sum or in accordance with the agreed disbursement schedule and it is repayable as per the agreed installments, which could be monthly, quarterly, biannual or annual.

CORPORATE FINANCE:
Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim Leasing Limited. Facilities include leasing for machinery, commercial vehicles and equipments. The Bank provides lease facilities for balancing, modernization, replacement and expansion schemes to corporate and commercial clients in all industrial enterprises. Leasing is a popular mode of financing due to its distinctive features like tax shield, preserve working capital, easy documentation and less processing time. Lease applications are entertained at all Bank branches in Pakistan.

INTERNSHIP REPORT

Sources of Funds:
Funds can be a major source in banking sector because without funds / money we can not run our business and our bank can be run into loss, so funds can be collected by various sources: 80% funds are of directors 20% funds are from market Other Sources Of Funds Are: By deposit of cash in bank Through cheques Through Remittance Profit of pervious year

Allocation of Funds:
Funds can be allocated in various departments such as, Loans to Customers Salary to Employees

Critical Analysis:
The critical analysis ABL is the representation of its past, mirror of its present, and an insight into its future. The past data of ABL enabled me to study the organization in a historical perspective and understand banking operations. Study of he present of ABL helped me evaluate the organization in comparison to its future and competitors. The data obtained from the analysis of its present and future in combination with my professional studies resulted in some suggestions and implementation plans, which can help to increase the profitability and operational success of the ABL PHYSICAL FACILITIES: The physical facilities play an important role in any organization. The physical facilities of ABL relates to its environment between its staff and customers. ABL tries to make good impression to his customers by providing better facilities. AVAILABILITY OF STAFF: The existing staff in the Bank is overburdened due to the non-availability of more staff. Staff in the branch must be in proportion to the customer has so as to expedite the workflow, avoid overloading of staff and remove the customers grievances arising mainly due to delay in workflow.

INTERNSHIP REPORT

RISK FACED BY Allied bank limited

Security system:
Bank security systems can be comprised of several levels and components. These systems are in place to protect you and your money, as well as the bank and their assets. Many of us take for granted the amount of security that is actually in place. Cash security: Cash is a main thing for bank. Cash security should be very tight. It involves risk. ABL has not any well system of cash security. The safes of cash should not b visible to customers. Lockers security: Lockers play an important role in the security of customers assets which they place in lockers. Customers use the lockers for the security of their assets so ABL has to ensure customers about their lockers security. Cameras Security: Cameras should be placed every where in branch. Security done by cameras is the best way as to record for the evidence in case of any mishap. The room where computers will be placed should have a tight security to avoid any mishap. Guard security: Guard security should be very tight. ABL has to hire guards after verifying about them. The guards should be high alert all the time and check all the customers before getting enter in the branch. Guard security is necessary for bank in order to avoid any mishap.

Management Information system:

ABL has the largest online network of 110 branches and 80 ATMs. But ABL has faced large risk in online network due to networking problems in ABL system. It can affect its MIS system. Also MIS risk includes the wrong entries done online. Such as if any entry is done mistakenly and the amount is transferred to any other account. The employees should do entries with proper care and vigilance in order to avoid from any blunder. The entries should be properly done and the amounts should be transferred to the respective accounts. MIS risk should be avoided by proper re-checking of all the entries done.

INTERNSHIP REPORT

Employee Integrity:
1. Maintain all books, data, information and records with Integrity, reporting in an accurate and timely manner all transactions / reports. 2. Avoid all such circumstance in which there is personal interest Conflict, or may appear to be in conflict, with the interests of ABL or its

customers.

3. Not use their employment status to seek personal gain from those doing business or seeking to do business with ABL, nor accept such gain if offered. They shall not accept any gift, favour, entertainment or other benefits the size of frequency of which exceeds normal business contacts from a constituent or a subordinate employee of ABL or from persons likely to have dealings with ABL and candidates for employment in ABL. 4. Not accept any benefits from the estate of, or a trust created by a customer, or from an estate or trust of which ABLs Company or business units is an executor, administrator or trustee.

Systemic Risk
A risk that is carried by an entire class of assets and or liabilities. Systemic risk may apply to a certain country, or to the entire global economy. Systematic risk affects a broad range of securities. Systematic risk can be mitigated only by being hedged. But even a portfolio of well-diversified assets cannot protect against all risk. Economic down fall of ABL relates to systematic risk. It is a routine based risk.

Unsystematic Risk
Unique and unpredictable risks faced by ABL bank, such as a labor strike, natural calamity or litigation. It can be removed when a portfolio uses diversification.

Risk Mitigation:
Systematic reduction is the extent of exposure to a risk and/or the likelihood of its occurrence. Also called risk reduction. ABL should use proper methods for lowering down the effect of risks that can be caused by their management. They should improve their MIS risks for online system. Security system if ABL is not good. They should insure their lockers for security in case of any uncertain loss. ABL should train their employees on daily basis. ABL should upgrade their networking system for the online transactions.

INTERNSHIP REPORT

Loaning Procedure
In this Process of loan granted to customers there are some steps which are discussed below: Leasing company can give application to CA dept and then CA (credit application ) give details to risk dept and then it can be returned to leasing company which send it to CAP dept (Credit admin dept ) which issues DAC ( Disbursements authorization certificate ) and then payment can be given to customer in case of loans .

Recovery of Loans:
If the loans are not returned within their maturity period, then Bank adopts the following process. First of all the Bank will personally request the customer to repay the loan. After this, first legal notice is sent to the customer. If the customer does not respond to this first legal notice, then after fifteen days the second legal notice is sent to him. In the third step the Bank sue the customer in the court. Two types of courts have been setup under two difference ordinances, especially to hear and decide recovery suits i.e. 1. Special Courts (banking) 2. Banking Tribunals Special courts were established under the banking companies (recovery of loans) ordinance 1979 to hear allowed interest-based system of Financing.

SWOT ANALYSIS
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research Strengths: attributes of the person or company those are helpful to achieving the objective(s). Weaknesses: attributes of the person or company those are harmful to achieving the objective(s). Opportunities: external conditions those are helpful to achieving the objective(s).

Threats: external conditions which could do damage to the objective(s). Source (http://en.wikipedia.org/wiki/SWOT_analysis )

INTERNSHIP REPORT

STRENGTH
It has approx. 800 branches all over Pakistan. All branches of ABL are online and they are connected to each other. ABL is one of the five biggest banks in Pakistan. The salary of ABL employees is good and no one can be worried about salary packages. The market image of ABL is very good that it can cooperate with its customers very well and treated them well. ABL is deploying best banking software T24. Best management. ABL is a corporate sector bank, and most of giant companies are its clients. Experienced employees.

WEAKNESSES
ABL is not in Islamic bank. ABL deals not much in consumer banks. Old employees of ABL are in huge number that they cannot work effectively. Mostly employees of ABL are not trained regularly that they can relate to new system and complaints of customers. Advertisement of ABL is not good to attract customers in large number.

OPPORTUNITIES
ABL has an opportunity to attract the customers by giving them attractive schemes. Consumer banking can be beneficial for profits.

INTERNSHIP REPORT

Islamic banking can be area of interest for ABL for further growth and opportunities.

THREATS
Allied Bank has the threats from their competitors in the banking sector. Economic situation can become a threat to ABL. The political situation of country can become a threat to ABL that continuous downfall become a hindrance.

CONCLUSION
According to my evaluation, ABL is included in one of the biggest banks in Pakistan. Almost all the ABL branches are online which provide benefit to customers for their online money transfer to any other city to any other account or their own respective accounts. ATM cards help customers to withdraw cash from any ATM Machine. ABL is going to introduce new software system (T-24). ABL has also a kid account which is called ALLIED RISING STAR. In this account ABL gives many benefits and profits for the kids. Allied business account also has many benefits for their customers. ABL also facilitate their customers by sanctioning loans to them. ABL has very strong management in all of its branches and they will satisfy to all the customers who have some problems. The management should solve all the problems very effectively. ABL invest his money in multi-national and big companies to earn a large profit ratio. As far as the conclusion of my internship report in my training prospective It was great experience to work with the good knowledgeable peoples and gets lots of professional techniques which surely will help in my future professional life. I really thank VU (Virtual University of Pakistan) for giving me such a great platform.

RECOMMEDATION
My recommendations in the light of critical and SWOT analysis are that ABL should improve their security system by making cash safes invisible to customers and also the security of safes should b tight, and the branch guards should be high alert all the time and should check all persons while entering in branch. I suggest that ABL should improve their marketing measures, advertisements in the promotion of different schemes. ABL should deal in consumer banking. It can be benefit for customers as well as bank. ABL should improve their networking system that customers can not wait for a lot of time when their branch is down. Also they should improve their ATM service that customers will not let back when they need cash for their need. ABL should also try to hire some new and young employees so that they can be benefited by their suggestions.

INTERNSHIP REPORT

REFERENCE & SOURCES www.abl.com.pk www.google.com www.abl.com.pk/financials.asp Mission, vision retrieved https://www.abl.com.pk/aboutus/financial_report/report_2009/ annual_dec09/ Board of directors retrieved https://www.abl.com.pk/aboutus/board_directors/ Sources: Training program (Mr. Zeeshan Afzal) Functions of bank (CSM)
I also take help from articles; some seniors ex report which only take as idea and some sources I also mentioned other sources in internship report time to time. I really enjoyed a lot during my preparations of this Internship Report Thanks VU giving me such opportunity.

INTERNSHIP REPORT