internship rpt on abl

7/31/2019 Internship Rpt on Abl

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INTERNSHIP REPORT

Title Page

Name of the organization

ALLIED BANK OF PAKISTAN

Internee Name: - AQSA ASLAM

Student ID: -MC080404357

Session: -2008 - 2011

Submission Date: - 11th Feb 2011

Virtual University of Pakistan


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REPORTON

ALLIED BANK LIMITED


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DEDICATION

I dedicate my report to The Holy Prophet Muhammad (S.A.W.) The greater Social

reformer and guide in every sphere of life. I also dedicate this to my Beloved Parents forall their love & attention which has made it possible for me to make it up to this point,

also my whole family they always back me in every step of my life as well as the

Internship Advisor Mr. Zeeshan Afzal who bestowed me with the courage, thecommitment and the awareness to follow the best possible route, by his unmatchable

style and by best possible training.

Acknowledgment

In the name of Allah, the most merciful and beneficent

All praise to Almighty Allah, the most Gracious and compassionate. Who created theUniverse and bestowed mankind with the knowledge and blessings of Allah be upon the

Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and

Sunnah, the everlasting source of guidance and knowledge for humanity.

I also pay my gratitude to the Almighty for enabling me to complete this Internship

Report.Words are very few to express enormous humble obligations to my affectionate Parents

for their prayers and strong determination to enabling me to achieve this Task.I am thankful to all my staff members of ABL Link Road Model Town I found every one

helpful and co-operative for providing the theoretical and practical knowledge about the

function and operation of the bank.

I take this opportunity to record my deep sense of gratitude and appreciation to myInternship Advisor one of my favorite Mr. Zeeshan Afzal for his constant

encouragement and inspiring guidance with his Wisdom.

I also appreciate the cordial co-operation from all my concern Managers in the differentdepartments of Allied Bank limited especially Mr. Zulfiqar bukhari (CSM ) wise

manger and other departments management for providing me requisite information andknowledge for compilation of my complete Internship.


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Executive summary

I was directed by my university to do the internship of 6 to 8 month after the completion

of 3rd

semester. For this purpose I joined Allied bank limited on 30th

SEP, 2010 as aninternee Allied bank limited it has been good experience to work with the Allied bank

limited. The purpose to join Allied bank limited was to get the experience andprofessional skills.The salient features of this report are Allied bank limited background, its vision, missions

and goals of the bank.

Allied bank is amongst the leading commercial bank in the country and has always

played a pioneering role in introducing innovative, technology based banking services therole played by its human resources is highly valued both in terms of their skills and

dedication in implementing unique banking services .

My work is about to share all the experience which I gain during my internship period. It

is related to general operations and management of Allied Bank Limited Link RoadModel Town branch, Lahore.

During my internship program, I get exposure of practical life and organizations doingbusiness in real life and know that how and what sort of changes in InformationTechnology brings in management activities.

As it was very first experience of work so they rotated me in different departments

account opening, clearing ,issuance of cheque book, ATMs, lockers, online transaction,remittances, advances, during the internship I kept on consulting my internship advisor

every week.

During my internship I have learned many new things in spite of the knowledge gained at

university and also came to conclusion that education alone is not enough, practicaltraining in every field is crucial to become a successful manager.

Finally, this report is a nutshell comprises of my practical learning, recommendations

and suggestions.


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TABLE OF CONTENTS

DESCRIPTION PAGE #

Introduction to Banking sector .. 7

History of Allied Bank Limited .. 8Services as competitive tool . 10

Products . 11

Business Volume . 13

Future Plans OF ABL 14Competitors 15

Organizational Structure 16

No of Employees . 17Board of Directors 17

Main offices of ABL .. 18

Department 19Comment on Organizational Structure 25

Plan of your internship 25

Introduction to ABL (link Road Branch) 27

Starting and ending dates of internship 27

Names of Dept in which Training Occurs 28Training Program . 29

Description of Dept 32Branch Hierarchy chart 34

Critical Analysis 37

Risk faced by ABL .38

SWOT Analysis . 40Conclusion 43

Recommendation .. 44

References & Sources 44


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Introduction to banking Sector (ABL)

Banking sector has following objectives:

Main objective of banking sector is to earn profit. To provide services to their customers and assistance in the development of

commerce and trade.

To provide assistance in the development of the commerce and trade industry. Focus on blending skills and experience towards creating and enabling

environment.

Core focus is to inculcate a culture of collaboration intended to deliver worldclass customer service.

Allied bank also have another responsibility to give service to their communities. Itwatches the growth and development of his community especially the commerce and

business of the area.

HISTORY OF ALLIED BANK LIMITED

ABL was established in Lahore before independence in 1942 Allied Bank Limited is oneof the largest banks in Pakistan with more than 700 Branches connected to an online

network. In August 2004 the Bank was restructured and the ownership was transferred to

Ibrahim Group.

OVER VIEW:

ABL is the first Muslim bank established in the territory that later on became Pakistan. It

was established on December 3, 1942 as Australasia Bank at Lahore with capital of 0.12

million. At that time the chairman was Kh. Bashir Baksh. ABLs story was one of thededications, commitment to professionalism and adoption to changing environmental

changes.The bank history is divided into many phases. During 25 years of united Pakistan the

bank advanced East Pakistan was separated in Australasia Bank lost its 50 branches and a

lot of capital as well. Never the less the growth remains steady. In 1974 all the banks

were nationalized including Australasia Bank. The small provincial banks were mergedinto Australasia Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan

Limited. Then it started its operation as public sector financial institution


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SERVICES as COMPETITIVE TOOLS

Services are the main tool through which the bank acquires new customers and retainthem. These services are not merely meant to earn profit, but also to keep pace with the

changing needs of the customers and modern days banking

Trends.This branch provides many services to its customers which really serves it as itsCompetitive strategy. All the performance of a bank mainly depends on the services

provided by its customers, better and higher the services greater the performance. All the

new customers and the already existing ones really get attracted by the performance ofthe branch.

These services include:

Home Remittances Remittances Hajj Services Utility Bills Lockers Commodity Operations

Along with these core services provided by the bank, online banking and Internet banking

serve as supplementary services.

These products and services are mainly directed towards customer satisfaction and ABLuses it for the customer satisfaction as their competitive strategy. Some of the many

benefits availed by the customers are mentioned as follow in banks own style.

1. ONLINE FACILITY:Now the bank gives you the absolute convenience of instant access to a host of bankingfacilities and personalized services 24 hours a day, 7 days a week, 365 days a year.

Simplify the way you bank and experience a higher level of convenience.

2. UTILITY BILLSThis branch collects utility bills as electricity and telephones through cash and cheques.Utility bill payment facility pays your telephone, electricity bills through ATM of the

Branch without having to wait in long queues outside your branch

PRODUCTS

PRODUCTS OFFERED BY ABL

Branch offers products towards the customers. The following products are available for

The customers:

Lockers Cheque Books Allied Cash+ Card


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

LOCKERS:

ABL Link road branch given its customers the facility of lockers, so that they can secure

their important things in the lockers, for example gold, important documents or anything

which a person wants to keep safely. ABL lockers are available in three different sizeslarge, medium, and small on a yearly fee. There is no need to open account to get the

facility of lockers.

Cheque books:

Cheque book issued according to the nature of account .There are two types of cheque

books, the first one is of 25 leaves and the second one is of 50 leaves. For current account50 leaves book we issued and for saving account there are 25 leave books.

The charges will be rupees 125 for 25 leaves and 50 leaves cheque book charges are 250rupees. Cheque book issued after one week for opening of account, the first cheque book

is free and if customer wants to reissue next cheque book.

Allied Cash+ CARD:

Allied Bank ATM Card also referred to as "Allied Cash+", can also be used as a debit

card at merchant locations/service outlets having ORIX POS Terminals and displaying

the ORIX logo.

Pay order (PO):

Pay Order is a bank instrument issued by a bank in Pak rupees at the request of acustomer. Pay order is for local use. Pay order is surety for the person that cheque will

not be bounce back. The person whom we giving the pay order will have the surety to get

the money. It is cancelled at customer request.

Serial

NoLocker

Size

Annual Locker

Rent

1 Small 1500

2 Medium 2000

3 Large 4000


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

Demand Draft (DD):

Demand draft is one of the most popular banking instrument in the trade circles to

settle business deals and transferring funds from one place to another.It is for outstation. DD is also a form of crossed cheque, in this remote person has the

surety that cheque given to him will not be bounce back.

Call Deposit Receipt (CDR):

CDR is normally for bid. It is the surety that if you will not get the contract then u

should have your money back. CDR is not transferable. CDR is not cancelled at thecustomer request. It is only cancelled by the person who is favoring the CDR.

Online Banking:

Allied Online Banking is a unique service being offering from Allied Bank.

Through this service, your account in Allied Bank is available to you from any of ourbranches countrywide. No matter where you are in the country and whichever branch

your account is maintained at, you can have your cheque cashed at any of our 784 online

branches located in 250 cities. You can also use the service, from any branch, to depositcash for instant credit into your account or any other account in Allied Bank. Similarly,

the account-to-account Funds Transfer facility is also available for instant remittance

Your cheque drawn from a remote branch for credit into a beneficiarys account or

encashment of a specified amount can also be presented by a third person at any branch.Allied Online provides a secure, efficient and convenient facility for making payments to

beneficiary accounts from any of our branches countrywide. Corporate customers

requiring fund collection or a disbursement facility can use it for cash managementservices.

Link Networks:

In continuation of ALL TIME BANKING SERVICES, with the country wide network of

779 branches, ABL has also enhanced ATM services by joining the 1-LINK SWITCHwhich has following member banks.

AL BARAKA ISLAMIC BANK ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LIMITED ATLAS BANK LIMITED BANK AL HABIB LIMITED BANK ALFALAH LIMITED BANKISLAMI PAKISTAN LIMITED


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

Business Volume:

Year over year, Allied Bank Limited has been able to grow revenues from 1.6B to 3.6B.Most impressively, the company has been able to reduce the percentage of sales devoted

to cost of goods sold, SGA expenses and income tax expenses. All of these improvementsled to a bottom line growth from 4.1B to 7.1B.

Share capital.

The authorized capital of ABL, as at 31 December 2010 was PKR 5,000 million, dividedinto 500million ordinary shares of PKR 10 each. The decision to increase the authorized

share capital from2, 000 million to 5,000 million was taken by the Board of Directors of

ABL in the AGM.On behalf of the Board of Directors, we are pleased to present the financial results

of Allied Bank Limited for the nine months period ended September 30, 2010.

Future Plans of ABL:

Some future plans of ABL are as follows:

Installation of ATMs in every major city of the country. Computerization of all the branches through out the country. In the first instance

a target of 250 branches has been set. Among them about all the branches ofLahore and Karachi have been computerized. Now the next target is Multan

Circle

Shares Investment Scheme i.e. Bank will trade in shares of different renowncompanies to earn profit.

Purchase of Sick Units, rebuild them and make them profit earning institutions.


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Competitors:

There are many competitors of ABL which are discussed below

Muslim Commercial Bank Bank Alfalah Askari Bank Limited United Bank Limited

Organizational Structure:

PRESIDENT

ASSEISTANT VICE PRESIDENT (AVP)

SENIOR VICE PRESEDENT

SENIOR EXECTIVE VICE

PRESEDENT

CEO

EXECTIVE VICE PRESEDENT (EVP)


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OG-I OG-II OG-III

SUPPORTING STAFF

No of Employees:

There are 18000 Employees working in different departments of Allied Bank

Limited.No bank can be expected to operate efficiently unless all employees within a department,

division or section know:

From whom they are to receive the work they are to do. What they are supposed to do with the work after they receive it. How they are supposed to handle the operation of item. When they are supposed to do work, perform the operation. To whom they give the item or function after finishing

BOARD OF DIRECTORS

The people who draw the picture of the organization on the broader canvas of strategy

and planning, the pioneers of prosperity and world of wisdom that paves the path to long

term success

Following are the names of the Chairman, Chief executive officer, and Board of

Directors of ABL.

1. CHAIRMANMOHAMMAD NAMEEM MUKHTAR

2. CEOMR KHALID A SHERWANI (PRESIDENT & CEO)

3. DIRECTORSPERVAIZ IQBAL BUTT

FARRAKH QAYYUMABDUL AZIZ KHAN


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AHEIKH JALEES AHMAD

MUHAMMAD WASEEM MUKHTARSHEIKH MUKHTAR AHMAD

TASNEEM M. NOORANAI

NAZRAT BASHIR

MUBASHIR A. AKHTAR

4. EXECUTIVE COMMITTEEMr. Khalid A. Sherwani President & (CEO)

Mr. M. Naveed Masud Senior Executive Vice PresidentMr. Akhter Ali Khan Head Credit

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

Main Offices of Allied Bank Limited

Today, Allied Bankoperates a total of283 domestic branches/offices, including its

subsidiaries Allied Savings Bank(20 branches), Allied Leasing and FinanceCorporation, and the PNB Life Insurance, Inc.-formerly New York Life Insurance

Philippines .

There are main two offices of Allied bank limited;

Central Office Karachi Registered office Kashmir Road Lahore

DEPARTMENTS

Following are the departments of ABL:

1 Cash department / Remittances2 Clearing department

3 Online facility provider department

4 Utility bills paid department

5 Advance and credit department

6 Hajj services

ONLINE FACILITY PROVIDER DEPARTMENTOnline banking is a wide spreading concept in banking sector.Online banking facilities are available for the customers to maintain their accounts

Cash deposit for immediate credit to remote branch Remote cheque Encashment from the branch Instant funds Transfer between any two online branches Remote balance inquiry and statement of accounts.


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This department mainly performs the basic operation of fund transfer and other functions

facilitating the transfer and enquiries. I observed the basics of the department.

Utility Bills

All branches of the Bank collect utility bills of electricity, gas and telephones. Forconvenience of the customers, the branches collect Utility Bills during banking hours and

also in the evening banking on all working days. Bills can be paid through Cash or

Cheques.Consumers may drop bills with crossed Cheques into a drop box available at the

branches under "Cheque Drop-in" system.

Utility Bill payment facilitycan also be availed through any of the ATMs withouthaving to wait in long queues outside the branch.

CLEARING DEPARTMENT

There are two types of clearing:

Inward clearing Outward clearing

CLEARING CHEQUES:This department receives the cheques and other negotiable instruments drawn on local

branches of other banks. NIFT has a clearing house, in which cheques and other

negotiable instruments are brought by each local bank representative and the claims ofeach bank on other is offset and a settlement is made by the payment of difference.

Clearing system is helpful for both the customers and bank in saving money, time and

labor.

OUTWARD CLEARING:Suppose a customer deposits cheque in ABL link road branch, drawn on Habib BankFaisal town branch. Then the representative of ABL will take this cheque to the Clearing

house in SBP, where representatives of all banks gather daily. Now in first clearing this

cheque will be exchanged with the representative of Habib Bank. In the second clearing,if the cheque is honored, he will tell it to the ABL representative and so the SBP credits

the account of ABL and debits the Habib Bank through the clearing account. This is

called Outward Clearing.

INWARD CLEARING:Suppose a person deposits a cheque in Habib Bank of any branch, drawn on any ABL

branch; let it be the ABL main branch. The representative of HBL will exchange this

cheque with the ABLs representative in the first clearing in Clearing House. If the

cheque is honored by the ABL main branch then SBP will debit and credit the respective

accounts. This is calledInward Clearing.


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PAK ACCOUNT:All the inter-bank adjustments will be affected through head office account calledPakaccount. 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 totalamount 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 besent to the head office.

INTER-BRANCH CLEARING AND COLLECTION:Branch receives the cheques and other negotiable instrument drawn on other branches of

the same bank. Main branch of ABL handles the transfer and delivery of cheques.

The same clearing cheque procedure will be adopted in the transfer deliveries except in

case when the facility of SBP is not availed. In case of cheques drawn on one branch andcollected by another branch for the credit of its constituents, the branch delivering the

cheques will send a consolidated debit advice. If any cheque is returned unpaid, a creditadvice will be sent to the branch returning the cheque.

COLLECTION CHEQUES OR OBCs:The collection cheques/OBCs are the cheques, which we have cleared for ourCustomers when some of our customers receive the cheque that is of some other city.

These types of cheques are known as collection cheques or the other name we gave them

is OBC.

PROCEDURE OF COLLECTION:On the cheque there is written that the person To Whom It May Concern can cash it from

the certain branch of the bank in favor of which its drawn. The customer presents thecheque to his branch, which sends a document called OBC to the bank that has to make

the payment. The clearing department of the receiving bank follows a prescribedprocedure and credits the amount to sending bank through a central account maintained

by each bank with SBP.

ABL sends the cheque to its own branch if available for collection from the payers banks

otherwise the OBC is directly sent to other bank

MAINTAINING REGISTER for OBCs:I maintain the register in which we have the serial no for OBCs with other details like

amount, date, sending and receiving branches codes. Every OBC is entered in that

register on daily basis.If OBC is not cleared due to any fault, we take it back as a return but after that we call theconcerned person and we also write name of the person


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REMITTANCES

Allied Bank can transfer funds to the remote part of the country for payment/credit to the

customer himself or a third party, through Telegram/Telex/Tele fax for payment/credit onthe same/next day. Telegraphic transfers can also be made abroad in Foreign Currency

HAJJ SERVICES:

The Bank serves the intending pilgrims by helping them in performing this religious

obligation. The bank provides the forms and other related services. However, the termsand conditions for accepting the Hajj forms from intending pilgrims are in accordance

with the Hajj Policy announced by the government, each year. Hajj applications are

available with all branches during Hajj season, immediately after the Government of

Pakistan announces the Hajj policy

Advances

The bank can make the advances in the following three ways;

1. Overdraft

2. Loan3. Cash Credit

1. OVERDRAFT:Under such arrangement the customer is allowed to withdraw the amount excessive fromhis balance. But the limit of amount is sanctioned by the manager and given for a fixed

period.

2. LOAN:When the bank makes the advances in a lump sum, to be repaid in lump sum or in forms

of installments with interest at any future date, is known as loan. These loans may be of

short and long term.

3. CASH CREDIT:These advances are made against the security of the goods which may be made like in the

form pledge or hypothecation. The bank credits the borrower's account with the amountmaking as loan. The amount can not be withdrawn in lump sum. While interest is paid on

the amount drawn from the bank.


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Cash Department

Cash department deals with the cash, which either comes in the Bank or goes out side the

Bank. Cash can be in any form of currency.

SOURCES OF THE CASH:There are different sources through the cash inflows the Bank. These sources are as

follows: Deposits Demand Draft and telephonic transfer commission Prize bonds, FEBCS, NDSCS etc..

DEPOSITS:

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

DEMAND DRAFT AND TELEGRAPHIC TRANSFERCOMMISSION:These are the second major sources of the cash inflow of the Bank. When the Bank issues

the DDs and TTs on the behalf of customer then the Bank takes certain charges ascommission. These DDs and the TTs can be issued in any currency on the demand of the

customer.

PRIZE BONDS, FEBCS, NDSCS etc:Prize bonds, FEBCs, and NDSCs are other sources of cash. These instruments are sold to

the general public and cash is received from them. Though this cash is ultimatelytransferred to SBP but still the Bank has to manage this cash


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Comments:

ORGANIZATIONAL STRUCTUREOrganizational structure determines the manner and extent to which roles , powers and

responsibilities are delegated , controlled and coordinated , and how information flowbetween levels of management . This structure depends entirely on the organizationsobjective and strategy chosen to achieve them .In a centralized structure, the decision

making power is concentrated in the top layer of the management and tight control isexercised over departments and division.

www.abl.com.pkOrganizational structure - Wikipedia, the free encyclopedia

Plan of Your Internship Program

This internship program is so important to boost our carrier in a practical form.

Virtual university policy to do internship is really a rewarding effort and Allied Bank

Limited providing the opportunity to work under such a practical environment which can

be so important in my coming future professional life.

Its my honor that I got the opportunity to take part in the internship program of

Virtual University of Pakistan.

Introduction of Allied Bank Limited (ABL)

Bank Profile

Type Private

Industry Banking, Finance and Insurance

Bank Logo

Founded As Australasia Bank, 1942,

Lahore Pakistan
http://www.abl.com.pk/http://en.wikipedia.org/wiki/Organizational_structurehttp://en.wikipedia.org/wiki/Organizational_structurehttp://www.abl.com.pk/


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Products Financial Services

Headquarters central office Karachi, Salaar centre

Lahore.

Net income 1.325 billion

Revenue 18.699 billion

Employees Unknown

Website http://www.abl.com


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Introduction of Allied Bank Limited (Link Road Branch)

Starting and Ending Dates of Internship

I started my internship training program in Allied Bank Limited (Link Road Branch)

from 30 SEP 2010 to 22 NOV 2010. During my internship I learned a lot of things whichcan be helpful in my future life. Overall it was a great experience of my training in ABL.


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

Training

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

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

Training Program

My internship program is from 30 SEP 2010 to 22 NOV 2010. During this internship I

learned a lot of things about Banking. In the branch I perform different types of duties in

different department. I was rotated in different departments in different weeks, so that Icould get the experience of different tasks in the bank. But my duties were always

supervised by the employees of the branch. All the employees of the Bank was so

cooperated and explain all me about all departments. The environment of bank is nice

and I didnt found any difficulty working in every department because all the department

heads were very co-operative.

Description of Departments

Remittance & ATM:

Remittance is the transfer of funds from one place to another or from one person to

another. It is an important service provided by bank to customers as well as noncustomers. Since it is not a free service it is a source of income for banks.

In this Department online transfer of money, issuing of cheque books, issuing of ATM,

Remittances slips etc.

ONLINE TRANSFER :Online transfer is a very interesting department as well. Any person who wants toTransfer some amount from minimum 500/- to 500,000/- can transfer from our branch to

another branch of ABL within minutes. The fee charged for this service for within city is

Rs: 175/- and inter city is 375/-.The only thing which I had to do was to fill the slip ofonline transfer in which the most important columns were:

Applicants name Name and code of remote branch


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

Whenever a person opens an account with branch, for this purpose he has to fill a

requisition slip, and then after about six days of opening of account he gets his cheque

book, which comes from Karachi. And first cheque book is free of cost.

There are two types of cheque books:

The first type of cheque book has 50 leaves. The second type of cheque book has 25 leaves.

There is also another requisition slip inside each cheque book, which is used for the

purpose of reissuence of a new cheque book if the leaves of first cheque book startfinishing. There is written the title of account holder, his account number, the stamp of

Allied bank and the signatures of the authorized person on every page of cheque bookand also on the requisition slip.

Clearing Department:

The word clearing has been derived from the word clear and is defined as,

A system by which banks exchange cheques and other negotiable instruments drawn on

each other within a specific area and thereby secure payment for their clients through theeach other within a specific area and thereby secure payment for their clients through the

Clearing House at specified time in an efficient way is called clearing

CLEARING HOUSEIt is a place where cheques are presented, collected from bank branch. It is one of the

services provided by NIFT to other commercial banks. NIFT acts as a clearing house .

NIFT:

NIFT stands for NationalInstitutionalFacilitation Technologies. Clearing House of

SBP has shifted a tiresome part of its work to a private institutionNamed NIFT. NIFT collects cheques, demand drafts, Payorders, Travelers Cheques,etc. from all the branches of different banks within city through its carriers and send themto the branches on which these are drawn for clearing. After the branches approve the

instruments drawn on them, NIFT prepares a sheet for each branch showing the number

for instruments and amount in its favor and drawn on it and sends it to each branch.A similar sheet for each bank is also sent to clearing house of SBP where accounts of

banks are settled in the same manner clearing. Instruments which are drawn on the


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branches of some other bank of the same city or of the same area, which is covered by a

particular clearing house, are processed for clearing.

Types of Clearing

Outward clearing:

When cheque is received two copies of voucher are prepared one copy andinstruments along with clearing stamp, realization stamp, add list and two vouchers of

clearing summary are sent to NIFT in a sealed bag. And clearing records are recorded in

clearing register.

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

Advances / Loans:

The basis function of the bank is to accept deposit and lend money to the borrowers

against a spread so to be able to give some profit to the depositors as well as to earn profit

for the bank.While lending the money to the borrowers the bank should observe the following lending

principals:

Safety PrincipleIt means that the lended money will come back along with interest or service

charges etc. The borrower should not invest the money borrowed in unproductive orspeculative business.

Liquidity PrincipleThe money which has been lended to the borrower should be returned to thebank on demand or as per repayment schedule provided by the client. The sources ofrepayment should be clear and definite

Purpose PrincipleThe purpose of the advances should be legitimate and productive. It should

been sured that the banks, funds are not being utilized for speculative business. The credit

restrictions by the central bank should not be violated & it should also be ensured. It is

always beneficial for the bank to finance for short-term requirements.

Operation Department / CSO:

In this Department Deposit slips, Account related information, Balance information can

be included.

Deposit slips:


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Deposit slips can be different for current and saving account. Deposit slip means

the slip for deposit of cash and also the deposit of cheque. If we want to deposit cash in

our account, we can fill the slip and deposit it in our account. If there is a cheque, then we

describe all the essentials of cheque and fill the slip.

Remittance Slip:If we have payment from out side the country then remittance payment slip is

filled.

Remittance Payment slip includes:

Transaction Code Applicant Name Address Beneficiary Name

Country Name Signature Phone number

Account Balance:If a customer wants to check his balance in account first he can fill a form then

balance can be known. The following requirements can be done,

Account Number Customer name Statement of account Signature

Account Opening Requirements:

Following Requirements can be fulfilled before opening an account. After the form is fill

all the details can be send to headquarter for activation of account.

Signature card Requisition Slip The main account opening Form Acknowledgement Know your customer Profile

If a person wants to use ATM there is

ATM application formThese all forms can be filled by the customer and following things are required by the

customer.

A copy of NIC


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A copy of job evidence or student ID card numberDetailed Description of tasks Assigned to me

Tasks:

During my 6 to 8 weeks internship I was rotated in almost all departments of Allied

Bank Limited (link road branch). During this I can learned a lot of things which I

discussed. My senior staff was very co-operative and told me about all the departments ofbank .

Service Quality Department:

In this Department I spent about one week. In this department I learnt how to fill

up the deposit slips for the transfer of amount to an account. Also I learnt how to fill up

forms for payment order, demand draft and also the slip used for the online transfer ofamount. In this department also the remittance slips are filled for the person who have

payment from outside the country and can get the verification slip. If any person wants to

have his account statement then there is also a form for the record of it. In this department

I also learnt how to fill account opening form.

Clearing Department:

I spent about three weeks in clearing department. I observed the whole

process carried down in clearing department. In this department two types of clearing is

done .Inward clearing and Outward Clearing. I learnt all the process of inward clearing.

In inward clearing first of all date, amount and endorsing stamp can be checked,and then it can be posted. Then advice can be prepared and handed to NIFT person.

In outward clearing first of all I learnt how to stamp all cheques and postingprocedure and making advice.

In this department I also learnt how to make intercity and OBC.

Remittance and ATM Department:

In this department I learnt how to make payment order, demand draft. Also Ilearnt how to transfer the amount online to other branches. In this Department, also the

remittance of payment can be done .In this department I learnt how to issue cheque books

and ATM cards.

Advance Department:

I spent one week in this department. I learnt the procedure how to sanction tocustomers. All loaning procedure cam be done by this department .I also come to know

how many types of loans, also all the requirements that a customer has to carry for loan

purpose learnt in this department.


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Bank Hierarchy Chart:

BRANCH

MANAGER

CUSTOMER SERVICES

MANAGER (CSM)

CASHIER TELLER

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LOWER STAFF

Structure of ABL Link Road Branch

Number of Employees:

There are 15 Employees working in ABL branch. Every employee wants his bestwork with ABL.

I can describe how many employees working in different department of allied link road

branch.


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INTERNSHIP REPORT

1. Manger2. Vise manger3. Remittance department head4. Operation Department head5. Cash counter ( 4 members )6.

Billing department (2 members )7. Clearing Department ( 2 members )

Functions of Bank:

Finance system of bank:Financial position of the ABL can be judged from different financial heads that on which

level it stands, with respect to the other banks.

Total Assets:Total assets of the bank increased from Rs. 72 (billions) in 1997 to Rs. 89 (billions)in1998, thereby increasing at the rate of 23.3% over the last year. This is the highest rate ofgrowth for the last five years, and better than other banks...

Advances:Advance, net of provision, have increased from Rs. 36 (billions)in 1997 to Rs. 43

(billions) in 1998 thus increasing by 18% during the year. Though the advances to

private sector have declined country-wide yet in case of Allied Bank share of credit toprivate sector remains unchanged as compared to previous year.

Investments:Investments have increased from Rs. 20 (billions) to Rs 26 (billions)in 1998. Thus

increasing by 27% during the year under review. It is encouraging to observe that during

last two years the priority of the management has remained to increase investments after,

of course, meeting the genuine credit needs of our customers.

Deposits:The peer banks floated various high cost deposit mobilization schemes during theyear. However, Allied Bank, depending upon its quality of services and experienced field

force successfully mobilized additional deposit of over Rs. 13 (billions) during the year

reflecting a growth of almost 21% over the previous year.

Equity:Equity has remained one of the main concerns of the management. In order to increase

equity, the bank issued 100%right shares in 1995 and 25% in 1996, also ploughingback profits through bonus shares of25% each in 1995 and 1996. As a result of

revaluation of the domestic land and buildings of the bank the reserves of the bank have

increased by almost Rs. 1.5 (billions) thereby increasing the equity of the bank almost100%. Now the total equity stands at 3.002 (billions).


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Profitability:Pretax profit of the bank increased from Rs. 29 million in 1997 to Rs. 170 million in

1998. Thereby reflecting a growth rate of almost 490%. The main reason for this profit

increased was rise in yield from 387 million in 1997 to Rs. 769 million in 1998.

Other types of Finance:

SEASONAL FINANCE:Seasonal Finance facility is allowed against pledge of produced Crops harvested in thatparticular 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 areallowed for livestock (goats, sheep and cattle), poultry, factory including social forestry

and fisheries (inland and marine excluding deep sea fishing).

TRADE FINANCE:Allied Bank provides highly efficient trade finance services for import/export business tohis clients through large number of authorized branches where trained and motivated staff

is available to handle the business on behalf of customer.

RUNNING FINANCE:It is a short-term loan allowed by the bank for a period of one year. The running finance

account can be operated on daily basis. The mark-up is recovered on the products of daily

outstanding balance. The running finance is suitable for meeting day-to-day financialneeds of the business

DEMAND FINANCE:It is disbursed in lump sum or in accordance with the agreed disbursement schedule and it

is repayable as per the agreed installments, which could be monthly, quarterly, biannual

or annual.

CORPORATE FINANCE:

Allied Bank Limited commenced lease operations upon amalgamation with IbrahimLeasing Limited. Facilities include leasing for machinery, commercial vehicles and

equipments. The Bank provides lease facilities for balancing, modernization, replacement

and expansion schemes to corporate and commercial clients in all industrial enterprises.Leasing is a popular mode of financing due to its distinctive features like tax shield,

preserve working capital, easy documentation and less processing time.

Lease applications are entertained at all Bank branches in Pakistan.


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Sources of Funds:

Funds can be a major source in banking sector because without funds / money

we can not run our business and our bank can be run into loss, so funds can be collectedby various sources:

80% funds are of directors 20% funds are from market

Other Sources Of Funds Are:

By deposit of cash in bank Through cheques Through Remittance Profit of pervious year

Allocation of Funds:Funds can be allocated in various departments such as,

Loans to Customers Salary to Employees

Critical Analysis:

The critical analysis ABL is the representation of its past, mirror of its present,

and an insight into its future. The past data of ABL enabled me to study the organization

in a historical perspective and understand banking operations. Study of he present of

ABL helped me evaluate the organization in comparison to its future and competitors.The data obtained from the analysis of its present and future in combination with my

professional studies resulted in some suggestions and implementation plans, which can

help to increase the profitability and operational success of the ABL

PHYSICAL FACILITIES:The physical facilities play an important role in any organization. The physical facilitiesof ABL relates to its environment between its staff and customers. ABL tries to make

good impression to his customers by providing better facilities.

AVAILABILITY OF STAFF:

The existing staff in the Bank is overburdened due to the non-availability of more staff.Staff in the branch must be in proportion to the customer has so as to expedite the

workflow, avoid overloading of staff and remove the customers grievances arising

mainly due to delay in workflow.


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RISK FACED BY Allied bank limited

Security system:

Bank security systemscan be comprised of several levels andcomponents. These systems are in place to protect you and your money, as well as the

bank and their assets. Many of us take for granted the amount of security that is actually

in place.

Cash security:

Cash is a main thing for bank. Cash security should be very tight. It involvesrisk. ABL has not any well system of cash security. The safes of cash should not b visible

to customers.

Lockers security:

Lockers play an important role in the security of customers assets which they

place in lockers. Customers use the lockers for the security of their assets so ABL has toensure customers about their lockers security.

Cameras Security:

Cameras should be placed every where in branch. Security done by cameras is

the best way as to record for the evidence in case of any mishap. The room where

computers will be placed should have a tight security to avoid any mishap.

Guard security:

Guard security should be very tight. ABL has to hire guards after verifying

about them. The guards should be high alert all the time and check all the customers

before getting enter in the branch. Guard security is necessary for bank in order to avoid

any mishap.

Management Information system:

ABL has the largest online network of110 branches and 80 ATMs. But ABL has faced

large risk in online network due to networking problems in ABL system. It can affect itsMIS system.Also MIS risk includes the wrong entries done online. Such as if any entry is done

mistakenly and the amount is transferred to any other account. The employees should do

entries with proper care and vigilance in order to avoid from any blunder. The entriesshould be properly done and the amounts should be transferred to the respective accounts.

MIS risk should be avoided by proper re-checking of all the entries done.


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Employee Integrity:

1. Maintain all books, data, information and records withIntegrity, reporting in an accurate and timely manner all transactions / reports.

2. Avoid all such circumstance in which there is personal interestConflict, or may appear to be in conflict, with the interests of ABL or its customers.

3. Not use their employment status to seek personal gain from those doing business

or seeking to do business with ABL, nor accept such gain if offered. They shall not

accept any gift, favour, entertainment or other benefits the size of frequency of whichexceeds normal business contacts from a constituent or a subordinate employee of ABL

or from persons likely to have dealings with ABL and candidates for employment in

ABL.

4. Not accept any benefits from the estate of, or a trust created by a customer, or

from an estate or trust of which ABLs Company or business units is an executor,administrator or trustee.

Systemic RiskAriskthat is carried by an entire class ofassets and or liabilities. Systemic risk may apply

to a certain country, or to the entire globaleconomy. Systematic risk affects a broad range

of securities. Systematic risk can be mitigated only by being hedged. But even aportfolio of well-diversified assets cannot protect against all risk. Economic down fall of

ABL relates to systematic risk. It is a routine based risk.

Unsystematic Risk

Unique and unpredictable risks faced by ABL bank, such as a labor strike, natural

calamity or litigation. It can be removed when a portfolio uses diversification.

Risk Mitigation:

Systematic reduction is the extent of exposure to a risk and/or the likelihood of itsoccurrence. Also called risk reduction.

ABL should use proper methods for lowering down the effect of risks that can be caused

by their management. They should improve their MIS risks for online system. Security

system if ABL is not good. They should insure their lockers for security in case of anyuncertain loss. ABL should train their employees on daily basis. ABL should upgrade

their networking system for the online transactions.


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Loaning Procedure

In this Process of loan granted to customers there are some steps which are discussed

below:

Leasing company can give application to CA dept and then CA (credit application) give details to risk dept and then it can be returned to leasing company whichsend it to CAP dept (Credit admin dept ) which issues DAC ( Disbursements

authorization certificate ) and then payment can be given to customer in case ofloans .

Recovery of Loans:If the loans are not returned within their maturity period, then Bank adopts the following

process.

First of all the Bank will personally request the customer to repay the loan.

After this, first legal notice is sent to the customer. If the customer does not respond tothis first legal notice, then after fifteen days the second legal notice is sent to him.

In the third step the Bank sue the customer in the court. Two types of courts have been

setup under two difference ordinances, especially to hear and decide recovery suits i.e.1. Special Courts (banking)2. Banking Tribunals

Special courts were established under the banking companies (recovery of loans)

ordinance 1979 to hear allowed interest-based system of Financing.

SWOT ANALYSIS

A SWOT analysis must first start with defining a desired end state or objective. A

SWOT analysis may be incorporated into the strategic planning model. Strategic

Planning has been the subject of much research

Strengths: attributes of the person or company those are helpful to achieving theobjective(s).

Weaknesses: attributes of the person or company those are harmful to achievingthe objective(s).

Opportunities: external conditions those are helpful to achieving the objective(s). Threats: externalconditions which could do damage to the objective(s).

Source (http://en.wikipedia.org/wiki/SWOT_analysis )
http://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysis


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STRENGTH

It has approx. 800 branches all over Pakistan. All branches of ABL are online and they are connected to each other. ABL is one of the five biggest banks in Pakistan. The salary of ABL employees is good and no one can be worried about salary

packages.

The market image of ABL is very good that it can cooperate with its customersvery well and treated them well.

ABL is deploying best banking software T24. Best management. ABL is a corporate sector bank, and most of giant companies are its clients. Experienced employees.

WEAKNESSES

ABL is not in Islamic bank. ABL deals not much in consumer banks. Old employees of ABL are in huge number that they cannot work effectively. Mostly employees of ABL are not trained regularly that they can relate to new

system and complaints of customers.

Advertisement of ABL is not good to attract customers in large number.OPPORTUNITIES

ABL has an opportunity to attract the customers by giving them attractiveschemes.

Consumer banking can be beneficial for profits.


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INTERNSHIP REPORT

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

THREATS

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

downfall become a hindrance.

CONCLUSION

According to my evaluation, ABL is included in one of the biggest banks in Pakistan.

Almost all the ABL branches are online which provide benefit to customers for their

online money transfer to any other city to any other account or their own respectiveaccounts. ATM cards help customers to withdraw cash from any ATM Machine. ABL is

going to introduce new software system (T-24). ABL has also a kid account which is

called ALLIED RISING STAR. In this account ABL gives many benefits and profitsfor the kids. Allied business account also has many benefits for their customers. ABL

also facilitate their customers by sanctioning loans to them. ABL has very strong

management in all of its branches and they will satisfy to all the customers who have

some problems. The management should solve all the problems very effectively. ABLinvest his money in multi-national and big companies to earn a large profit ratio.

As far as the conclusion of my internship report in my training prospective It was great

experience to work with the good knowledgeable peoples and gets lots of professionaltechniques which surely will help in my future professional life. I really thank VU

(Virtual University of Pakistan) for giving me such a great platform.

RECOMMEDATION

My recommendations in the light of critical and SWOT analysis are that ABL shouldimprove their security system by making cash safes invisible to customers and also the

security of safes should b tight, and the branch guards should be high alert all the timeand should check all persons while entering in branch. I suggest that ABL should

improve their marketing measures, advertisements in the promotion of different schemes.ABL should deal in consumer banking. It can be benefit for customers as well as bank.

ABL should improve their networking system that customers can not wait for a lot of

time when their branch is down. Also they should improve their ATM service thatcustomers will not let back when they need cash for their need. ABL should also try to

hire some new and young employees so that they can be benefited by their suggestions.


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REFERENCE & SOURCES

www.abl.com.pk

www.google.com

www.abl.com.pk/financials.asp

Mission, vision retrieved

https://www.abl.com.pk/aboutus/financial_report/report_2009/

annual_dec09/Board of directors retrieved

https://www.abl.com.pk/aboutus/board_directors/

Sources:

Training program (Mr. Zeeshan Afzal)

Functions of bank (CSM)

I also take help from articles; some seniors ex report which only take as idea and somesources I also mentioned other sources in internship report time to time.

I really enjoyed a lot during my preparations of this Internship Report

Thanks VU giving me such opportunity.
http://www.abl.com.pk/http://www.google.com/http://www.abl.com.pk/financials.asphttps://www.abl.com.pk/aboutus/board_directors/https://www.abl.com.pk/aboutus/board_directors/http://www.abl.com.pk/financials.asphttp://www.google.com/http://www.abl.com.pk/

internship rpt on abl

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