Internship Report On Allied Bank Limited 2009

INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009
INTERNSHIP REPORT
ON
SUBMITTED BY:
IMTIAZ LATIF
ROLL NO.603
Bs.Com (Hons)
2006-GCUF-919-621
SESSION 2006-10
COLLEGE OF COMMERCE
GOVERNMENT COLLEGE UNIVERSITY
FAISALABAD
5TH October 2009
College of Commerce G.C University Faisalabad 1

In The Name of ALLAH, The Compassionate, The Merciful.

DEDICATION
“The Holly Prophet Mohammad (PBUH) from
where all systems and standards for quality can be

downloaded directly, which are applicable
everywhere; from daily life to the dynamically
changing business environment”.
&
“My Dear parents and Teachers who taught

me the true meaning of life”

PREFACE
We are living in a time of extraordinary change. The environmental and economic

threat is frightening large on the entire sphere of Pakistan economy. Pakistani
firms must design and make better products and services and should find better
ways to market them. What was once regarded enough is no longer competitive.
What were once limitless resources are now to be used more efficiently. Today
an organization is on the leading edge.
I have tried my best to peep into the generic as well as real cumulative problems
faced by the pioneer of banking industry in Pakistan. Several chapters have been
included in the report but they seem to be very conventional in nature giving
supplementary justification to the fact that ABL is the most conventional of the
conventional bank.
Imtiaz Latif
Roll # 603

ACKNOWLEGEMENT
I would like to acknowledge extremely valuable

assistance provided by all the Officers and other staff
members for their great cooperation. They provide the
proper guidance and support time to time which helps me a
lot to work in such competitive environment and the timely
completion of assignments. The office working environment
is very good.

TABLE OF CONTENTS
SR.NO DESCRIPTION PAGE
1 EXECUTIVE SUMMARY 08
2 INTRODUCTION TO ORGANIZATION 09
3 Vision, Mission & Core Values 09
4 Meaning of Bank 10
5 History of Allied Bank Pakistan 11
6 Branch Network & Provincial Headquarters 14
7 Corporate Information 15
8 ORGANIZATIONAL STRUCTURE 17
9 Management System of ABL 17
10 Allied Bank Management 17
11 Management Hierarchy 19
12 Functional Hierarchy 20
13 Staff order of Ashrafabad Branch 21
14 ABL RETAIL PRODUCTS 22
15 Commercial 23
16 Consumer 31
17 Corporate 35
18 OWN PRACTICAL WORK 37

SR.NO DESCRIPTION PAGE
19 SWOT ANALYSIS 40
20 Strengths 41
21 Weaknesses 43
22 Opportunities 44
23 Threats 45
24 FINANCIAL STATEMENT ANALYSIS 46
25 Financial Statements 47
26 Vertical Analysis 51
27 Horizontal Analysis 52
28 Ratio Analysis 53
29 SUGGESTIONS & RECOMMENDATION 61

EXECUTIVE SUMMARY
This document provided details of my achievements in term of practical

implementation and understanding of working environment in banks.
Allied Bank is amongst the leading commercial banks in the country and
has always played a pioneering role in introducing innovative. Technology-
based banking services. The role played by its human resources is highly
valued, both in terms of their skills and dedication in implementing unique
banking services.
Allied Bank Limited was the first bank to be established in Pakistan. It started out
in Lahore by the name Australasia Bank before independence in 1942; was
renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in
2005.
In August 2004, because of capital reconstruction, the Bank‟s ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim
Group. Today, with its existence of over 60 years, the Bank has built itself a
foundation with a strong equity, assets and deposit base. It offers universal
banking services, while placing major emphasis on retail banking.
The Bank also has the largest network of over 700 online branches in Pakistan
and offers various technology-based products and services to its diverse
clientele.

INTRODUCTION TO ORGANIZATION
ABL is one of the largest banks in Pakistan, serving the Country for over 60
years in all spheres at banking and financial Services.
Allied Bank Limited operates by the following Vision, Mission & Values:
VISION
 To become a dynamic and efficient bank providing integrated solutions in
order to be the first choice bank for the customers.
MISSION
 To provide value added services to our customers.
 To provide high tech innovative solutions to meet customers‟
requirements.
 To create sustainable value through growth, efficiency and diversity for all
stakeholders.
 To provide a challenging work environment and reward dedicated team
members according to their abilities and performance.
 To play a proactive role in contributing towards the society.
CORE VALUES
 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth
ABL has emerged as one of the foremost-privatized financial institutions in

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

MEANING OF BANK
Some authors write that the word bank is derived from Italian word “bancus” OR
“banque” which means a bench. Because in the old days the Jews were used to
make Banking settlements by sitting on the benches & to deal the exchange of
money in the Market place. When any one of them becomes insolvent means
that he is unable to fulfill his requirements. Then his bench was destroyed by the
customer & this practice given birth to the word “BANKRUPT”.
Some other Authors are of the opinion that the word bank is derived from a
German word “back”, which means “Joint Stock Fund”. & when the major part of
Italy was occupied by the German then this word „back‟ was Italianized in to the
word Bank. However, no confident record is available to believe upon. Therefore,
we are not in a position to give any bounded meanings to bank inspire of all
these we can define bank as follow:
1. The imperial dictionary defined a bank as “An establishment for deposits &
issue of money & also for granting loans discounting bills & facilitating the
transaction from one place to another place”.
2. It is an institution, which deals with money.
3. It buys & sells the uses of money.
In other words, we can say “A bank is an institution for exchange of money,
transferring funds by domestic & foreign bills of exchange.”
We can also say that it is a pipeline through which money moves into & on of
circulation. Shortly & conclusively we can say that the “Bank is an institution that
facilitates the matters in which the money is involved”.
Meaning of Banking
The Banking companies‟ Ordinance, 1962 defines Banking as “Banking means
accepting for the purpose of lending or investment, of deposits of money from
public, Repayable on demand or otherwise and withdrawal by checks, drafts,
order, or otherwise.

HISTORY OF ALLIED BANK PAKISTAN
Allied Bank was the first Muslim bank to have been established in Pakistan.
Established in December 1942 as the Australasia Bank in Lahore with a paid-up
share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux,
the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen
months of business. At the time, the Bank‟s total assets amounted to Rs. 0.572
million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5
billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion.
The Pre Independence History (1942 to 1947)

In the early 1940s, the Muslim community was beginning to realize the need for
its active participation in the fields of trade and industry. Since the late 1880s,
Hindus had established a commanding presence in the areas of industry, trade
and commerce and were especially dominating in the Sub-continent area.
Banking, in particular, was the exclusive forte of Hindus and it was popularly and
wrongly believed that Muslims were temperamentally unsuited for this profession.
Australasia Bank (1947 to 1974)

Australasia Bank was the only fully operational Muslim bank in Pakistan on
August 14th, 1947. However, it was severely hit by the riots in East Punjab. The
Bank was identified with the Pakistan Movement. At the time of independence all
the branches in India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra
(Agra)) were closed down.
New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot,
Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan
and Quetta as well. The Bank financed trade in cloth and food grains thus,
played an important role in maintaining consumer supplies during the early
months of 1948 affected by riots. Despite the difficult conditions prevailing and
the substantial set back in the Bank‟s business in India, Australasia Bank made a
profit of Rs. 50,000 during 1947-48. By the end of 1970 it had 101 branches.

Unfortunately, it lost 51 branches in the separation of East Pakistan. But the

Bank did well despite losing a lot of its assets and by the end of 1973 had 186
branches in West Pakistan.
Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and was
renamed Allied Bank. The first year was highly successful; profit exceeded Rs.
10 million, deposits rose by over 50 percent and approached Rs. 1460 million.
Investments rose by 72 percent and advances exceeded Rs. 1080 million for the
first time in the banking history. 116 new branches were opened during 1974 and
the Bank started participating in the Government‟s spot procurement agriculture
program.
Those seventeen years saw a rapid growth for the Bank. Branches increased from 353
in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion and Advances & Investments
from Rs. 1.34 billion to Rs. 22 billion during this period. It also opened three branches in
the U.K.
Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered a new phase,
and became the world‟s first bank to be owned and managed by its employees.
In 1993 the “First Allied Bank Modaraba” (FABM) was floated. After privatization,
Allied Bank became one of the premier financial institutions of Pakistan. Allied
Bank‟s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs.
87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable
position in Pakistan‟s financial sector and was recognized as one of the best
amongst the major banks of the country. In August 2004, as a result of capital
reconstruction, the Bank‟s ownership was transferred to a consortium comprising
Ibrahim Leasing Limited and Ibrahim Group.
Today, the Bank stands on a solid foundation built over 63 years of hard work
and dedication, giving it a strong equity, an asset and deposit base and the ability
to offer customers universal banking services with more focus on retail banking.
The Bank has the largest network of online branches in Pakistan and offers

various technology-based products and services to its diverse clientele through

its network of more than 700 branches.
Allied Bank (2005 to Date)
In May 2005, Ibrahim Leasing Limited dissolved and the company was vested
into Allied Bank Limited. ALL the shareholders were issued ABL shares instead
of the all shares held by them. An application for the listing of ABL shares in all
the Stock Exchange Companies of Pakistan was made; ABL was formally listed
and the Bank‟s share trading began on the following dates:
 Islamabad Stock Exchange
8th August 2005
 Lahore Stock Exchange
10th August 2005
 Karachi Stock Exchange
17th August 2005
Today, all Allied Bank Limited shareholders can trade in the Bank‟s shares at
their will.

Branch Network
There are Four Provincial Headquarters of Allied Bank Limited situated at Lahore
(Punjab), Karachi (Sind), Peshawar (NWFP & Azad Kashmir) and Quetta
(Baluchistan).
800 domestic branches.
Arrangements with large number of Correspondent Banks/Exchange
Companies.
Over 200 branches for Foreign Currency Accounts.
Over 70 branches for trade finance.
Large number of branches for Inland Remittances.
Large number of branches for Rupee Travelers Cheques.
Provincial Headquarters
PUNJAB:
196/Upper Mall, Lahore
SINDH:
Jubilee Insurance House, I.I. Chundrigar Road, Karachi
NWFP:
1st floor, State Life Building, The Mall,
AZAD KASHMIR:
Peshawar Cantt.
BALUCHISTAN:
C.C. & I Building, Zarghoon Road, Quetta.

CORPORATE INFORMATION
Board of Directors
Mohammad Naeem Mukhtar
Chairman
Sheikh Mukhtar Ahmad
Mohammad Waseem Mukhtar
Abdul Aziz Khan
Sheikh Jalees Ahmed
Farrakh Qayyum
Government Nominee
Nazrat Bashir
Government Nominee
Tasneem M. Noorani
Mubashir A. Akhtar
Pervaiz Iqbal Butt
Mohammad Aftab Manzoor
Chief Executive Officer
Audit Committee
Sheikh Mukhtar Ahmad
Chairman
Farrakh Qayyum
Member
Mubashir A. Akhtar
Member
Sheikh Jalees Ahmed
Member

Company Secretary
Waheed-Ur-Rehman, FCA
Auditors
M. Yousuf Adil Saleem & Co.
Chartered Accountants
KPMG Taseer Hadi & Co.
Chartered Accountants
Legal Adviser
Haidermota and Company,
Advocates and Solicitors
Shares Registrar
Technology Trade (Pvt.) Ltd.
Central Office
Bath Island, Khayaban-e-Iqbal,
Main Clifton Road,
Karachi – 75600
UAN: (92 21) 111-110-110
Head Office/Registered Office

8-Kashmir / Egerton Road,
Lahore
UAN: (92 42) 111-110-110
Website & Email

Website: http://www.abl.com
E-mail: info@abl.com
Toll Free Number

0800-22522

ORGANIZATIONAL STRUCTURE
Management System of ABL
Successful and profitable banking management depends on two principal

factors.
a. The manner in which the functions of banking, that is the acquiring of
deposits, the investing or converting such deposits into earning assets,
and the servicing of such deposits, are performed
b. The degree to which officers and employees contribute their talents
to the progress and welfare of the bank in discharging duties and
responsibilities.
Allied Bank Management

Banks are managed by board of director or similar group of men who are
responsible to the owners, creditors and the government for the well being of
their institutions. The government selects all or some of directors of ABL.
Management of ABL are given as follows:
 Asim Tufail
(Group Chief, Consumer & Personal Banking)
 Fareed Vardag
(Chief Risk Officer)
 Iqbal Zaidi
(Group Chief, Compliance)
 Mohammad Abbas Sheikh
(Group Chief, Special Assets Management)
 Mohammad Aftab Manzoor
(Chief Executive Officer)
 Muhammad Jawaid Iqbal
(Group Chief, Corporate & Investment Banking)
 Muhammad Shahzad Sadiq
(Group Chief, Audit & CRR)

 Muhammad Yaseen
(Group Chief, Treasury)
 Mujahid Ali
(Group Chief, Information Technology)
 Shafique Ahmed Uqaili
(Group Chief, Human Resources)
 Khawaja Mohammad Almas
(Head, Core Banking Projects)
 Tahir Hassan Qureshi
(Chief Financial Officer)
 Tariq Mehmood
(Group Chief, Operations)
 Waheed ur Rehman
(Company Secretary)
 Zia Ijaz
(Group Chief, Commercial & Retail Banking)

MANAGEMENT HIERARCHY
The management hierarchy represents the different positions and designations in

the hierarchy of the ABL. However, this is not the reporting hierarchy but merely
represents the positions and grades on the basis of seniority and grades.
President
Senior Vice President
Vice President
Executive Vice President
Senior Executive Vice
Regional General Manager
Branch Manager

FUNCTIONAL HIERARCHY
The functional hierarchy represents the reporting order in the hierarchy of ABL.
The hierarchy has president and directors at top management level and officers
Grade I, II and Grade III at the lower level management of ABL. The middle level
management consists of regional general Manager and Regional Controller of
Operations. These positions are not fixed. Any person in the hierarchy above the
branch manager can be appointed as RGM and controller operations.
President and CEO
Board of Directors
Head of Department
Regional General Manager Controllers of Operations
Branch Manager
Office G-I, II & Other Lower Staff
Number of Employees
The organization have minimum of 12000 Employees.

STAFF ORDER OF ASHRAFABAD BRANCH
The staff order of the Ashrafabd branch is as follows:
Branch Manager
Customer Service Manager
Officer
Teller
Cashier
Messenger

ABL PRODUCTS
COMMERCIAL PRODUCTS
CONSUMER PRODUCTS
CORPORATE PRODUCTS

COMMERCIAL
The Commercial & Retail Banking Group (CRBG) offers a variety of asset and
liability-based retail products to its customers. The Group‟s main focus has been
on introducing various financing and investment products for its valuable
clientele, and contributing to the steady growth of the financial industry.
Deposit Account
Various deposit accounts are as follows:
i. PLS Account
Allied Bank offers the PLS Savings Account facility to its customers with the
following attractive features.
 Attractive return of up to 5.00% per annum
 Free Online Transactions, DD/TT/PO for depositors maintaining an
average monthly balance of Rs. 2.500 (M) & above.
 Free issuance of cheque book at the time of account opening.
ii. Current Account
 Allied Bank offers the Current Account facility for individuals as well as for
institutions and commercial customers.
 There are free Online Transactions, DD/TT/PO for depositors maintaining
an average monthly balance of Rs. 0.5 (M) & above.
 Free issuance of cheque book at the time of account opening.
iii. Allied Basic Banking Account
In order to provide basic banking facilities to its lower-middle class customers,
Allied Bank has introduced the “Allied Basic Banking Account” (ABBA).
 Account can be opened with an initial deposit of Rs 1,000/=
 It is a non-remunerative account with a no minimum balance requirement.
 The Statement of Account is issued on a yearly basis.
 The account will be closed automatically if the balance remains “zero” for
one year.
 No service charges on the account for a maximum of 2-withdrawals and 2-
deposits during a calendar month. Additional transactions will be subject

to a service charge as per the Bank‟s Schedule of Charges for every

withdrawal/deposit.
 Unlimited withdrawals from ATMs.
iv. Allied Business Account
Allied Business Account is a non-profit current account with countless benefits
and services. If you are a businessman, trader or an individual, Allied Business
Account is an ideal proposition for you.
If the Avg. Features & Benefits
Balance of the
previous months
is:
Rs.100,000 & Online/Manual 50% relaxation on charges as per
above Remittances Schedule Of Charges
Issuance of 50% relaxation on charges as per
DD/TT/PO/OBC & Schedule Of Charges
Express Collection
Rs.500,000 & Online/Manual Free
above Remittances
Outward Cheque Return Free
Issuance of Free
DD/TT/PO/OBC &
Express Collection
v. Foreign Currency Deposits

Allied Bank offers the facility of opening Current, Savings and Term deposit
Accounts. Foreign Currency accounts can be opened in US Dollar, Pound
Sterling, Euro, and Japanese Yen at designated branches.

vi. Monthly Profit Plus

Saving has now become all the more appealing with our Monthly Profit Plus
Scheme, which earns you monthly profits on investments. The scheme is
designed for a period of 1 Year with the following profit rates:
Tenure 1 Year
Profit Rate 10.00% p.a.
Profit Payment Rs.833 * per month
vii. Rewarding Term Deposit

A term deposit scheme which gives a high rate of return and the flexibility of
various tenure. Investment can be made with the minimum of PKR 25,000 only.
Rate Of Profit:
Deposit Amount 1 Month 3 Months 6 Months 12 Months
Rs. 25,000 & Above 7.00% 9.00% 9.50% 10.50%
viii. Allied Advance Profit scheme

In keeping with our objective to bring you new and innovative services and
banking products, we now introduce Allied Advance Profit Scheme that gives the
entire profit upfront.
Product Specifications:
Minimum Investment Required – Rs.25, 000
Investment Terms: 18 months
Auto roll-over (optional)
Profit Payment:
 Profit of Rs.13, 500 (on an investment of Rs.100, 000) will be immediately
credited in the customer‟s current account.

ix. Behtar Munafa Account

If you want a chequing account that earns you attractive returns, paid on monthly
basis, then this is the account for you.
Rate of Profit:
Up to Rs.5,000,000 5.00%
Rs.5,000,001 to Rs.25,000,000 6.00%
Rs.25,000,001 to Rs.50,000,000 7.00%
Rs.50,000,001 to Rs.100,000,000 8.50%
Rs.100,000,001 to Rs.250,000,000 9.25%
Rs.250,000,001 to Rs.500,000,000 10.00%
Rs.500,000,001 & above 10.50%
x. Behtar Munafa Term Deposit

If you want to fix your money now to secure your future, this is the product for
you.
Rate of Profit:
BEHTAR MUNAFA TERM
1 Month 3 Months 6 Months 1 Year
DEPOSITS (3739):
Up to Rs. 5,000,000 6.00% 8.00% 8.50% 9.50%
Rs.5,000,001 to Rs.25,000,000 6.50% 8.50% 9.00% 10.00%
Rs.25,000,001 to
7.00% 9.00% 9.50% 10.50%
Rs.50,000,000
Rs. 50,000,001to Rs.
7.50% 9.50% 10.00% 10.75%
100,000,000
Rs.100,000,001& Above 8.00% 10.00% 10.50% 11.00%

xi. Allied e-Savers Accounts

Saving has never been so flexible! The Allied e-Savers Account is a unique
savings plan where you can earn returns as high as 7.5% with the convenience
of 4 withdrawals a month!
Slabs Profit Rate
Rs. 400,001 up to Rs. 500,000 7.50%
Rs. 300,001 up to Rs. 400,000 6.00%
Rs. 200,001 up to Rs. 300,000 5.00%
up to Rs.200,000 5.00%
Note: All profits payable are subject to applicable Zakat and Govt. Levies and
changes in the Bank‟s policy from time to time.

Agriculture Finance
The Bank, under the Agricultural Financing Scheme, as decided by the State
Bank Of Pakistan, extends short, medium and long term, farm and non-farm
credits. The farm credits are extended for production (inputs) and development
purposes. Non-farm credits are allowed for livestock (goats, sheep, and cattle),
poultry and factories including social forestry and fisheries (inland and marine,
excluding deep sea fishing). Details are as follows:
Farm Loans
a. Production Loans
1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labor
charges, water charges, vegetables, floriculture, etc.
2. Working capital finance to meet various farming expenses.
b. Development Loans
 Improvement of agricultural land, orchards, etc.
 Construction of Godowns
 Tractors, Machinery & other equipments
 Tube wells
 Farm Transportation, etc.
Non-Farm Loans
 Livestock
 Poultry
 Fisheries
 Forestry
Other Services
These other services provided by ABL.
 Utility bill
 Lockers
 Hajj Services

Internet Banking
Banking is now at your fingertips! Allied Direct Internet Banking offers you the
convenience to manage and control your banking and finances - when you want,
where you want! It's Simple, Convenient, Secure and Faster. So, just get clicking!
Some of the advantages of Allied Direct Internet Banking are:
i. Simple and Convenient
Easier navigation and help provided at every step so you can make
full use of this service. With Allied Direct convenience is just a click away.
ii. Secure and Faster
Encrypted with latest tools and technologies, Allied Direct is the
choice for secure and fast Internet Banking.
iii. 24x7 Access
You now have access to your account 24 hours a day, 7 days a
week. You can transfer funds or pay bills, even when it's a holiday.
Online Banking
Allied Online Banking is a unique service being offering from Allied Bank.
Through this service, your account in Allied Bank is available to you from any of
our branches countrywide.
Corporate Leasing
Allied Bank started lease operations when it integrated with Ibrahim Leasing
Limited. Facilities include leases for machinery, commercial vehicles and
equipments. The Bank provides lease facilities to corporate and commercial
clients in all industrial enterprises for balancing, modernization, replacement and
expansion schemes.

Allied ATM Network

Allied Bank has a vast network of over 460 ATMs installed in over 130 cities,
which continues to grow at a rapid pace.
1-LINK ATM
Additionally, Allied Bank is a member of the „1-LINK ATM sharing switch‟
comprising of over 2,000 ATMs nationwide, therefore, giving its Allied Visa Debit
Card holders access to even more ATMs across the country.
M-Net Network
The Allied Visa Debit Card can also be used at M Net ATMs, for cash
withdrawal.

CONSUMER
In line with the Bank‟s aim to provide a host of products and services to its
customers, substantial ground work has been done to establish a strong
consumer banking business. Furthermore, to achieve this objective,
professionals from across the industry have been recruited into areas of product
development, sales, credit policy, research, consumer analytics, call centers and
service quality departments.
The consumer portfolio, comprising the debit card, credit cards, auto loans,
personal loans and mortgages will be established phase by phase. However, we
are confident that our strengths, together with our largest network of online
branches, a superior technology platform, a big customer base and the
Consumer Personal Banking Group (CPBG), will take the Bank‟s profitability to
new heights.
 Visa Debit Card

 Allied Visa Credit Card
Visa Debit Card

Some features of Allied Visa Debit Card are as under:
Get Cash
You are always on the move, now your bank account is too. You can use your
Allied Visa Debit Card to withdraw cash directly from your bank account from
over 3,500 ATMs in Pakistan.
Shop Anywhere
Use the Visa power of your Allied Visa Debit Card to shop at over 49,000
retailers in Pakistan and over 27 million retailers internationally.
Dine Out
Go to all your favorite restaurants and order whatever you want without having to
worry about how much cash you have in your pocket.

Enjoy Traveling
Imagine traveling without carrying cash. With your Allied Visa Debit Card, you
can buy your plane tickets and do all your shopping abroad without worrying
about spending too much or running out of cash.
Fuel Up
Now you can fuel up your car without emptying your wallet. Pay for all your fuel
purchases with your Allied Visa Debit Card.
Have Fun
Whether you feel like taking the family to see a movie at the cinema or treating
some friends to a night of bowling, you can do it all and more with your Allied
Visa Debit Card.
Stay Alert
Now, be more secure and keep better track of your spending. With your Allied
Visa Debit Card, you can get SMS alerts when you make transactions on your
Card. You can also access the details of your transactions via internet banking at
http://www.abl.com.pk so you are always updated and alert.
Activation Instructions
Please follow the instructions stated below so that you are able to use your Card
at any merchant outlet or Visa ATMs.
1. Kindly sign the signature panel on the back of your Card in permanent ink
as soon as you receive it.
2. To activate your Card, please call Allied Phone Banking.
3. Enter the PIN provided to you in order to use the Card at ATMs.

Allied Visa Credit Card

Welcome to the world of privileges, benefits and savings with your Allied
Visa Credit Card. In order to cater to your growing financial needs we are proud
to introduce Allied Visa Credit Card with The Lowest Service Charge ever! So
now you can save money where it counts and spend lavishly at your favorite
places with greater flexibility, convenience and most important-Affordability!
With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art
features and unmatched value by spending at over 49,000 merchants across
Pakistan and 27 million merchant outlets worldwide! And what more, you can
also use your credit card at over 1 million ATMs internationally.
There are two types of Allied Visa Credit Card:
a. Allied Visa Gold Credit Card
b. Allied Visa Platinum Credit Card

a. Allied Visa Gold Credit Card
With your Allied Visa Gold Credit Card every Pakistani can now enjoy the
benefits of a Gold Card internationally with unmatched savings greater flexibility,
convenience and security.
Features
Buy Now, Pay Later
With your Allied Visa Gold Credit Card, your free credit period allows you to pay
for your purchases up to 50 days after the date of purchase. So now you can buy
all the things you want - whenever you want - at your own convenience.
Flexible Repayment
When paying your credit card bill, your Allied Visa Gold Credit Card gives you the
option to either pay the entire amount according to your statement or a minimum
of 5% of your total outstanding balance.
Cash Advance Facility
As an Allied Visa Gold Credit Card member, you are entitled up to 75% of your
available credit limit in cash. Just go to your nearest ATM with the VISA or PLUS
sign and avail the facility of withdrawing cash 24 hours a day.

Allied Easy Installments (AEI)

The Allied Easy Installments (AEI) plan provides you with the facility to pay your
outstanding card balance in equal and affordable monthly installments spread
over 3, 6, 12, 18, 24, 30 or 36 months. So now you can easily afford anything
from everyday household appliances to exotic vacations abroad.
Balance Transfer Facility
In case you have outstanding balances on other cards, consolidate these onto
your Allied Visa Gold Credit Card with the lowest BTF rate and save more on
your outstanding payments than ever before.
b. Allied Visa Platinum Credit Card

With your Allied Visa Platinum Credit Card you can enjoy exceptional benefits
and a host of local and international benefits like never before!
Features
Visa Platinum Golf
Fancy a game of golf? With your Allied Visa Platinum Credit Card, you can enjoy
golf at its best with complimentary tee-offs, discounted green fees and access to
some of the world‟s most celebrated golf clubs.
Platinum Life
Life is a unique platform that showcases exclusive programs and events specially
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CORPORATE
The Corporate Investment Banking Group (CIBG) holds the Bank‟s loan
portfolio and enjoys a leading position in corporate lending in the country. It offers
a wide range of financial services to medium and large sized public and private
sector entities.
These services include, providing and arranging tenured financing, corporate
advisory, underwriting, cash management, trade products, corporate finance
products and customer services on all bank related matters. Vast amount of
funds to large industrial and corporate sectors of the economy and because it
has played a big part in major investment and corporate banking transactions
Allied Bank is considered one of the top investment banks in the country today.
Corporate Banking
CBG offers a wide range of financial services to medium and large sized
public and private sector entities. CBG has expertise in providing exemplary
customized and personalized service to its Corporate Customers under the
Relationship Management concept, which is basically catering to all the customer
needs through „One Window‟ operations. CBG has strategically placed its
presence in all major corporate hubs of the country namely Karachi, Lahore,
Islamabad, Multan and Faisalabad.
It presently enjoys a leading position in corporate lending in the country
and has played a key role in economic development of the country by providing
large facilities, long term, short term, working capital etc in all the key sectors of
the economy. Despite being a late entrant in Corporate Banking, CBG has not
only able to position itself as one of the prime banks for the existing clientele but
also created and cemented new relationships with several top tier names in the
market.
Investment Banking
ABL – IBG was established in 2005 and focuses on the Investment
Banking market. It has the highest number of Successful Arrangement and
Participation in Key Privatization & Acquisition Financing Transactions achieved

by any Investment Banking Group in Pakistan. It has already penetrated the

investment banking market by taking the lead in a number of major transactions
and arranging funding of more than US$ 6 billion to date.
ABL – IBG is reputable for building business on the basis of strong
corporate relationships and showing a clear understanding of Structured
Finance. The team consists of dedicated and young professionals with extensive
experience, who provide various Advisory & Arrangement Services to Corporate
Clients. ABL-IBG has played an active role in Debt Origination and Distribution
through innovative and tailor made solutions for its target customer base. It is
also well known for having successfully completed mandates in a timely manner,
and is regarded as one of the most active Investment Banking entities in the
country today.
Financial Institutions
ABL‟s Financial Institutions team shows a strong commitment to product
and business development. Our client portfolio includes top domestic names,
important regional players, top global financial institutions, leasing companies,
modarabas, microfinance, the insurance sector and specialist money transfer
companies. ABL's dedicated team of Financial Institution professionals brings a
wealth of local and international expertise to all facets of this complex industry,
and can serve as your single point of contact for a comprehensive set of products
and services. As our institutional customers face continuing challenges, they look
to ABL for comprehensive transactional banking solutions, greater operational
efficiency and broad geographic coverage.

OWN PRACTICAL WORK
During the course of my internship at Allies Bank of Pakistan Ashrafabad Branch

Faisalabad (0494), I assisted the manager operations. Moreover I worked in the
remittance department clearing Department and I learned:
 Account Opening and Closing

 Filling of deposit slips of various types of deposit, cheque, online
transaction etc.
 Preparation of Weekly and Monthly Position
 Allied Express cash payment (Remittance paid on cash counter)
 Arrangement of vouchers by segment of deposit types.
 Calling and Checking of Cash, transfer, clearing, online Transactions from
day end report.
 Issuance of Pay Order, Demand Draft
 Making of Pak A/C
The purpose of the bank is to provide financial services to general public. And for
this purpose different banks provide different services to the people in different
forms. The main functions and services which ABL provides to different Peoples
are as follows:
Open different accounts for different peoples
Accepting various types of deposits
Granting loans and advances
For proper functioning of branches and the overall bank has been divided in
different departments. These departments handle different jobs so that division of
work is there for improvement of functions and also it is easy to control the
situation. The general division is as follows:
Cash Department
Deposit Department
Clearing department

Advances Department
Remittance Department
Human Resource Department
Technology Department
Account Opening and Closing Department
DEMAND DRAFT:
Demand draft is a written order drawn by a branch of a bank upon the
branch of same bank to pay certain sum of money to or to the order of specified
person. A demand draft may be issued against the written request of customer
before issuing it must be seen that demand draft is in order.
PAY ORDER:
A Pay order is written authorization for payment made in a receipt from
issued and payable by the bank. To the person named and address. A record of
all issued and paid should be maintained.
ACCOUNTS OPENING
When a customer wants to open an account, the bank officer gives
application form to him. All information, which is necessary to be known by the
bank, is requirements of the application form. Some essential documents also
require to be attached by the customer basically following information is required:
Applicant‟s Name
Date of Birth
Nationality
Identification No.
Mother‟s name
Residential Address
Telephone Number
Currency of Account
Nature of Business
Residential Status
Special instructions regarding the account

Signature of the applicant

ISSUANCE OF CHEQUE BOOK
When a customer opens an account with the bank he is provided with
chequebook for withdrawals of account. A chequebook contains twenty five and
fifty leaves. The chequebook also carries a requisition slip for issuance of new
chequebook. The slip is duly filled and signed by the customer.
HOW TO CLOSE AN ACCOUNT:
The account can be closed by the customer. The customer is required to
submit an application for closing the account. Then the account is closed out and
his balance is paid to him. The chequebook is returned to bank and the officer
cancels the remaining cheques in chequebook.

SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTTUNITIES
THREATS

SWOT ANALYSIS
The SWOT analysis is a comprehensive and critical overview of the
operations, procedures, rules and regulations, services and other related
activities, the analysis include the analysis of ABL Bank Branches in the light of
the entire branch and Bank specific variables which directly or indirectly affect the
operations of the branch. The tool selected for the analysis of organization is
SWOT analysis.
SWOT analysis is an acronym that stands for Strengths, Weaknesses,
Opportunity and Threats. This is a careful evaluation of an organization‟s
strengths to avail an opportunity by overcoming its weaknesses and phasing out
all the threats to its survival in order to grow and survive.
STRENGTHS
Allied Bank Limited has certain strengths which
are different from the other Banks.
ABL is the first Muslim Bank of the world, which is owned and managed
by its own employs. This is the biggest strength of the Bank.
A feeling of ownership is present in every employ, which not only helps
in increasing the productivity of employs but also creates sincerity with the
Bank in them.
Strength is the high motivation of employees to their work because they
know that what so ever they do. It will be in their own benefit. They
know that the profit, which they will earn, will be distributed among the
employees. So they work with high motivation and concentration.
Salaries are very reasonable, so the employees are not financially
disturbed and they devote their selves fully to their work.
They have wide area network in all over the Pakistan, so that they
cover a lot of portion of cash transactions and make customer satisfied.
The Bank has very strict rules and regulations about the customer's
complaints. The customers are treated as very special persons in the

Bank.
The branch is linked through an online network of BRANCHES, thus
enabling them to serve customer in better way.
This branch is provided with latest computer which increases the speed of
computer work.
The branch is situated in commercial area were business activities perform
greater as compare to residential area. Thus it increases the number of
customers.
The Branch has the most experienced and the least experienced staff,
which is a good combination of experienced heads and exuberance of
youth.
All Pakistan branch network in remote areas.

WEAKNESSES
No entertainment facilities are available in the Bank when
customer goes to the Bank and wait for a longer time. These
facilities can be the newspaper. Magazines, etc.
The Branch has a good staff combination on the basis of experience, but their
training capabilities are not up to the requirements of the fast changing
banking environment.
The technical training of the staff is negligible e.g. in case of the absence of
computer there is no alternate trained personal who can record the daily
transactions.
The organization is very much mechanistic and provides no flexibility to
encourage creativity.
The organizational environment is not cooperative.
In spite of the presence of technology many jobs are done manually such as
the letters, drafts for fax messages and other calculations, which could be
easily, done in MS Word and Ms Excel.

OPPORTUNITIS
The policies of the new government to uplift the economy and pursue
financial sector reforms are expected to yield positive results in the
banking industry of the country. The ABL is very well praised to avail
promising opportunities.
As a result of the different steps taken by the Government
regarding the betterment of the economy. Small borrowers are attracted
to get the financing and start small businesses. So, The ABL has an
opportunity to attract the customers by giving them attractive schemes.
They have wide area network in all over the Pakistan, if ABL can make it
possible the fast delivery of fund from abroad through online banking, it
can cover the major market of Pakistan which still is capturing by 'Hundi'.
A considerable portion of the labor force of the area is serving overseas.
Their families can be encouraged to use ABL as channel for remittances.
The Internet facility in the area provides an opportunity to ABL to get Online.
The Bank has the basic infrastructure, which can facilitate the online
process.
The location of the ABL, Ashrafabad branch itself provides an opportunity to
ABL to get more and less cost deposits.

THREATS
First threat is that of political influence
The biggest threat in the banking sector is the continuous downfall of the
country economy since the last few years. If this downfall remains for
more few sears then it may be the great barrier in achieving the Bank's
objectives.
High-pressure interest groups are developing which poses a constant threat
to Allied Bank.
The biggest threat to the operational success of the branch is the better
competitor‟s services. Many private sector banks are offering higher rates of
return to customers than Allied Bank of Pakistan.
One of the biggest to the ABL, Ashrafabad branch is the increasing rate of
dissatisfies customers. Most of these customers were observed to be
dissatisfied with the delays in their servicing.
New Privates Bank coped with emerging new Technology of IT.

FINANCIAL STATEMENTS
BALANCE SHEET
PROFIT& LOSS A/C
CASH FLOW STATEMENT

Balance Sheet
As at December 31, 2008
Rupees in ‘000’
2008 2007 2006

ASSETS
Cash and balances with treasury
banks 23,653,754 29,739,857 23,042,011
Balances with other banks 2,096,779 668,449 1,703,011
Lendings to financial institutions 15,793,183 18,419,241 19,050,239
Investments 82,631,118 83,958,463 46,953,241
Advances 212,972,008 168,407,280 144,033,634
Operating fixed assets 11,134,436 7,548,628 6,445,111
Deferred tax assets 1,029,223 662,431 638,168
Other assets 17,369,691 10,705,374 10,161,361
366,680,192 320,109,723 252,026,776
LIABILITIES
Bills payable 2,952,490 3,494,384 2,278,007
Borrowings 27,778,151 22,933,656 18,410,425
Deposits and other accounts 297,475,321 263,972,382 206,031,324
Sub-ordinated loans 2,498,000 2,499,000 2,500,000
Liabilities against assets subject to
finance lease - - -
Deferred tax liabilities - - -
Other liabilities 13,620,616 7,332,059 5,119,267
344,324,578 300,231,481 234,339,023
NET ASSETS 22,355,614 19,878,242 17,687,753
REPRESENTED BY
Share capital 6,463,644 5,386,370 4,488,642
Reserves 5,804,776 6,050,713 6,133,209
Unappropriated profit 8,536,697 6,971,308 5,607,796
20,805,117 18,408,391 16,229,647
Surplus on revaluation of assets 1,550,497 1,469,851 1,458,106
22,355,614 19,878,242 17,687,753

PROFIT & LOSS A/C

For The Year Ended December 31, 2008
Rupees in ‘000’
2008 2007 2006
Mark-up/Return/Interest earned 30,570,540 21,201,422 17,215,507
Mark-up/Return/Interest expensed 16,559,806 10,093,010 6,793,101
Net Mark-up/Interest income 14,010,734 11,108,412 10,422,406
Provision against non-performing loans and advances -
net 1,372,155 2,712,936 583,305
Provision for diminution in the value of investments -
net 1,781,110 719 (14,623)
Bad debts written off directly 2,736 1,187 136,189
3,156,001 2,714,842 704,871
Net Mark-up/Interest income after provisions 10,854,733 8,393,570 9,717,535
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 2,291,459 2,062,677 1,353,888
Dividend income 1,420,364 147,184 193,255
Income from dealing in foreign currencies 230,060 194,879 282,285
Gain on sale of securities 151,068 1,439,387 376,792
Unrealized loss on revaluation of investments classified
as
held for trading - net - (1,463) (30,180)
Other income 59,154 77,435 273,028
Total Non-markup/Interest income 4,152,105 3,920,099 2,449,068
15,006,838 12,313,669 12,166,603
NON MARK-UP/INTEREST EXPENSES
Administrative expenses 8,089,913 5,944,340 5,290,578
Provision against other assets - net 214,284 119,579 205,307
Provision against off-balance sheet obligations - net 190,824 39,805 2,546
Other charges 390,877 256,869 7,078
Total non-markup/Interest expenses 8,885,898 6,360,593 5,505,509
Extra-ordinary/unusual items - - -
PROFIT BEFORE TAXATION 6,120,940 5,953,076 6,661,094
Taxation - Current 1,829,425 1,887,299 2,215,092
- Prior years - - -
- Deferred 134,829 (10,381) 48,752
1,964,254 1,876,918 2,263,844
PROFIT AFTER TAXATION 4,156,686 4,076,158 4,397,250
Unappropriated profit brought forward 6,971,308 5,607,796 2,731,979
Transfer from surplus on revaluation of fixed assets -
net of tax 17,541 32,701 19,452
6,988,849 5,640,497 2,751,431
PROFIT AVAILABLE FOR APPROPRIATION 11,145,535 9,716,655 7,148,681
Basic earnings per share (in Rupees) 6.43 6.31 8.16
Diluted earnings per share (in Rupees) 6.43 6.31 8.16

Cash Flow Statement

For the year ended December 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES 2008 2007 2006

Profit before taxation 6,120,940 5,953,076 6,661,094
Less: Dividend income (1,420,364) (147,184) (193,255)
4,700,576 5,805,892 6,467,839
Adjustments for non-cash charges
Depreciation/amortization 420,242 341,656 238,881
Provision against non-performing loans and advances
(including general provision) – net 1,372,155 2,712,936 583,305
Provision/(reversal of provision) for diminution in
the value of investments – net 1,781,110 719 (14,623)
Unrealized loss on revaluation of held for trading securities --- 1,463 30,180
Provision against off balance sheet obligations – net 190,824 39,805 2,546
Operating fixed assets written off 20,711 --- ---
Provision against other assets – net 214,284 119,579 205,307
Gain on sale of operating fixed assets (9,889) (14,297) (68,397)
Bad debts written off directly 2,736 1,187 136,189
3,992,173 3,203,048 1,113,388
8,692,749 9,008,940 7,581,227
(Increase)/decrease in operating assets
Landings to financial institutions 2,626,058 630,998 (13,272,857)
Held for trading securities 32,397 203,250 327,421
Advances – net (45,939,619) (27,087,769) (33,546,354)
Other assets (excluding advance taxation) (5,114,895) (292,887) (2,961,688)
(48,396,059) (26,546,408) (49,453,478)
Increase/(decrease) in operating liabilities
Bills payable (541,894) 1,216,377 (170,613)
Borrowings from financial institutions 4,767,184 4,845,011 8,496,595
Deposits 33,502,939 57,941,058 44,621,056
Other liabilities 6,074,203 2,145,627 640,267
43,802,432 66,148,073 53,587,305
4,099,122 48,610,605 11,715,054
Income tax paid 3,535,489 (2,260,777) (2,386,844)
Net cash flows from operating activities 563,633 46,349,828 9,328,210
CASH FLOWS FROM INVESTING ACTIVITIES
Net investments in available-for-sale securities 1,347,298 (39,525,522) (19,493,339)
Net investments in held-to-maturity securities (3,749,608) 2,782,945 16,953,404
Net investments in subsidiaries --- (437,512) ---
Dividend income 1,362,722 149,956 193,537
Investments in operating fixed assets (2,659,638) (1,493,897) (1,997,685)
Proceeds from sale of fixed assets 155,480 63,021 102,752
Net cash flows used in investing activities (3,543,746) (38,461,009) (4,241,331)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of sub-ordinated loan --- --- 2,500,000
Repayment of sub-ordinated loan (1000) (1000) ---
Dividends paid (1,753,971) (1,902,755) (1,096,654)
Net cash flows (used in) / from financing activities (1,754,971) (1,903,755) 1,403,346
Increase in cash and cash equivalents (4,735,084) 5,985,064 6,490,225
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 29,842,093 24,302,648 17,753,472
EFFECT OF EXCHANGE RATE CHANGES ON CASH 510,618 64,999 123,950
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 25,617,627 30,352,711 24,367,647

VERTICAL
AND
HORIZONTAL
ANALYSIS

VERTICAL ANALYSIS of BALANCE SHEET

ASSETS Amount in “000”
2006 2007 2008
Rs. %age Rs. %age Rs. %age
Cash and 24,745,023 9.82% 30,408,306 9.50% 25,750,533 7.02%
balances with
treasury and
other banks
Lending to 19,050,239 7.56% 18,419,241 5.75% 15,793,183 4.31%
financial
institutions
Investments 46,953,241 18.63% 83,958,463 26.23% 82,631,118 22.53%
Advances - net 144,033,634 57.15% 168,407,280 52.61% 212,972,008 58.08%
Operating 6,445,111 2.56% 7,548,628 2.36% 11,134,436 3.04%
Fixed assets
Deferred tax 638,168 0.25% 662,431 0.21% 1,029,223 0.28%
assets
Other assets 10,161,361 4.03% 10,705,374 3.34% 17,369,691 4.74%
Total assets 252,026,776 100% 320,109,723 100% 366,680,192 100%
LIABILITIES
Customer 206,031,324 87.92% 263,972,382 87.90% 297,475,321 86.39%

deposits
Inter bank 18,410,425 7.86% 22,933,656 7.64% 27,778,151 8.07%
borrowings
Bills payable 2,278,007 0.97% 3,494,384 1.17% 2,952,490 0.86%
Other liabilities 5,119,267 2.18% 7,332,059 2.4% 13,620,616 3.96%
Sub-ordinated 2,500,000 1.07% 2,499,000 0.84% 2,498,000 0.72%
loans
Total 234,339,023 100% 300,231,481 100% 344,324,578 100%
Liabilities
NET ASSETS 17,687,753 7.55% 19,878,242 6.62% 22,355,614 6.49%
REPRESENTED BY:
Share capital 4,488,642 1.92% 5,386,370 1.79% 6,463,644 1.88%

Reserves 6,133,209 2.62% 6,050,713 2.02% 5,804,776 1.68%
Un- 5,607,796 2.39% 6,971,308 2.32% 8,536,697 2.48%
appropriated
profit
Surplus on 1,458,106 0.62% 1,469,851 0.49% 1,550,497 0.45%
revaluation of
assets

HORIZANTAL ANALYSIS of BALANCE SHEET

ASSETS Amount in “000”
2006 2007 2008
Rs. %age Rs. %age Rs. %age
Cash and 24,745,023 100% 30,408,306 122.88% 25,750,533 104.06%
balances with
treasury and
other banks
Lending to 19,050,239 100% 18,419,241 96.68% 15,793,183 82.90%
financial
institutions
Investments 46,953,241 100% 83,958,463 178.81% 82,631,118 175.98%
Advances 144,033,634 100% 168,407,280 116.92% 212,972,008 147.86%
Operating 6,445,111 100% 7,548,628 117.12% 11,134,436 172.75%
Fixed assets
Deferred tax 638,168 100% 662,431 104.95% 1,029,223 161.27%
assets
Other assets 10,161,361 100% 10,705,374 105.35% 17,369,691 170.93%
Total assets 252,026,776 100% 320,109,723 127.01% 366,680,192 145.49%
LIABILITIES
Customer 206,031,324 100% 263,972,382 128.12% 297,475,321 144.38%
deposits
Inter bank 18,410,425 100% 22,933,656 124.56% 27,778,151 150.88%
borrowings
Bills payable 2,278,007 100% 3,494,384 153.39% 2,952,490 129.60%
Other liabilities 5,119,267 100% 7,332,059 143.22% 13,620,616 266.06%
Sub-ordinated 2,500,000 100% 2,499,000 99.96% 2,498,000 99.92%
loans
Total Liabilities 234,339,023 100% 300,231,481 128.11% 344,324,578 146.93%
Net Assets 17,687,753 100% 19,878,242 112.38% 22,355,614 126.39%
REPRESENTED BY:
Share capital 4,488,642 100% 5,386,370 120% 6,463,644 144%

Reserves 6,133,209 100% 6,050,713 98.65% 5,804,776 94.64%
Un- 5,607,796 100% 6,971,308 124.31% 8,536,697 152.22%
appropriated
profit
Surplus on 1,458,106 100% 1,469,851 100.80% 1,550,497 106.33%
revaluation of
assets

RATIO ANALYSIS
LOAN TO DEPOSIT RATIO
LOAN TO ASSET RATIO
NET PROFIT RATIO
RATE OF RETURN AT LOANS
RETURN ON ASSETS
RETURN ON EQUITY CAPITAL
RETURN ON EQUITY

LOAN TO DEPOSITS RATIO

FORMULA
[Total Loans/Total Deposits]×100

(Rs. In Millions)
2006 2007 2008
Total Loans/Advances 144,033 168,407 212,972
Total Deposits 206,031 263,972 297,475
69.90% 63.79% 71.59%
GRAPHICAL REPRESENTATION
71.59%
72 69.9%
70
68
Percentage
66 63.79%
64
62
60
58
2006 2007 2008
Years
ANALYSIS
This ratio shows a relationship between loans and advances and reveals how
much productively the deposits are used. Analysis shows an increase in loan to
deposit ratio, because advances are also increasing sharply with the increase of
deposits. This condition is favorable or the bank. If deposits increase by higher
rate than an increase in loan then bank has to face difficulty.

LOAN TO ASSET RATIO

FORMULA
[Total Loans / Total Assets]×100

(Rs. In Millions)
2006 2007 2008
Total Loans/ Advances 144,033 168,407 212,972
Total Assets 252,026 320,109 366,680
57% 52.60% 58.08%
58.08%
59
57%
58
57
56
Percentage
55
54 52.6%
53
52
51
50
49
2006 2007 2008
Years
ANALYSIS
Total advances of the bank increased from 2006 to 2008 and total assets also
increased from in 2006 to in 2008. This parallel increase in advances provide us
gradually increasing ratio.

NET PROFIT RATIO

FORMULA
[Net Profit / Return on Financing]×100

(Rs. In Millions)
2006 2007 2008
Net Profit 4156 4076 4397
Return on Financing 15006 12387 12166
27.69% 32.90% 36.14%
36.14%
40 32.90%
35 29.69%
30
25
Percentage
20
15
10
5
0
2006 2007 2008
Years
ANALYSIS
The net profitability of the company is increasing from 2006 to 2008 as shown
above. The increasing net profit trend shows the management‟s efficiency to
control the operating cost and to maximize the net profit.

RATE OF RETURN AT LOANS

FORMULA
[Interest Income / Total Loans]×100

(Rs. In Millions)
2006 2007 2008
Interest Income 9,717 8,467 10,854
Total Loans 144,033 168,407 212,972
6.74% 5.02% 5.09%
6.74%
7
6 5.02% 5.09%
5
Percentage
0
2006 2007 2008
Years
ANALYSIS
The rate of return at loans of the company is increasing. This shows that the bank is in
good position when we compare the interest income of the company with its loan. The
rate of return is increasing with the amount of total loans. This shows that the bank is
earning favorable interest income on its loans.

RETURN ON ASSETS
FORMULA
[Net Income / Total Assets]×100

(Rs. In Millions)
2006 2007 2008
Net Income after tax 4397 4076 4156
Total Assets 252,026 320,109 366,680
1.74% 1.27% 1.13%
1.74%
1.8
1.6 1.27%
1.4 1.13%
1.2
Percentage
1
0.8
0.6
0.4
0.2
0
2006 2007 2008
Years
ANALYSIS
In return on assets ratio we evaluated whether the bank‟s management has

earned a reasonable return with the assets under its control. The bank is
required to increase its performance as the standard rate of return is 3% or more.

RETURN ON EQUITY CAPITAL

FORMULA:
[Net Income / Equity Capital]×100

(Rs. In Millions)
2006 2007 2008
Net Income 4,397 4,076 4,156
Equity Capital 4,488 5,386 6,463
97.97% 75.67% 64.30%
97.97%
100
90 75.67%
80 64.3%
70
60
Percentage
50
40
30
20
10
0
2006 2007 2008
Years
ANALYSIS
The equity capital of the bank is increased every year while in 2007 the net
income decrease and in 2008 the net income is also increased. Due to this the
equity capital ratio has decreasing trend from 2006 to 2008. We cannot set any
standard for the bank‟s return on capital because different capitals have different
capacities.

RETURN ON EQUITY
FORMULA
[Net Income/ Shareholder‟s Equity]×100

(Rs. In Millions)
2006 2007 2008
Net Income 4,397 4,076 4,156
Share Holders Equity 16,229 18,408 20,805
27.09% 22.14% 19.97%
27.09%
30
22.14%
25 19.97%
20
Percentage
15
10
0
2006 2007 2008
Years
ANALYSIS
It is a tradition that stockholders have expected to earn an average annual return

of 12% or more from equity investment in large companies. In this case we can
see that the banks return on equity is up to the standard of the return on equity
and the stockholders received favorable return from 2006 to 2008.

SUGGESTIONS & RECOMMENDATIONS
ABL should provide technical training of the staff

The circle of ATM machines should extend in all major cities of the Pakistan.
ABL should encourage creativity.
The book should have the moving cameras in their branches for securities
purpose.
CONCLUSION
This organization is well managed with organized structure and efficient
employees. Due to its growth in online branch system, it has bright future in
Financial Organizations.

Internship Report On Allied Bank Limited 2009

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INTERNSHIP REPORT ON ALLIED BANK LIMITED 2009

College of Commerce G.C University Faisalabad 1

In The Name of ALLAH, The Compassionate, The Merciful.

College of Commerce G.C University Faisalabad 2

“The Holly Prophet Mohammad (PBUH) from

where all systems and standards for quality can be

“My Dear parents and Teachers who taught

College of Commerce G.C University Faisalabad 3

We are living in a time of extraordinary change. The environmental and economic

College of Commerce G.C University Faisalabad 4

I would like to acknowledge extremely valuable

College of Commerce G.C University Faisalabad 5

3 Vision, Mission & Core Values 09

5 History of Allied Bank Pakistan 11

6 Branch Network & Provincial Headquarters 14

9 Management System of ABL 17

10 Allied Bank Management 17

13 Staff order of Ashrafabad Branch 21

14 ABL RETAIL PRODUCTS 22

18 OWN PRACTICAL WORK 37

College of Commerce G.C University Faisalabad 6

SR.NO DESCRIPTION PAGE

24 FINANCIAL STATEMENT ANALYSIS 46

29 SUGGESTIONS & RECOMMENDATION 61

College of Commerce G.C University Faisalabad 7

This document provided details of my achievements in term of practical

College of Commerce G.C University Faisalabad 8

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

College of Commerce G.C University Faisalabad 9

College of Commerce G.C University Faisalabad 10

HISTORY OF ALLIED BANK PAKISTAN

The Pre Independence History (1942 to 1947)

Australasia Bank (1947 to 1974)

College of Commerce G.C University Faisalabad 11

Unfortunately, it lost 51 branches in the separation of East Pakistan. But the

Allied Bank (1974 to 1991)

Allied Bank (1991 to 2004)

College of Commerce G.C University Faisalabad 12

various technology-based products and services to its diverse clientele through

College of Commerce G.C University Faisalabad 13

College of Commerce G.C University Faisalabad 14

College of Commerce G.C University Faisalabad 15

Head Office/Registered Office

Website & Email

Toll Free Number

College of Commerce G.C University Faisalabad 16

Successful and profitable banking management depends on two principal

Allied Bank Management

College of Commerce G.C University Faisalabad 17

College of Commerce G.C University Faisalabad 18

The management hierarchy represents the different positions and designations in

Senior Vice President

Executive Vice President

Senior Executive Vice

Regional General Manager

College of Commerce G.C University Faisalabad 19

President and CEO

Regional General Manager Controllers of Operations

Office G-I, II & Other Lower Staff

College of Commerce G.C University Faisalabad 20

STAFF ORDER OF ASHRAFABAD BRANCH

The staff order of the Ashrafabd branch is as follows: