Professional Documents
Culture Documents
Executive Summary
I did my internship in Allied Bank Limited, Raiwind road branch from 20th July to
30th of august. As it was my very first experience of work so they rotated me in
different departments like Account opening, clearing, issuance of ATMs, cheques
books and lockers, online transaction. The staff made me learns the basics of
different departments in this way. I faced a lot of difficulties during the span of
learning but I got full attention and support from the staff, and they really made
me learn a lot. During the internship I kept on consulting my internship advisor
every week. At the end of internship the manager gave me the internship letter
and evaluated my overall performance on an evaluation form prescribed by our
university.
Vision
Core Values
Integrity
Excellence in service
High performance
Innovation and growth
ABL was established in Lahore before independence in 1942 Allied Bank Limited
is one of the largest banks in Pakistan now with more than 757 Branches in over
300 cities offering real time online banking. . In August 2004 the Bank was
restructured and the ownership was transferred to Ibrahim Group.
Before partition the Hindus got flourished in the field of trade and commerce and
it was thought that muslims can not compete then because they can not save
and invest , and they do not have the caliber to operate in the field of banking .
To respond these remarks by hindus , Khawaka Bashir Bux established the first
Muslim bank in December 1918; by the name of Australasia Bank Limited. The
initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5
million by the end of first full year of operation, and by the end of 30th June 1947
capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.
Australasia Bank was the only fully functional Muslim Bank on Pakistan territory
on August 14, 1947.It was severely hit by the riots in East Punjab.All the
branches in India were closed and new Branches were opened in Karachi,
Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later
its network spread to Multan & Quetta . Despite the worst conditions prevailing
during 1947 to 1948 Australasia made a profit of 50,000 .It lost 51 branches
because of separation of East Punjab , but still it didn’t give up and kept on
working hard with full determination and got success.
In 1974, the Board of Directors of Australasia Bank was dissolved and with the
union of Lahore Commercial Bank and Sarhad Bank it was renamed as Allied
Bank. This phase was remarkably a very successful one for ABL, 116 new
ABL got so much profit from 1974 to 1991 that branches increased from 353 to
748. Deposits rose from Rs 1.46 billion, and Advances and investments from Rs
1.34 billion to Rs 22 billion during this period. That’s why it opened 3 branches in
UK as well.
ABL entered into a new phase in 1991, as a result of the policy of privatization,
ABL became the very first bank to be owned and managed by it’s own
employees .Even after privatization ABL proved itself and Allied Bank’s capital
and reserves were Rs. 1.525 (Billion), assets amounted to Rs. 87.536 (Billion)
and deposits were Rs 76.038 (Billion). In this way ABL enjoyed an inevitable
position in financial sector of Pakistan and became one of the best banks in our
country.
IBRAHIM (2004)
ABL IN 2005:
ABL was formally listed and trading of the shares of the Bank commenced
W.E.F. the following dates.
ABL IN 2007:
Allied bank’s progress was further acknowledged when the bank was included in
the top 1000 banks of the world. This goes to show the improvement in Allied
bank’s policy, procedures and services during the past few years .
IN TODAY’S WORLD:
ABL is now one of the largest banks in Pakistan with a network of 757 in over
300 cities and towns offering real time online banking. The bank leads the way by
having the largest network of 450 ATM’s in more than 145 cities and towns
across Pakistan. Currently ABL possesses 932nd position in the world. The
management has a vision to move forward and to be one of the world’s leading
banks.
o AA:
o Very high credit quality. AA ratings denote a very low expectation of credit
risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.
o A1+:
o Obligations supported by the highest capacity for timely repayment.
The rating reflects ABL’s good performance prospects emanating from its
extensive outreach, sound capital structure and an improving asset quality.
While seeking to strengthen it’s infrastructure and control environment, the
Mamagement intends to withstand in an increasingly competitive environment
through achieving diversification in loan book and leveraging the extensive
outreach to expand its retail universe both for credit expansion and low cost
deposit mobilization.
BOARD OF DIRECTORS:
Following are the names of the Chairman, Chief executive officer, and
Board of Directors of ABL:
CHAIRMAN:
DIRECTORS:
Organizational Chart
CEO
Senoir Vice
President(SVP)
Executive Vice
President(EVP)
AssistantVice
President(AVP)
Supporting staff
Manager
Customer Service
Manager (CSM)
MTO (Acct opening MTO (ATM & MTO (Clearing MTO (CD
Officer) Cash Book Officer) Officer) Incharge)
Cashier Teller
SWOT ANALYSIS:
MICRO FACTORS:
The strength and weakness are the internal factors of the organization; they are
also known as micro factors.
EXTERNAL FACTORS:
The opportunities and weakness are the external factors, and are also known as
macro factors.
Both these micro and macro factors really effect the working of an organization,
but the only difference is that micro factors are under the control of the
organization where as the macro factors are not under the control of the
organization it self.
By doing SWOT analysis of the organization the present and future conditions
and status of the organization can be evaluated. To run an organization it is very
important to know the strengths of that organization so that they can be made the
competitive advantage of that firm against its competitors. Same is the case with
weaknesses that by knowing them a firm can try to overcome those weaknesses.
And by knowing the opportunities and threats of a firm or an organization, that
organization can make plans for its future. It can avail the opportunities and avoid
the threats.
So following is the SWOT analysis of ABL from my view and the knowledge I
have about ABL.
STRENGTHS:
ONLINE FACILITY
ABL is providing an online facility to its customers, through this facility customers
can send or transfer cash or cheques to any other account in any other branch of
ABL within seconds. It also provides the facility of cash withdrawal and balance
inquiry from a certain account of any other branch of ABL through cheques.
SECURE BANKING:
The online banking facility provides less chances of fraud. Because the receipts
of any online transaction are given to customers at the time transaction takes
place and also can be checked any time. To make it much more secure the NIC
copy of the person is also submitted at the time of online transaction but those
customers who also have their accounts in the same branch do not need to
submit the copy of NIC as their copy is already attached with their account
opening forms.
FOREIGN CURRENCY:
ABL also provides its customers the facility of foreign exchange; people can also
open their accounts in foreign currency. Customers are also given the facility of
money exchange on current rates. The head office also provides the foreign
currency account holders the facility of the current rates of foreign exchange
VARIETY OF PRODUCTS:
ABL provides a variety of products to its customers. ATM, DD, TT, PO, CREDIT
CARDS, TRAVELERS CHEQUE are its main products. Customers have a lot of
variety of accounts; they can invest in any account of their choice keeping in view
that are they salaried persons, businessmen, or students etc. It also gives the
facility of collection of amounts to its customers.
LOCKERS FACILITY:
ABL provides the facility of lockers in its all branches. It is one of those banks
which is offering this facility in all of its branches.
ABL also provides the customer care centre facility to its customers. ABL has a
toll free number on which the customers can call anytime, its free of cost , so that
customers can contact the bank whenever they need any sort of help or
guidance.
At Allied bank the customers the person who has more than one account can
have the facility of the same account number only the suffix is changed. This
facility provides the customer with easy remembering of the account number.
ACCOUNT OPENING:
At Allied bank it’s very easy to open an account just an introducer and a copy of
NIC is required. Customer just needs to fill up account opening forms and can
PAID LEAVES:
The employees can avail the one month leave facility in an year and 36 medical
leaves per year with full salary so that its employees can have some relaxation.
SUPPORTIVE ENVIRONMENT:
ABL provides its customers a very supportive environment, customers are given
the foremost priority, even the staff helps all of its colleagues and all staff
members like to share the workload with their colleagues.
EMPLOYEES’ REPLACEMENT
In every branch of Allied bank the back up of every employee is there in case of
emergency if some officer is not available at the bank, some other person will
back him up. That person is always well familiar with the responsibilities of that
officer.
SECURE ENVIRONMENT
Cameras are installed in all the branches of the bank to ensure security of its
customers and employees. Also security guards are available through out the
day. Cameras are installed in front of the cash counters. These cameras are
switched on all the time. The branch manager can see all the activities while
WEAKNESSESS
LATE PROMOTIONS:
Against the schedules specified by the bank, employees are promoted after a
long period of time. And from my view its one of the biggest weaknesses of ABL.
Allied Bank has still not got the edge where the consumers become loyal to its
products and services. Mostly customers become its customers out of no reason
than request from a personal banker. And talking about consumer banking,
though credit cards awareness in our middle class society has gradually
improved but not up to the point where they can compare the features that one
Bank is offering and other is not. Truth must be said, most customers do not even
know the points behind the term “interest free days”. The point is, consumers do
not know of the product being offered so how can they rely on the product.
MANUAL WORK:
ABL is still relying on a lot of manual work. As compared to other banks now a
days ABL is still using a lot of manual work instead of software’s. Most of its
recording are kept in form of hard copies and maintained by its employees in
manuals. It really takes a lot of time and efforts for maintaining the data manually.
OPPORTUNITIES:
ABL has also ignored the sector of car financing, which is a very important
financing nowadays. Many people nowadays buy cars through car
financing but ABL does not have this facility. If it starts car financing then
definitely many people will get attracted towards this scheme and
definitely ABL will be able to earn a lot as well and many customers will
also get attracted in this way.
THREATS:
COMPETITORS:
The main competitors of ABL are BANK AL-FALAH, FAYSAL BANK, PRIME
BANK, MCB. Due to tuff competition with these banks ABL is forced to sanction
loans at less interest rates, so that to attract the customers. And because of
these low rates it earns less. The threat of these competitors is a very big hurdle
in the way of success of ABL.
POLITICAL INSTABILITY:
CHARGES BY GOVERNMENT:
Government has increased the taxes and charges on all the services of finance
and banking sector, because of these increased charges ABL has to increase the
charges on every service to the customers, which is really affecting the working
of ABL and all other banks as well. As government keeps on revising the taxes on
continuous basis ,which is not at all in the interest of the banking sector.
Sudden fall in the trade, industrial sector and stock exchange market has also
adversely affected the working of banks a lot. Decreased per capita income,
unemployment, inflation, un favorable balance of trade recession and boom are
the source to the slow progress of the banking sector.
POLICIES OF ABL:
COMPETITIVE STRATEGY
TARGET MARKET
The target market of ABL is both the Retail banking and the corporate banking.
All the salaried persons, house wives, retired people, labors and all those type of
people who have an average amount of savings are included in retail banking.
Where as the big business men and big investors, financers, and those
customers who take huge amounts of loans and fiancé are included in corporate
banking, simple all those customers which are included in corporate sector.
PEST Analysis
Economical
Social
Recent high growth trends coupled with enhanced spending on social and
poverty programs that rose from 3.8% of GDP in 2001/2002 to 5.05% by
Technology
ABL provides many remarkable services to its customers which really serves it as
its competitive strategy. All the performance of a bank mainly depends on the
services provided by it to its customers, better and higher the services greater
the performance .All the new customers and the already existing ones really get
attracted by these core competencies of the ABL. The most prominent service
offered by ABL, which differentiates it by other banks is the Online transaction
facility provided by ABL. ABL is that one bank which has the largest network all
over the country to provide this facility; this service is provided in each and every
ONLINE SERVICES:
Why should we go to the bank if we have the online facility that is , access to the
bank online.
PRODUCTS:
ABL has given its customers the facility of lockers, so that they can secure their
valuable things in the lockers, for example, gold, any important documents, or
anything which a person wants to keep very safely. ABL lockers are available in
three different sizes large, medium, and small on a yearly fee. Locker holders
need not have an account in the bank. The customers get back the security fees
when they close their locker facility by the bank.
The bank has already informed its safe deposit locker holders through half yearly
statement of accounts as on 30-06-07 that the bank has arranged insurance
cover at its own cost subject to the terms and conditions of the insurance policy
for the losses sustained and discovered by the reasons of damage, destruction
or loss by fire, burglary and locker breaking.
CHEQUE BOOKS:
Allied bank’s ATM Debit card, also referred to as Allied Cash+, can be used to
withdraw cash and may also be used as a debit card at merchant locations /
service outlets having ORIX POS terminals and displaying the ORIX logo.
Allied Cash+ offers you the privilege of using over 2000 ATM’s all over Pakistan
including our largest ATM network of over 450 ATM’s. Through this card you can
have an experience of Cashless shopping at thousands of merchant locations.
Get instant cash and check balances at over 2000 ATM’s nationwide. Here is
what they have to offer:
1 LINK NETWORK:
In continuation of ALL TIME BANKING SERVICES, with the country wide network
of 735 branches, ABL has also enhanced ATM services by joining the 1-LINK
SWITCH which has following member banks.
The card holders of ABL are thus able to access member banks ATM’s for
balance inquiry and can withdrawal simultaneously vice versa.
The card holder’s member banks can access ABL’s ATM machines.
Every ATM which is connected with 1-LINK SWITCH has a logo which indicates
that 1-LINK SWITCH member can access the ATM.
Remittances:
TELEGRAPHICAL TRANSFER:
Banks are offering various types of products related to funds transfer in Pakistan,
assuring the fastest delivery of funds around the globe, through telex, swift and
other electronic media.
ABL with its largest network spread all over the country is sharing quite a
sizeable funds transfer business in the domestic market.
Bank has recently moved to optimize the use of electronic media to handle funds
transfer with speed. Even the shift over to Swift is at hand and a network has
been established by Central office.
DEMAND DRAFT:
A draft is one of the most popular banking instrument in the trade circles to settle
business deals and transferring funds from one place to another. ABL has taken
radical steps for a speedy insurance/payment of Drafts through automation and
introduction of a more simplified system based procedure.
Pay Order is a bank instrument issued by a bank in Pak rupees at the request of
a customer to transact payment to a named payee through banking channel.
Generally payments against such cheques (pay orders) are restricted to Payees
account and as such are required to be enrooted through a bank account locally.
Rupee traveler’s cheques are one of the most convenient products launched by
ABL, which has an excellent market response.
ABL as part of it’s commitment to improving customer service has launched its
new ABL VISA CREDIT CARD; it will be in use from the month of august.
All existing ABL MasterCard credit cards will be blocked or inactivated in august
preventing any future transactions on those cards. To assist customers in this
process, ABL will be contacting its cardholders directly and through personal
visits from duly authorized representatives for the purposes of obtaining consent
and other related documentation including copies of CNIC. Any balances
remaining on ABL MasterCard will after compliance with formalities, be
transferred to the new Allied visa credit card to avoid any inconvenience to the
existing customers
All branches of ABL collect utility bills of electricity, gas and telephones. For
convenience of the customers, utility bills are collected by the branches during
banking hours and also in the evening-banking on all working days. Bills can be
paid through cash or cheques. Consumers may drop bills with crossed cheques
into a drop box available at the branches under CHEQUE DROP IN system.
Utility bill payment facility – Pay your telephone, electricity and gas utility bills on
any of the ATM’s of ABL without having to wait in long queues outside your
branch.
ABL offers current account facility for individuals as well as institutions and
commercial customers.
Free online transactions, DD/PO/TT for depositors maintaining average monthly
balance of Rs:25000 (M) and above during the previous month.
ABL offers PLS savings account facility to it’s customers with the following
attractive features.
Free online transaction, DD, TT, PO for depositors maintaining average monthly
balance of Rs: 25000(M) and above during the previous month.
Issuance of Free
DD/TT/PO/OBC/Expression
Rs: 500,000 and above collection
ADDITIONAL BENEFITS:
Allied bank offers the facility for opening Current, savings and Term deposit
accounts. These accounts can be opened in US Dollar, Pound Sterling, Euro,
and Japanese Yen at designated branches.
Allied Munafa Account is a profit bearing checking account with the payment of
profit on a monthly basis. The estimated rate of profit is given below.
SALIENT FEATURES:
SALIENT FEATURES:
SPECIAL BENEFITS:
Alled bachat scheme is a PLS term deposit scheme based deposit scheme
whereby you can double your investment in just 7.5 years.
PREMATURE ENCASHMENT:
No profit shall be paid from the date of issue, if en-cashed before completion of 6
months. In case encashment take place after 6 months, In case encashment
takes place after 6 months, the profit is to be paid for completed half year on the
prescribed rates and 6% for the completed months as per the projected rates.
ADDITIONAL BENEFITS:
LIABILITIES
2007 2006
ASSETS
LIABILITIES
Over all the assets has increased from the previous year the major increase has
been seen in cash and bank balance. Similarly the liabilities has also been
increased in liabilities major increase has been seen in bills payable and deposits
in other bank while share capital has also increased by significant margin.
LIABILITIES
This table shows how much each element is of the total assets. Where we can see
that there is only one significant change in the table that is oin advances where
previously it was 557.15% of the total assets while now it is 52.60% of total assets.
While on the other side increase in the part of investment can be seen in 2007
which is 26.22%.
2007 2006
Mark–up /Return/Interest earned 21,201,422 17,215,507
Mark–up /Return/Interest expensed 10,019,004 6,793,101
11,182,418 10,422,406
Net Mark–up /Interest Income
Provision against non–performing loans and advances –2,712,936 583,305
net
Provision /(Reversal) for diminution in the value of 719 (14,623)
Investments – net 9
Bad debts written off directly 1,187 136,189
Net Mark–up /Interest Income after provisions 8,467,576 9,717,535
NON MARK–UP/INTEREST INCOME
Fee, commission and brokerage income 2,062,677 1,353,888
147,184 193,255
Dividend Income
Income from dealing in foreign currencies 194,879 282,285
Gain on sale of securities 1,439,387 376,792
Unrealized loss on revaluation of investments classified (1,463) (30,180)
as Held for trading – net
2007 2006
Mark–up /Return/Interest earned 123.15% 100%
Mark–up /Return/Interest expensed 147.48% 100%
107.29% 100%
Net Mark–up /Interest Income
Provision against non–performing loans and advances – 465% 100%
net
Provision /(Reversal) for diminution in the value of - -
Investments – net 9
Bad debts written off directly 0.87% 100%
Net Mark–up /Interest Income after provisions 87.13% 100%
NON MARK–UP/INTEREST INCOME
Fee, commission and brokerage income 152% 100%
76.16% 100%
Dividend Income
Income from dealing in foreign currencies 69.03% 100%
Gain on sale of securities 382% 100%
Unrealized loss on revaluation of investments classified - -
Similarly look at the above two tables, we can see in table one that there is
significant increase in Mark–up /Return/Interest expensed while Net Mark–up
/Interest Income has also significantly increased while Administrative expenses
has decreased similarly Provision against off–balance sheet obligations – net
has also significantly decreased from previous year. Table two shows how much
each element is of Mark–up /Return/Interest earned. If we look at the table we
can see that there is significant increase in the part of Mark–up /Return/Interest
expensed while Provision against non–performing loans and advances – net has
also decreased from its previous year while the part of gain on sale of securities
has increased its proportion in Mark–up /Return/Interest earned
RATIO ANALYSIS
The term ratio means a numerical relationship between items or group of items
and is determined simply by dividing one item in relationship by the other. We will
only take such ratios which will help us in analysing and interpreting the current
financial position of the industry. The analysis of current financial is beneficial
both for owners and creditors particularly short term creditors.
WORKING CAPITAL.
Working capital is the excess of current assets over current liabilities. In other
words working capital is the amount of current asset after deducting the current
Although working capital is still in negative but the margin has decreased which
is because of decrease in deposits and other accounts. Here we can see that
working capital has decreased although current assets has increased but in
contrast the current liabilities has also increased but in more proportion that’s
why working capital has decreased which is an alarming sign for the bank.
This ratio has decreased because working capital has decreased which
ultimately lowers this ratio. This means that bank was previously more able to
apy its short times obligations while now this ability has lower down.
It is computed to know the utilization of working capital during the period under
analysis. It is calculated by following formula:
Working Capital Turnover = Net Income
This ratio has increased because the net income changed by a little margin while
working capital has decreased that means that bank utilized its working capital
more efficiently this period.
This relationship shows the current maturity of obligation. It enables the creditor
to get information about there participation in the business. It is computed by
dividing the current liability by total liabilities and multiplied by 100 as shown
below:
Rupees in (000)
Year 2007 2006
Current Liabilities (a) 36,259,099 28,307,699
Total Liabilities & Equity (b) 320,109,723 252,026,776
Relationship of C.L to T.L (a/b)*100 11.32 11.23
This ratio has decreased although current assets and total assets has increased
but the proportion with which they were divided previously has decreased. In
other words it means that previously current assets were in large proportion but
this time it is low.
STABILITY ANALYSIS:
Generally short term creditor are interested in the current financial position of the
business whereas long term creditors and stockholders are much concerned with
the long term financial position of the company..
In order to have knowledge about above points we pursue the following ratios.
This ratio expresses the amount of total investment in the assets that has been
financed by shareholders. It is calculated by the following formulae.
Ratio of Owners Equity to Total Assets = Owners Equity X 100
Total Assets
Year 2007 2006
Stockholder’s Equity (a) 19,878,242 17,687,753
Total Assets (b) 320,109,723 252,026,776
Ratio (a/b)*100 6.20 7.01
The ratio of owner equity of fixed assets of universal leather is shows below;
Rupees in (m)
Year 2007 2006
Stockholder’s Equity (a) 19,878,242 17,687,753
Fixed Assets Net (b) 201,698,950 228,984,765
Ratio (a/b)*100 9.85 7.72
The above table means that there is a bit increase in this ratio which shows that
how much percentage of fixed assets financial by owners. Which means this
year more of owners equity is invested in net fixed assets.
RATIO OF OWNER EQUITY TO TOTAL LIABILITIES
This ratio shows the owners interest in the business. It shows the position of the
shareholders as well as creditors. It is calculated by the following formulae.
Rupees in (m)
Year 2007 2006
Stockholder’s Equity (a) 19,878,242 17,687,753
Total Liabilities (b) 300,231,481 234,339,023
Ratio (a/b)*100 6.62 7.54
This ratio has also decreased because of increase in total liabilities while less
increase in share holders’ portion in the business. It is an alarming sign for the
creditors whether to invest in the business or not.
Fixed Assets
Rupees in (m)
This ratio expresses the turnover of the owner’s equity. It is calculated by the
following formulae.
Ratio of Sales to Owners Equity = Net Income X 100
Owner Equity
Rupees in (m)
As we had a glimpse of owners position above we can see here as well that this
ratio has also decreased where main reason is the decrease in net income.
ABL has signed a card processing agreement with First Data, a global leader in
electronic commerce and payment services. This agreement will enable ABL to
maximize the effectiveness of its consumer banking portfolio by providing
innovative, secure and cost effective solutions with shorter time to market.
Under the terms of the agreement, First Data will host Allied bank’s complete
card portfolio on its Vision Plus processing platform First Data will provide the
bank with the full spectrum of card processing services, ranging from consulting
services to portfolio management, development, and risk and fraud management.
The Head of Consumer and Personal Banking Group of ABL said that “This is the
first step towards making ABL the best managed consumer bank in Pakistan.
ABL’s strategic co-operation with a world class organization like First Data is
proof of our commitment to product innovation, service excellence and the
highest level of customer satisfaction”.
The Managing Director of First Data Middle East, commented: “We, at First Data,
are proud to work with Allied bank which has been diligently serving the people of
Pakistan for over 60 years. The bank has a mission to provide high-tech,
innovative solutions to its customers and First Data’s global payments’
experience and extensive local market knowledge will help them accomplish this
mission.
Currency counting and currency note validation machines and technologies were
another area of interest. The delegation met many vendors including Pro-Intellect
Technology. They also met NCR and WINCORE for ATM machines. IP
Surveillance, speed gates for the queuing system and the building management
system were also observed.
PUBLIC RELATIONS:
Seating 4000 children was not so easy but more than 100 volunteers did an
excellent job of making the children feel like they were the special VVIP guests
for the day. The program, presented by Pakistan’s very famous compares and
also featured FESF’s own show team, who made audience really enjoy a lot,
many other items were presented by volunteers of FESF’s.
A Musical evening was also arranged for those children, most of those students
never had an opportunity to participate in any such lively event. This musical
event, so called concert for them, was an unforgettable day they will remember
for many months to come.
ABL is one of the largest commercial banks in Pakistan. With its new vision and
new look, the bank has taken upon the task of nourishing the sports talent of the
country by sponsoring the sports events, in order to bring out the best talent on
the sporting frontiers of Pakistan, ABL is phenomenal and the one to be followed
and admired by each and every sports lover of the country.
The management allocates an extensive budget in term of sponsorship of the
sports events, tournaments and life achievement awards for the players.
ABL looks forward to the bright future of the sports wholeheartedly and ready to
set an example to facilitate the sports activities in all good manners.
ABL believes that the sports promotional activities are not only a source for a
healthy environment in the country but they also build a healthy generation.
Since every individual has an opportunity to play the STEWARD and make the
branch appearance checks, all the members of each branch are collectively
involved in monitoring and ensuring the branch is presentable.
HUMAN RESOURCES:
ABL recruits the most deserving and talented people for the service. It recruits
those candidates who really have passion and talent, those who can serve the
banking sector the most. So that it can select the best one from them. The
candidates scoring above 3 Gpa in business administration or commerce or any
related field are proposed to apply and come forward.
Then the recruitment staff shortlist the candidates and sends the letter of being
short listed to the most deserving and capable candidates. The date of entry test
is mentioned in that letter along with the roll number slips.
ABL’s selection committee checks the papers very care fully and honestly, and
selects the most brilliant candidates who really deserve to be selected. This
procedure of selection takes almost a month. And after a month when result is
prepared the short listed candidates are given the date for interview. Interviews
TRAINING:
All the candidates are given training of basic banking for about three months. The
most interesting point in this training are that all the candidates are given salary
which is almost 20,000 rupees%, so this training is almost equalent to job. In this
training program all the students or employees who have come from different
institutions and backgrounds are taught banking courses and all those subjects
whose basic awareness is important in the field of banking like finance ,
accounting, computer science , English , the routine work done in banks and
many more. The most efficient bankers and teachers are appointed to train all of
them.
At the end of the training all the candidates have to go through an exam , and all
those who score above 90% get the promotion to MG 10 after 3 months of
working in bank where as the remaining ones are all appointed on MG11 at the
time of end of training.
All the employees of ABL are given an increment of 10% after every 6 months of
period. Bonuses are also given on every Eid that is equalent to the basic salary
of every employee.
All the increments given after every 6 months, and all the bonuses on Eids,
bonuses according to daily performance of employees, house building loans, car
leasing loans, insurance policies together become the factors of motivation for
the employees.
Where as all the non achievements of these factors become the demotivating
factors for the employees, as well as the long hours of working, the sensitivity of
work, and to work by sitting on a seat all the time really demotivate the
employees.
Allied bank is focusing on quality customer services to deliver the best customer
experience. The aim of the Service Quality Group is to create Service Awareness
across the bank where every individual has the willingness to help both internal
and external customers and provide prompt services while adopting a
personalized approach. To put this in effect, the role of the service quality group
is to conduct service oriented training programs, which would be conducted
across the customer touch points.
In this regard, the service quality group conducted in-house training in March
2008 on Customer Services for branch staff where Customer Support Officers
(CSO’s) were placed.
The aim of this training was to develop the skills and knowledge of our frontline
staff on delivering consistent courteous behavior, which would consequently build
trust and confidence in ABL’s customers. The involvement of individuals within
the dimensions of service culture was emphasized through various team building
games and role plays.
• ABL vision
• How to create the best customer experience
• How to communicate with your customer
• Service Quality dimensions and objectives
• Business dressing and grooming
This initiative was the first step taken by the Service Quality Group towards
strengthening customer relationship and building upon customer loyalty.
ACCOUNT OPENING:
During my first two weeks in the bank I did work in account opening department.
During my training in that department I was taught that how to open the account
of the customers in the bank. That whenever a customer comes how he should
be explained about the types of accounts and the benefits provided in each
account. My supervisor used to tell me that how to fill the form of account
opening, and which documents are required for opening the account, the
information’s and all.
But I didn’t have the opportunity to enter the accounts opened on daily bases in
the software system because it’s a very sensitive issue and I was not so much
trained that’s why I used to only fill the forms and do stamping on them.
CLEARING DEPARTMENT:
In this department I learned to make transfer slips and see the online transfer of
money from one branch of ABL to another, I spent one week in this department.
I couldn’t get a chance to transfer money myself online because this is a very
sensitive issue. That’s why I was assigned the duty of filling the online slips of the
customers, to tell them about this facility and solve any of their quires. As online
transfer facility is the point on which ABL really has comparative advantage that’s
why a lot many people used to come for online transfer of money every day and
as it’s a new service and people used to have many queries and I had to solve
them ,that’s why it kept me very busy all the week.
I also spent two weeks in this department. I learned to send ATM request,
cheques book and lockers request of the customers. And I also learned to issue
them the ATM card, cheques books and to operate lockers. Whenever any
customer used to come to collect his or her ATM, cheques book then I used to
take his sign on the record register, do stamping, write date of issuance, match
DIVERSE DUTIES:
Apart from the duties mentioned above, in the last week of my internship, I had to
perform some other duties as well. Calling was one of those duties. 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 also had to do arrange the cheques in the evening.
One of my duties was also to do phone calls to customers to remind them about
their ATM cards and cheque books.
I also had to do customer care service, means if any customer had any query
about any procedure or if he wanted information regarding any account then I
had to explain him all the procedure.
Whenever a person opens an account with ABL, then he is issued a cheque book
which is free of cost. But for his purpose he has to fill a requisition slip, and then
after about four days of opening of account he gets his cheque book, which
comes from Karachi.
There is also another requisition slip inside each cheque book, which is used for
the purpose of reissuence of a new cheque book if the leaves of first cheque
book start finishing. There is written the title of account holder, his account
number, the stamp of Allied bank and the signatures of the authorized person on
every page of cheque book and also on the requisition slip.
ACCOUNT OPENING:
Account opening is one of the most interesting things which I have learnt in ABL.
To open the account of any person an account opening form is made fill by him.
This form contains:
A signature card
Requisition slip
The main account opening form
These all forms will be filled by the customer and following things will be required
from the customer to attach with this form:
A copy of NIC
A copy of job evidence or contract or student id card copy (house wives do
not need to submit this)
If the customer wants to change his signature on the account opening form then
he has to fill another form.
Undertaking form
This form contains the request of the customer to change his signature and both
signatures, the first one which he has done on his NIC and the other one which
he has done in his account opening form.
One the person completes these forms then his account is opened, the account
opening officer gets this form signed by CSM officer and the Manager of the
bank. Then the account opening officer enters the account opened in the
software system. He also scans the Signature card, and gives the Requisition
slip and ATM request form to the officer responsible for issuance of Cheque book
and ATM. And attaches a Letter of thanks with the remaining forms and now the
person is an account holder of the bank.
The minimum amount of money for opening account is Rs: 100, which has to be
deposited by the customer at the time of account opening.
Those people who are not literate do not need to do a sign; they can give their
Thumb impressions instead of Signatures.
ZAKAAT:
The deductions of Zakaat from the account of Muslims are made on the 1st
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.
CLEARING DEPARTMENT:
OBCs
CLEARING CHEQUES
This department receives the cheques and other negotiable instruments drawn
on local branches of other banks. NIFT has a clearing house, in which cheques
and other negotiable instruments are brought by each local bank representative
and the claims of each bank on other is offset and a settlement is made by the
payment of difference. Clearing system is helpful for both the customers and
bank in saving money, time and labor.
The cheques and drafts come to branch from different banks. They enter the
particulars of the cheques on a register. After this process the balance with total
drafts and total amount are given to the representative. ABL works under the
rules and regulations prescribed byf State Bank of Pakistan (SBP) and has an
account with SBP. The clearinghouse of SBP (NIFT), through whom branches
forward/receive-clearing cheques along with a schedule conducts clearing. The
clerk of forwarding branch prepares the schedule and vouchers of all the clearing
cheques, which he receives by the clerk on that day and sends these cheques to
the checking officer. Checking officer passes these cheques and vouchers by his
initials, endorsement stamp and branch special crossing stamp. Clerk posts the
contra entries of these vouchers in the clearing register. Representatives’ banks
collect these cheques. Next day at 8:30 A.M. representatives of all local banks
and foreign banks exchange their cheques, which are drawn on their banks.
The clearinghouse debits/credits the payee/receipt branch with the total amount
of the cheques paid on their behalf. The settlement of book entries e.g., if ABL is
to give Rs. 2 Million to ASKARI BANK and ASKARI BANK has to give Rs.1
million to ABL then ABL will draw a cheque of 1 Million in favour of ASKARI
BANK. SBP will debit this amount from ABL account and credit of ASKARI BANK
account. In this way mutual cross debiting and crediting in the books of SBP
settle obligation of banks.
PAK ACCOUNT
All the inter-bank adjustments will be affected through head office account called
Pak account. It will be essential for the branch to advise pak account of each
transaction so that they may also pass the necessary entries in their books. The
NIFT will send a consolidated debit/credit advice to the branches in respect of
clearing cheques delivered to or received from the branches. The amount of the
advice will agree with the total amount appearing in the schedule of cheque
Branch receives the cheques and other negotiable instrument drawn on other
branches of the same bank. Main branch of ABL handles the transfer and
delivery of cheques. The same clearing cheque procedure will be adopted in the
transfer deliveries except in case when the facility of SBP is not availed. In case
of cheques drawn on one branch and collected by 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, a credit advice will be sent to the
branch returning the cheque.
The collection cheques/OBCs are the cheques, which we have cleared for our
customers when some of our customers receive the cheque that is of some other
city. These types of cheques are known as collection cheques or the other name
we gave them is OBC
PROCEDURE OF COLLECTION
On the cheque there is written that the person to whom it may concern can cash
it from the certain branch of the bank in 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.
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
that 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.
ONLINE TRANSFER:
Online transfer is a very interesting department as well. Any person who wants to
transfer some amount from minimum 500/- to 500,000/- from one branch of ABL
to another branch of ABL can transfer the amount within minutes. The fee
charged for this service for within city is Rs: 120/- and inter city is 315/-.The only
thing which i had to do was to fill the slip of online transfer in which the most
important coloums were;
Name and code of remote branch
Title of the remote account
Account number of remote account
Applicant’s name
Amount to be transferred in words
Amount to be transferred in numbers
If cheque is submitted then the number of cheque
A copy of NIC (only if the person is not the account holder of the bank)
PROBLEMS ENCOUNTERED:
• The biggest problem I had to face during my start of internship was the
NEW ENVIRONMENT. In the beginning I felt very hard to mix with the
employees of the bank. As all of them were a kind of strangers for me
that’s why I couldn’t feel comfortable in the very first week. Basically it was
all because of being in a new place. But after a week I started adjusting
with them and after two weeks I also felt that Iam a part of this bank.
• The second problem was that I had to be very formal there, like as we are
very casual and free minded in university life, but when I was in the bank ,
I really felt that I have to be very formal all the time.
• Then another problem which I really faced was the hectic routine of the
bank. I had to go n time, work or at least to sit on a single place from 9 to
5 and be formal and present minded all the time without being non
serious. And as all the customers used to come for things related to
finance, which is a very sensitive issue that’s why I had to be very
attentive all the time and no holiday on Saturdays.
• The knowledge which we acquired through our books is very different from
the practical knowledge that’s why I really had to learn a lot many new
things every day. And all those things which we have studied in our books
in the form of different theories when I had to apply them practically it was
not so easy at the first time at least.
By doing internship for eight weeks in Allied bank limited I have gained a lot of
practical experience of doing work, which was really different from the experience
of student life. By doing internship I really gained the knowledge of banking
sector, which I didn’t found so easy, I have learnt the meaning of responsibility,
time management, and professionalism. Because of this experience now I can
decide well that should I opt to join banking field or should go for another one.
The real thing which I gained by doing this internship was the confidence and
knowledge, the confidence and knowledge which we gain from our student life is
far more different from this one, because whenever I used to talk or deal with
those bankers who are in banking sector from more then a decade they used to
give me a lot of knowledge to deal with daily routine matters of banking sector.
Whenever I used to interact with such highly professional bankers, I used to
hesitate in the beginning but with the passage of time I also gained that much
confidence and a little knowledge that I could interact with them more sense ably.
In the beginning really it was very difficult for me to interact and work with such
formal people in such a formal environment but as I said that I really leant to work
with them and talk to them with the passage of time and now I think I will not find
any difficulty in at least understanding the environment of organizations and
offices when I will start my job in near by future. I also feel that I have also
understood the basic culture and environment of professional life which is very
important to understand for doing any kind of job.
• www.abl.com.pk
• www.google.com
• Interviews with Bank Staff