CONTENTS

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PREFACE I

EXECUTIVE SUMMARY II
 CHAPTER 1:
Introduction to Report 1
• Background of study 1
• Purpose of study 1
• Scope of study 2
• Limitation 2
• Delimitation 2
• Methodology of the study 2
• Primary Data 2
• Secondary Data 2
• Scheme of the Report 3
• Section I 3
• Section II 3
• Section III 3
• Section IV 3
Section V 3
 CHAPTER 2:
History & Profile 4
• Banking in the world
• Definition of banking 6
• Overview of Banking sector in Pakistan 7
• Development of Banking in Pakistan
• Banking Reforms 1972 8
• Reason for Nationalization 9
 • Nationalization of Banks
• Reason For Nationalization 11
• Nationalization of Banks (1974) In Pakistan 11

• Reorganizing of Nationalized Banks 13

• Dis-investments and Deregulation of Banking – 1991 14
• Historical background of ABL 15

• Branch Network on the Map 17

• Board of director 18
• Joint venture with Habib Bank Ltd. 19
• Allied Bank sold to Ibrahim Group 19

 CHAPTER 3:
Management of ABL
• Vision 21
• Mission 21
• Values 21
• Organizational structure
21
• Network of Branches
23
• Organizational Hierarchy of ABL
24

 CHAPTER 4:
 Sources & Uses of Funds 25
Sources of funds of ABL 25
Fixed deposit 25
Saving deposits 25
Current deposits 25
Capital Accounts 26
Surplus 26
Undivided profits 26
Reserve for Contingency 26
Other borrowing 26
Uses of funds 26
• Primary Reserve
26
• Bank loans 27
• Investment in securities
27
• Sources of income of ABL 27
• Interest 27
• Profit on securities 27
• Locker Rent 27
• Collection charges on Utilities Bills 28
• Service Charges on the Maintain the Account 28
• Commission 28
• Collection Charges 28
• Unmatched Banking Facilities 28
• Expenses of ABL 29
• My job as interne 30

 CHAPTER 5:
Credit Department 31
Main function and duties 31
Form of Credit granting by ABL 32
• Running Finance 32
• Demand Finance 33
• Cash Finance 34
• Loans
34
• Loaning Procedure
35
• Loan Sanctioning Power
35
• For firms 37
• For Individuals 37
• Foreign Exchange Department
37
• Foreign Currency Account 37
• Foreign Remittances 38
• Inward Remittances 38
• Outward Remittances 38
• Modes of Remittances 38
• Foreign Demand Draft 38

• Customer Services Department

39
• Account Opening 39
• Customer Qualification 40
• Customer Classification 40
• Issuance of Cheque Book 41
• Remittance Department
41
• Modes of Remittance 41
• Demand Draft 42
• Payment Order 43
• Deposit At Call 44
• Pay Slips 44
• Online 45
 • OBC & LBC 45
• Clearing Department

45
• Types of Clearing 45
• Outward Clearing 45
• Inward Clearing 45
• Account Department
46
• Function of Account Department 47
• Deposit Department
48
 CHAPTER 6:
Products & Services 49
• Accounts
49
• Current Account 49
• PLS Saving account 49
• Allied Basic Banking account 50
• Allied Profit Plus-Term deposit 50
• Allied Profit Plus-Deposit Account 51
• Allied Business Account 51
• Foreign Currency Deposits 51
• Alternative Delivery Channel 52
• Online Banking 53
• Seasonal Finance 54
• Agriculture Finance 55
• Trade Finance 55
• Running Finance 55
• Demand Finance 55
• Master Card 55
• Services
56
 • Home Remittances 56
• Remittances 57
• Demand Draft 57
• Pay Order 57
• Travelers Cheques 57
• Hajj Services 57
• Utility Services 57
• Lockers 58

 CHAPTER 7:
Ratio Analysis of ABL 59
i. Current ratio 59
ii. Net working capital ratio 60
iii. Cash to current liability 60
iv. Debt to asset ratio 60
v. Return on equity 61
vi. Gross profit margin ratio 61
vii. Net profit margin 62
viii. Earning per share 62
ix. Assets turnover ratio 62
x. Return on assets 63
xi. Debt to equity ratio 63
• Common size analyses 65
• Balance sheet analyses 64
• Profit and lass account analyses 65

 CHAPTER 8:
SWOT Analysis 67
• Strength
67
• Experience and qualified staff 67
• Good PR with customer 68
 • Job satisfaction at all levels 68
• Quarterly performance appraisal 68
• Friendly environment 68
• Competent senior management 68
• Weakness
68
• No HR department level at zonal & branch level 69
• Centralized decision making 69
• Lack of frequently process 69
• Lengthy recruitment process 69
• Less internal recruitment for new posts 69
• Opportunities
69
• More qualified people in the market 69
• Effective utilization of interval HR 69
• Training can enhance the employees skills 69
• Threats
70
• Good job opportunities outside 70
• Uncertainty about future change 70
• Other organizations are using better HR techniques 70

• Conclusion 70

• Recommendation 71

 Reference: 71
 List of Abbreviations 71