ABL Final0001

INTRODUCTION OF BANKING
Bank is a pipeline through which currency moves into and out of circulation. Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
Definition of bank: A financial institution that is licensed to deal with money and its substitutes by accepting time and demand deposits, making loans, and investing in securities. The bank generates profits from the difference in the interest rates charged and paid. An institution where one can place and borrow money and take care of financial affairs.
Department Of Commerce
Banking system in Pakistan

The banking system is passing through a difficult phase mainly because of excessive political interference in the working of the nationalized banks by the different governments in the past. Hence the political interference in nationalized banks did not allow them to carry out their business purely on merit. It may be recalled that some twenty years back, the banking system was working on such a solid ground that various developing and under-developed countries used to take guidelines from Pakistani banks. A little earlier before the creation of country, the role of Muslims of the areas which were later included in Pakistan was of no significance due to their restricted participation in the banking sector. There was only a small bank namely Australasia Bank having a few branches in Lahore and its suburbs. In 1942, the Australasia bank was housed in a garage of a trader of Lahore who used to trade at a small scale with Australia during that period. However the only Bank was run by the Muslims of the sub-continent was Habib Bank which was established in 1941. At that time Quaid-eAzam Mohammad Ali Jinnah expressed his desire that another Muslim bank also be established in Calcutta which came into reality when Adamjee with the assistance of Isphanis established Muslim Commercial Bank a few months before the creation of Pakistan in Calcutta. When Pakistan came in to being The Habib Bank shifted its Headquarters from India to Karachi. A few of Habib Bank's branches were already in operation in Pakistan. The Muslim Commercial Bank also moved its headquarters from Calcutta to Dhaka and later on to Karachi. At the time of independence, another small bank namely Bank of Bahawalpur also started business from Bahawalpur from December 1947. Before independence, the financial sector was in the hands of foreign banks some of them were British by origin. The oldest bank operating from 1883 in this part of the world was the Chartered Bank while another bank namely the Grindlays Bank which was also working simultaneously from 1883. In order to expand its business operations, the Grindlays acquired other small banks and merged them into the
business of Grindlays. For example Allied Bank, National Bank of India etc were merged into Grindlays Bank. Among the contemporaries, Imperial bank of India was the largest Indian Bank which had started its operations in 1919 which was discharging the role of a commercial banks as well as the Central Bank for India until an independent Central Bank i.e. Reserve Bank of India was established in 1935. However, since the Imperial Bank had the largest network of its branches all over India, it continued to play its role as a subsidiary of the Reserve Bank of India. In the Muslim majority areas which was later on became the part of Pakistan, small branches of Indian banks were operating and soon after creation of Pakistan they shifted their branches and headquarters to India. At the time of independence, two major banks including Punjab National Bank at Lahore and Comila Banking Corporation were working in the then East Pakistan. This trend was so obvious that the total number of bank offices between June 30, 1918 and August 14, 1947 were reduced from 631 to 195 only. During the early part of 1949 the number of branches of Imperial Bank of India in Pakistani areas was more than of Habib Bank. In the early days of Pakistan, the government worked hard left no stone unturned to establish and strengthen the banking system in Pakistan. These efforts resulted in the establishment of State Bank of Pakistan which was inaugurated by Quaid-e-Azam on July 1, 1948. Quaid-e-Azam flewed from Quetta to Karachi specially to grace the occasion. Originally the State Bank was scheduled to be established in September 1948. Zahid Hussain, who was the first Governor of the State Bank, devoted all his time and energy to streamline the working of the State Bank. In normal situation, the Central Bank of a country is only established when the commercial banking start working on sound footings. But the circumstances forced the government to establish Central Bank and the task of stabilizing the commercial banking was also assigned to the State Bank, which it really did.
ALLIED BANK LIMITED

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INTRODUCTION AND BACKGROUND

Allied Bank is the first Muslim bank, to have been established on the territory that became Pakistan. Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had attracted deposits, equivalent to Rs. 0.431 million in its first eighteen months of business. Total assets then amounted to Rs. 0.572 million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of dedication, commitment to professionalism, adaptation to changing environmental challenges resulting into all round growth and stability, envied and aspired by many.
The Pre Independence History (1942 to 1947)

In the early 1940s the Muslim community was beginning to realize the need for the active participation in the field of trade and industry. The Hindus had since the late 1880s established a commanding presence in these areas and industry, trade and commerce in the undivided Sub-continent was completely dominated by them. Banking, in particular, was an exclusive enclave of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally unsuited for this profession. It was particularly galling for Khawaja Bashir Bux to hear the gibe that Muslims could not be successful bankers. He decided to respond to the challenge and took lead in establishing this first Muslim bank on the soil of Punjab that was to become Pakistan in December 1942; by the name of Australasia Bank Limited. The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5 million by the end of first full year of operation, and by the end of 30th June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.
Australasia Bank (1947 to 1974)
Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the 14th, 1947. It had been 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, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it network spread to Multan & Quetta. The Bank financed trade in cloth and food grains and thus played an important role in maintaining consumer supplies during riot affected early months of 1948. 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. The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186 branches in West Pakistan.
Allied Bank (1974 to 1991)

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

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As a result of privatization in September 1991, Allied Bank entered in a new phase of its history, as 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 registered an unprecedented growth to become one of the premier financial institutions of Pakistan. Allied Banks capital and reserves were Rs. 1.525 (Billion) and assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion). Allied Bank enjoyed an enviable position in the financial sector of Pakistan 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 of over 63 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches.
(2005 to date)
In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced i.e. the following dates. Islamabad Stock Exchange Lahore Stock Exchange Karachi Stock Exchange 8th August 2005 10th August 2005 17th August 2005
Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their free will.
Vision:
To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.
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. To provide a challenging work environment and reward-dedicated team members according to their abilities and performance. To play a proactive role in contributing towards the society.
Core Values
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Integrity Excellence in Service
High Performance
Innovation and Growth Allied Bank Limited Profile
December 1942 Branches Employees Legal Adviser Auditors 766 Branches in 2008 8050 in 2008 Haidermota and Company Advocates and Solicitors KPMG Taseer Hadi and Co C.A M.yousuf Adil Saleem and Co C.A Technology Trade (Pvt.) Ltd 8-Khasmire/ Ederton Road, Lahore. UAN;(9221)111-110-110 Bath Island, Khayaban-e-Iqbal Main Clifton Road Karachi 75600 UAN:(92 21)111-110-110
Shares Register Head Office
Central Office
BOARD OF DIRECTORS
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Chairman
Mohammad Naeem Mukhtar
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President & CEO Director Director Director Director Director Director Director Director Director
Khalid A. Sherwani Sheikh Mukhtar Ahmed Mohammad Waseem Mukhtar Abdul Aziz Khan Sheikh Jalees Ahmed Farrakh Qayum Nazrat Bashir Tasneem M Noorani Mubashir A Akhtar Kamal Monnoo
TOP MANAGEMENT
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TOP MANAGEMENT NAMES
Khalid A. Sherwani (President and C.E.O)
M.ShafiqueIqbal M.Naveed Sheikh M.Jawaid Iqbal Abbas Masud Javed Ahmad
12 Mohammad Yaseen FareedZia Ijaz Tariq Mahmood Vardag

(Group Chief Operations) (Group ChiefCFO) (Group Chief RMG) (Group Treasury)
(Group Chief (Group Chief CRBG) (Group Chief CIBG) (Group Resources) Human Chief SAM) (Group Chief I.T)
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Organization Chart
Chairman BOD & President
Global Treasurer
Corporate and Investment Banking CIBG)
Chief Financial Controller
Country Operations Head
Finance
. Operation
Chief SAM
. Information Technology
Audit Chief
Human Resources
Risk Management (RMG
Compliance and Control (CCG)
Business Transformation Team (BTT)
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Organizational Structure of Allied Bank Limited
CHAPTER TWO
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ABL Products Range

Allied bank offers a wide range of products geared towards the customers. The following products are available for customers: Deposits Accounts - Current Account - PLS Saving Deposits - Allied Basic Banking Account - Foreign Currency Deposits - Allied Profit Plus Term Deposit - Allied Profit Plus Deposit Account - Allied Monthly Income Scheme - Allied Bachat Scheme: (ABS) - Allied e-Savers Accounts (ESA) Alternative Delivery Channels - AlliedCash+ Card - Online Banking - Internet Banking - Helpline Consumer Products - Master Card Lending Products - Seasonal Finance - Agricultural Finance - Import Export Business/Trade Finance - Running Finance - Demand Finance Corporate Leasing
Deposit Products
Current Account
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Allied Bank offers Current Account facility for individuals as well as for institutions and commercial customers. Free Online Transactions, DD/TT/PO for depositors maintaining average monthly balance in the following slabs:
Rs. 0.100 (M) & Above Rs. 1.000 (M) & Above Rs. 2.500 (M) & Above Rs 5.000 (M) & Above
10 transactions per month 25 transactions per month 100 transactions per month Unlimited
PLS Saving Deposit

Allied Bank offers PLS Savings Account facility to its customers with the following attractive features. Attractive return upto13.00% per annum Complementary ATM cards Free Online Transaction, DD/TT/PO for depositors maintaining minimum monthly balance in the following slabs:
Above Rs. 0.500 (M) Above Rs. 2.500 (M) Above Rs 5.000 (M)
10 transactions per month 50 transactions per month Unlimited
Allied Basic Banking Account
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In order to provide basic banking facilities to low income people in Pakistan, Allied Bank has introduced Allied Basic Banking Account (ABBA). This account can be opened with an initial deposit of Rs 1,000/=. The account is a non-remunerative account with no minimum balance requirement. The account will be closed automatically if the balance remains zero continuously for one year. The statement of the account will be issued on yearly basis. There are no service charges on the said account for a maximum 2withdrawals and 2-deposits during a calendar month. Additional transactions will be subject to a service charge as per Banks schedule of charges for every withdrawal/deposit. Unlimited free of charge withdrawals from ATM.
Foreign Currency Deposits

Allied Bank offers the facility for opening Current, Savings and Term deposit Accounts. These accounts can be opened in US Dollar, Pound Sterling, Euro, and Japanese Yen at designated branches.
Allied Profit Plus Term Deposit
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The scheme offers an attractive return on various tenors tailored to the individual needs of customers. Profit is payable on maturity.
Slabs 1 Month
Rs 0.5 (M) to less than Rs 5(M) Rs 5 (M) to less than Rs 10(M) Rs10 (M) to less than Rs 15(M) Rs15 (M) to less than Rs 20(M) Rs 20 (M) &above
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6.50% 6.75% 7.00% 7.50% 8.00%
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7.00% 7.25% 7.50% 8.00% 8.50%
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7.50% 7.75% 8.00% 8.50% 9.00% 8.00% 8.25% 8.50% 9.00% 9.50%
Months Months Months
Pre-Mature Encashment
In case of pre-mature encashment of Allied Profit Plus Term Deposit, the profit to the depositor may be paid only for completed months at profit rate applicable for the term lower than the relevant term of deposit. No profit will be paid for non completed month.
Allied Profit Plus Deposit Account

Allied Profit PlusDeposit Account is a profit bearing checking account with the payment of profit on a monthly basis. The estimated rate of profit is given below:
Slabs
Rs 0.5(M) to less than Rs 1 (M) Rs 1(M) to less than Rs 5 (M) Rs 5(M) to less than Rs 10 (M) Rs 10(M) to less than Rs 25 (M) Rs 25(M) upto Rs. 50 (M)
Rates effective from 01.01.07

5.00% 6.00% 6.50% 7.50% 8.00%
Salient Features:
The applicable profit rate would be based on slab of amounts maintained on average monthly basis and the profit credited in the account on monthly basis. Individuals, Firms, Companies, Schools, Hospitals, Charitable Organization & Non-Govt. Organizations etc are free to open their account in this scheme
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Allied Monthly Income Scheme

Allied Monthly Income Scheme is a unique product with attractive returns. It provides an opportunity for a regular monthly income. The period of deposit under this scheme is 3 years.
Minimum Amount:
Rs 100,000/- (with multiples of Rs 10,000/-) Payable on monthly basis Rs 850/- per month on a deposit of Rs 100,000/- @ 10.20% per annum All individuals & institutions 3 years
Profit: Projected profit rates Eligibility: Period:
Special Benefits:
Complementary ATM card Profit to be credited in the depositors PLS saving A/C and can be withdrawn through ATM free of charge Complementary credit card with approved credit limit Free transfer of monthly profit to any branch of ABL all over the Pakistan Loan facility against deposit
Pre-Mature Encashment: Recovery of profit already paid & Payment
# 1. 2.
Deposit paid before Maturity
Within 6 months of opening of No profit will be paid & profit already account paid will be recovered from principal After 6 months but before completion 60% of the profit paid will be
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of 12 months 3. After 12 months but before completion of 18 months After 18 months but before completion of 24 months After 24 months but before completion of 30 months After 30 months but before completion of 36 months
4.
5.
6.
recovered/ adjusted from the principal amount 40% of the profit paid will be recovered/ adjusted from the principal amount 30% of the profit paid will be recovered/ adjusted from the principal amount 20% of the profit paid will be recovered/ adjusted from the principal amount 10% of the profit paid will be recovered/ adjusted from the principal amount
Allied Bachat Scheme (ABS)

. Allied Bachat Scheme (ABS) is a PLS Term Deposit Scheme based deposit scheme whereby you can double your investment in just 7.5 years.
Maturity Period: Minimum Deposit: Expected rate of Profit: Eligibility:
7.5 years Rs. 50,000/- with multiples of Rs. 10,000/The deposit amount will be doubled in 7.5 years All individuals & institutions
No. Of Years
0 1
ABL Projected Rates

0 7.00%
Repayment amount
50,000.00 53,500.00 21
1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5
7.50% 8.00% 8.75% 10.00% 10.25% 10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 13.33%
55,625.00 58,000.00 60,937.50 65,000.00 67,937.50 71,000.00 74,187.50 77,500.00 80,937.50 84,500.00 88,187.50 92,000.00 100,000.00
Premature Encashment:
No profit shall be paid from the date of issue, if en-cashed before completion of 6 months. In case encashment take place after 6 months, the profit is to be paid for completed half year on the prescribed rates & 6% for the completed months as per the projected rates
ALLIED e-SAVERS ACCOUNTS (ESA)

Allied e-Savers Account (ESA) is the most flexible saving account which caters to the needs of such individuals who desire to maximize return on their surplus funds.
Investment: Profit:
Rs. 25,000/- to Rs. 500,000/payable on half yearly basis
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Projected Profit rate: Eligibility:
upto 7.5% p.a Individuals
Additional Benefits:
Unlimited deposit transactions, cash withdrawals through ATMs, debit card payments and electronic transfers Access to 740+ online branches all over Pakistan Free Allied Cash+ ATM Debit Card Cash withdrawals from Allied Banks largest ATM network of 350 ATMs in more than 90 cities Note: All profits are payable subject to Zakat & Govt. Levis applicable from time to time.
Alternative Delivery Channels

AlliedCash+ CARD
Allied Bank ATM Card, also referred to as "AlliedCash+", can also be used as a debit card at merchant locations/service outlets having ORIX POS Terminals and displaying the ORIX ABSOLUTELY NO CHARGES! Allied Cash+ offers you the privilege of using thousands of ATMs of all banks without the extra charge of Rs 15. Through this card you can have an experience of Cashless Shopping at thousands of merchant locations. Get the card at no issuance fee. Pay no annual fee and no transaction fee. Get instant cash and check balances at over 1000 ATMs nationwide with no ATM access fees! Here is what we have to offer:
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Round-the-clock cash withdrawals: Now you can make withdrawals up to Rs. 25,000 in a day (depending upon your deposit) at any ATM across Pakistan. (The transaction limit is Rs.25,000.) 'No Fee' ATMs: Next time you make a transaction at a 1-Link or MNET ATM anywhere in Pakistan, you can be rest assured you will not be charged the extra fee of Rs.15 Balance Inquiry & Mini Statement of Account: Absolutely free. The ATM screen will reveal the balance in your account. A mini statement comprising last 8 transactions can also be obtained from the ATM. PIN change: You can now easily change your PIN at regular intervals for enhanced security at all ATMs of Allied Bank Utility Bill payment facility: Pay your telephone, electricity, and gas utility bills on any of our ATMs without having to wait in long queues outside your branch. Funds Transfer facility: You have the power to transfer money from your account to any account of Allied Bank anywhere in Pakistan. To obtain your AlliedCash+ card, just open your account with any branch of Allied Bank.
ONLINE BANKING
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Allied Online is a unique service offering from Allied Bank Limited. Through Allied Online, your account in Allied Bank is available to you from any of our branches country-wide. No matter where you are in the country and which branch your account is maintained, you can have your cheque encashed at any of our over 700 branches located in 250 cities. You can also use the service to deposit cash for instant credit into your account or any other account in Allied Bank from any branch. Similarly account-toaccount Funds Transfer facility is also available for instant remittance. Your cheque drawn on a remote branch for credit into beneficiarys account or encashment up to a specified amount can also be presented at any branch by a 3rd party. Other services available to accountholders are Balance Enquiry and Account Statement at remote branches. Allied Online provides a secure, efficient and convenient facility for making payments to beneficiary accounts from any of our branches country-wide. It can be used for cash management services by corporate customers requiring funds collection or disbursement facility
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INTERNET
BANKING
Banking at your fingertips! Allied Direct Internet Banking offers you the convenience to manage and control your banking and finances - when you want, where you want to! It's Simple, Convenient, Secure and Faster. So, just get clicking. Some features of Allied Direct are: Simple and Convenient
Easier navigation and help provided at every step so you can have most out of this service. With Allied Direct convenience is just a click away. Secure and Faster Secured & encrypted with latest tools and technologies, Allied Direct is the choice for secure and fast Internet Banking. 24x7 Access You now have access to your account 24 hours a day, 7 days a week. You transfer funds or even pay bills even if it's a holiday.
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To use Allied Direct Internet Banking, you should be a registered Allied Bank Account holder with a valid ATM Card. If you do not have an account, please visit any of our nearest branches and open your account and obtain an ATM Card. Our friendly branch staff will help you open your account quickly. Call 0800 22522 now to get further details.
HELPLINE
Since the launching of Allied Cash+ Debit Card on January 27th 2003, Allied Bank embarked on the path of value added consumer products. Customer related services were being provided through our ATM-Wing situated at Central Office Karachi. As the numbers of AlliedCash+ Card increased, so did the services related inquiries, complaints and requests from our customer. Hence, to facilitate and to offer Quality Service to our customer, Allied Bank decided to provide Toll Free Number Customer Services through 0800-22522.
Consumer Products
MASTER CARD
You can now become the holder of a true Credit Card here in Pakistan. Allied Bank under license from Master Card International, U.S.A issues it's Master Card to anyone meeting the eligibility criteria. With the Allied Bank - Master Card you will be assured of a service meeting the highest international standards maintained by Master Card. The New Allied Bank-MasterCard: For You! We at Allied Bank are of the view that the time has come to bring about a radical change in the Pakistani credit card industry. Being a successful individual, you deserve a life unrestricted by cash
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limitations, you deserve a reliable credit line, you deserve the best you deserve the Allied Bank-MasterCard! Luxury, status, prestige and convenience await you with the Allied Bank-MasterCard - at no extra cost. Thats why the Allied BankMasterCard is now available for you with a set of unique features, a simple application procedure and the fastest processing time! Accepted at 16,000+ establishments in Pakistan and over 17 million retailers across the world, the Allied Bank-MasterCard is your ticket to complete financial independence. No Annual or Joining Fee!: No annual or joining fee is applicable for the first year of operations of the card after 1st year for Local Card Rs. 1000/ per year, International Card Rs. 1,500/- per year and supplementary card are free for Lifetime. Quick Processing Time: With our automated processing systems and simplified application procedures, we promise delivery of the Allied Bank-MasterCard at your doorstep in record time. Pioneer in Credit Cards: Not only is Allied Bank-MasterCard a pioneer in the credit card industry, but is also the first free credit card launched by a completely Pakistani owned financial institution. Addresses for Credit Card Centers: Karachi: Credit Card Wing, Allied Bank, 2nd Floor, Trade Tower, Abdullah Haroon Road, KARACHI. Phone: 5657925, 5684902 Fax: 5680656 Lahore: Manager Operations, Credit Card Lahore Operations, Allied Bank,
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2-A Main Wahdat Road, Muslim Town More, LAHORE. Phone: 042-5851150- 5851151- 5852601- 5852602 Fax: 042-5851149 Mob : 0321-4537049 Islamabad: Manager Operations, Credit Card Islamabad Operations, Allied Bank, 4th Floor, Allied Bank Plaza, Blue Area, ISLAMABAD. Phone: 051-2272341 051-2272306 Fax: 051-2272568 Faisalabad: Manager Operations, Credit Card Faisalabad Operations, Allied Bank, 2nd Floor Regency Plaza. The Mall, FAISALABAD. Phone: 041-2611904 Fax: 041-2611904 Multan: Manager Operations, Credit Card Multan Operations, Allied Bank, ABL Regional Office Multan, 8-A, Mall Road, Multan Phone: 061-4584309 Fax: 061-4584309 Peshawar: Manager Operations, Credit Card Peshawar Operations, Allied Bank, 1st Floor, State Life Building,
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Peshawar Cantt, Phone: 091-5284715 Fax: 091-5286909
Lending Products
SEASONAL FINANCE
Seasonal Finance facility is allowed against pledge of produce of Cash 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).
IMPORT EXPORT BUSINESS/TRADE FINANCE

Allied Bank Provides highly efficient trade finance services for import/export business for our clients/customers 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 and daily sale proceeds can be deposited into the account. 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
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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 LEASING
Allied Bank Limited commenced lease operations upon amalgamation with Ibrahim Leasing Limited. Facilities include leasing for machinery, commercial vehicles, 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.
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Corporate Banking
ABLs mission is to serve all customers corporate needs and ensure customers full satisfaction through product innovation, personalized banking, and top notch service. The CBG department of ABL defines corporate banking in Pakistan. Amongst the local banks ABL CBG is the pioneer in providing innovative solutions to its diversified and satisfied customer base. ABL CBG is considered to be a major player in the financial market of Pakistan. The Corporate Banking Group focuses on attracting and servicing large portfolio customers. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance our cordial relations with our esteemed clients. Despite the sluggish economic growth in recent years, ABL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share. ABL's appetite for large exposures coupled with dedicated Structured Finance Unit, and an innovative team of professionals having extensive experience of Corporate Banking gives it the right platform to succeed in today's competitive and a demanding environment. The success of CBG has been established from the fact that ABL received the 'No.1 Euro money 2000' Best Local Bank award and recognized it to have out performed all other banks. In year 2000, ABL was also voted as the best Corporate Bank by the customers of a major foreign bank in a survey. Aggressive marketing combined with professionalism has led to an increase in ABL's market share with top corporate customers and in some cases replacing Foreign Banks. Presently, its portfolio includes the quality names in the country, which were initially confined to foreign banks only.
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Customer Service
ABL believe in customers retention through quality service that would encourage the customer to continue to bank with us their loyalty. ABLs ISERVICE concept strives to attain excellence in customer service. ABL aim to provide total customer satisfaction through UNISERVICE, which will soon be available at our full-service branches covering: Trade finance Letters of Guarantee Letters of Credit Funds Transfer Remittances Bill Discounting Export Financing Credit Extension
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Relationship Banking
This forms the pillar of ABL strategy, as it is the primary tool towards providing its customers full satisfaction. Relationship Banking involves: Assessing and understanding customer needs Providing you advice on your business needs
Helping Customers find viable financial solutions for their business problems
Consumer Banking
An individual can gain and benefit the most through ABL Consumer Banking. In ABL customers get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each ABL client. ABL offers following services, ABL Money ABL Cash line ABL Home Financing ABL Business Credit ABL Car Financing ABL Chip Credit Card
ABL Money
Is the Personal Installment Loan from ABL that provides you with power, control, convenience and the flexibility to manage your financial requirements and realize your dreams? ABL Money is a fixed installment loan. It gives you access to funds starting from Rs. 50,000/- up to a maximum of Rs. 500,000/- without any collateral. ABL Money provides you the flexibility to manage your monthly installments according to your income stream. You can select any tenor from 1 to 5 years in the multiple of 6 months.
Features
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Zero-Prepayment Penalty option Complimentary Credit Insurance Competitive mark up
ABL Cash line

Is truly the most flexible loan that gives you the freedom to turn your dreams into reality today? Unlike ordinary personal loans, ABL Cash line has No Pre-payment Penalty. Whether you need to pay bills, buy appliances for your home, want to renovate your home, and want to buy new furniture for your home ABL Cash line can buy all of them for you.
Features
ABL Cash line cheques can be used online Online bills payment Funds transfer
ABL HOME FINANCING

Every one has a dream of having a permanent address. Now you can turn your dreams into reality with ABL Address - the unique offering that makes you the owner of your home while remaining within your limited income. ABL home financing needs and offers you a variety of fixed, floating & adjustable rate options. Features Fixed Rate Option Floating & Adjustable Rate Option Zero Prepayment Penalty Option
Business Credit
It is a Credit Line against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion. ABL Business finance is a complete solution to every ones Business Financing needs. With ABL Business Financing facility, you can now take your business to greater and newer heights, and achieve the
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level of success that you truly deserve. ABL Business finance is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. Features Utilize up to Rs.10 million Markup on Utilized Amount Faster Processing Competitive Rates LTV as high as 70%
ABL Car Financing

Is a unique auto financing product which offers you features, options and flexibility unmatched by any other bank Using the ABL Drive facility now you can have your own car.
New Car Financing

ABL Drive allows you to drive away in your own car by making a down payment of just 10% and to top that with low monthly installments.
Used Car Financing

With ABL Drive you can buy your favorite used car (up to 5 years old) at the most affordable rates.
Cash Your Car

ABL Drive is not just a car loan; its a financing facility that gives you Cash on your car, you can get up to 75% of your car value. Drive in with your car and drive out with cash.
Features
No Down Payment before Approval No Documents Required No Prepayment Penalty Low Installment & Flexibility Pay As You Select
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Free Car Tracking Device Insurance Options
Investment Banking
ABL IBG, Nothing is impossible An active player in the market
IBG specializes in providing innovative Current mandates add up to over Rs.26 and unique advice to its clients to assist billion. them in meeting challenges in an everchanging market. IBG consist of twelve dedicated A healthy mixture of structuring advisory and project finance business. over 30 relationship Either leading or participating in almost all the major TFCs
professionals. Supported by
managers in six different locations. Rich execution experience
ensures Greater flexibility in deal structuring due to access to ABLs financial resources.
seamless deal closures.
Currently in the process of setting up Close liaison and top-level contacts with fund management facilities. Ministry of Finance, Securities and Exchange Commission of Pakistan, Karachi Stock Exchange, State Bank of Pakistan for swift execution.
Services
HOME REMITTANCES
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The Bank having a network of 735 branches all over Pakistan, undertakes to provide safe and instant payment of remittance from expatriates, routed through designated foreign exchange companies and correspondent banks with whom special arrangements have been made in this regard. Through the Allied Express Service, Allied Bank ensures that beneficiaries' Accounts in Allied bank branches are credited with in 48 hours of receiving home remittance information from overseas
REMITTANCES
Allied Bank can transfer funds to the remotest part of the country for payment/credit to the customer himself or a third party, through Telegram/Telex/Telefax for payment/credit on the same/next day. Telegraphic transfers can also be made abroad in Foreign Currency.
Carrying cash to strange alien location can prove to be risky as a single incident can render one without monetary backup of any sort. Hence travelers cheques are introduced by banks in order to protect against any contingency.
Telegraphically Transfer Banks are offering various type of products related to funds transfer in Pakistan, assuring the fastest delivery of Funds around the Globe, through Telex, SWIFT and other Electronic Media.
Allied Bank with its large network spread all over the country is sharing quite a sizeable Funds transfer business in the domestic market. Bank has recently moved to optimize the use of electronic media to handle Funds
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Transfer with speed. Even the shift over to "SWIFT" is at hand and a network has been established by Central Office.
Demand Draft
A 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. Allied Bank has taken radical steps for a speedy Issuance/Payment of Drafts through automation and introduction of a more simplified system based procedure.
Pay Orders
Pay order is a Bank instrument issued by a Bank in Pak Rupees at the request of a customer to transact payment to a named payee through Banking channel. Generally payments against such cheques (Pay orders) are restricted to "Payees Account" and as such are required to be enrouted through a Bank Account locally.
Traveler Cheques ABRTC

"Rupees Traveler Cheques" is one of the most convenient products launched by Allied Bank, which has an excellent market response.ABRTCs is only to be issued by the authorized branches of the ABL.With the application of Government levies, nominal commission is also charged on issuance of "Traveler Cheques".Traveler Cheques shall be valid until enchased unlike a "Negotiable Instrument" which is valid for 6 months.
HAJJ SERVICES
The Bank serves the intending pilgrims by helping them in performing this religious obligation. The Hajj forms and other related services are provided by the bank. 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
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year. Hajj applications are available with all branches during Hajj season, immediately after the Hajj policy is announced by the Government of Pakistan.
UTILITY BILLS
All branches of the Bank collect utility bills of electricity, gas and telephones. For convenience of the customers, Utility Bills are collected by the branches 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 - Pay your telephone, electricity, and gas utility bills on any of our ATMs without having to wait in long queues outside your branch.
LOCKERS
Allied Bank Lockers are available in three different sizes Small, Medium and Large on a yearly fee. Locker holders need not have an account in the Bank.
COMMODITY OPERATIONS
It is a Cash Credit Financing to Government Department for procurement of various commodities, as per allocation of the limits by SBP on Government of Pakistan Guarantee.
CHAPTER THREE
ABL MAIN BRANCH SARGODHA Introduction of Branch
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Allied Bank Limited was established on December, 1942 as the Australasia Bank at Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir and now Allied Bank limited has more that 845 branches all over the country and more than 7139 employees are working in these branches. This branch which is located in the Sargodha was established in 1975. This branch provides its customers with different facilities like ATM machine. The ABL Sargodha branch has become first time ATM machine in Sargodha. This branch also provides the facility to the general ABL to deposit their bill at any time during the banking hours. This branch plays a very vital role in earning profit for the entire bank. This branch has accounts of most of the employees working in the ministries because of which this branch deals with handsome amount of money on daily basis. Moreover this branch provides very attractive rate of returns to its customers as compared to the other banks branches located in the Sargodha. The employees of this branch are very loyal to the organization all the time they are working efficiently. This branch like all the other branches of ABL is computerized and providers its employees a healthy environment to work.
Sargodha Main Branch Profile
Date of Establish Employee
1975 23 Person
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Branch Code No of Accounts
0346 22000 approximately Allied Bank, Main Branch Liaqat
Address
Market Sargodha
This branch plays a very vital role in profit for the ABL bank. In 2006 this branch target is 59 crorr but the ABL Sargodha branch has achieved 63 crror. This target is achieved by efficient working of branch Manager Mr. Muhammad Khan and employees of this branch are very loyal to the organization all the time they are working efficiently.
ACCOUNT OPENING AND CLOSING

For the purpose of opening an account, account-opening form is filled. Basically account documentation governs a continuing number of banking transactions ordinarily of a payment of fund transfer nature, by the customers and serves distinctly different from documentations that is evidence of obligation to the bank (e.g. promissory notes and cheques) or evidence of individual customer transactions (e.g. travelers cheques agreements and transfer request). This will be the responsibility of the personal account officer and the customers services section to obtain all documentation required for opening and operation of all accounts.
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Customer service section is responsible for receiving complete documentation in order to make sure that all requirements have been met. A review will be performed by the person responsible for documentation custody and any discrepancies will be promptly brought to the attention of immediate supervisor only correct and complete documentation will be permanently filled. Incomplete documentation or documentation containing discrepancies will be held in a pending file and reported to the management. A follow up procedure will be maintained for necessary corrective action. An officer will make a review of documentation or senior employee appointed by operations head. The reviewer must be knowledgeable of documentation requirements and should be independent of document processing.
NATURE OF ACCOUNTS
There are four categories of accounts: 1. Saving checking account foreign currency 2. P.L.S saving account 3. Current account 4. Time deposit account
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TYPES OF ACCOUNTS
There are seven types of accounts, which are as follows: 1. Individual/joint accounts 2. Sole proprietor accounts 3. Partnership accounts 4. Limited company accounts 5. Unincorporated societies, clubs & association account 6. Trust accounts 7. Consulate accounts
DOCUMENTS DIFFERENT
REQUIRED
FOR
OPENING
KINDS OF ACCOUNTS
1. Individual/Joint account
Properly filled account opening form i.e. all the columns/spaces should be filled or crossed out. One set of signature cards Photocopy of I.D. card/passport (usually preferred I.D. card copy but incase if the customer does not have these identifications then other documents can be taken after official approval) Bank reference (if required) Transactions profile form duly filled by the account officer (inter requirement)
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2. P.L.S. saving Account (Individual/Joint)

Properly filled account opening form i.e. all the columns/spaces should be filled or crossed out. One set of signature cards Photocopy of I.D. card/passport (usually preferred I.D. card copy but incase if the customer does not have these identifications then other documents can be taken after official approval) Bank reference (if required) Transactions profile form duly filled by the account officer (inter requirement) A solemn affirmation for exemption for Zakat incase if a person is a NonMuslim. For Foreign Nationals, the account opening form is to be accompanied by the copy of passport, which should be signed off by the personal account officer-mentioning original seen. for persons claiming exemption on grounds of faith and Fiqah,a declaration on form Cz-50 is to be obtained or a notarized true copy of the same.
CHANGE OF TITLE OF ACOUNT

Change of title means that an account is in individual name and later one the customer would like to make it joint or would like to change their name from the existing title. In this case, the account number will remain the same. Following documents are to be obtained: Title change form New account opening form with copies of I.D/passport One set of signature cards Incase of company, all the documents required as need in the company account
CHANGE IN SIGNATURES (INDIVIDUAL/JOINT)

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Documents are required for change in signatures: Letter from the customers to change existing signatures (with his existing and new signatures on it) Two set of new signature cards with old signature on the bottom of the signature cards I.D. card or passport photocopy
3. Sole proprietorship account

A sole proprietorship is a business unit whose ownership and management are vested in one person. The individual assumes all risks of loss or failure of the enterprise and receives all profits from its successful operation. Documents required for this account include: Properly filled account opening form and signatures with the company rubber stamp Two sets of signature cards with company rubber stamp I.D. card/passport copy singed off by the P.A.O.mentioning original seen Bank reference (if required) Covering letter on companys letterhead regarding opening and operation of account Transaction profile form duly filled by account officer (internal requirement) Documents needed for addition or deletion of a new authorized signatory in sole proprietorship include: Properly filled mandate card signed by new authorized signatory as well by proprietor with the company stamp. Customer request on the letterhead regarding addition of new signatory, signed by the sole proprietor with company stamp. I.D.card or passport photocopy of new signatory.
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4. Partnership Account
Following documents are required for opening an account: Properly filled account opening form (signed by all partners with company stamp to the partnership deed) One set of signature cards with company stamp I.D.card/passport copies of all partners Copy of partnership deed (all pages truly attested) Bank reference (if required) Certificate of Registration Covering letter on companys letterhead regarding opening and operation of account Transaction profile form duly completed by account officer
Addition of a new partner

A new partner can only be admitted with the consent of all existing partners. In such a case the old account should be closed and the balance is transferred to the new account. Documents required for adding a new partner: Covering letter regarding addition of new partner duly signed by all partners Duly attested partnership deed I.D. card or passport copy of new partner Set of new account opening form and signature cards of all partners
Retirement /Deletion of a partner
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In case of retirement or deletion of a partner, the previous account should be closed and a new account should be opened with all the requirements.
Death of a partner
In such cases, partnership is referred and gets legal opinion for further operation of the account. During the time period the account will be flagged immediately upon intimation of the death of a partner.
5. Company Account
Joint stock company All associations of individuals are for the purpose of profit, possessing a common capital contributed by the members constituting it. When such an association is incorporated according to law, it becomes an artificial person created by law with a common seal and perpetual succession and it is regarded as a legal person, Separate and distinct from its members. Such a company is called Joint Stock Company. Unlimited companies (such companies have unlimited liability) Limited companies (such companies have limited liability to the amount on the shares held by them Companies limited by Guarantees These are the companies where the members undertake to contribute a fixed amount of money to pay the debt in the event of company. These companies are formed not with the object to make profit but to promote some trade etc; Karachi stock exchange is s good example of such a company. Registered company with liability limited by shares Such companies are created by and registered under companies Act 1913.this is the most important and common class of the company and is known as limited company. a company limited by shares may be I)public limited company ii)private limited company. Incase of any changes in the companys name, the account number will remain the same.
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6.
Unincorporated
Societies,
Clubs
and
Association Accounts
These are non-trading organizations and formed for the promotion of culture, science, education, recreational activities and charitable purposes etc.some of these institutions are registered under the societies registration act 1866 and are issued a certificate of registration after they have been found fit for registration. A body known as managing/executive committee, which draws its authority from the rules and regulations, administers the affairs of these institutions. The documents required for opening this account include: Properly filled account opening form (singed with institution along with covering letter) Set of signature cards (with institution seal) Resolution of governing body (certified true copy) Certified copy of constitution A copy of rules of the club/association duly certified by secretary I.D. card of authorized signatures (truly attested photocopies) Bank reference (if required)
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CHAPTER FOUR
Account & Deposit Department
Both of these departments in ABL Secretariat Branch come under one officer. This officer has to directly approach to Operation Manager. Following are the job responsibility of this officer, Account opening form and signature cards are duly kept under lock and key. Account opening forms are completed and signed by the customer as applicant and their signature cards are duly obtained. Payment instructions are clearly noted on the account opening forms. The total amount against issuance of fixed deposit is verified and tallied against credit vouchers and counterfoils TDRs.
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The term deposits receipts are delivered to the deposit after receiving acknowledgement on the service of counterfoils. The counterfoils are reviewed and initialed by two officers. The overdue deposits are duly transferred to over due term deposit account and are properly followed up with the customer. Unclaimed deposits and profit payable on deposits remained undimmed or unacknowledged by the creditor for a period of ten years reposted to SBP. To maintain daily cash book, at the start of the day and at the end of the day. Disbursement of salary to staff ABL/Audit. Medical Bills/ pension of ABL staff. Audit exceptions rectification relating to account, unisaver and TDR. Profit on PLS, TDR and SNTD accounts is paid exactly accordingly to the directives and rates advised by treasury operation.(H.O.) Withholding tax @.3% is duly recovered at the time of issuance of TDRs. Tax on profit is deducted as per the government and directives. Zakat, if applicable is recovered against TDRs encashed (as per Zakat ordinance).
Dispatch Department
The work of dispatch and deposit department is to, Inward and out word clearing. Inward and out word dispatched. Transfer delivery. Preparation of clearing and TD. Inward mail is date and time stamped. Incoming and out going mail is properly recorded in respective register and delivered to the concerned department under proper acknowledgement. Entries in the register are checked and authenticated at the day end.
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Inward mail is opened by the operation manager or AOM or Branch Manager or in his presence. Daily summary of expenses and postage on hand is made and initialed at the day end. The details of courier invoices are duly reconciled in the mail register before payment to the company. Counter value of T V license is duly credited to respective collection account and transferred to branch where main collection with stipulated procedure. Stocks of T V license duly balanced at the close of the day. All parking account must zeroized at day end.
Cash and Counter Service Department

The responsibility of this department is, Cash receipts and payments. Receipts of utility bills. Receipts of OGDC bills. Preparations of monthly cash in. Transit statements. Preparation of WAPDA, Sui Gas, PTCL, OGDC series and deposit.
Functions
This department is mainly dealing with cash and counter services. The work of this department is,
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Cash balance book is signed by supervisor or Ops. Or Branch Manager after physical verification of closing cash. Receiving and paying tellers book is duly checked and signed by tellers and supervisor. Cash sent to and received from branches is as per prescribed procedures and instruction. All foreign currency rates are duly displayed at some prominent place. Correct foreign exchange rates are applied on sale and purchase of foreign currencies. All foreign currency transactions are reported to treasury. Cash vault operation is done as per banks policy. Clearing and collection cheques received are checked for validity and crossing stamp is affixed on them immediately. Cash is not exceeding overnight cash in safe and cash on counter limits. Cash receipt and payment in excess of 25000 is made as per laid down procedures. Tax rater of 1% is applied on the cheques which are above Rs.25000.
Bills and Remittances Department

Following are the responsibility of this department, To handle out word bills of collection and in word bills of collection. Issuance and payment of DD, TT, MT, PO and PS. Issuance and encashment of RTCs. Security stationery handling. This department performs the following functions. DD, TT, MT, PO and PS are issued against value received (debit to customer account or branch or cash account). Where DD, TT, MT, PO and PS are issued by debit to customers accounts the signatures of the customer are duly verified. Signatures, addresses, account numbers of the purchasers are obtained and noted on the application forms.
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IBCA against DDs issued for Rs 50000 or above are duly sent under test. DD, TT, MT receipts and PO, PS issued by the branch are duly protect graphed. Full particulars are recorded on the counterfoils and two officers duly initial the counterfoils. Foreign currency ODs and TTS are issued as per SBP foreign exchange regulations. Charges that are commission, postage, cable etc. are recovered as per banks schedule of charges. Objection memos are sent to the branches in respect of DDs paid without advice.
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CLEARING DEPARTMENT
The clearing department is in charge of processing all cheques, pay orders, or demand drafts deposited or sent to the bank by the banks customers for clearing. The cheques are categorized into the following: Cheques of the same branch (ABL Chakwal Branch) in favor of another client of the same bank. Cheques of ABL originating from other parts of the country such as from branches of ABL in Lahore, Karachi, etc. A cheque of other banks such as Bank Alfalah Limited, PICIC Bank. United Bank, etc, situated in other parts of the country such as in Karachi, Lahore, etc. Processing of these cheques are done with different procedures and these procedures can be broadly categorized into the following:
Clearing
This procedure is done for cheques of other banks ( Muslim Commercial Bank) lying in the jurisdiction of Islamabad and which have been deposited or sent to ABL Jinnah avenue Branch by the banks accountholders.
Transfer Delivery
Transfer delivery procedure is done for all cheques of ABL branches in the jurisdictions of chakwal respectively which account holders in the bank have deposited with the bank.
Cheques for Collection

The collection procedure is done for all cheques originating from other parts of the country otherwise known as outstation cheques both belonging to ABL branches and to other banks as well. The only variation is to where the cheques are sent for collection. Cheques coming from ABL branches around the country are sent directly to the respective branches for collection. Cheques of other banks coming from around the country are sent to ABL main branches otherwise known as responding branches, in the area where the bank from which the cheque is originating is situated. The ABL main branch then presents the
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cheque for clearing and once the proceeds are collected, advises the originating branch, which credits the account holder who deposited the cheque.
Own Duties & Responsibilities

I have done internship in ABL, at the Chakwal Branch for Two months. This particular branch plays a vital role in contributing the profit to the whole organization. It also consists of several big major accounts of different persons working in Cement factories. During the internship I found that all the staff members are not that much satisfied with their present job. But they are very cooperative; they helped me a lot to learn different functions of banking system. This branch like the other branches of the ABL is also computerized. Thats why its very easy for me to understand the banking system while doing work on computer. I worked in different department in order to understand the working of these departments. The departments head helped me a lot and were ready to answer my questions all the time. I was asked by the manager of the branch to come at 9 am in the morning and I could go back during the lunch time but as this was a learning opportunity for me I didnt lose it and worked full time till the bank closed at 5 pm in the evening.
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Deposit Slip
This slip is used to deposit money in the bank. The account holder or any other person can deposit money in any ones account either by cash or cheque. The depositor have to fill the slip by writing the date when he/she is depositing the money, then the name of the branch where they are depositing the money, then write the title of the account in which you want to deposit the money. If you use the cheque for depositing of money then they would have the write the cheque number on both sides of the slip in particulars column. In the end you have to write the amount of money both in numbers and words. This slip is then presented to the concerned manager he/she signs the and stamped the slip left side of the slip is given to the depositor and the other part is kept by the bank itself for further processing.
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Form for Demand Draft & Pay order
This form is used for making DD or PO. The particulars of this form include the date column in which the date on which the DD or PO is to be made. Then you have to write the cheque number if the DD or PO is to be made from cheque otherwise cash. If the person who wants to make this DD or PO does not have any account with the bank then he/she has to write his/her address and then sign the form. Then you have to write the name of the party in favor of whom this DD or PO is to be made. In the last you have to enter the DD or PO amount. You have to write it both in number form and in words as well. This form is then given to the concerned person. After checking all the necessary requirements DD or PO is given to the customer.
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59
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If the bank rejects the cheques of its customers then it has to give reason to its customer that why the bank rejected his/her cheque. So for this purpose the bank has made a slip on which most frequent reason for rejection of cheques are written. The bank just ticks the reason for which it rejected the cheque of its customer and gives the cheque and this slip to the customer. This is usually done for cheques from other branches.
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CHAPTER FIVE
Learn in the Bank
In Allied Bank I have learnt a number of tasks, which include: How to check the Account Opening forms. How to complete the form of the Demand Draft and Pay order. Checking of pay-orders Checking of demand drafts How to write DD and PO. How to maintain the records of DD and PO. How to check the cheques using the software that ABL uses. How to issue new cheque books. How to Prepare return slips for those cheques which are returned back to the bank which has sent them for clearing purposes How to send back the cheques which are dishonored. How to enter different bill in the computer system. How to send the information regarding the bills to the respective organization. How to manage the Cash Book. Handling of out-going clearing cheques. Checking of files (knowing their requirements and the way of handling the transactions) Allied Bank Limited has done an agreement with N.I.F.T. (national institute of facilitation technologies). This organization works for separating the clearing cheques for different banks. A person from N.I.F.T. daily brings cheques/pay-orders/demand drafts for incoming clearing. These cheques/pay-orders/demand drafts are separated. Then they are checked in order to see that certain requirements are met or not. The items, which should be there on the cheque, include:
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Clearing stamp Crossing stamp Effects cleared Date of issuance Signatures Payees account credited Date on the clearing stamp Word figures All the cheques fulfilling the above requirements are entered in the system. The cheques, which do not fulfill any of the above requirements, are returned back to the bank, which has sent them for clearing purpose. a return slip is prepared stating the cheque number, amount and the reason for returning the cheque after preparing a return slip, a photocopy of the cheque and slip is made. Then it is entered in a register for keeping the record. The out-going clearing cheques come in Allied Bank Limited through a Lock Box System. They are separated from their slips and photocopies are made. Then they are entered in the system. After entering in the system, they are carried by a person, who comes from N.I.F.T. to take them. The account opening forms, which are sent for opening an account, are checked properly in order to see that all the documents are attached. After checking these forms, the information given in these forms is entered in the system. I have also checked many files maintained by them and learnt about their requirements and way of handling the transactions. These are all the tasks, which I have learnt during my internship.
CHAPTER SIX
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FINANCIAL ANANLYSIS
ALLIED BANK LIMITED
PROFIT AND LOSS ACCOUNT
For the year ended Rs. (in Millions) PROFITABILITY Mark up/Return/Interest eared Mark up/Return/Interest expensed Net Mark up/Interest income Fee, Commission and Brokerage income Dividend income capital gain Other income Operating expenses Profit before provision Donation Provision (expenses)/reversal Addition charges for employee benefit and other obligations Profit/Loss before Taxations Taxation Dec 31 2006 17,216 6,793 10,426 1,636 540 273 5,289 7,583 9 (913) --6,661 (2,264) Dec 31 2007 9,892 2,025 7,867 1,470 196 273 4,263 5,543 15 (694) --4,834 (1,744) Dec 31 2008 30,571 16,560 14,011 2,522 1.571 59 8,399 9,764 82 (3,561) --6,121 (1,964)
Profit/Loss after Taxation
4,397
4,076
4,157
ALLIED BANK LIMITED

BALANCE SHEET
Rupees In Millions 2008 ASSETS Cash and balance with treasury banks and others 23,039,577 14,742,711 25,751 DEC 31,2006 DEC31, 2007 DEC 31,
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banks Lending to financial Institution Investment Advances Other assets Operating fixed assets TOTAL ASSETS LIABILITIES Bill payable Borrowing from financial institutions Deposits and other accounts Sub ordinate loans Other liabilities TOTAL LIABILITIES NET ASSETS REPRESENTED BY Share capital Share premium Reserves Un-appropriated profit Surplus on revaluation of assets net of tax
19,050 46,953 177,033 10,161 6,445 252,027 2,278, 18,410 206,031, 2,500 5,119 234,339
5,77 44,926, 111,206 7,227 4,720 320,110 2,448, 9,693, 161,410 2,499 7,332 300,231
15,793 84,587 223,640 18,399 11,134 366,680 2,952 27,778 297,475 2,498 13,621 344,325
17,688
4,489 4,316 1,817 5,608 1,458
19,878
5,386 3,419 2,632 6,971 1,470
22,356
6,464 2,341 3,463 8,537 1,550
Graphical presentation Trend of Price, Earning and dividends
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Table 3.1
2006 Profitability Ratios
Return on Assets Return on Equity Capital 1.98% 30% 1.42% 24% 1.21% 21% 66
2007
2008
Return on Capital Employed 26% Growth in Gross Income 31% Growth in Net Income 42% Earning per Share Rs.6.80 Rs. 6.31 Rs 6.43 -7% 2% 17% 21% 21% 19%
Comments
The table 3.1 presents six indicators of profitability. ROA is a managerial efficiency measure. ROA shows an overall increasing trend. It has improved from 0.14% in 2006 to 1.98% in 2008 which shows that the bank is decreasing its efficiency of asset utilization. From 2006 to 2007 there is 90% decrease in ROA while from 2007to 2008 there is 11% decrease in ROA. Thus we can say that the bank has become less efficient working in 2008. ROE is a measure of rate of return flowing to the banks shareholders. The table 3.1 shows an decreasing trend in ROE which is a very negative trend since there is decrease in the net benefit that the stockholders have received from investing their capital in the bank.. The returns on capital employed (ROCE) are efficiency measures as well as profitability measures. From 2006 to 2007 the returns on capital employed is showing an overall decreasing trend which means that the bank has been no improving its ability to keep a large spread between interest revenues and interest expenses by close control over the banks earning assets. Decline in Gross income for the bank is also showing an overall decreasing trend from 2006 to 2007 while decline in Gross income throughout the period but in 2007is great decrease in gross income. Growth in net income in 2006the net income is negative but it decreases in 2007 to 2008.
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It showing an overall decrease trend, which mean that, the bank has not improving its abilities Earning per share for the bank is also showing an improving trend however it was negative in 2006. From 2006 to 2007 EPS has improved by 171% while form 2007 to 2008 EPS has improved by 40% which is a tremendous improvement and can be attributed to the policies of the new management.
CHAPTER SEVEN
SWOT ANALYSIS:
While interning at Allied Bank Limited I was able to conduct a SWOT analysis of the branch where I worked at. I learnt a great deal about the banks strengths, weaknesses, opportunities available in the future and the threats that are ever present in todays competitive Banking industry. The analysis is as follows:
STRENGTHS:
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1. The bank has introduced the facility of Cash line. With an entire department devoted to this task of answering any queries from customer through the telephone. Cash line serves the purpose of a loan that is flexible enough to be used anywhere, anytime, and as many times as you wanted. 2. Online banking facility serves the customer in a better manner. 3. It is a customer-oriented bank. People at Allied Bank Limited believe banking to be a relationship that is why this branch in particular has developed personal relationships and provide personalized services to the customers. This strategy has proved to be very effective in injecting loyalty in its customers. 4. Customer service quality is very good. The culture of the bank is customer 5. It takes less time to get a loan because their procedure is easy and organized. 6. Strength is the compatibility of Allied Bank Limiteds ATM card with ATM machines of various other banks. So even though the branch has its own ATM machine facility, a large network of ATM outlets of other banks is available through other bank ATM machines. 7. The culture of the branch where I worked is the one that promotes teamwork. This type of culture results in a very healthy work environment that has in turn contributed to a strong commitment to work. This is the reason that all sales teams of this bank for various products such as Car Financing, Car Leasing etc. have been bringing in a large portion of the target market through their well-built network of leads & clients. 8. Qualified & Competitive staff is also one of strength of this branch. 9. The environment is market oriented. oriented, they make the customer feel at home.
Weaknesses:
The bank is making continuous efforts towards minimizing its weaknesses. There are still some areas that have to be improved to be able to compete in this industry. The major weaknesses are as follows: 1. The major weakness that the Bank faces is that it is charging its customers a higher markup rate of various products.
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2. Decision making process is very slow. 3. Job rotation is the best way to train their employees and keep check on them but ABL is doing nothing special in job rotation of the employees. 4. They dont have the mobile banking facility. 5. The pay scale of the employees is low as compared to its competitors. 6. There is no platform for the employees of the bank through which they can express their problems or may give their ideas for better working of bank. 7. As ABL is a government bank, so there is pressure from government while giving loans. Government can recommend on who should get a loan and who shouldnt.
Opportunities:
At present the bank is faced with a large avenue of opportunities as it has proved by launching new products and exploring various options in the market. The major opportunities are: 1. Islamic Trading Based Banking can enhance the business of the bank. 2. Targeting of Hundi/Hawalla through networking and IT potential of ABL. 3. Government is taking very bold steps to promote IT in Pakistan. ABL has an opportunity to improve in technology. 4. Many competitors surround ABL. It has an opportunity to do aggressive marketing to increase its business. 5. Having the innovator image has been working well for ABL. Therefore another opportunity is to innovate their product line and keep on giving services that satisfy customers in a better way.
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6.
Higher pay scale will result in lower turnover of highly skilled employees.
THREATS:
ABL faces many threats as competitive pressures have escalated in this particular industry. There are also some threats that ABL faces apart from competitive pressures. All these are discussed below. 1. The aggressive advertising campaigns launched by other competitor banks are serving as the major threat of this organization. These campaigns often result in loss of customers for other banks as the sponsor bank gains a small part of the target market. The result is that ABL also succumbs to the same mechanism as other banks. 2. Another threat is the future trend that shows that competitors are creeping up on ABL with respect to number of customers as ABL is offering slightly high markup rates. So this additional price is also a threat to ABL.
3. Foreign banks are flourishing in field of consumer financing. 4. For many years, Pakistan is facing economic and political instability, which is a big threat. 5. Continuous turnover of the highly skilled employees to it competitors can be detrimental in the long run as well as short run.
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CHAPTER EIGHT
CONCLUSION AND RECOMMENDATION
CONCLUSION
1. The branch manager is usually given very little regarding sanction of advances and over draft whereas the responsibilities are numerous. 2. The marketing efforts at the branch level are less disciplined and there are no integrated efforts from all the staff members. The mobilization of deposits is mainly considered as the responsibility of the branch manager but the rest of the staff is usually least interested 3. The bank has been applying he modern concepts of management and marketing at both micro levels. The interior and exteriors of the branch have been changed but the staff of the branch has been found less motivated towards the organizational objectives.
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4. Employees of the branch are fed up with there work they feel bore from their daily work especially the manager. 5. The decision-making is still centralized as the middle and low level management is not taken into confidence. 6. The promotional policy of the bank was observed as without any specific direction. Though the bank has defined its mission and vision but no specific plan has been designed so far. 7. The bank staff has been found as less satisfied with bank policies and the recent retrenchment in the bank has created unrest and panic.
8. Most of the employees working in this branch are not much familiar with computer. They just know how to use their part of software if any problem comes in the computer they cant fix it. 9. The relationship between the employees of the branch is not that good because of which the whole environment of the branch becomes less favorable for work.
10. Miss utilization of office utilities, especially the telephone. 11. The salaries package of Allied bank staff is low comparing to others bank .So the bank staff as less satisfied with bank policies. 12. All the profitability measures show an improving and positive trend from 2004 to 2006. ROA, ROE, net interest margin, net non interest margin, net operating margin and EPS have shown a growing trend from 2004 to 2006. So, we can conclude that the profitability position of ABL is improving.
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RECOMMENDATIONS & SUGGESTIONS

1. The branch manager should arrange a training program for its existing employees to help them perform their duties more effectively. 2. There should be a proper platform provided to its employees from where they can help the management in achieving its objectives. 3. The branch should try to enter into the market of Islamic banking it would increase its competitive edge over the other branches in the Chakwal. 4. This branch of the Allied Bank Limited should be renovated because its seems a long time since it was last renovated. 5. The bank should appoint customers relation officer where the volume of work is too high. This will give an impression to client for personal Banking. This will help in improving the image of the bank and hence will attract more clients.
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6. An Automated Teller Machine should be placed in the branch because during my internship I found many customers complaining for the ATM machine. 7. The departments of this branch should be increased because its customers have to go to other branches of Allied Bank Limited in order to get the services, which they need. 8. The existing customers of this branch are of the opinion that customer services are not up to the mark. According to them customer services provided by PICIC, United, Askari Bank and others are far better than ABL services. There must be a separate information counter in this branch of ABL. So that as the customer enters in he can clearly see someone who would help him. 9. ABL is not very well known bank in the market. Their market standing is not as strong as there competitors. For this ABL should opt for heavy advertisement both electronically and on print media to create ABL awareness. This product Business Power is suffering because of this reason as well. 10. The bank must ensure the participation of the staff in all promotional activities of the bank to this end the bank must adhere to the policy of fringe benefits rapid promotion of capable management and official. The old age benefit of the bank employee must be increased to motivate fee staff. 11. The bank should be increasing the salaries package of staff for better working. 12. ABL should go for more innovation in marketing and advertising. Such innovations can be helpful in improving the banks image. 13. Islamic banking is getting popularity in the country. Many efforts are being made to make it workable in the era of conventional banking. The SBP had initiated the process of converting the conventional banking system into Islamic Banking. Government of Pakistan has initiated a parallel banking strategy of promoting Islamic Banking alongside conventional banking. There
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is huge scope for Islamic and Modaraba Banking system in the country, and ABL should take benefit of this opportunity. 14. Decision making process must be decentralized and the low and middle level managers must be encouraged in the decisions . 15. The bank should follow the marketing policies and services of international bank by introducing Tele banking, retail banking, and the concepts of personal banking. This will increase the revenue of the bank and would help the bank to move in the direction of international banking.
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1. Website
www.abl.com.pk www.google.com www.yahoo.com
2. Annual Report 3. Broachers 4. Interviews

Mr. Ch. Ifitiqar Mr. Imran Aalam ( Regional officer Sargodha Region) (Chief Manager Allied Bank Sargodha).
Mr. Tahir Akhtar ( Main Branch Operation Manager) Mr. Mushtaq Bhatti ( Regional Officer Grade-I ABL Sargodha)
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INTRODUCTION OF BANKING

Banking system in Pakistan

ALLIED BANK LIMITED

INTRODUCTION AND BACKGROUND

The Pre Independence History (1942 to 1947)

Australasia Bank (1947 to 1974)

Allied Bank (1974 to 1991)

Allied Bank (1991 to 2004)

Integrity Excellence in Service

Shares Register Head Office

Mohammad Naeem Mukhtar

TOP MANAGEMENT NAMES

Khalid A. Sherwani (President and C.E.O)

M.ShafiqueIqbal M.Naveed Sheikh M.Jawaid Iqbal Abbas Masud Javed Ahmad

12 Mohammad Yaseen FareedZia Ijaz Tariq Mahmood Vardag

Corporate and Investment Banking CIBG)

Chief Financial Controller

Country Operations Head

Risk Management (RMG

Compliance and Control (CCG)

Business Transformation Team (BTT)

Organizational Structure of Allied Bank Limited

ABL Products Range

PLS Saving Deposit

10 transactions per month 50 transactions per month Unlimited

Allied Basic Banking Account

Foreign Currency Deposits

Allied Profit Plus Term Deposit

Months Months Months

Allied Profit Plus Deposit Account

Rates effective from 01.01.07

Allied Monthly Income Scheme

Profit: Projected profit rates Eligibility: Period:

Pre-Mature Encashment: Recovery of profit already paid & Payment

Deposit paid before Maturity

Allied Bachat Scheme (ABS)

Maturity Period: Minimum Deposit: Expected rate of Profit: Eligibility:

ABL Projected Rates

1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5

ALLIED e-SAVERS ACCOUNTS (ESA)

Rs. 25,000/- to Rs. 500,000/payable on half yearly basis

Projected Profit rate: Eligibility:

upto 7.5% p.a Individuals

Alternative Delivery Channels

Peshawar Cantt, Phone: 091-5284715 Fax: 091-5286909

IMPORT EXPORT BUSINESS/TRADE FINANCE

Zero-Prepayment Penalty option Complimentary Credit Insurance Competitive mark up

ABL Cash line

ABL HOME FINANCING

ABL Car Financing

New Car Financing

Used Car Financing

Cash Your Car

Free Car Tracking Device Insurance Options

managers in six different locations. Rich execution experience

seamless deal closures.

Traveler Cheques ABRTC

Sargodha Main Branch Profile

Date of Establish Employee

Branch Code No of Accounts

0346 22000 approximately Allied Bank, Main Branch Liaqat

ACCOUNT OPENING AND CLOSING

2. P.L.S. saving Account (Individual/Joint)