Internship Report

Internship Report On

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Allied Bank Limited

In the Name of

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Internship Report

PREFACE

The report is specially meant for the students of MBA. It is concerned to a brief study of

operations, functions, tasks and services of Allied Bank Limited.

Banking play very important role in the commerce and economic development of a country.

Now-a-days banks are using different modern technologies, which influence the managerial

activities that are why I decided to do my internship training in the bank.

In preparation of this report I have tried my best to provide all possible information about the

operations, functions, tasks and the corporate information of Allied Bank Limited in brief and

Comprehensive form.

Then internship report ends with some recommendation after identification of problems that I

observed during the course of my internship training.

Most Merciful and Compassionate the Most Gracious and

Beneficent whose help and guidance I always

Solicit at every step, at every moment.

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ACKNOWLEDGEMENT

“To Him belongs the dimension of the Heavens and the Earth, it is He who gives life and

death and He has power over all things.”

(Al-Quran)

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and

abilities to complete this report successfully.

I am grateful to my parents who are always been a source of encouragement for me throughout

my life and from start to the end of this report.

I am thankful to my teacher Mr………………, He help me a lot to complete this report and

MBA.

I am grateful to all my staff members so Allied Bank Limited Gulgasht Colony (0318) Branch

Multan.

I found every one very co-operative and helpful for providing me the Theoretical as well as

practical knowledge about the function and operation of the bank.

I express my greatest gratitude to my kindhearted Supervisor Mr. Fazail Sabri (Branch

Manager), and Miss. Najma (CSM) who are the Persons who made me able to write this report,

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His enthusiasm shows the way forward to me to achieve this success and who kept me in high

spirit through his appreciation. They helped me a lot each time I went up to them.

DEDICATION

I dedicate my efforts to my parents who pray for me every minute, my brothers who guide me at

every step of my life, my classmates and my group fellows who stand by me whenever I need

them and to all those who help and encourage me whenever I find hurdles in my life.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY_________________________________________________6INTRODUCTION 7PURPOSE OF STUDY 08HISTORY AND BACKGROUND 10GENERAL PROFILE OF THE ORGANIZATION 15VISION 15MISSOIN 15VALUES 15MAIN OBJECTIVE 16BOARD OF DIRECTORS 17EXECUTIVE COMMITTE 18SERVICES/PRODUCTS OF ALLIED BANK LTD 23DEPARTMENT INFORMATION 30CURRENT SAVING DEPARTMENT 30ACCOUNT DEPARTMENT 30ADVANCES DEPARTMENT 31APPRAISALS AND PROBLEMS AT ABL 33CONCERN DEPARTMENT, DUTIES & LEARNING 34FINANCIAL ANALYSIS 42PROFIT & LOSS 42BALANCE SHEET 43HORIZENTAL & VERTICAL ANALYSIS 44RATIO ANALYSIS 50SWOT ANALYSIS 57STRENGTHS 57WEAKNESSES 58OPPORTUNITIES 59THREATS 59PEST ANALYSIS 61RECOMMENDATIONS 63

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CONCULSION 64REFERENCE 65

EXECUTIVE SUMMARY

This document provided details of my achievements in term of practical implementation and

understanding of working environment in banks. ALLIED BANK is almost the leading

commercial banks in the country and has always played pioneering role in introducing

innovative. Technology based banking services.

Allied bank limited was the first bank to be established in Pakistan. It started out in Lahore by

the name Australasia bank before independence in 1942, was renamed Allied Bank of Pakistan

Ltd 1974 and then Allied Bank Ltd in 2005.

My Internship at Allied Bank Limited Gulgasht Colony Branch started from 16 th July 2010 to

17th August 2010. During my stay at the bank I learnt a lot as the practical knowledge of the

banking sector is concerned. I was rotated in different departments including clearing, online

transfer, and customers’ services foreign exchange and advances departments.

I learnt the basics of operations performed in each department. I undertook some assignments

that helped me apply the learnt techniques. I faced some problems during this course, but I got

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full attention from the concerned persons and they always encouraged me for asking any kind of

question that rose during the course of my work.

I have been sending the reports of my progress on weekly basis to my internship advisor. On the

last day, the manager gave his comments and evaluation of my work on the prescribed form

provided by the institute and also certificate of internship.

INTRODUCTION

The study is about the general operations and management of Allied Bank Limited Gulgasht

Colony Branch Multan.,

Every student of MBA has to under go an internship program of EIGHT weeks in any

organization to get exposure to the real time business environment and to know what sort of

changes Information Technology brings in management activities. The real purpose of this

internship program is to provide an opportunity to the students to see the practical applications of

their background professional studies.

The repot is a reflection on my experience when I was internee in ABL, Since its inception in

1942, ABL has maintained a steady growth over the sixty years span of its operations. After its

nationalization in 1974, it was denationalized in 1991 and the employees became the owners of

ABL, through the unique concept of ESOP.

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PURPOSE OF THE STUDY:

Purpose of the study was two pronged.

General Purpose

To get acquaintance to the banking operations.

To know what sort of changes IT brings in managerial activities.

To see the application of our Professional studies especially.

Specific Purpose

A partial fulfillment as a requirement for the completion of degree.

To objectively observe the operations of Allied Bank Ltd in general and the operations of

ABL, Gulgasht Colony Branch Multan in specific.

To make recommendations or implementation plans for the improvement of the

operations of ABL, Gulgasht Colony Branch Multan in the light of our professional

studies.

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Nature of the Study

The study is critical in nature. It was conducted to investigate critically into the operations of

Allied Bank Ltd and it also explains that how ABL provides facility of online banking to its

customers. The annual reports or the consolidation data of the Bank has not been focused in

specific because it does not reflect on the operational performance of branches. However, they

have been referred to as when and where required.

Scope of the Study

The study covers two areas with its variables, which affects the operations of the branch directly,

or indirectly. These two areas of variables are:

Branch specific variable.

Bank specific variable.

The branch specific variables are the variables under the control of the branch management and

directly affect its operations e.g.

Layout of the branch.

Customers’ relations.

Departments in the branch

ATM

Online banking.

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The bank specific variables are those variables, which are not in control of the branch

management e.g.

History of ABL

Services provided by ABL

Role of ABL

HISTORY AND BACKGROUND:

Allied Bank was the first Muslim bank that has been established in Pakistan in December 1942

as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the

Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431

million in its first eighteen months of business.

At the time, the Bank’s total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid up

Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets

equal Rs. 170 billion.

The Bank’s journey has been about dedication, commitment, professionalism and adapting to

environmental changes, leading to its immense growth and stability.

A view of Khawaja Bashir Bux's Residence that was the first branch of Australasia Bank came

into existence. It is these factors that have made it a Bank the rest look up to.

THE PRE-INDIPENDENCE HISTORY (1942-1947):

In the early 1940s, the Muslim community was beginning to realize the need for its active

participation in the fields of trade and industry. Since the late 1880s, Hindus had established a

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commanding presence in the areas of industry, trade and commerce and were especially

dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus

and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this

profession.

It was particularly upsetting for Khawaja Bashir Bux to hear that:

“Muslims could not be successful bankers”.

He decided to step-up to that challenge and took the lead in establishing this first Muslim bank

by the name Australasia Bank Limited in Punjab, which was to become Pakistan in December

1942.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million

by the end of the first year of operation, and by the end of 30th June 1947 capital increased to Rs.

0.673 million and deposits raised to Rs 7.728 million.

AUSTRALASIA BANK (1947-1974):

A view of the building in Lahore that once housed the Australasia Bank branch, Australasia

Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947. However, it

was severely hit by the riots in East Punjab. The Bank was identified with the Pakistan

Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar,

Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were opened in Karachi,

Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network

spread to Multan and Quetta as well.

The Bank financed trade in cloth and food grains thus, played an important role in maintaining

consumer supplies during the early months of 1948 affected by riots. Despite the difficult

conditions prevailing and the substantial set back in the Bank’s business in India, Australasia

Bank made a profit of Rs. 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the separation of

East Pakistan. But the Bank did well despite losing a lot of its assets and by the end of 1973 had

186 branches in West Pakistan.

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ALLIED BANK (1974-1991):

In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank

after the amalgamation of four banks. The first year was highly successful; profit exceeded Rs.

10 million, deposits rose by over 50 percent and approached Rs. 1460 million. Investments rose

by 72 percent and advances exceeded Rs. 1080 million for the first time in the banking history.

116 new branches were opened during 1974 and the Bank started participating in the

Government’s spot procurement agriculture program. Those seventeen years saw a rapid growth

for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46

billion, and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It

also opened three branches in the U.K.

ESOP Revolution

(Employee stock ownership plan)

Under the philosophy of ESOP ownership of an enterprise is transferred to its employees who

are in an advantageous position in running the enterprise. The added advantage of ESOP that it

strengthens the workers stake in the free enterprise system, in job securities, better profitability &

unique corporate culture symbolizing family feelings & professional fraternity.

September 10,1991 is the historical date as on this date the bank became the country’s 1 st bank to

be reconstituted as an institution jointly owned by its employees through the unique concept of

Employees Stock Ownership plan [ESOP] developed by the Allied Management Group headed

by Mr. Khalid Latif enabled the bank staff to react creatively to the privatization challenge. More

that 7500 staff members acquired a share in the bank. The articulation of the ESOP is a landmark

in the financial history of Pakistan-indeed of the entire world .It is a practical step ensuring an

increase in workers participation and in productivity a means for enhancing an equitable

redistribution of financial assets & an effective strategy for achieving the cherished goal of

national self-reliance.

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ALLIED BANK (1991-2004):

In November/December 1990, the government announced its commitments to the rapid

privatization of the banking sector. Allied Bank’s management under the leadership of Mr.

Khalid Latif decided to react positively to the challenge. In September 1991, Allied Bank

Limited entered in the new era of its history a world’s first bank to be owned and managed by its

employees. The 850 executives and 7200 staff members spread over 800 branches throughout the

Pakistan established in high degree of cooperation and family feelings.

As a result of privatization in September 1991, Allied Bank entered a new phase, and became the

world’s first bank to be owned and managed by its employees. In 1993 the “First Allied Bank

Modaraba” (FABM) was floated. After privatization, Allied Bank became one of the premier

financial institutions of Pakistan.

Allied Bank’s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536

billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan’s

financial sector and was recognized as one of the best amongst the major banks of the country.

In August 2004, as a result of capital reconstruction, the Bank’s ownership was transferred to a

consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

ALLIED BANK (2005 to date):

In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank

Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them.

An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan

was made; ABL was formally listed and the Bank’s share trading began on the following dates

i.e. Islamabad Stock Exchange August 8, 2005, Lahore Stock Exchange August 10, 2005 and

Karachi Stock Exchange August 17, 2005.

2007:Mohammad Aftab Manzoor has taken charge as CEO and President of the Bank on August 13

2007. He is an ex-president of MCB Bank Ltd.

2010:

Mr. Khalid A. Sherwani has taken charge as CEO and President of the Bank on July 30 2010.

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Today:

Today, with its existence of over 63 years, the Bank has built itself a foundation with a strong

equity, assets and deposit base. It offers universal banking services, while placing major

emphasis on retail banking. The Bank also has the largest network of over 779 online branches in

Pakistan and offers various technology-based products and services to its diverse clientele.

GENERAL PROFILE OF THE ORGANIZATION

Allied Bank Limited operates by the following Vision, Mission & Values:

VISION:

To become a dynamic and efficient bank providing integrated solutions and the first choice of

bank for all customers.

MISSION:

To provide value-added services to our customers

To provide high-tech innovative solutions to meet customer

requirements

To create sustainable value through growth, efficiency and diversity

for all stakeholders

To provide a challenging work environment, and reward dedicated

team members

To play a proactive role in contributing towards the society

VALUES:

Integrity

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Excellence in Service

High Performance

Innovation and Growth

ABL has emerged as one of the foremost-privatized financial institutions in Pakistan

endeavoring to gear up its operations to meet the demands of the future.

OBJECTIVES:

Allied Bank has following objectives:

Prime focus to earn profit by providing values to its customers

To provide superior services to its customers

To provide assistance in the development of the commerce and trade

industry

Focus on blending skills and experience towards creating an enabling

environment

Core focus is to inculcate a culture of collaboration intended to deliver

worldclass customer service

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BOARD OF DIRECTORS

“The people who draw the picture of the organization on the broader canvas of strategy and planning, the pioneers of prosperity and world of wisdom that paves the path to long term

success”

Mr. Mohammad Naeem Mukhtar Chairman

Mr. Mohammad Aftab Manzoor (CEO)

Mr. Khalid A. Sherwani President & (CEO)

Mr. Pervaiz Iqbal Butt Director

Mr. Mohammad Waseem Mukhtar Director

Mr. Farrakh Qayyum Director

Mr. Sheikh Mukhtar Ahmed Director

Mr. Abdul Aziz Khan Director

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Mr. Tasneem M. Noorani Director

Mr. Sheikh Jalees Ahmed Director

Mrs. Nazrat Bashir Director

Mr. Mubashir A. Akhtar Director

EXECUTIVE COMMITTEE

Mr. Khalid A. Sherwani President & (CEO)

Mr. M. Naveed Masud Senior Executive Vice President

Mr. Akhter Ali Khan Head Credit

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

Mr. Mohammad Yaqoob Head Islamic Banking & Planning

Mr. Masud A. Sidique Head Human Resource

Mr. Anwar Zaki Head Treasury

Mr. Khalid Mehboob Head Business Promotion

Mr. Sayed Mujtaba Gillani Head Special Vigilance Unit

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THE MANAGEMENT

“The brilliants whose passion is dedicated to discover newer ways to make the organization goals reality”

Mr. Asim Tufail (Group Chief, Consumer & Personal Banking)

Mr. Fareed Vardag (Chief Risk Officer)

Mr. Iqbal Zaidi (Group Chief, Compliance)

Mr. Mohammad Abbas Sheikh (Group Chief, Special Assets Management)

Mr. Mohammad Aftab Manzoor (Chief Executive Officer)

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

Mr. Muhammad Yaseen (Group Chief, Treasury)

Mr. Mujahid Ali (Group Chief, Information Technology)

Mr. Shafique Ahmed Uqaili (Group Chief, Human Resources)

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Mr. Khawaja Mohammad Almas (Head, Core Banking Projects)

Mr. Tahir Hassan Qureshi (Chief Financial Officer)

Mr. Tariq Mehmood (Group Chief, Operations)

Mr. Waheed ur Rehman (Company Secretary)

Mr. Zia Ijaz (Group Chief, Commercial & Retail Banking

MANAGEMENT HIERARCHY

The management hierarchy represents the different positions and designations in the hierarchy of

the ABL. However, this is not the reporting hierarchy but merely represents the positions and

grades on the basis of seniority and grades.

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FUNCTIONAL HIERARCHY

The functional hierarchy represents the reporting order in the hierarchy of ABL.The hierarchy

has president and directors at top management level and officers Grade I, II and Grade III at the

lower level management of ABL. The middle level management consists of regional general

Manager and Regional Controller of Operations. These positions are not fixed. Any person in the

hierarchy above the branch manager can be appointed as RGM and controller operations.

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STAFF ORDER OF GULGASHT BRANCH

The staff order of the Gulgasht Colony Branch is as follows:

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CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

CHAIRMAN

SENIOR VICE PRESIDENT (SVP)

EXECUTIVE VICE PRESIDENT (EVP)

SUPPORTING STAFF

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

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SERVICES/PRODUCTS OF ALLIED BANK Ltd

All-Time Banking

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Allied Bank has introduced the Allied Cash last year also referred to as ATM card. The customer

will now have the convenience of withdrawing cash from any of ABL’s ATMs (Auto Taller

Machine) conveniently located in major cities at any time of the day or night even on closed

days/holidays. Other services include customer being able to inquire about the balance of his/her

account or printing an abbreviated (mini) statement showing the most recent eight transactions

up to the previous working day.

In order to obtain Allied Cash+ Card, the customers simply have to fill out prescribed

Application form available at selected Allied Bank Branches in Karachi and Lahore. The dully

filled form should be handed over the Manager of the Branch where the customer is maintaining

his account. Non-account holders would first have to open an account with Allied Bank to have

access to this facility. The Customer can feel absolutely safe his Allied Cash + Card because it

can only be used with the Personal identification Number (PIN), which is given to him by the

bank. Graphical representations have been employed, where appropriate, for ease of

understanding.

Allied Umrah Aasan

This unique scheme facilities those persons, who cannot afford to incur the lump sum expenses

for Umrah. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in

monthly installments. Its salient features are:

It is free of interest and markup.

Using this scheme family, relatives and household servants can be sent for Umrah.

Around 2500 Aazmeen are to be sent for Umrah every month.

Lucky winners of the draw are duly informed by their respective branches.

Total package for Aazmeen from Karachi is being Rs. 45,000. Aazmeen from Lahore

and Islamabad will have to pay an extra Rs. 3,000/- for Airline fare.

Umrah packages are of 10 days duration. The charges include Airline return ticket.

Fee Visa, family accommodation and traveling within Saudi Arabia (Jeddah to Makka,

Makkah to Madina and Median to Jeddah).

Application for whole Family/Group can be filed through a single Application Form. All

applicants of a family/group are sent for Umrah even if only one member of that

family/group is declared successful in the draw.

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Due to any reason if Umrah Applicant needs to withdraw his/her application, he/she will

given a refund of all money deposited through installments till that time.

At the time of submitting the application Aazmeen has to deposit Rs. 2,000 per person as

first installment. Rest of the money is to be deposited through monthly installments of

Rs. 2,000/- person on every 5th day of the month.

If an Applicant wins in the draw he/she is required to pay the balance amount through

monthly installments on returning from Umrah.

Aazmeen have to submit a copy of their NI Cards and Passports with the application.

Applicants have to deposit the monthly installment using deposit slips still 5th of every

month. Defaulters will not be included in the draw.

Allied Tahafuz Deposit Scheme

Brings the customer unparalleled life insurance covers along with attractive monthly profit.

Minimum Deposit amount – Rs. 50,000/- or multiples thereof. Insurance cover up to - Rs.

5,000,000/. As Competitive rate profit. The features of this scheme are:

Prospective client who will maintain a return free deposit for at least 3 months shall

eligible to avail interest free/mark-up free finance.

Payment of profit on monthly basis, automatic renewal on face value.

Life insurance up to 5 times of the customer’s deposit amount with no extra cost.

Premium shall be paid by the bank.

Full payment of claim in case of – Death – Permanent total Disability.

Eligibility Age – 18 to 64 years.

No medical examination for:

Allied Karzas Scheme (No Interest/Markup)

Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas

Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage

of a real Riba Free economic environment and avail.

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Prospective client will maintain a return free deposit for at least 3 months shall be eligible

to avail interest free/mark-up free finance.

Deposit amount Rs. 100,000/- and multiples thereof.

Minimum deposit period, 3 months with automatic rollover facility.

Premature encashment allowed, without any penalty/charge.

Minimum deposit period for eligibility of finance, 3 months.

Maximum period of finance, 6 months.

Maximum period to avail finance, 12 months from the maturity of deposit.

Every month (30 days) completed by the deposit shall be taken into account for

calculation of entitlement of finance.

Finance proposal processing fee Rs. 100/- (non-refundable) plus documentation cost on

actual basis.

In case of default/delay in repayment @ 0.055% per day (20.075% p.a._ to be placed in

charity A/C.

Formula for calculation of entitlement of finance.

Same amount of finance for half the period of deposit or

Same period of finance for half the amount of deposit.

Seasonal Finance

Running Finance 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 markup is recovered on the products of daily

outstanding balance. The running finance is suitable for meeting day-to-day

financial needs of the business.

Cash Finance is allowed against pledge of goods. The delivery of goods is made

against payment.

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Demand Finance is disbursed in lump sum or in accordance with the agreed

disbursements schedule and it is repayable as per the agreed installments, which

could be monthly, quarterly, biannual or annual.

Data Sources

Both primary and secondary have been used in the compilation of this report. The methodology

used is as under:

During the compilation of this report, I relied mainly on the primary data. The tools used for the

collection of primary data are interviews and observation. To get primary data I also performed

some practical work. The secondary data was mainly used for as a background material and for

purpose of references. The major sources of secondary data were the annual report 2008; other

printed material of the Bank and internet played a vital role as a source of secondary data.

Research Approaches

Keeping in view my limitations during and the nature of the study, two research approaches were

adopted. These research approaches are:

Survey.

Observation as.

Participant observation and

Non-participant observation.

Sampling Plan

Details of the sampling plan used during this report are given below.

Sampling Unit

The sampling unit constitutes of the following.

Manager of ABL Gulgasht Colony Branch.

Staff of ABL Gulgasht Colony Branch.

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Customers.

Personnel from Regional operations department.

Sampling Procedures

The sampling procedure used was non-probability judgmental and convenience procedure.

Contact Method

Personal contact method was used as a contact method, which included:

Structured interviews with managers and personnel from operations department.

Unstructured interviews with staff members.

Structured interviews with stuff related to ATM

DEPARTMENT INFORMATION

CURRENT SAVING DEPARTMENT:

In ABL Gulgasht Colony Branchcurrent saving department mainly deals with cheques, vouchers

and advices. First of all a cheque holder have to present his/her cheque to the person responsible

for issuing the tokens. Then cheque is passed on to the computer operator to entry it in computer.

Afterward it will go for signature verification after which it will be given to cashier for payment.

ACCOUNT DEPARTMENT:

Deposits the Life Blood of a Bank

Bank borrowing funds from outside parties is more important because the entire banking system

is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial

banks do not receive these deposited for safekeeping purpose only. When the bank receives the

amount of deposited as a depositor, it become the owner of it. The bank may therefore use these

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deposits, as it deems appropriate. But there is an implicit agreement that the amount owned by

the bank will be paid back to the depositors on demand or after a specified period of time.

The borrowed capital of the bank is than the bank own capital. Bank’s borrowing is mostly in the

form of deposits. These deposits are lend-out to different parties. Larger the difference between

the rate at which these deposits are borrowed and the rate at which they lend-out the greater will

be the profit margin of the bank. Larger the funds lend-out the greater will be the return earned

on them and greater the amount of return on these deposits earned greater will be the profit for

the bank. It is because of this interrelated relationship. Deposits are referred to as the “life blood

small” for any banking sector.

APPRAISALS AND PROBLEMS AT ABL

Employees at ABL facing these problems i.e.:

FEWER INCENTIVES

In back offices as compared to the branches the incentives are very less given to the employees

and this arises the dissatisfaction among them.

WORK BURDEN

In back offices the staff is very few as compared to the work load so the few employees bearing

the more work burden and this create discomfort in them.

NO JOB ROTATION

Most of the employees stick to the one job for long periods and having no grip on all the

operations.

STILL MANUAL WORK

In the some offices and wings of ABL the employees still depend on manual work which causes

slow performance.

FAVORITISM

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The most discouraging thing in ABL is that the promotions of employees are very late and

mostly based on favoritism.

CONCERN DEPARTMENT, DUTIES & LEARNING

My duties at the bank during my internship were of the diversified nature. I was rotated in the

different departments of the bank. I was also assigned with some responsibilities of the minor

level. They gave me some assignments as well to give me the true exposure of practical work

environment. So my duties can be categorized department wise as under:

CLEARING DEPARTMENT:

In this department I spent about 3-4 days. I observed the procedure carried down here. Based on

my observation and briefing from the staff I was asked to prepare advices for collection of

demand draft amount, Outward Bill for Collection (OBC), fill in the deposit slips presented by

the customers, enter the proceedings in concerned registers.

ONLINE FACILITY PROVIDER DEPARTMENT:

Online banking is a wide spreading concept in banking sector. 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. I didn’t have the opportunity to seek the details because

the online department is a sensitive area and also electronic based.

I prepared online transfer slips foe the customers. I also informed the customers of their account

balance, account status and about other queries available online.

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CUSTOMER CARE DEPARTMENT:

This department serves as the front representative of the bank. Multiple tasks are executed in this

department. I was asked to observe different complaints received by the bank by its customers. I

maintained the sundry account register, suspense account register. I put the applications received

for the ATM cards in the register. I also had to maintain the register maintained to record the

receipt of new account opening forms along with the register kept for recording those ATM

cards, which have been delivered

FOREIGN EXCHANGE DEPARTMENT:

This is the department with a very vast scope and a variety of dimensions. There, I had to

maintain the record of some Letters of Credit (LCs). I was liable for making drafts of outgoing

SWIFT messages. I also made the entries of incoming SWIFT messages in the register. I was

asked to enter the particulars of I-form (Import form) and E-form (Export form) in their

respective registers.

ADVANCES AND CREDIT DEPARTMENT:

In this department I was given some files to study, which were about the applications of credit to

be approved. The person in charge of there briefed me about the term and conditions on which

the bank accepts or rejects an application foe the credit. In this department, like the online

department, I didn’t have an opportunity to practically handle the work due to the sensitive

nature of the work.

DIVERSE DUTIES:

Apart from the duties mentioned above, I had to perform some other duties as well. The

prominent amongst them is called “Calling” in the banking jargon. It’s manual checking of the

record produced by the computer pertaining encashment, transfer and collection of cheques and

other instruments like deposit slips and online slips. I had to work with the person responsible of

keeping the record of DD payable. I was assigned with the duty of keeping the record of DD

payable of a given period.

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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 be office. 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 sent to the head office.

INTER-BRANCH CLEARING AND COLLECTION:

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 an other branch for the credit of its constituents, the

branch delivering the cheques will send a consolidated debit advice. If any cheque is returned

unpaid, aBranch receives the cheques and other negotiable instrument drawn on other branches

of the same bank. Main branch of ABL handles the credit advice will be sent to the branch

returning the cheque.

COLLECTION CHEQUES OR OBC:

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.

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Internship Report

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 favour of which it’s drawn. The customer presents the cheque to his

branch, which send 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 it’s own branch if available for collection from the payer’s bank otherwise the OBC is

directly sent to other bank.

MAINTAINING REGISTER for OBCs:

We have a register in which we have the serial no for OBCs with other details like amount, date,

sending and receiving branches’ codes. Every OBC is entered in tha register on daily basis. If

OBC is not cleared due to what ever fault, we take it back as a return but after that we call the

concerned person and we also write name of the person.

ACCOUNT OPENING:

I learnt how to open a new account. The person willing to open an account has complete the

account opening forms, which has several particulars pertaining to personal information of the

person.

The bank makes sure that all the information provided by the person is authentic. Along with the

information given by the person himself, bank requires introduction of an already existing

account holder of the same bank but preferably of the same branch.

The bank also requires account no. and copy of the introducer’s NIC.

Bank also requires a copy of the NIC from account opening person. He will also have to provide

two samples of his specimen signatures for any withdrawal of amount. In case of illiterate

person, he will provide the bank with his left thumb impression along with two photographs. In

case of a Pardah Observing lady, the bank prefers not to open an account but if so, it will require

her to provide impressions of her both thumbs.

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Internship Report

After all this formality, the bank after a few days sends a letter of thanks to the address of the

person disclosed in the AOF. When the letter is received, the person may come to bank and

collect his cheque book

The bank also informs its head office about the new accounts and also charges nominal amount

at first time.

MATTER OF ZAKAT:

The deductions of Zakaat from the account of Muslims are made on the 1 st Ramadan according

to the Islamic rate. But the people who do not want the bank to deduct Zakaat and want to

disburse it at their own, they have to provide an affidavit on a prescribed format provided by the

bank.

ONLINE TRANSFER:

The department providing online facility to the customers, I liked the most. I learnt different

procedures regarding this department. I learnt the process of online transfer. The whole this

process need is filling of a slip, and cheque or cash. In the slip the name of remote branch and

account number of the remote person must be entered. If the person is not an account holder of

the bank then he has to attach his NIC copy with the slip for his identification. The person

availing this facility submits the cash on the cash counter and then gives the slip to the host

person at the department, who then enters the data in the computer. In this way the money is

transferred to an account through PAK account, which is the central account of the bank and all

the inter branch transactions has to go through this process.

LEARNINGS IN FOREIGNEXCHANGE & ADVANCES DEPTT:

As an internee I learnt many things some of which I have described above. The remaining few

include the processes involved in the foreign exchange and advances department. Now a day,

both of these departments are considered to be the backbone of any bank. Foreign exchange

department brings foreign reserves. Mostly import and export business takes place through

foreign exchange department.

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Internship Report

Advances/Credit department is equally important. This department gives the bank a real

business. The bank gives money to the borrowers on interest and earns a lot in this way. The

bank lends money against some guarantee or pledges some property for this purpose. So that in

case the customer cannot pay back money, the bank can meet over come its expenditures.

HOW EXPERIENCE IMPACTS MY CAREER:

My internship experience has given me a realistic preview of practical life. Now I feel that I am

better prepared to enter the world of professional work. I have come to know and been

appreciated by a number of professionals who are lending their services to the banking sector for

more than a decade.

I feel honored that I have worked with such experienced professionals. I must admit that such

interaction in this respectable professional community will help me in seeking out good job

opportunities in the near future.Each task I performed was a different experience in itself. By the

end of it, I must say I realize my potentials, I have realized that practical life is not so easy after

all, it takes alot of hard work and devotion, and not to forget time

And I now know that if I want I can make things possible, and I also know how good itn feels to

having accomplished something and being appreciated for it. I definitely have learnt things,

which will impact my career and my character.The overall experience of my internship was very

good; I have learnt the sense of responsibility in its literal meaning. I am now capable of dealing

with different sort of customers, and how to be patient while doing so. Besides this I also gained

knowledge about banking which I previously lacked and many more products being offered by

the bank. So in a nutshell, this internship gave me the experience, which would no doubt boost

my confidence to work in future.

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PROFIT AND LOSS ACCOUNT

for the year ended December 31, 2010

US $ in“000”

2010 2009

Markup/interest income 263497 221979Provision against non-performing loans and advances net 35903 37546Provision for diminution in the value of investments net 15057 12505Provision against lending to financial institutions (3277) 3331Bad debts written directly -------- -------

215814 168590Net markup/interest income

Non markup/interest income

Free commission and brokerage Income 29090 32146Dividend income 13058 16322Income from dealing in foreign Currency 4887 9045Gain/los sale of securities 16541 12880Unrealized loss on revaluation Of investments -------- ---------Classified as held for trading/-Net (279) (94)Other income 2933 427Total non-markup/ interest income 66230 70726

282044 239316Non markup interest expenseAdmin exp 131271 111863Provision against other assets net 3866 (670)Provision against off b/s ------- --------Other charges 832 800Obligation Net (1030) (301)Worker Welfare fund 2974 2552Total non-markup interest exp 137913 114244Extra ordinary/unusual items -------- --------Profit before tax 144131 125072Taxation current 48591 42099Prior Year 4367 --------Deferred (4873) (1573)

48085 40526Profit after tax 96046 84546Unappropriated profit brought forward 142444 101336Transfer from surplus /- Net Of Tax 421 384Profit available for Appropriation 238911 186266EPS (Basic and Diluted) 0.120 0.110

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BALANCE SHEET

as at December 31, 2010

US $ in “000”

2010 2009

ASSETS Cash and balances with treasury banks 313807 280785Balance with other banks 15210 24890Lending to financial institutions 333837 187875Investments 1125210 981066Advances 2817421 2528110Operating fixed assets 147751 132173Deferred tax assets --------- 12218Other assets 213138 206189

4966364 4352906LIABILITIESBills payable 37540 37540Borrowings 472671 472671Deposits and other accounts 3903951 3903921Sub-ordinated loans 65253 65252Deferred tax liabilities --------- 40Other liabilities 131283 131374

4610720 4087530NET ASSETS 355644 265376Share capital 84400 76727

2010 2009Reserves 78142 68906Unappropriated profit / (loss) 144803 101336

307345 246969Surplus on revaluation of assets 48299 18407

355644 265376

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PROFIT AND LOSS ACCOUNT

for the year ended December 31, 2010

US $ in“000” HORIZONTAL VERTICAL

2010 2009 2010 2009 2010 2009Markup/interest income 263497 221979 118.7% 100% 100% 100%Provision against non-performing 35903 37546 95.6% 100% 13.6% 16.9%loans and advances netLoan for diminution in the value 37546 12505 120.4% 100% 5.7.% 5.6%of investments net 21143 59.2% 100% 5.64% 13.4%Provision against lending to -3277 3331 -98.3% 100% -9.1% 10.3%financial institutions 3331 --------- --------- --------- 1.5% --------Bad debts written directly -------- --------- --------- 100% -------- --------

Net markup/interest income 215814 168590 128% 100% 81.90% 75.94%Non markup/interest incomeFree commission and brokerage Income 29090 32146 90.4.% 100% 11.0% 14.4%Dividend income 13058 16322 80.0% 100% 4.95% 7.53%Income from dealing in foreign Currency 4887 9045 54.0% 100% 1.85% 4.07%Gain/los sale of securities 16541 12880 128.4% 100% 6.27% 5.80%Unrealized loss on revaluation Of investments --------- --------- --------- 100% -------- --------Classified as held for Tranining -279 -94 296-8% 100% -0.10% -0.04%Other income 2933 427 686.8% 100% 1.11% 0.19%Total non-markup/interest income 66230 70726 93.6% 100% 25.1% 31.86%

239316 178519 134.1% 100% 107.0% 107.8%Non markup interest expenseAdmin exp 131271 111863 117.3% 100% 49.8% 50.3%Provision against other assets net 3866 (670) -------- 100% 1.46% -0.30%Provision against off b/s (301) 2265 -13.3% 100% 0.14% 1.44%Other charges 832 800 104.0% 100% 0.31% 0.36%Obligation Net -1030 -301 342.1% 100% -0.39% -37.6%Worker Welfare fund 2552 2552 116.5% 100% 1.19% 1.15%Total non-markup interest exp 137913 114244 120% 100% 52.3% 51.4%Extra ordinary/unusual items -------- -------- -------- -------- -------- --------Profit before tax 144131 125072 115.2% 100% 54.6% 56.3%Taxation current 48591 42099 115.4% 100% 18.44% 33.6%Deferred -4873 -1573 -309.7% 100% -1.84% -0.70%

48085 40526 118.6% 100% 18.24% 18.25%Profit after tax 96046 84546 113.6% 100% 36.45% 38.0%Unappropriated profit b/f 14244 101336 140.56%100% 54.05% 45.6%Transfer from surplus 421 384 109.6% 100% 0.16% 0.37%Profit available for Appropriation 238911 186266 128.2% 100% 90.6% 83.9%

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Horizontal Analysis of Profit and Loss Account

DESCRIPTION:

Income:

The income of the ABL shows that increasing trend as compare with 2009, in 2010 which shows

the 18% increase. Due to decrease provisions, the profitability of the bank increases a lot. There

is 0.4% decrease in provision against loan and advances, 20% increase in provision for

diminution in value of investment.

In non mark-up / interest income, there is dual response mean in some heads there is little bit

increase trend and in some heads there is decrease trend. The major increase is in gain on sale of

securities that is 618.4% as compare with previous year.

Expense:

The expenses of the bank are increasing as operations of the bank increases. The expenses have

been increasing with an increasing rate last year. The expenses increased 120% in 2010 as

compared to 100% increase in 2009.the major increase in Worker Welfare fund that is 16.5%

more then the last year.

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Vertical Analysis of Profit and Loss Account

DESCRIPTION:

The vertical analysis of income side of income statement demonstrate that major factor of the

total income is interest earned which contributes more than 108% in 2009 and 107% in 2010,

whereas fee, commission and brokerage income makes major part of total non-mark up interest

income and its proportion to total non-mark up interest/income is decrease from last year, here

we observe that total non mark up income is decreased in 2010, which is good sign for the bank

as bank is earning more from its primary functions.

Non- mark up interest expensed is the major component of total expense in 2009, and in non

mark up expense admin expenses contribute 50%. The interest expensed in the major part

because the deposits of the banks shows increase and as bank has to pay on interest bearing

liabilities.

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BALANCE SHEET

as at December 31, 2010

US $ in “000 HORIZONTAL VERTICAL

2010 2009 2010 2009 2010 2009ASSETS Cash and balances with treasury banks 313807 280785 112% 100% 6.32% 6.5%Balance with other banks 15200 24890 61.1% 100% 0.31% 0.6%Lending to financial institutions 333837 187875 177.7% 100% 6.7% 4.3%Investments 1125210 981066 114.7% 100% 22.7% 22.5%Advances 2817421 2528110 111.4% 100% 56.7% 58.1%Operating fixed assets 147751 132173 111.8% 100% 3% 3.04%Deferred tax assets --------- 12218 ---------- 100% -------- 0.3%Other assets 213138 206189 103.4% 100% 4.3% 4.7%

4966364 4352906 114.1% 100% 100% 100%LIABILITIESBills payable 37540 35048 107% 100% 0.8% 0.81%Borrowings 472671 329744 143.4% 100% 9.5% 7.6%Deposits and other accounts 3903951 3531216 110.6% 100% 78.6% 81.1%Sub-ordinated loans 65253 29653 220.1% 100% 1.31% 0.7%Deferred tax liabilities 22 ---------- ---------- ---------- 0.004% --------Other liabilities 131283 161869 81.1% 100% 2.6% 3.7%

4610720 4087530 112.8% 100% 92.8% 94%NET ASSETS 355644 265376 134% 100% 7.2% 6.1%Share capital 84400 76727 110% 100% 1.7% 1.8%Reserves 78142 68906 113.4% 100% 1.6% 1.6|%Unappropriated profit / (loss) 144803 101336 142.9% 100% 3% 2.33%

307345 246969 124.5% 100% 6.2% 5.7%Surplus on revaluation of assets 48299 18407 262.4% 100% 1% 0.42%

355644 265376 134% 100% 7.2% 6.1%

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Internship Report

Horizontal Analysis of Balance Sheet

DESCRIPTION:

Assets:

The assets of the ABL have been growing very fast since its inception. This growth is the result

of the massive expansion policy the management has been following ever since the inception of

ABL.

One of the important ingredients of any commercial bank‘s growth is increase in most of current

assets that is a good sign as it increases their liquidity. Let us first have a look at the liquid assets

of ABL.

In earning asset, the lending to financial institutions is decreasing whereas the other investments

and advances continuously. However the investments have increased in 2010. Increase in the fix

assets might be due to branch expansion.

Liabilities:

As regards the liability section of the balance sheet chief liability of commercial bank is its

deposits it generates from its customer. The ratio of increase in deposits in 2010 is 10.6%, it is

concluded that the deposits are increasing but at decreasing rate. The other encouraging ratio we

observe in liability section is borrowing from financial institution which shows increase in 2010

by 43.4% from previous year and but which proves financial strength and its credit worthiness in

the money market.

Equity:

Bank‘s Share Capital as well as reserve is increased in 2010 as compare to 2009. But there is

increase in inappropriate profits by 42.9% from previous year that shows a good sign for investor

as well as for the organization’s repute.

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Vertical Analysis of Balance Sheet

DESCRIPTION:

Assets:

After analyzing the Balance Sheet, we can see that there is little bit change in cash balance and

balances with other banks; cash balance is 6.32% in 2010 and 6.5% in 2009 and balances with

other banks is 0.31% in 2010 and 0.6% in 2009.which shows not a stability in organization’s

management. Lending to Financial Institutions is continuously increasing from 4.3% in 2009 to

6.4% in 2010.Investment is also increased by 0.2% from previous year. There is an increase in

percentage of lending to financial institutions and in investments is a good sign. There is a

decrease in advances by 1.3% from previous year.

Liabilities:

On liability side, borrowings from financial institutions are also increased that is very negative

sign as far as banks financial health is concerned. Borrowings are increased 7.6% in 2009 to

9.5%% in 2010. More over there is a decreased in deposits from year 2009 to 2010. Deposits are

decreased from 81.1% in 2009 to 78.6% in 2010.

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RATIO ANALYSIS

DEBT TO EQUITY RATIO:

= Total Debt / Equity

Year Total Debt/Equity Debt to Equity Ratio

2010 4610720 / 355644 = 12.96

2009 4087530 / 265376 = 15.40

Debt to Equity Ratio

11

12

13

14

15

16

2010 2009

Year

Debt to EquityRatio

Debt to equity of this firm is decreased in current year because the ratio of this bank is

less to the previous year.In simple words, this bank is working well in current year as

compare to the previous year.

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EQUITY CAPITAL TO TOTAL ASSET:

= Average Total Equity / Average Total Assets

Year Avg T.E/Avg T.A Equity Capital to T.A

2010 355644 / 4966364 = 7.16%

2009 265376 / 4352906 = 6.09%

Equity Capital to T.A

5.50%

6.00%

6.50%

7.00%

7.50%

2010 2009

Year

Equity Capital toT.A

This ratio provides the owner a cushion against the risk of using Debt and leverages. The higher

ratio the more cushion is there and vice versa. Here we can see that the ratio has increased as

compared to the last year which shows a lot of improvement in the shares that are floating in the

market. There is another name of this ratio it is also called fund to total asset ratio.

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RETURN ON TOTAL ASSETS:

= Net Profit After Taxes / Total Assets

Year NPAT / T.A Return on T.A

2010 84546 / 4966364 = 1.7%

2009 49342 / 4352906 = 1.13%

Return on Total Assets

0.00%

0.50%

1.00%

1.50%

2.00%

2010 2009

Years

Return on T.A

Through that ratio we measure the ability of bank to utilize its assets to create profits by

comparing profits with its assets that generating profits. In 2010 this ratios is 1.7% as compare to

2009 ratio is 1.3%. The reason is behind is that ABL income is exceedingly Increased in 2010 as

compare to previous year.

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RETURN ON EQUITY:

= Net Profit After Taxes / Shareholder’s Equity

Year NPAT / S.E ROE

2010 84546 / 355644 = 23.77%

2009 49342 / 265376 = 18.6%

Return on Equity

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2010 2009

Years

Return on Equity

Return on Equity is informs us about the return for shareholders. That ratio shows increase

Return on Equity. Increase in shareholders could effect on this ratio because the reason is that

income is increased. The 2010 ratio is 23.77% as compare to 2009 value of 18.6%.

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NET PROFIT MARGIN:

= Net Profit After Taxes / Interest Income

Year NPAT / I. Income NP Margin

2010 84546 / 221979 = 38.1%

2009 49342 / 157853 = 31.3%

Net Profit Margin

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

2010 2009

Years

Net Profit Margin

The Net Profit Margin is a measure of the bank’s profitability of interest income after taking

account of all expenses and income taxes. It tells us a bank’s net profit per dollar of interest

income. The net profit margin in 2009 is 31.3% and in 2010 this ratio is increased, that is 38.1%

because net profit after taxes and interest income is increased in current year as compare to

previous year.

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DEPOSITS TIMES CAPITAL:

= Average Deposits / Average Shareholder’s Equity

Year Avg Deposits / Avg S.E Deposits Times Capital

2010 3903951 / 355644 = 10.97t

2009 3531216 / 265376 = 13.31t

Deposit Times Capital

02468

101214

2010 2009

years

Deposit TimesCapital

The ratio of deposits times’ capital concerns both depositors and shareholders. To some extent, it

is a type of debt/equity ratio, indicating a bank’s debt position. As I define above, more capital

implies a greater margin of safety, while a larger deposit base gives a prospect of higher return to

shareholders, since more money is available for investment purpose. The overall this ratio is very

good in last two years. But this ratio is decrease in 2010 than 2009 from 10.97t to 13.31t

respectively.

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Internship Report

LOANS TO DEPOSITS:

= Average Total Loans / Average Deposits

Year Avg T.L / Avg Deposits Loans To Deposits

2010 2817421 / 3903951 = 72.2%

2009 2528110 / 3531216 = 71.6%

Loan to Deposit

71.20%

71.40%

71.60%

71.80%

72.00%

72.20%

72.40%

2010 2009

years

Loan to Deposit

Average total loans to average deposits are a type of asset to liability ratio. As we know, loans

make up a large portion of the bank’s assets, and its principal obligations are the deposits that

can be withdraw on request. This ratio is increased from 71.6% in 2009 to 72.2% in 2010, but

it’s a negative sign from debt point of view because it’s indicating the increase in risk.

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SWOT ANALYSIS

SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats.

This is a careful evaluation of an organization’s strengths to avail an opportunity by overcoming

its weaknesses and phasing out all he threats to its survival in order to grow and survive.

STRENGTHS

This branch is provided with 4 telephone connections, which makes communication

easier with different branches.

The branch is linked through a online network of 779 BRANCHES, thus enabling them

to serve customer in better way.

This branch is provided with latest computer which increases the speed of computer

work.

The branch is situated in Gulgasht main market. This location provides a competitive

edge to the Branch.

The branch is situated in commercial area were business activities perform greater as

compare to residential area. Thus it increases the number of customers.

The Branch has the most experienced and the least experienced staff, which is a good

combination of experienced heads and exuberance of youth.

The control of manager is an effective.

The organizational culture is cooperative.

Allied Bank Limited was the first Muslim bank to be established in Pakistan.

The bank is passionate about high performance, innovation and delivering value to its

customers.

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Internship Report

WEAKNESSES

The Branch has a good staff combination on the basis of experience, but their training

capabilities are not up to the requirements of the fast changing banking environment.

The customer’s Long-term contacts are not maintained with customers.

The technical training of the staff is negligible e.g. in case of the absence of computer

there is no alternate trained personal who can record the daily transactions.

The organization is very much mechanistic and provides no flexibility to

encouragecreativity.

The lower staff is non cooperative as compared the lower staff of other branches.

The discretionary powers of manger are very low to offer more incentives and value

added services to its customers.

There is a lack of commitment and professionalism on part of the employees. The staff is

always in a hurry to leave the bank as soon as possible. They were also observed to

starting their operations comparatively late.

The level of technology management in the branch is very low. The technology available

is not maintained well mainly because of the lack of technically trained staff. For instance

the scanner, in spite of its availability has not been used for scanning the specimen

signature cares.

The layout of the branch is such that it is hindering the flow of work on one hand and the

documents are lying exposed which can be easily taken away by any person entering the

branch.

Delays were observed because the prescribed procedures are not followed.

Though ABL, Gulgasht Colony Branch in the area it lack specialized counters or

facilities such as:

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Investment advisory counters;

Leasing or leasing arrangements;

Credit services.

No efforts are made to recover the outstanding debts.

There is no facility for receiving and satisfying complaints and inviting suggestions.

Foreign currency accounts are not entertained. The main reason for these negative

responses that the staff is not trained in dealing foreign currency accounts.

In back offices the employees are less so it creates more work burden on the existing one.

ABL is not enhancing the new obligors.

OPPORTUNITIES

A considerable portion of the labor force of the area is serving overseas. Their families

can be encouraged to use ABL as channel for remittances.

The Internet facility in the area provides an opportunity to ABL to get Online.

The Bank has the basic infrastructure, which can facilitate the online process.

The location of the ABL, Gulgasht Colony Branch itself provides an opportunity to ABL

to get more and less cost deposits.

As a result of different steps taken by the government regarding the betterment of the

economy, small borrowers are attracted to get the financing and start business. So, the

ABL has an opportunity to attract the customers by giving them more attracted schemes.

They have wide area network in all over the Pakistan, if ABL can made it possible the

fast delivery of funds from abroad through online banking, it can cover the major market

of Pakistan which still is capturing by “Hundi”.

THREATS

The biggest threat to the operational success of the branch is the better competitor’s

services. Many private sector banks are offering higher rates of return to customers than

Allied Bank Limited.

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Cannibalization of profits is yet another threat to the success of Bank Gulgasht Colony

Branch. The branch of Allied Bank are located very close to the Bank Islami & Meezan

Bank Gulgasht Colony Branch. All these branches are taking away each other’s

customers.

One of the biggest to the ABL, Gulgasht Colony Branch is the increasing rate of

dissatisfies customers. Most of these customers were observed to be dissatisfied with the

delays in their servicing.

The greatest threats to the performance of ABL, Gulgasht Colony Branch are the

decreasing morale of employees. They feel that they are not provided with bonuses. They

are not given proper attention to have a say in the annual meetings. The proxy forms are

signed on their behalf without letting them know.

High-pressure interest groups are developing which poses a constant threat to Allied

Bank.

The biggest threat in the banking sector is the continuous downfall of the country

economy since the last few years.

Other treat which ABL faces is the policies of the Government; tax charged on the

income of banking co. is much than the income of other companies.

Also the threat of new entrants exists there.

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PEST ANALYSIS

POLITICAL:

Pakistan despite all international and public perceptions, today is a functioning democracy and

gradually there is a change in complexion and composition of legislatures with more educated

people and women (27% of National Assembly and 17% of Senate) entering into politics

Similarly it helps in designing best strategies to implement that could support the revival of bank

industry. Like in the era of nationalization banks had to suffer as other industries that’s why that

impact is still found in the performance of this industry.

ECONOMICAL:

Although banking sector development is important at the early stage of economic growth,

general liberalization presuming a homogeneous bank role may not necessarily promote growth.

The estimated cost structure indicates that state-owned commercial banks are large enough,

while development financial institutions and private banks can expect to obtain cost-saving

advantages by expanding their operations. Since scope economies are significant, portfolio

diversification generally increases bank profits. In addition, privatized banks are the most

efficient, followed by foreign and private banks. Public banks are the least efficient.

SOCIAL:

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Banks always helped people in improvement of living condition of poor people in various forms

like giving loans to poor for starting business or directly providing them the instruments that

could enhance their living conditions. Similarly Allied Bank always tried to provide the needy

people loans on soft terms and also helped to coupled with enhanced spending on social and

005/2006 has together begun to pay some dividends as evident from the reversal in poverty

incidence trends and social indicators.

TECHNOLOGY:

The Banking sector in Pakistan has experienced a rapid transformation. Just about a decade back

this sector was limited to the Sarkari (read nationalized) and cooperative banks. Then came the

multi-national banks, but these were confined to serving an elite few. One could regard the past

as the 'medieval ages' in the banking industry, wherein every branch of the same bank acted as an

independent information silo and multi-channel banking (ATMs, Net banking, Tele-banking, etc)

was almost non-existent. Today banks have to look much beyond just providing a multi-channel

service platform for its customers. There are other pressing issues that banks need to address in

order to chalk-out a roadmap for the future. Here are the top three concerns in the mind of every

bank's CEO. The customer is interested in how he/she can benefit from the bank and its products.

That's why it becomes necessary for a bank to differentiate its products from the others. Some of

the ways in which differentiation can be introduced are through specialization, new products, and

increasing the added value.

RECOMMENDATIONS

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The physical facilities or the layout are the most fundamental features in an organization, which

the customers observe in forming an opinion, perception or idea about the organization. The

physical facilities in the branch are not up to the mark.

The lighting system must be improved and all the out of use lights must be replaced.

Newspaper should be provided to the customers to avoid the pain of waiting long.

A cash counting machine can help reduce the time spent in counting cash.

Deposits are the main source of funds for commercial banks. Therefore, the priority of every

bank is to increase the number and amount of deposits. The key to successful business does not

lie in simply attracting new customers. The real success is to maintain in the old customers and

attract new customers at the same time because retaining a customer is more difficult than

attracting new customers.

Every depositor should be given equal importance and there should be no differentiation

between customers so that every customer feels himself as much important as the other

customer.

The attitude of the staff should be friendly to all the customers. The customers should be

taken to the concerned person or guided friendly if the concerned person is not available.

The attitude of “that’s not my job” should not exist anymore.

The Bank should provide information to all the present and potential customers relating to the

new products, services, some service’s fee structure and other matters, which are likely to affect

the customers. It should be made sure that all the customers have access to this information.

Conveying information is of no use, unless, there is some feedback from the customers.

Complaint and suggestion box should be maintained at the door of the Bank where the

customers can point out drawbacks in the customer’s services and put forward their

suggestions on his improvement of the services quality of the Bank.

CONCLUSION

The critical analysis ABL in the previous section is the representation of its past, mirror of its

present, and an insight into its future. The past data of ABL Gulgasht Colony Branch enabled me

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Internship Report

to study the organization in a historical perspective and understand the nuisances in the banking

operations. Study of he present of ABL helped me evaluate the organization in comparison to its

future and competitors

This organization is well managed with organized structure and efficient employees. Due to its

growth in online branch system, it has bright future in Financial Organizations.

REFERENCE

Annual Report of ABL 2010

www.abl.com.pk

Mr.Fazail Sabri (Branch Manager)

Miss Najma (CSM)

Mr.Amjad (Clearing Department)

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