Internship Report

INTERNSHIP REPORT
Muazzam Imtiaz
ROLL # 22 – MBA (Morning)
Department of Management Sciences

The Islamia University of Bahawalpur
Preface
The purpose of writing this report is to explain and evaluate my

internship. It consists of several parts which include history of the
ABL, its introduction, Mission, Vision and objectives of the ABL,
organizational structure, divisions and departments, performance of
ABL, the work I’ve learnt there, SWOT and Financial Analysis and
after that the brief conclusion and suggestions for the ABL.
When I had to choose the organization for my internship, my

priority was a banking organization. Banking is an essential of an
economy and specifically for the student of Finance. The modern
day banking is way more advanced and fast than the traditional
system. It provides opportunity to learn how to manage your tasks
within the constraints of time.
At ABL (New Sadiq Bazar Rahim Yar Khan), I was provided with
opportunity to deal with real time work, the banking mechanism,
functions and operations. It was an amazing experience working
there with a cooperative staff and I’d so much to learn in these few
weeks.
This report will address my practical work experience in the branch

and various tasks which were assigned to me and how I fulfilled
them. I’ve wrote about the issues which could be of important factor
in performance of the branch and possible suggestions to overcome
them.
The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 2

Acknowledgements
“Praise be to Allah, Lord of the Worlds, The Beneficent, the Merciful.”
All acclamations are to Allah, the most Merciful and

Compassionate, who has empowered and enabled me to accomplish
this task successfully.
After that I submit my earnest thank to my affectionate parents, who

pray for my success and always been a source of encouragement for
me. Secondly, I am grateful to my prestigious institute that made
this learning opportunity a part of my education, especially I would
like to thank my Professors as the knowledge imparted by them
enable me to gain knowledge and learning exposure of the
organization in the best way.
Also I express my appreciation to all staff members of Allied Bank

of Pakistan New Sadiq Bazar Branch, specifically Mr. Arshad Ali
Mazari (Branch Manager), Miss Farzana Irshad (CSM) and Mr. M.
Shafiq (RM) who were very cooperative and guided me a lot. I also
express my greatest gratitude to my kindhearted supervisor Sir
Nazik whose supervision enabled me to accomplish this report
successfully.

Dedication
I dedicate this report to my parents, teachers

and friends who supported me through everything and
encouraged me to write and share my experiences in
internship.

Internship Letter

Table of Contents
Preface..............................................................................................................................1
Acknowledgements..........................................................................................................2
Dedication........................................................................................................................3
Internship Letter...............................................................................................................4
Table of Contents.............................................................................................................5
Executive Summary.........................................................................................................8
Banking in Pakistan........................................................................................................10
What is Banking Company?.......................................................................................10
A Brief History of Banking in Pakistan:....................................................................10
Banking Organizations in Pakistan............................................................................11
Importance of Banking Sector...................................................................................12
Various Phases of Banking in Pakistan......................................................................13
First Phase (1947-74).................................................................................................13
Second Phase (1974--79):..........................................................................................14
Third Phase (1979-91):..............................................................................................16
Fourth Phase (1991-2000):.........................................................................................17
History............................................................................................................................19
Overview:...................................................................................................................19
Pre-Independence History (1942 – 1947):.................................................................19
Australasia Bank (1947-1974):..................................................................................20
Allied Bank (1974 to 1991):......................................................................................20
Allied Bank (1991 to 2004):......................................................................................20
Allied Bank (2005 to date):........................................................................................21
Allied Bank and Ibrahim Group:................................................................................22

Vision.............................................................................................................................24
Mission...........................................................................................................................25
Values & Objectives......................................................................................................26
Values:........................................................................................................................26
Objectives:..................................................................................................................26
Board of Directors..........................................................................................................27
Executive Committee.....................................................................................................28
Organizational Setup......................................................................................................29
Important Information....................................................................................................30
Consumer Banking.........................................................................................................34
Commercial Banking.....................................................................................................45
PLS Account..............................................................................................................45
Current Account.........................................................................................................45
Allied Business Account............................................................................................45
Allied Rising Star.......................................................................................................46
Allied Basic Banking Account...................................................................................47
Allied e-Savers Account............................................................................................48
Foreign Currency Deposits........................................................................................48
Rewarding Term Deposit...........................................................................................49
Monthly Profit Plus....................................................................................................49
Allied Advance Profit scheme...................................................................................50
Rewarding Profit Account..........................................................................................50
Behtar Munafa Account.............................................................................................51
Behtar Munafa Term Deposit.....................................................................................52
Allied Bachat Scheme................................................................................................52
Corporate Banking.........................................................................................................60
Learning at Branch.........................................................................................................64

Financial Highlights.......................................................................................................70
Financial Highlights in Graphs..................................................................................71
Balance Sheet.................................................................................................................73
Profit and Loss Account.................................................................................................74
Balance Sheet – Vertical Analysis.................................................................................76
Balance Sheet – Horizontal Analysis.............................................................................77
P&L Account – Vertical Analysis..................................................................................79
P&L Account – Horizontal Analysis.............................................................................80
Return on Equity.........................................................................................................823
Return on Assets...........................................................................................................83
Return on Capital Employed.......................................................................................845
Loan to Deposit Ratio.................................................................................................856
Cost to Revenue Ratio...................................................................................................86
Gross Profit Margin.......................................................................................................87
Weighted Average Cost of Debt...................................................................................88
Capital Adequacy Ratio................................................................................................90
Earning per Share..........................................................................................................91
Dividend per Share........................................................................................................92
SWOT Analysis.............................................................................................................93
Suggestions....................................................................................................................95
Conclusion......................................................................................................................96
Annexure........................................................................................................................97

Executive Summary
Praise be to Allah, Lord of the Worlds, The Beneficent, the Merciful.
My name is MUAZZAM IMTIAZ and I did my MBA from The Islamia University of
Bahawalpur – Rahim Yar Khan Campus. Internship is a practical experience of 6-8 weeks
which is mandatory for every individual pursuing MBA degree. Therefore I applied for
the internship and got a chance to work in Allied Bank Limited Pakistan in new Sadiq
bazar branch.
During my internship I learnt about Banking, procedures and how things work there. It
was quite a good experience working there in real environment. The staff at ABL New
Sadiq Bazar was kind enough to accommodate me and teach me with their work. I started
with slips and ended up with vouching and making R.T.Cs and Pay orders. This was all I
could learn being an internee due to some restrictions.
In this report, I have given an introduction of the ABL as the organization, their structure
and history. Then the detailed overview of the products and services they are providing.
From consumer banking to corporate banking I have tried to cover all areas.
Then it comes to the financial data of the organization. I have prepared common size
analysis which includes vertical and horizontal analysis of both Balance sheet and Profit
and Loss account. A ratio analysis of the bank which depicts financial performance.
SWOT analysis is close overview of the Bank’s Strengths, Weaknesses, Opportunities

and threats. I have written what ever I feel during internship and reading their financial
statements and economic outlook.
Then there is a small conclusion of the report which covers various factors of the
organization and suggestions which I felt to be given to the top management of the
organization which could have an impact on performance of the company.

CHAPTER – 1
Introduction of Banking Sector

Banking in Pakistan
Bank is derived form Bancus or Banque it is Italian word. History of Banking is traced to
2000 B.C in Greece. Priests and goldsmiths acted as financial agents by keeping money
and valuables of people in temples in strong safes. Thus the first stage in the development
of modern banking thus was accepting of deposits of cash from those who had surplus
money with them.
What is Banking Company?
Section 5 of banking ordinance 1962 says that “Banker means a person transacting the
business of accepting, for the purpose of lending or investment of deposits and
withdrawals by Cheque, drafts, orders of otherwise and includes any post office saving
Bank”.
A Brief History of Banking in Pakistan:
In subcontinent, before independence, most of the banking business was in the hands of
Hindus of British people and only two banks, Habib bank limited and Muslim
commercial bank were established just few months before independence. Habib bank was
established in early 1947 in Bombay while Muslim commercial bank was established in
July 1947, in Calcutta. When Pakistan came into being then it was decided that reserve
bank of India would continue in working in Pakistan until September 30,1948 and as for
as take over of the management of the public debts and exchange control from the reserve
bank of India are concern will be made on April 1, 1948. Due to efforts of govt. of
Pakistan and keen interest of Mr. Muhammad Ali Jinnah the creation of state bank of
Pakistan was done July 1, 1948. After one year of the creation of State bank of Pakistan,
in November 1949, national bank of Pakistan was established in Dacca (east Pakistan).
The main purpose of which1 was to act as an agent of state bank of Pakistan.

Banking Organizations in Pakistan
1. State Bank of Pakistan (central bank)

2. Commercial Banks
3. Exchange Banks
4. Co-operative Banks
5. Saving Banks
6. Agricultural banks
7. Industrial banks
1. STATE BANK OF PAKISTAN:

SBP is functioning as the Central Bank of country with its offices at Karachi, Lahore,
Peshawar, D.I.Khan, Quetta, Faisalabad, Rawalpindi, Islamabad, Multan, Gujranwala,
Sialkot, Sukkur, Hyderabad and Bahawalpur.
2. COMMERCIAL BANKS:
Commercial banks have been the most effective mobilizers of saving and have been
providing short-term requirements of working capital of trade, commerce and industry.
So far twelve Banks have been established in private sector and they have been allowed
to open five branches each in various parts of the country initially but provisions exist for
their future expansion. These banks are authorized to carry on all the banking business.
3. EXCHANGE BANKS:
Foreign banks other than Indian banks have been commonly known as Exchange Bank’s
due to the fact that prior independence foreign banks the Indo-Pakistan sub-continent
were engaged primarily in the finance foreign trade.
4. COOPERATIVE BANKS:
Cooperative banks are and integral part of the cooperative movement which aims at the
promotion of thrift, self-helped mutual aid amongst agriculturists and others with
common economic needs so as to bring about better living, better business and better
methods of production etc.

5. SAVINGS BANK:
There is only two Savings Banks in Pakistan i.e., Post Office Savings Bank, and National
saving scheme. Post Office Savings Bank wholly controlled by the Government of
Pakistan. I accept deposits from public and invest them in various Government projects.
Its operation, therefore, is very limited.
6. AGRICULTURAL BANKS:
Agricultural banks are set up to provide the financial assistance to the agriculturist. The
agricultural banks provide short-term credit to the farmers for the purchase of seed,
manure, etc. they also make long term advances for buying tractors and introducing
modern technologies in the farming. In Pakistan Agricultural Development Bank of
Pakistan was set up in 1981 to meet the financial requirement of agriculture. Now it is
named as Zarai traqiati bank limited.
7. INDUSTRIAL BANKS:
The industrial banks provide long-term credit to the industries. Since the industrial banks
have long-term deposits, so they are in position to permit long-term investment in
industries. In Pakistan the Industrial Development Bank (IDBP) set up in 1961.The other
institutions engaged in financing financial assistance to industries are PICIC, NDFC,
ICP, etc.
Importance of Banking Sector
Banks play very important role in the economic life of a nation. The growth of the
economy is dependent upon the soundness of its banking system. Although banks do not
create new wealth but borrow, exchange and consume. These make generation of wealth.
In this way they become most effective partners in the development of that country.
To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks
deposit surplus from the public and then advances these surpluses in the form of loans to
the industrialists, agriculturists, businessmen and unemployed people under different
schemes so that they set up their own business. Thus banks help in capital formation.
If there are no banks, then there would be concentration of wealth in few hands and great
portion of wealth of a country would be idle. In the fewer developing countries rate of

saving is very low and due to this, rate of investment and rate of growth is also very low.
We can take bank just like a heart in the economic structure and capital provided by it is
like blood in it. As long as the blood is in circulation, the organs will remain sound and
healthy. If the blood is not provided is not provided to any organ then the organ would
become useless. So if the finance is not provided to agriculture sector or to industrial
sector, it will be destroyed.
Loan facility provided by bank works as an incentive to the producer to increase

production. Banks provide transfer of payment facility, which is cheaper, quicker and
safe. Many difficulties in the international payment have been overcome and volume of
transactions has been increased. These facilities are very much helpful for the
development of trade and commerce.
Various Phases of Banking in Pakistan
Broadly speaking we can divide the development of commercial banking into 4 phases:
PHASE-1 1947-74 Establishment of commercial banking system
PHASE-2 1974-79 Nationalization of banks
PHASE-3 1979-91 Islamisation process
PHASE-4 1991-2000 Deregulation process
First Phase (1947-74)
SET UP OF COMMERCIAL BANKING SYSTEM:
This was the first phase of developments of Pakistan’s commercial banking system,
which consists of the circumstances under which the development of banking was started
in the country.
INITIAL POSITION OF BANKING IN PAKISTAN:

There were 19 non-Indian foreign banks in Pakistan at the time of independence with the
status of small branch network, whose policies and operations were controlled by their
head offices abroad. These banks were solely engaged in export of crops from Pakistan.
There were only two banks in Pakistan at the time of Partition, Habib Bank, which had
transferred its head office from Bombay to Karachi after the announcement of the

partition, and Australian Bank, which has been working in Pakistani territories prior to
June 1947. The government of Pakistan tried hard to eliminate the banking crises.
The imperial bank of India closed down most of its offices in Pakistan, which had been
working as the agent of Reserve Bank of India was not willing to purchase even token
amounts of the government of Pakistan. Securities on the plea that they were not
marketable. The Reserve Bank of India was hardly of any help. It refused to help the
govt. of Pakistan with advance argument adhoc securities to enable them to make
essential disbursements such as salaries and other obligations to add to the difficulties.
The Indian govt. withheld Pakistan’s share of 750 million in cash balances held by her at
the time of independence. The forgoing developments clearly brought home the urgency
of assuming the control and currency in Pakistan and brought to the fore the need to setup
a central banking institution to take the place of reserve bank of India. Therefore it was
agreed between the Govt. of India and Pakistan to authority of Pakistan from 30 th
September 1947 to 30th June 1948.
In order to make necessary arrangements of the establishment of the central bank of

Pakistan a committee was appointed to recommend the necessary steps. Consequently
the Governor General of Pakistan and father of the nation Quaid-e-Azam Muhammad Ali
Jinnah inaugurated the state bank of Pakistan of 1 st July 1948. After the SBP order was
promulgated on 12th May 1948.
When it assumed full control of banking and currency in Pakistan the first important task
before the SBP was to issue of currency notes and withdrawal of reserve bank of India,
which had been in circulating in Pakistan so far.
Second Phase (1974--79):
NATIONALIZATION OF BANKS:
The banking reforms turned out to be a transitional and temporary step and hardly after
18 months had the government nationalized the banking system. Thus through the
Nationalization Bank Act 1974, SBP and all commercial banks incorporated in Pakistan
and carrying on business in or outside the country were brought under the government
ownership with effect from January 1974. The ownership and management of all Pakistan
banks stood transferred and rested in the federal government. The shareholders were

provided compensation in the form of federal government bonds redeemable at par any
time with in a period of fifteen years. The amount of compensation was equal to the break
up value of the shares in case of commercial banks. For the SBP shares the amount of
compensation was estimated on the basis of average of the clearing quotations during the
6 working days preceding nationalization. The chairman, director and chief executive of
various banks were removed from their offices other than those appointed by the federal
government and the state bank. The central board of banks, managing committees and
similar other bodies were dissolved. A Pakistani banking counsel was established for
nationalized commercial banks to co-ordinate their activities.
As a result of merger of banks the following five major banking companies were formed:
1: National Bank of Pakistan
2: Habib Bank Limited
3: United Bank Limited
4: Muslim Commercial Bank Limited
5: Allied Bank of Pakistan
CAUSES OF NATIONALIZATION:
The nationalization of banks may be justified on the following grounds:
1. Large business and industrial houses dominate the lending policies of the
commercial banks; this brought forward the problem of concentration of wealth.
2. Commercial banking operations were guided by profit motives and as a result the
backward regions and the small entrepreneurs were never been their favorite
customers.
3. The operation of banks, unlike after business, have direct implication on the entire
national economy. For instance if the banks raise the cost of their credit, the cost
of every thing may go up.
4. Unhealthy complications among banks can lead to financial and economic
problems.
5. The flow of bank advances towards national priority sector in general is not
forthcoming because private banks are profit oriented.

RESULTS OF NATIONALIZATION:
Although there are doubts about the positive results of the nationalization but we can say
that the nationalization of banks provided efficient professional management to expand
banking services in every nook and corner of the country. Banks laid full emphasis on
their lending policies on priority sector and national building projects, which discouraged
non-productive and unhealthy activities like speculation and hoarding, there was also a
recorded increase in the number of foreign branches of Pakistani banks.
The growth of Pakistani banking system was significant. The banking facilities expanded
in the rural areas. The bank credit increased sharply especially in the public sector. A part
from this expansion the banking system’s activity seeking to gain credit targets laid down
by National Credit Consultative Counsel (N.C.C.C) and to conform to the priorities over
the year to enlarge the flow of credit for the small banker and agriculturist as well as for
exports. Bank deposits rose very substantially during a period when total monetary assets
also registered a sharp rise. In a remarkable short time banks and their management had
adjusted to the realities and compulsion of the new situation and the system as a whole
was completely geared to government objectives and policies.
Third Phase (1979-91):
INTRODUCTION OF ISLAMIC BANKING:
In 1977 the Bhutto government was toppled. The martial law government planned to
reform the banking sector in a novel way. The overall policy was to Islamize the economy
and the banking system, being based on interest was an important target of the new
policy. The most preferred form of Islamic bank financing profit and loss sharing would
receive banks to receive deposit without guaranteeing any return.
The Islamic bank has to acquire a high degree of confidence of the saver to make him
deposit his money with them. not even the return of the principal amount if guaranteed.
The Islamic bank cannot finance the project of an investor merely on the furnishing of
collateral. The bank will have to be a partner in the project. This will require to careful
security of the project and the assessment of risk involved because profits are the function
of the amount of risk in the project. Honesty and trust from both sides of the market are
more important to the system of Islamic Banking.

Fourth Phase (1991-2000):
PRIVATIZATION AND DE-REGULATION:
The government headed by Prime Minister Mr. Nawaz Sharif was not fully satisfied with
the performance of nationalized. The areas, which were severely criticized, were the
falling standard of banking services and common red-tapism. There were complaints
about the services as delay in home remittances, dispatch of cheques, drafts, inefficient
counter services, bad debts of the banks etc. were on sector application for privatization
of other banks namely UBL and HBL were also invited but the bidding response was
quite poor. The privatization of these banks is under consideration. Legislation was
enacted to permit the establishment of new banks and the government approved
10application from the private sector for the grant of commercial bank licenses by SBP,
out of these 9 new banks have since been incorporated. Till March 1994 there were 20
domestic scheduled banks with 9825 branches and 21 foreign banks with 66 branches in
operation in the country. Overall investment of the scheduled banks in the current year
rose to 76.7%. At present there are 24 domestic scheduled with 8137branches and
19foreign banks with 71 branches are in operation in the country? Total assets of
domestic scheduled banks were amounting to Rs.1563.73 billion on 30 th March 1996.
Overall investment of the domestic scheduled banks in the current year is declined by
80% over the same period last year.
1. Bank of Commerce Al Habib Ltd.

2. Soneri Bank Ltd.
3. Union Bank Ltd.
4. Mehran Bank Ltd.
5. Askari Commercial Bank Ltd.
6. Capital Bank Ltd.
7. Indus Bank Ltd.
8. Prime Commercial Bank Ltd.
9. Bolan Bank Ltd.
10. Republic Bank Ltd.
Now Mehran bank has been absorbed by National Bank Ltd. due to its poor performance
and ultimate failure. Now the ABN Amro Bank has also been included in the list of
foreign scheduled banks.

CHAPTER – 2
Introduction of the Organization

History
Overview:
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.
Today, Allied Bank's paid up Capital & Reserves exceed Rs. 13 billion, deposits exceed
Rs. 325 billion and total assets exceed Rs. 418 billion.
Pre-Independence History (1942 – 1947):
In the early 1940s, the Muslim community was beginning to realize the need for its active
participation in the fields of trade and industry. Since the late 1880s, Hindus had
established a commanding presence in the areas of industry, trade and commerce and
were especially dominating in the Sub-continent area. Banking, in particular, was the
exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were
temperamentally unsuited for this profession.
It was particularly upsetting for Khawaja Bashir Bux to hear that “Muslims could not be
successful bankers”. He decided to step-up to that challenge and take the lead in
establishing this first Muslim bank by the name Australasia Bank Limited in Punjab,
which was to become Pakistan in December 1942.
The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5
million by the end of the first year of operation, and by the end of 30th June 1947 capital
increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.
“Australasia Bank was the only fully operational Muslim bank in Pakistan
on August 14th, 1947.”

Australasia Bank (1947-1974):
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.
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 of over 63 years of its existence having a
strong equity, assets and deposits base offering universal banking services with higher
focus on retail banking. The bank has the largest network of on-line branches in Pakistan
and offers various technology based products and services to its diversified 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 08th 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.

Allied Bank and Ibrahim Group:
The group started with a cloth trading business in the industrial city of Faisalabad. Late
Haji Sheikh Mohammad Ibrahim, founder of the Ibrahim Group, settled in Faisalabad
after partition of India in 1947 and re-established his ancestral business of cloth trading
by the name of “Ibrahim Agencies”. What is known in business today as Ibrahim Group
with diversified business interests from Spinning to PSF, Financial Institutions to
Banking and Energy, started off as a mere cloth trading agency just half a century ago.
Under the scheme of reconstruction proposed by State Bank of Pakistan, Consortium of

Ibrahim Leasing Limited, Ibrahim Group and its sponsors acquired more than 75% of the
shareholding of Allied Bank of Pakistan Limited. Management and control of the Bank
was handed over to Ibrahim Group on August 19, 2004.
At present Ibrahim Group is holding more than 80% shareholding of this bank. One of
the top five banks of Pakistan, Allied Bank has more than 742 branches across the
country with 7,139 employees and financial assets of Pak Rupees 234 billion. The Group
plans to inject its own dynamism and energy in the bank to turn it into a premier financial
institution of the country. After the acquisition of the bank Ibrahim Leasing Limited has
been merged into Allied Bank limited.

CHAPTER – 3
ALLIED BANK LIMITED

Vision
To become a dynamic and efficient bank providing

integrated solutions and the first choice of bank for all
customers.

Mission
 To provide value-added services to our customers
 To provide high-tech innovative solutions to meet customer requirements
 To create sustainable value through growth, efficiency and diversity for all
stakeholders
 To provide a challenging work environment, and reward dedicated team members
 To play a proactive role in contributing towards the society

Values & Objectives
Values:
 Integrity
 Excellence in Service
 High Performance
 Innovation and Growth
Objectives:
Allied Bank has following objectives:
 Prime focus to earn profit by providing values to its customers
 To provide superior services to its customers
 To provide assistance in the development of the commerce and trade
industry
 Focus on blending skills and experience towards creating an enabling
environment
 Core focus is to inculcate a culture of collaboration intended to deliver
world class customer service

Board of Directors
“The people who draw the picture of the organization on the broader canvas of strategy
and planning, the pioneers of prosperity and world of wisdom that paves the path to long
term success”
Mr. Mohammad Naeem Mukhtar Chairman

Mr. Mohammad Aftab Manzoor (CEO)
Mr. Khalid A. Sherwani President & (CEO)
Mr. Pervaiz Iqbal Butt Director
Mr. Mohammad Waseem Mukhtar Director
Mr. Farrakh Qayyum Director
Mr. Sheikh Mukhtar Ahmed Director
Mr. Abdul Aziz Khan Director
Mr. Tasneem M. Noorani Director
Mr. Sheikh Jalees Ahmed Director
Mrs. Nazrat Bashir Director
Mr. Mubashir A. Akhtar Director

Executive Committee
Mr. Khalid A. Sherwani President & (CEO)
Mr. M. Naveed Masud Senior Executive Vice President
Mr. Akhter Ali Khan Head Credit
Mr. Tahir Saeed Effendi Head I.T & Financial Officer
Mr. Mohammad Yaqoob Head Islamic Banking & Planning Div
Mr. Masud A. Sidique Head Human Resource
Mr. Anwar Zaki Head Treasury
Mr. Khalid Mehboob Head Business Promotion
Mr. Sayed Mujtaba Gillani Head Special Vigilance Unit

Organizational Setup
MANAGEMENT HIERARCHY:
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Important Information
Audit Committee:
Sheikh Mukhtar Ahmad Chairman
Farrakh Qayyum Member
Mubashir A. Akhtar Member
Sheikh Jalees Ahmed
Company Secretary:
Waheed-Ur-Rehman, FCA
Auditors:
M. Yousuf Adil Saleem & Co. Chartered Accountants
KPMG Taseer Hadi & Co. Chartered Accountants
Legal Adviser:
Haider mota 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

Website & Email:
www.abl.com
E-mail:
info@abl.com
Toll Free Number:
0800-22522
BRANCH NETWORK:
There are Four Provincial Headquarters of Allied Bank Limited situated in

Lahore (Punjab), Karachi (Sindh), Peshawar (NWFP & Azad Kashmiri and
Quetta (Baluchistan). 800 domestic branches arrangements with large
number of Correspondent Banks Exchange Companies.
 Over 200 branches of Foreign Currency Accounts

 Over 70 branches for trade finance.
 Large number of branches for Inland Remittances
 Large number of branches for Rupee Travelers Checks
PROVINCIAL HEADQUARTERS:
PUNJAB 196 Upper Mall Lahore
SINDH Jubilee Insurance House, I.I. Chundriyar Road. Karachi
NWFP 1st floor State Life Building, The Mall
AZAD KASHMIR Peshawar Cantt.
BALUCHISTAN C.C, & I Building, Zarghoon Road, Quetta.
Now with its network of over 8OO branches located in the urban and rural areas
throughout Pakistan, Allied Bank is positioned to provide personalized banking services
to its customers at locutions convenient to the customers. ABL has invested extensively in

branch automation. 560 branches out of a total of 819 branches are computerized Mr.
Khalid A. Sherwani, look over as President, of Allied Bank in October 2000. The
President gave policy guide lines and the strategy to run the affairs of the Bank in the
light of changed requirements of the banking industry. He emphasized that the Bank
Executives, officers & staff must work fearlessly and put in all-out effort In ensure steady
growth of the Bank. He emphasized that customers have to be given the best possible
service as it is they who are the source of our growth & success.
TRAINING ACADEMIES:
Allied Bank Limited has five training academies, two in Lahore, two in Karachi, and one
in Islamabad. In these training academies the new as well as the existing staff gel training.
When a new employee comes in ABL then most often he is sent to any of these
academies for training. The training period may tie minimum of one-month up to
maximum of one year. The training period depends upon the nature of the job. During the
training the new employees are acquainted with all the necessary information about their
jobs.
When any change occurs in the policies of the Bank, then the seminars are held in these
academies in which employees as well as executives participate to get information about
the new policies of the Bank. For example if the Bank policy regarding the financing
schemes change then the Managers of the Advances Section are invited in these seminars.
They learn about the new changes and then implement these changes in their branches. In
These academies a permanent staff is present for the training of employees. However, if
requires, subject specialists are invited to deliver lectures on certain subjects. For example
the Bank has a contract with Sajjad Associates which send its executives to deliver
lectures on project financing. Exams are also held in these training academies.

CHAPTER – 4
Services by Allied Bank

Consumer Banking
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 and a big customer base, will take the Bank’s profitability to new heights.
Visa Credit Cards:
Allied Visa Gold 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!

Features:
The Most Attractive Service Charge
Your Allied Visa Credit Card helps you save money where it counts. Your Allied Visa
Credit Card currently carries the most attractive Annual Percentage Rate in the market,
i.e. 28%*. So use your Allied Visa Credit Card at your favorite places and enjoy savings
like never before.
*Any change in APR will be intimated accordingly.
Buy Now, Pay Later
With your Allied Visa 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 earliest convenience.
Global Acceptance
In addition to being accepted by over 49,000 merchants in Pakistan, your Allied Visa
Credit Card is also accepted at over 1 million ATMs and 27 million merchants
worldwide. This provides you with the added flexibility and security of being able to
make transactions on your card just about everywhere you go.
Flexible Repayment
When paying back your credit card bill, your Allied Visa Credit Card gives you the
option to either pay the entire amount as according to your statement or a minimum of 5%
of your total outstanding balance or Rs. 500 (whichever is higher).
Cash Advance Facility
As an Allied Visa Credit Card member, you are entitled up to 50% of your credit limit in
cash. Just go to your nearest ATM with the or sign and avail the facility of
withdrawing cash 24 hours a day.
For example, Service Charge @ 28% per annum or 2.33% per month will be charged
from the day of the cash advance transaction.

(The current applicable rate may differ from the example given above. Please refer to the
latest Schedule of Charges for the applicable rates).
Calculation of Cash Advance Facility
The calculation can further be explained as per the following example:
If an amount of Rs. 10,000 is transacted on 20-04-09 and the statement generation date is
30-04-09, then the amount will attract a mark-up of 28% per annum equaling to 0.077%
on a daily basis from the date of transaction till the complete payment is made. Since in
this example the time period between the transaction date and the statement date is 10
days, therefore the finance charges are calculated for 10 days. The total finance charges in
this case amounting to Rs. 76.71 for 10 days will be reflected on the credit card statement.
Transaction Date 20-04-09
Statement Date 30-04-09
APR 28%
Calculation 10,000x28%/365x10
Finance Charges 76.71
Total Payable Amount 10,076.71
In addition to the above, a flat fee will also be charged as mentioned in the SOCs for
every transaction.
Supplementary Cards
Want to share the benefits of your Allied Visa Credit Card with others? Now you can!
Treat up to two people with Supplementary Credit Cards and pass on the many privileges
of your Allied Visa Credit Card to friends, family and anyone else you choose!
Zero Loss Liability
The Allied Visa Credit Card’s zero loss liability feature protects you from paying any
unauthorized transactions on your card in the event that it is lost or stolen. Please
immediately notify Allied Phone Banking on 0800-22522 (within Pakistan) or on 9221-
35301094 (outside Pakistan) in case your card is lost or stolen.
Balance Transfer Facility

In case you have outstanding balances on other cards, consolidate these onto your Allied
Visa Credit Card with a BTF rate and save more on your outstanding payments than ever
before.
Calculation of Balance Transfer Facility:
The calculation can further be explained as per the following example:
If an amount of Rs. 10,000 is transacted on 20-04-09 and the statement generation date is
30-04-09, then the amount will attract a mark-up of 20% per annum equaling to 0.055%
on a daily basis from the date of transaction till complete payment is made. Since in this
example the time period between the transaction date and the statement date is 10 days,
therefore the finance charges are calculated for 10 days. The total finance charges in this
case amounting to Rs. 54.79 for 10 days will be reflected on the credit card statement.
Transaction Date 20-04-09
Statement Date 30-04-09
APR 20%
Calculation 10,000x20%/365x10
Finance Charges 54.79
Total Payable Amount 10,054.79
In addition to the above, a flat fee will also be charged as mentioned in the SOCs for
every BTF transaction.
Allied Phone Banking
In case you require any additional help regarding your Allied Visa Credit Card, Allied
Phone Banking is there to provide you with immediate help, 24 hours a day. Just give us a
call on 0800-22522.
Free CIP Lounge Access
As an Allied Visa Credit Cardholder, you are eligible to avail the complimentary lounge
facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of
complimentary features. Relax while you watch leading television channels or select
something to read from an updated library of newspapers and periodicals. Also feel free

to plug in your laptop and mobile phone into the charging facilities provided or browse
the internet or send and receive faxes while you wait. You can also treat yourself to a
wide assortment of high quality snacks, beverages and fresh fruits.
SMS Banking
Know immediately when your card is being used. With Allied Bank's SMS Banking
facility, you have the option to receive an SMS every time your card is used, so that you
can quickly take action in case your card is stolen or misused. Also, keep track of your
spending by receiving your credit card statements at the beginning of every month. Check
your total outstanding amount and minimum balance or simply enjoy our latest
promotional offers and greetings via your mobile phone. A flat fee will be charged for
subscribing to the facility as mentioned in the Schedule of Charges.
GCAS
Our Allied Visa Gold / Platinum Credit Card holders can now avail Global Customer
Assistance Service (GCAS) regarding their Visa Gold / Platinum Credit Card while
traveling in any of the countries.
Allied Visa Platinum 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!
Features
Platinum Life
Platinum Life is a unique platform that showcases exclusive programs and events
specially designed for Allied Visa Platinum Credit Cardholders.

These are:
 Visa Platinum Club

 Visa Platinum Dining
 Visa Platinum Golf
 Visa Experiential Travel
Visa Platinum Club
The Visa Platinum Club is a unique recognition program that rewards you with exclusive
privileges from internationally reputed Club Partners offering unmatched quality of
service. Unlike other cardholder reward programs, your Allied Visa Platinum Credit Card
immediately entitles you to the various Club privileges without having to earn points or
accumulate credit charges. As a Visa Platinum Club member, you can enjoy
complimentary room upgrades at five-star hotels, attractive retail discounts, special rates
on car rentals, personalized golf tips by professional trainers and much more - all courtesy
of your Visa Platinum Club privileges and the Club Partners. For more details on the Club
Partners and the various perks they offer, visit the Visa Platinum website at
www.visaplatinum.com
Visa Platinum Dining
Visa Platinum Dining is a program offering you fine dining privileges at over 200
restaurants in Asia Pacific with your Allied Visa Platinum Credit Card. You can enjoy an
assortment of complimentary beverages, priority reservations and free parking when
dining at participating restaurants.
So whether you are in the mood for exotic Mediterranean fare, traditional Japanese
cuisine or a lavish Chinese banquet, you can always expect the most luscious treats with
your Allied Visa Platinum Credit Card.
To search for a preferred restaurant either by country/city location or cuisine all over the
world, you can visit the Visa Platinum website at www.visaplatinum.com
Visa Platinum Golf
Being an Allied Visa Platinum Credit Cardholder, Visa Platinum Golf offers you
complimentary tee-offs, discounted green fees and exclusive access to the world's most

celebrated golf clubs. You can visit the Visa Platinum website at www.visaplatinum.com
for more information.
Visa Experiential Travel
Visa Experiential Travel brings you travel adventures with exceptional experiences.
Working with renowned partners, the program offers 15 packages every quarter. For more
information, you can visit the Visa Platinum website at www.visaplatinum.com
Priority Pass Airport Lounge Program
Priority Pass is the largest independent Airport VIP Lounge Program in the world, giving
you access to over 600 worldwide exclusive airport VIP lounges. As an Allied Visa
Platinum Credit Cardholder, you can avail the option of including this airport lounge
access program at preferred rates in your overall Visa Platinum benefits. To be admitted
into these lounges, you must present your Priority Pass membership card. Priority Pass
membership cards can be used at any participating airport lounges regardless of your
choice of airline or class of ticket. For any further information you may
visit www.prioritypass.com or call Allied Phone Banking on 0800-22522.
Visa Platinum Websites
The Visa Platinum websites have been designed to keep you up-to-date on the latest perks
and benefits being offered on your Allied Visa Platinum Credit Card. In addition, the sites
have functionalities such as Concierge Online to further enhance your Platinum
experience.
The website with an easy to remember URL, www.visaplatinum.com provides you access

to:
 The latest information on Visa Platinum regional programs, such as the Visa
Platinum Club, Visa Platinum Dining, Visa Platinum Golf Holidays and Visa
Platinum Experiential Travel facilities
 The latest information on local country promotions and events. These details can
be found in the section called "Platinum Life"
 Online applications such as Concierge Online
 Directory of toll-free numbers for reaching VPCC from all key global destinations

Visa Platinum Customer Center (VPCC)
The Visa Platinum Customer Centre (VPCC) is a one-stop shop to handle all your needs.
Staffed by highly trained professionals who provide a wide range of travel and
entertainment Concierge Services, emergency lost/stolen card services, telephone
translation services, transfer to issuers, etc., for Allied Visa Platinum Credit Cardholders
all over the world, the VPCC is operational 24 hours a day, 7 days a week, and can easily
be accessed via a comprehensive network of international toll-free numbers.
Concierge Service
As an Allied Visa Platinum Credit Cardholder, you can also avail the travel and
entertainment Concierge Service with the best in personalized customer service, 24 hours
a day, 7 days a week. Whether at home or overseas, you can have access to a host of
travel and entertainment services, as well as emergency assistance such as card
replacement, cash disbursement, medical assistance, etc., through a dedicated network of
global toll-free numbers.
Information, reservations, referrals, etc., are all available at no cost. However, the cost of
any goods or services purchased will be billed directly to your Allied Visa Platinum
Credit Card.
Concierge Online
You can also avail the Concierge Online facility, which provides an alternative to the
conventional telephony Concierge Service. With a simple click of the mouse, you can
easily request for Trip Planning Assistance, Hotel Reservations, Flight Reservations, Car
Rentals, Restaurant Reservations and Performance Ticket Bookings, all from the comfort
of your home. To use Concierge Online, you must first register yourself in order to gain
access to the secure Concierge Online website. You just need to choose the user name and
password you wish to use for logging on to Concierge Online. For this, simply log on to
abl.com and, in the Allied Visa Platinum Credit Card section, click on
www.visaplatinum.com. To submit a request, you simply need to fill an online form that
will be automatically sent to the VPCC for fulfillment. A Customer Service Executive
will respond to you with the relevant details via your preferred mode of communication
(email, phone or fax).

Allied Phone Banking
In case you require any additional help regarding your Allied Visa Credit Card, Allied
Phone Banking is there to provide you with immediate help, 24 hours a day. Just give us a
call on 0800-22522.
Free CIP Lounge Access
As an Allied Visa Credit Cardholder, you are eligible to avail the complimentary lounge
facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of
complimentary features. Relax while you watch leading television channels or select
something to read from an updated library of newspapers and periodicals. Also feel free
to plug in your laptop and mobile phone into the charging facilities provided or browse
the internet or send and receive faxes while you wait. You can also treat yourself to a
wide assortment of high quality snacks, beverages and fresh fruits.
SMS Banking
Know immediately when your card is being used. With Allied Bank's SMS Banking
facility, you have the option to receive an SMS every time your card is used, so that you
can quickly take action in case your card is stolen or misused. Also, keep track of your
spending by receiving your credit card statements at the beginning of every month. Check
your total outstanding amount and minimum balance or simply enjoy our latest
promotional offers and greetings via your mobile phone. A flat fee will be charged for
subscribing to the facility as mentioned in the Schedule of Charges.
Allied Cash+Shop Visa Debit Card

Features
Get Cash
You are always on the move, now your bank account is too. You can use your Allied
Cash+Shop Visa Debit Card to withdraw cash directly from your bank account from over
3,500 ATMs in Pakistan - including Allied Bank's largest network of ATMs - and over 1
million ATMs worldwide
Shop Anywhere
Use the Visa power of your Allied Cash+Shop 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 - thanks to your Allied Cash+Shop Visa
Debit Card.
Enjoy Traveling
Imagine traveling without carrying cash. With your Allied Cash+Shop 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.
Get Groceries
Go groceries shopping with your Allied Cash+Shop Visa Debit Card and you will never
have to worry about having enough cash in your pocket when you're standing in line at
the cash counter.
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 Cash+Shop
Visa Debit Card.
Fuel Up

Now you can fuel up your car without emptying your wallet. Pay for all your fuel
purchases with your Allied Cash+Shop Visa Debit Card.
Stay Alert
Now, be more secure and keep better track of your spending. With your Allied
Cash+Shop 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 abl.com

Commercial Banking
Deposit Accounts:
PLS Account
Allied Bank offers the PLS Savings Account facility to its customers with the following
attractive features.
 Free Cash Deposit / Withdrawal / account to account transfer within city.

 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.
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.
Allied Business Account
Enjoy unlimited freedom and convenience with numerous free services – all with Allied
Business Account
Now with your current account you can make unlimited transactions via 779 online
Allied Bank branches.
On maintaining a daily minimum balance of just Rs. 50,000, you can enjoy the following
services FREE of charge:

 FREE Pay Orders
 FREE Demand Drafts
 FREE Deposit
 FREE Withdrawals
 FREE Funds Transfer
 FREE Telephonic Transfer
 FREE Internet Banking
 No Cheque return charges
 FREE Nationwide Real-time Online Banking
Allied Rising Star
Allied Rising Star - Youth’s 1st Bank Account is a savings account for all youngsters
below 18 years of age. It can help you save your pocket money and earn daily profit. And
when you’ve collected enough, there’s so much you can do with your savings… like buy
your favorite books and toys or a special present for your mummy or daddy, or even carry
on saving!
So if you’re below 18 years of age, you can open your very own Allied Rising Star -
Youth’s 1st Bank Account and have all the fun that goes with it!
When you open your account, it’s in your name, but you still have to take mummy’s,
daddy’s or your guardian’s help to use it - like with:
 Signatures
 General banking activities
 General banking activities
You can use your account any time – which means you can take money out with your
parent’s or guardian’s help, or deposit money yourself, whenever you need to.
You get 2 accounts when you become an Allied Rising Star. One is your Main Account,
which has all the money that ‘you’ deposit in it. The second is called your Wallet
Account, in which all your profit is collected.

You get to make ‘daily’ profit! Your profit goes in your Wallet Account everyday, which
means your total savings increase everyday! But that’s not all! The Bank gives
you Bonus Cash on your profit too!
You and your parent or guardian gets to enjoy the following goodies and benefits:
 A cash box for you to save money everyday

 Your first bank account certificate to be the pride of your bedroom wall
 Your very own picture ID card that you can show off to all your friends
 An exciting gift for you to enjoy at home
 The Allied Cash+Shop Visa Debit Card to use anywhere in the world. This Card
will give your parent/guardian access to both your accounts
 2 cheque books – one to go with your Main Account and the second to go with
your Wallet Account
 Free Internet Banking to access your account from anywhere, any time
 SMS Alerts for extra convenience
 Free Insurance Cover of up to Rs. 500,000 in case of any mishap or misfortune
 So you see, being an Allied Rising Star will make saving so much more fun than
regular saving!
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.

Allied e-Savers Account
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!
ALLIED E-SAVERS
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%
upto Rs.200,000 5.00%
Salient Features
 Investment: Rs. 10,000 to Rs. 500,000

 Profit: payable on Half Yearly basis.
 Expected Profit Rate: Up to 7.50% p.a.
 Eligibility: Individuals
Additional Benefits
 24 hours phone banking service

 Free Internet Banking facility
 SMS transaction alerts
 Allied Cash+Shop Visa Debit Card for cash withdrawals through any ATM
including our largest network of ATMs across Pakistan and for debit transactions
at various retail outlets
 First free cheque book - A/c Payee only
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.

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 :
Rewarding Term Deposit Scheme 1 Month 3 Months 6 Months 12 Months

Rs.25,000 to Rs.9,999,999 7.50% 9.00% 9.75% 11.25%
Rs.10,000,000 & Above 8.50% 10.00% 10.75% 11.75%
Salient Features:
 Account Type: Term Deposit

 Term Period: 1-12 months
 Investment: Rs. 25,000 & above
 Profit: Payable on maturity
 Eligibility: Individuals & Institutions
Monthly Profit Plus
Saving has now become all the more appealing with our Monthly Profit Plus Scheme,
which provides 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 11.00% p.a.
Profit Payment Rs.917 * per month
 Approximate monthly returns calculated on the investment of Rs.100, 000

 Withholding tax, Zakat or other Government Levies are applicable separately
Salient Features:
 Account Type: Term Deposit

 Term Period: 1 year
 Profit: Payable on monthly basis

 Minimum Deposit Amount: Rs.25,000
 Eligibility: Individuals & Institutions (other than financial institutions)
Additional Benefits:
 Chequing Account for monthly profit credit

 24 hour phone banking service
 Free internet banking facility
 Allied Cash + Shop Visa Debit Card
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 Amount – Rs. 25,000
Investment Terms:
 18 months
 Auto roll-over (optional)
Profit Payment:
Profit of Rs.14,000* will be immediately credited in the customer’s current account.

*on an investment of Rs.100,000 Tax/Zakat will be applicable as per rules
Rewarding Profit Account
Rewarding Profit Account is introduced for the customers who have liquidity and can
manage to maintain sizeable monthly average balance and earn greater profit on it.
Rate Of Profit :
Rewarding Profit Account Profit Rate

Rs.10 Million to less than Rs. 50 Million 8.00%
Rs.250 Million to Rs. 1 Billion 10.00%
Salient Features :
 Account type: Chequing

 Maximum Investment Amount: Rs. 1 Billion
 Eligibility: Individuals, and institutions
 24-hour phone banking service
Behtar Munafa Account

A profit bearing chequing account with attractive rate of return, paid on monthly basis.
Rate Of Profit:
Behtar Munafa Account

Upto 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 7.50%
Rs.100,000,001 to Rs.250,000,000 8.00%
Rs.250,000,001 to Rs.500,000,000 8.50%
Rs.500,000,001 & above 9.00%

Salient Features:
 Account Type: Chequing Account

 Highest Profit: Upto 9.00% p.a



 24-hour phone banking service
 Free internet banking facility
 Allied Cash + Shop Visa Debit Card
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 Deposits 1 Month 3 Months 6 Months 1 Year

Upto Rs. 5,000,000 5.00% 6.00% 6.50% 7.50%
Rs.5,000,001 to Rs.25,000,000 5.25% 6.50% 7.00% 8.00%

Rs.25,000,001 to Rs.50,000,000 5.50% 7.00% 7.50% 8.50%
Rs. 50,000,001to Rs. 100,000,000 5.75% 7.50% 8.00% 8.75%

Rs.100,000,001& Above 6.00% 8.00% 8.50% 9.00%
Salient Features:
 Account Type: Fixed Term Deposit

 Profit: Payable on maturity
 Highest Profit: Upto 9.00% p.a.
Allied Bachat Scheme
Allied Bachat Scheme is a PLS Term Deposit Scheme based deposit scheme whereby you
can double your investment in just 7.5 years.
Maturity Period: 7.5 years
Minimum Deposit: Rs. 50,000/- with multiples of Rs. 10,000/-
Expected rate of Profit: The deposit amount will be doubled in 7.5
Allied Bachat Scheme is a PLS Term Deposit Account, whereby you can double your
investment in just 7.5 years.

This scheme comes with the following schedule of profit rates:
No. of Years ABL Projected Rates Repayment amount

0 0 50,000.00
1 7.00% 53,500.00
1.5 7.50% 55,625.00
2 8.00% 58,000.00
2.5 8.75% 60,937.50
3 10.00% 65,000.00
3.5 10.25% 67,500.00
4 10.50% 71,000.00
4.5 10.75% 74,187.50
5 11.00% 77,500.00
5.5 11.25% 80,937.50
6 11.50% 84,500.00
6.5 11.75% 88,187.50
7 12.00% 92,000.00
7.5 13.33% 100,000.00
Salient Features:
 Maturity Period: 7.5 years

 Free Internet Banking facility
 Minimum Deposit: Rs. 50,000 (additional investment in multiples of Rs. 10,000)
 Expected Profit Rate: Up to 13.33% p.a
 Eligibility: All individuals and institutions
SME (Small and Medium Enterprises):
The Commercial and Retail Banking Group (CRBG) caters to the needs of commercial
entities and small and medium enterprises. A dedicated team of Relationship Managers
first identifies the specific needs of each customer segment, then designs and delivers a
facility package, which is in conjunction with those needs, and provides customers the
full support and opportunity to take advantage of the various business prospects available
in the market.
Following are the main credit facilities we offer:

RF/CF: These are short term credit facilities (maturity of up to one year) lent to
customers to meet their day-to-day business/working capital requirements and finance
their inventories, receivables, etc.
Generally, in addition to collateral security, these facilities also entail security in the form
of hypothecation of stocks and receivable/pledge of stocks.
Export Refinance Facility: This is mainly the same as RF/CF, but as per the Terms and
Conditions set by SBP, is meant exclusively for exporters.
Foreign Bill Purchase/Bill Discounting Facility: This loan/facility is provided to

exporters against their export bills under LC and a contract to facilitate their cash flow,
while they are waiting receipt of their payments.
LC (Sight /Usance): This facility allows importers to import goods and machinery.
FIM/FATR: These facilities allow customers to finance imported goods against Pledge

& Trust Receipts, backed by collaterals.
Demand Finance Facility: This is a medium/long term credit facility available to

establish new projects for BMR and capacity expansion with a repayment term of more
than one year, which can be paid back in installments. This facility meets clients’ long
term needs such as, financing factory constructions or machinery expenses.
Inland LC (Sight/Usance): This facility allows customers to purchase commodities

within the country.
Letter of Guarantee (LG): On behalf of the customers, the Bank issues a guarantee in
favour of the beneficiary, against the performance of a particular job/contract, within a
particular time.
Import Export:
Allied Bank provides highly efficient trade finance services for import/export businesses
through a large number of authorized branches where trained and motivated staff is
available to handle the business on the customer’s behalf.

Agriculture Finance:
The Bank, under the guidelines of the State Bank of Pakistan, extends short, medium and
long term Agriculture credit facilities to farming community of Pakistan on easy terms to
increase the credit flow to Farm and Non-Farm segments of Agriculture sector.
Farm credit is extended for the purpose of production of crops to meet working capital
expenses and Development of Agri land.
Non-Farm Credit facilities are offered for Livestock (Cow, Buffaloe, Goats, and Sheep
etc.), Poultry (Eggs, Day Old Chicks, Layer, Broiler, Hatchery) and fisheries (inland and
marine, excluding deep sea fishing).
Farm Loans
• Production Loans
 Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges,

water charges, vegetables, floriculture, forestry etc.
 Working capital finance to meet various farming expenses
• Development Loans
 Improvement of agricultural land, orchards, etc.

 Construction of Godowns
 Purchase of Tractors, Machinery & other equipments
 Installation of Tube wells
 Farm Transportation, etc.
Non-Farm Loans
• Livestock
1. Working capital
 Purchase of animal fodder and feeds, Vaccinations, Vitamins and other
medications for animals including artificial insemination
 Overhead expenses i.e. labor, fuel, electricity etc
2. Term loan
 Purchase of mature milk yielding buffaloes/cows, Purchase of Young animals for
rearing for dairy farming
 Purchase of Milk storage chilling tanks and milk carrying containers, feed
grinders, tokas, feed mixing machines and feed/milk containers etc.
 Construction/Procurement of permanent sheds, water tanks, water pumps etc.
• Poultry
1. Working capital
 Purchase of Eggs, Birds / Day old chicks, bird feed and feed raw material and
vaccination
 Overhead expenses i.e. labor, utility bills, Cost of fuel for generators & vehicles,
transportation etc.
2. Term loan
 Purchase of Equipment/Machinery for Broiler/Layer farm & Hatchery
 Farm construction for broiler, layer, hatchery and procurement of other items
required for the establishment of poultry farming industry etc.
• Fisheries
• Forestry
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:
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.
Secure and Faster
Encrypted with latest tools and technologies, Allied Direct is the choice for secure and
fast Internet Banking.
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.

To use Allied Direct Internet Banking, you should be a registered Allied Bank Account
holder with a valid ATM Card. If you do not have an account, please visit any of our
nearest branches and open your account and obtain an ATM Card. Our friendly branch
staff will help you open your account quickly.
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.
No matter where you are in the country and whichever branch your account is maintained
at, you can have your cheque cashed at any of our 784 online branches located in 250
cities. You can also use the service, from any branch, to deposit cash for instant credit
into your account or any other account in Allied Bank. Similarly, the account-to-account
Funds Transfer facility is also available for instant remittance.
Your cheque drawn from a remote branch for credit into a beneficiary’s account or
encashment of a specified amount can also be presented by a third person at any branch.
What’s more, making a Balance Inquiry and getting an Account Statement are additional
services available to Account holders from remote branches.
Allied Online provides a secure, efficient and convenient facility for making payments to
beneficiary accounts from any of our branches countrywide. Corporate customers
requiring fund collection or a disbursement facility can use it for cash management
services.
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.
Leasing is a popular mode of financing because of its distinctive features like tax shield,
preserve working capital, easy documentation and less processing time.
Lease applications are processed at all Bank branches in Pakistan.

Allied ATM Network:
Allied Bank has a vast network of over 538 ATMs installed in over 130 cities, which
continues to grow at a rapid pace.
• 1 Link Network
Allied Bank is a member of the ‘1-LINK ATM sharing switch’ comprising of

over 2,000 ATMs nationwide, therefore, giving its Allied Cash+Shop Visa Debit
Card holders access to even more ATMs across the country.
The "1-Link Switch" has the following Bank members:
 ABN Amro Bank KASB Bank  Limited Al Baraka Islamic Bank

 Meezan Bank Ltd  Allied Bank Ltd
 National Bank of Pakistan  Askari Commercial Bank Ltd
 NIB Bank Ltd  Atlas Bank Ltd
 PICIC Commercial Bank Ltd  Bank AL Habib Ltd
 Soneri Bank Ltd  Bank Alfalah Ltd
 Standard Chartered Bank Pakistan Ltd  Bankislami Pakistan Ltd
 Union Bank Ltd  Crescent Commercial Bank Ltd
 United Bank Ltd  Dubai Islamic Bank Pakistan Ltd
 MyBank Ltd  Emirates Global Islamic Bank Ltd
 Tameer Micro Finance Bank Ltd  Faysal Bank Ltd
 Habib Bank Ltd  First Dawood Islamic Bank Ltd
• M Net Network
The Allied Cash+Shop Visa Debit Card can also be used at M Net ATMs, for cash
withdrawal.
The "M Net Switch" has the following Bank members:
 JS Bank (American Express Bank)

 Bank of Khyber
 Bank of Punjab
 Citibank
 First Women Bank Limited
 Habib Metropolitan Bank
 HSBC Bank
 Muslim Commercial Bank

 Saudi Pak Commercial Bank
 Prime Commercial Bank
Other Services:
• Utility Bill
Customers can pay their utility bills (e.g. electricity, gas, telephone) at any of the Bank’s
branches. For further convenience, bills are collected on all working days during normal
banking hours and also at certain times during the evening. Bills can be paid with cash or
cheque, plus customers can even drop crossed cheques in drop-boxes available at all
branches.
Furthermore, customers can also pay their bills using any of the Bank’s ATMs or via
Internet Banking for SSGC and SNGP bills.
• LOCKERS
Allied Bank Lockers are available, at an annual fee, in four different sizes - small,
medium, large and extra large. Locker holders are not required to have an account with
the Bank.
Annual Locker Rent Maximum Loss

S. # Locker Size
(Current) Coverage / Limit
1. Small Rs.1,500/- Rs.500,000/-
2. Medium Rs.2,000/- Rs.1,000,000/-
3. Large Rs.4,000/- Rs.1,500,000/-
4. Extra Large Rs.5,000/- Rs.2,000,000/-
• Hajj Services
The Hajj Service is available to all pilgrims. The forms and other related services are
provided by the Bank. Hajj applications are available with all branches during Hajj
season, immediately after the Hajj policy is announced by the Government of Pakistan.

Corporate Banking
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.
The Bank has played a key role in the country’s economic growth by providing a 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.
CIBG
(Corporate Investment Banking Group)
Corporate Banking Investment Banking Financial Institution
- Project Finance - Project Finance - Cash Management
- Long Term Financing - Syndication - Home Remittances
- Short Term Financing - Advisory
- Trade Finance
Allied Bank-IBG is the most Preferred Investment Banking Outfit because of
 Timely Completion of Mandates

 Highly talented and experienced analysts
 An employee focused work culture
 Flexible delivery models to satisfy client specific requirements
 A cost effective, one window solution for customers
 Its ability to rapidly adapt to changing industrial & client specific processes
 The dedicated ‘Transaction Manager Model’ ensuring high quality service at all
times

Investment Banking:
Allied Bank – 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.
Allied Bank – 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.
Allied Bank-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.
IBG – Range of Services

Home Remittances:
Allied Bank has rolled out its state-of-the-art ‘e-Remittance’ services to facilitate
international remittances sent to Pakistan by overseas Pakistanis.
ABL has been significantly important in originating home remittances to Pakistan, and is
continuously working to develop innovative ideas for maximizing its reach to all
Pakistanis living abroad. We have identified several strategic partners in the main
overseas markets, and will be providing a fully automated, end-to-end solution for non-
resident Pakistanis.
ABL’s real-time online branch network – one of the largest networks in Pakistan, consists
of over 760 branches in 350 cities, and provides domestic distribution of remittances to
customers receiving money in Pakistan.
A host of top international banks, exchange houses and funds transfer companies from
across the world, including the Middle East, Europe, Asia-Pacific and North America,
have been involved to make this a quality service. By implementing a fully automated,
straight-through processing facility, we are in a position to activate an innovative set of
remittance products.
A host of options is available to non-resident Pakistanis under this service, including

direct credit to account, cash payment over the counter and issuance of the Allied Express
cheque, a payment instrument that can be honoured across the entire ABL network of
branches.

CHAPTER – 5
Practical Experience

Learning at Branch
I did my internship at Allied Bank New Sadiq Bazar Branch Rahim Yar Khan with
branch code 0334. The internship was started on 2nd of August 2010. During my
internship I did learn a lot about Banking and staff was very much cooperative and
friendly. They never hesitated to answer my silly questions as well. I am really thankful
to Madam Farzana Irshad and Sir M. Shafiq for their valuable time.
Branch Departments
• CREDIT
The credit department is one that deals with all sorts of advances. A bank earns major part
of its revenue through interest earnings. This department has key importance in the
branch and Mr. M. Shafiq is the RM manager for the bank who deals the credit
department. Following finance facilities are generally dealt here:
- Running Finance
- Allied Business Finance
- Letter of Guarantee
- Letter of Credit
• OPERATIONS
Operations department is an essential area which covers all the operations in the branch.
All the activities in the branch are controlled by Operations Manager. Madam Farzana
Irshad is the CSM with charge of Operations Manager.
• DEPOSITS
Deposits department handles all the activities related to cash deposits and withdrawals.
This is headed by Branch manager Mr. Arshad Ali Mazari and C/D Incharge Mr.
Khursheed Ahmad
• CASH
Cash department deals with physical cash dealings, the cash deposited in the branch and
withdraw from here are recorded and maintained by Mr. M. Rafiq the Cashier of the Bank
and Miss Iffat who is working as teller.

I will log here what I did learn from working in branch.
Deposit SLIPS
The first thing which I was told to do was to fill a slip for a customer. I found that there
are three types of slips.
• Current Account Deposit Slip

• PLS Account Deposit Slip
• Online Funds Transfer Slip
A deposit slip is a printed form which accompanies bank deposits. The depositor fills out
the deposit slip to indicate what types of funds are being deposited and which account
they should be deposited into. Deposit slips are used by a bank to keep track of the money
deposited over the course of a business day, and to ensure that no funds slip through the
cracks. For bank clients, a deposit slip offers a form of protection, indicating that funds
were counted and accepted by the bank. If the deposit is processed improperly, the
deposit slip will provide a paper trail. It is a documented evidence for the Audit team as
well.
A slip carries two parts, both are filled by Date, A/C holder name, A/C number and
deposit type with amount in figures and words. On successful transaction, one half is
returned to the customer as a documentary proof and other is kept for Bank Record.
Online Funds transfer slip is slightly different from others; as the remote branch code,
account number and title are mentioned where the funds are to be transferred. It is used
for Allied Bank branches all over the Pakistan. The photocopy of CNIC is must to be
attached with Online Funds Transfer slip.
Allied Xpress Funds Transfer
Allied xpress is a facility for the foreign residents to send money in Pakistan. The Allied
Xpress Funds Transfer form, shortly known as Xpress Form, carries the information
about the Beneficiary. The original CNIC is seen by the officer and a copy is attached to
the form for the authentication of the recipient. The form contains Transaction ID and
Pseudo code for the reference of the Bank. The form is retained by the bank and payment
is issued to the customer.

Account Opening
The most exciting part of my internship was to learn about various types of accounts and
what documents are necessary for a particular account. The madam was kind enough to
not only guide me but also allow me to open accounts for couple of customers.
The ABL, New Sadiq Bazar Branch, deals with all the accounts which ABL offers but in
common practices following types of accounts are usually used.
• Savings Account
• Business Account
• Salary Account
• Basic Banking Account
• Partnership Account
• Foreign Currency Account
Basically there are two basic account natures, Current Account and Savings Account.
Other types are just further extension of above mentioned accounts.
Business Account
A business account is one for the entrepreneurs or business owners. This is a single
account and needs a proof of the business as Letter head Pad. It carries the features of a
Current account which has been mentioned in detail.
Salary Account
A salary account is for the employees and it’s of B.B.A nature. A documentary proof of
employment has to be provided in order to open this account. A salary slip or a job
certificate from the employer will do the work.
Partnership Account
A partnership account is hold by two or more persons. It is a joint account which is
operated by either all partners or one on the behalf of others. It is mostly opened for
Partnership business for which a partnership deed has to be provided.
Current Account
A simple current account is one which is not Business, partnership or salary. Usually
people related to farming or agriculture owns such accounts. They have to provide the
proof of their land as Jamabandi.

Basic Banking Account
A Basic Banking Account or simply a B.B.A account is one with no minimum deposit
restrictions. A salary account is also a B.B.A natured account. It is most likely used by
students and salaried individuals.
Foreign Currency Account
A foreign currency account can be opened either of Current of Savings nature. There is a
restriction on the currency which is being opted for account. For example, if you have a
dollar account then you must make all transactions in dollars, no transaction in Rupees or
other currency is allowed.
Clearing and OBC
Clearing denotes all activities from the time a commitment is made for a transaction until
it is settled. Customers deposit cheques to their accounts from other parties. If a cheque is
from the same city branch then it is sent for the clearing through NIFT- National
Institutional Facilitation Technologies. NIFT is an institution providing clearing house
functions for the Bank. The customer account is credited on deposit but the payment is
hold until the cheque is cleared by the bank it was drawn from.
When the cheque presented is of outside city branch then it is sent as OBC – Outward
Bills Collection. A schedule is filled and sent to the ABL Main branch in that particular
city to clear the cheque and transfer amount to our branch.
While an OBC is sent a voucher is prepared as Credit OBC and Debit OBR which holds
the payment of that cheque until it gets cleared. When an OBC is successful the reverse
entry is posted and Amount is available to the customer for withdrawl.
A.R.T.C
Allied Ruppe Traveler Cheque or ARTC is an instruments used by business persons for
security of their money. A traveler cheque guarantees the payment from any branch of
the Bank all over Pakistan. It carries the signature of CSM and Branch Manager.
A.R.T.C is issued to the Bank Customers only and a cheque against the payment of
A.R.T.C is collected. The A.R.T.C is hot cash and it must have two signature of the
drawee for payment. Therefore it is considered a secure mode of payment.

Pay Orders & Demand Drafts
A pay order is issued when payment has to be made to some one within the city. A pay
order is in the name of a particular account holder and it is always Payee only. Allied
Bank issues Pay order for any type of payment in expense of branch.
A customer can have a pay order in name of a particular party which is payable on
demand. When a pay order is issued for outside city, it becomes a demand draft. A
demand draft works same as the pay order.
Vouchers
A voucher simply tells us which account to debit and which to credit. For every
transaction there has to be documentary evidence and voucher is that proof.
When funds are deducted from a customer account a debit voucher is posted and for
addition of funds a credit voucher. Sometimes bank charge certain charges on a customer
account like online charges, R.T.C issuance charges, D.D Issuance charges, Cheque Book
charges then Customer account is debited and relevant income account is credited.
The above are some works which I practically performed during my internship, other than
these there were many tasks assigned to me which I performed.

CHAPTER – 6
Financial Information

Financial Highlights
Under the current circumstances, ABL effectively pursued its strategy of consolidation
and remained focused on the improvement in quality of assets and achievement of a more
favorable deposit mix. In line with this strategy, the Bank continued to align its risk
management framework to effectively respond to changing dynamics. Meanwhile, efforts
to enhance customer’s satisfaction continued during the year through strengthening
delivery capabilities by leveraging technology platform and the Bank’s extensive
outreach and developing innovative products and solutions.
Allied Bank’s Proft before Tax increased to Rs. 10,536 million during 2009 as compared
to Rs 6,121 million in 2008, a YoY increase of 72.1%. Proft after Tax also rose to Rs.
7,122 million in 2009 as against Rs. 4,157 million in 2008, showing an increase of 71.3%.
Consequently, the ROA and ROE of the Bank increased to 1.81% and 30.5% as
compared with 1.21% and 21.2% in previous year. The EPS of the Bank stands at Rs.
10.02 for 2009 compared to Rs. 5.85 in previous year.
The balance sheet size of ABL increased to Rs. 418,374 million as at December 31, 2009,
a YoY rise of 14.1%. The equity of the Bank increased by 34% to Rs. 29,960 million as at
December 31, 2009 consequently, the financial leverage reduced to 13.96 times as at
December 31, 2009 compared to 16.40 as on December 31, 2008. The Bank’s CAR at
December 31, 2009 was worked out to at 13.47 %, improving from previous year’s
10.90%. This shows Bank’s focus on balance sheet strengthening while also ensuring
regulatory compliance.
Deposits grew by 10.6% to Rs. 328,875 million as at December 31, 2009 compared to Rs.
297,475 as at December 31, 2008. Gross advances increased to Rs. 249,887 million at
December 31, 2009 compared to Rs. 223,640 million at December 31, 2008, a YoY rise
of 11.74%.
Net Mark-up/Interest Income of the Bank increased by 40.6% to Rs. 18,700 million as
compared to Rs. 13,298 million in the previous year. Non-Mark up income rose to Rs.
5,958 million showing a YoY increase of 21.7%. The Bank’s operating expenses
increased by 13.9% to Rs. 9,609 million during 2009. The Gross Income to Expense ratio
has improved to 2.57 times during 2009 from 2.04 times in 2008.
Financial Highlights in Graphs

Balance Sheet
As on 31 December, 2004 2005 2006 2007 2008 2009
Rs. in Millions
ASSETS
Cash and balances with
12,320 18,035 24,745 30,408 25,751 27,716
treasury and other banks
Lending to fnancial institutions 16,175 5,777 19,050 18,419 15,793 28,123
Investments- Gross 57,657 45,269 47,156 84,151 84,602 96,975
Advances - Gross 69,949 119,866 151,705 178,524 223,640 249,887
Operating Fixed assets 2,552 4,721 6,445 7,549 11,134 12,447
Other assets 7,073 7,908 10,800 11,368 18,399 17,955
Total assets - Gross 165,726 201,575 259,902 330,419 379,319 433,103
Provisions against non-
-10,464 -8,659 -7,672 -10,117 -10,668 -12,543
performing advances
Provisions against diminution
-336 -342 -203 -192 -1,956 -2,186
in value of investment
Total assets - net of provision 154,926 192,574 252,027 320,110 366,696 418,374
Liabilities & Equity
Customer deposits 126,392 161,410 206,031 263,972 297,475 328,875
Inter bank borrowings 12,538 9,694 18,410 22,934 27,778 39,819
Bills payable 2,534 2,449 2,278 3,494 2,952 3,162
Other liabilities 3,206 4,472 5,119 7,332 13,636 11,061
Sub-ordinated loans - - 2,500 2,499 2,498 5,497
Total Liabilities 144,671 178,025 234,339 300,231 344,340 388,414

Net Assets / Liabilities 10,256 14,550 17,688 19,878 22,356 29,960
Share capital 4,405 4,489 4,489 5,386 6,464 7,110

Share premium 10,640 4,316 4,316 3,419 2,341 1,695
Reserves 717 1,377 1,817 2,632 3,463 4,888
Un - appropriated proft / (loss) -6,314 2,732 5,608 6,971 8,537 12,198
Equity - Tier I 9,448 12,914 16,230 18,408 20,805 25,891
Surplus on revaluation of assets 808 1,636 1,458 1,470 1,550 4,069
EQUITY 10,256 14,550 17,688 19,878 22,356 29,960
Profit and Loss Account

For the Year of 2004 2005 2006 2007 2008 2009
Rs. in Millions
Markup / Return / Interest earned 5,245 9,892 17,216 21,201 30,571 41,122
Markup / Return / Interest expensed 794 2,025 6,793 10,093 17,273 22,422
Net Markup / Interest income 4,451 7,867 10,423 11,108 13,298 18,700
Fee, Commission, Brokerage and
1,520 1,471 1,636 2,258 3,266 3,470
Exchange income
Capital gain & Dividend income 65 196 540 1,585 1,571 2,452
Other income 155 273 273 77 59 36
Non interest income 1,740 1,940 2,449 3,920 4,897 5,958
Gross income 6,191 9,807 12,872 15,029 18,195 24,658
Operating expenses 4,115 4,264 5,289 6,174 8,431 9,609
Profit before provisions 2,076 5,543 7,583 8,855 9,764 15,049
Donations - 15 9 28 82 97
Provisions - (charge) / reversal -1,594 -694 -913 -2,874 -3,561 -4,416
Profit before taxation 482 4,834 6,661 5,953 6,121 10,536
Taxation -290 -1,744 -2,264 -1,877 -1,964 -3,414
Profit / (Loss) after taxation 192 3,090 4,397 4,076 4,157 7,122

CHAPTER – 7

Financial Analysis
Balance Sheet – Vertical Analysis
2004 2005 2006 2007 2008 2009

Vertical Analysis
%
ASSETS
Cash and balances with treasury
8.00 9.40 9.80 9.50 7.00 6.60
and other banks
Lending to financial institutions 10.40 3.00 7.60 5.80 4.30 6.70
Investments - net 37.00 23.30 18.60 26.20 22.40 22.70
Advances - net 38.40 57.70 57.10 52.60 58.10 56.70
Operating fixed assets 1.60 2.50 2.60 2.40 3.00 3.00
Other assets 4.60 4.10 4.30 3.50 5.00 4.30
Total assets 100.00 100.00 100.00 100.00 100.00 100.00
LIABILITIES & EQUITY
Customer deposits 81.60 83.90 81.80 82.30 81.10 78.60
Inter bank borrowings 8.10 5.00 7.30 7.20 7.60 9.50
Bills payable 1.60 1.30 0.90 1.10 0.80 0.80
Other liabilities 2.10 2.30 2.00 2.30 3.70 2.60
Sub-ordinate loans 0.00 0.00 1.00 0.80 0.70 1.30
Total Liabilities 93.50 92.40 93.00 93.70 93.90 92.80

Share capital 2.80 2.30 1.80 1.70 1.80 1.70
Reserves 7.30 3.00 2.40 1.90 1.60 1.60
Un - appropriated profit / (loss) -4.10 1.40 2.20 2.20 2.30 2.90
Equity - Tier I 6.00 6.70 6.40 5.80 5.70 6.20
Surplus on revaluation of assets 0.50 0.80 0.60 0.50 0.40 1.00
Total Equity 6.50 7.50 7.00 6.30 6.10 7.20
The above table shows that Investment and Advances are two major contributors in Total
Assets of the business. Combine they made almost 89% of the assets in year 2009 which
was 75% in 2004. The bank has reduced its lending to Financial institutions and trying
spent more on customer advances.
Balance Sheet – Horizontal Analysis

2004 2005 2006 2007 2008 2009
Horizontal Analysis
%
ASSETS
Cash and balances with treasury and
100.00 146.40 200.80 246.80 209.00 225.00
other banks
Lending to financial institutions 100.00 35.70 117.80 113.90 97.60 173.90
Investments - net 100.00 78.50 81.80 146.00 146.70 168.20
Advances - net 100.00 171.40 216.90 255.20 319.70 357.20
Operating Fixed assets 100.00 185.00 252.50 295.80 436.30 487.70
Other assets 100.00 111.80 152.70 160.70 260.10 253.90
121.6 156.8 228.9
Total assets 100.00 199.40 261.30
0 0 0
LIABILITIES & EQUITY
Customer deposits 100.00 127.70 163.00 208.90 235.40 260.20
Inter bank borrowings 100.00 77.30 146.80 182.90 221.50 317.60
Bills payable 100.00 96.60 89.90 137.90 116.50 124.80
Other liabilities 100.00 139.50 159.70 228.70 425.30 345.00
Sub-ordinate loans - - 100.00 99.60 99.90 219.90
123.1 162.0 238.0
Total Liabilities 100.00 207.50 268.50
0 0 0
Share capital 100.00 101.90 101.90 122.30 146.70 161.40

Reserves 100.00 40.60 40.60 32.10 22.00 15.90
Un - appropriated profit / (loss) 100.00 143.40 188.80 210.40 235.20 293.20
Equity - Tier I 100.00 136.70 171.80 194.80 220.20 274.10
Surplus on revaluation of assets 100.00 202.40 180.40 181.90 191.80 503.40
141.9 172.5 218.0
Total Equity 100.00 193.80 292.10
0 0 0
The above table shows us the percentage increase in balance sheet over the years. We will
see graphical representation of important variables. The notable item is operating fixed
assets which have an increase of 487.70% in 5 years. ABL is trying to spend more on its
operating assets to make the more efficient and enhance the productivity.
On the other side when we observe the liabilities, we see prominent increase in Inter-
Bank borrowings and other liabilities. ABL has also started sub-ordinate loans in 2006
which were increased to 220% in 2009.
Total Assets
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2004 2005 2006 2007 2008 2009
The above graph shows the percentage increase in the Total Assets of ABL over the
years. The constant increase depicts the performance of the Bank and it has increased its
assets almost 250% since 2004.

Net Advances
400.00%
350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2004 2005 2006 2007 2008 2009
Advances, an important word for the Banking sector as it is the main source of generation
of income. ABL has been successful in increasing their advances by offering variety of
products to the customers. Increasing advances up to 350% in merely 5 years is fantastic.
P&L Account – Vertical Analysis

2004 2005 2006 2007 2008 2009
Vertical Analysis
%
Interest / Return / Non Interest - Income earned
Markup / Return / Interest earned 75.10 83.60 87.50 84.40 86.20 87.30
Fee, Commission, Brokerage and
21.80 12.40 8.30 9.00 9.20 7.40
Exchange income
Capital gain & Dividend income 0.90 1.70 2.70 6.30 4.40 5.20
Other income 2.20 2.30 1.50 0.30 0.20 0.10
Total 100.00 100.00 100.00 100.00 100.00 100.00
Interest / Return / Non Interest - Expense
Markup / Return / Interest expensed 11.40 17.10 34.50 40.20 48.70 47.60
Operating expenses 58.90 36.20 26.90 24.70 24.00 20.60
Provisions 22.80 5.90 4.70 11.40 10.00 9.40
Taxation 4.20 14.70 11.50 7.50 5.60 7.30
Total expense - percentage of total
97.30 73.90 77.60 83.80 88.30 84.90
income
Profit / (Loss) after taxation 2.70 26.10 22.40 16.20 11.70 15.10

Total 100.00 100.00 100.00 100.00 100.00 100.00
Markup Earned
90.00%
85.00%
80.00%
75.00%
70.00%
65.00%
2004 2005 2006 2007 2008 2009
The above chart shows the variation of markup earnings from the total earning of ABL
over the years. It can clearly observe that major source of banks revenues is markup
returns on advances.
P&L Account – Horizontal Analysis

2004 2005 2006 2007 2008 2009
Horizontal Analysis
%
Interest / Return / Non Interest Income earned
Markup / Return / Interest
100.00 188.60 328.20 404.20 582.90 784.10
earned
Fee, Commission, Brokerage
100.00 96.70 107.60 148.50 214.80 228.20
and Exchange income
Capital gain & Dividend
100.00 301.90 830.60 2438.90 2417.80 3772.80
income
Other income 100.00 176.30 176.50 50.10 38.20 23.30
Total 100.00 169.40 281.50 359.70 507.80 674.00
Interest / Return / Non Interest Expense
Markup / Return / Interest
100.00 255.00 855.40 1271.00 2175.10 2823.50
expensed
Operating expenses 100.00 104.00 128.70 150.70 206.90 235.80
Provisions 100.00 43.60 57.30 180.30 223.40 277.00
Taxation 100.00 601.50 780.80 647.40 677.50 1177.50

Total expense 100.00 128.70 224.80 309.80 460.90 588.20
Profit / (Loss) after taxation 100.00 1611.30 2292.70 2125.40 2167.40 3714.00
Total 100.00 169.40 281.50 359.70 507.80 674.00
Total Earnings
800.00%
700.00%
600.00%
500.00%
400.00%
300.00%
200.00%
100.00%
0.00%
2004 2005 2006 2007 2008 2009
The above graph shows the percentage increase in the earnings of the bank over the years.
It can be observed that in 5 years the ABL has earned up to 700% of what they earned in
2004.
CHAPTER – 8

RATIO Analysis
1. Return on Equity
What is Return on Equity?
The amount of net income returned as a percentage of shareholders equity. Return on

equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Return on Equity
8% 28% 30% 23.54% 21.20% 30.50%

Graph:
Return on Equity
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
The graph shows that company is generating 30% return on shareholder’s equity.
Since 2004 company has earned more on its equity that ranges between 20 to 30 percent
which is a good return.
2. Return on Assets
What is Return on Assets?
An indicator of how profitable a company is relative to its total assets. ROA gives an

idea as to how efficient management is at using its assets to generate earnings. Calculated
by dividing a company's annual earnings by its total assets, ROA is displayed as a
percentage.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Return on Assets
0.14% 1.78% 1.98% 1.42% 1.21% 1.81%

Graph:
Return on Assets
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
ABL is a service organization and its structure based upon the advances and investments.
The operating assets are merely small part of the total assets. This ratio shows that ABL is
earning around 2 percent on its assets which is little low compared to industry averages.
3. Return on Capital Employed

What is Return on Capital Employed?
A ratio that indicates the efficiency and profitability of a company's capital investments
ROCE should always be higher than the rate at which the company borrows; otherwise
any increase in borrowing will reduce shareholders' earnings.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Return on Capital Employed
8% 28% 26% 21% 19% 26%

Graph:
Return on Capital Employed

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
ABL is a service organization and its structure based upon the advances and investments.
The operating assets are merely small part of the total assets. This ratio shows that ABL is
earning around 2 percent on its assets which is little low compared to industry averages.
4. Loan to Deposit Ratio

What is Loan to Deposit Ratio?
A ratio that indicates the efficiency and profitability of a company's capital investments
ROCE should always be higher than the rate at which the company borrows; otherwise
any increase in borrowing will reduce shareholders' earnings.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Loan to Deposit Ratio
47% 69% 70% 64% 72% 72%

Graph:
Loan to Deposit Ratio

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
Loan to Deposit ratio tells us that Bank is keeping around 30% as reserves and lending
70% of the deposits. This reserve is necessary to meet the short term customer withdrawal
and obligations. This shows the strength of the Bank that it needs less percentage of
reserves over the years and making more advances.
5. Cost to Revenue Ratio

What is Cost to Revenue Ratio?
Cost to revenue ratio depicts that how much cost is in percentage to the revenue. That
helps to determine whether more or less cost was involved in generating that revenue.
Formula:
Operating Expense / Gross Income
Table:
2004 2005 2006 2007 2008 2009
Cost to Revenue Ratio
66.50% 43.50% 41.10% 41.10% 46.20% 39.00%

Graph:
Cost to Revenue Ratio

70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
The trend shows us that cost has increased less than the rate revenue has increased. The
decrease in Cost to Revenue Ratio is a positive sign which shows that ABL is doing fewer
expenses and generating more revenue.
6. Gross Profit Margin

What is Gross Profit Margin?
The amount of contribution to the business enterprise, after paying for direct-fixed and
direct-variable unit costs, required to cover overheads (fixed commitments) and provide a
buffer for unknown items.
Formula:
Gross Profit Margin = (Revenue - cost of revenue)/Revenue
Table:
2004 2005 2006 2007 2008 2009

Gross Profit Margin
4% 58% 31% 17% 21% 36%
Graph:
Gross Profit Margin

70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
The gross profit margin is what bank is earning, in year 2004 the ABL was in Losses and
its gross profit margin was below 5%. But in next year that shoot to almost 60% which
means ABL earned 60% more than what they spend in 2005. In 2009, its 36% which
shows the profit cycle ABL is going through.
7. Weighted Average Cost of Debt

What is Weighted Average Cost of Debt?
The effective rate that a company pays on its current debt; it can be measured as either
before-tax or after-tax returns; however, because interest expense is deductible, the after-
tax cost is seen most often. This is one part of the company's capital structure, which also
includes the cost of equity.

Formula:
(Risk free Return + credit risk rate)(1-Tax)
Table:
2004 2005 2006 2007 2008 2009
Gross Profit Margin
2.45% 6.78% 9.09% 9.96% 11.50% 11.50%
Graph:
Cost of Debt
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
This ratio shows the cost ABL is paying on its debt. The short term liabilities has
increased over the year thus company is paying more cost of debt than previous years.

8. Capital Adequacy Ratio
What is Capital Adequacy Ratio?
Capital adequacy ratio is the ratio which determines the capacity of the bank in terms of
meeting the time liabilities and other risks such as credit risk, operational risk, etc. In the
simplest formulation, a bank's capital is the "cushion" for potential losses, which protects
the bank's depositors or other lenders.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Capital Adequacy Ratio
16.64% 12.17% 12.80% 10.26% 10.90% 13.47%
Graph:
Capital Adequacy Ratio

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2004 2005 2006 2007 2008 2009
Interpretation:
1. Tier I Capital: Actual contributed equity plus retained earnings.

2. Tier II Capital: Preferred shares plus 50% of subordinated debt.
The CAR trend shows that ABL has maintained its capital adequacy ratio to a reasonable
level and it is covering the risk and has enough for unexpected losses.
9. Earning per Share

What is earning per Share?
Earnings per share (EPS) are the earnings returned on the initial investment amount. The
portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company's profitability.
Formula:
Table:
2004 2005 2006 2007 2008 2009
Earning per Share
0.38 4.35 6.18 5.73 5.85 10.02

Graph:
Earning Per Share

12
10
0
2004 2005 2006 2007 2008 2009
Interpretation:
Earning per share or simply EPS is a key factor while considering investing in a business.
It is the actual earning of a share holder on his investment. ABL is increasing its EPS over
the year. That means it has much potential for an interested investor.
10. Dividend per Share

What is Dividend per Share?
The DPS ratio is very similar to the EPS that shows what shareholders earned by way of
profit for a period whereas DPS shows how much the shareholders were actually paid by
way of dividends.
Formula:
dividend paid to equity shareholders / avg no. of equity share holders

Table:
2004 2005 2006 2007 2008 2009
Dividend per Share
- 2.5 2.5 3 2.5 4
Graph:
Dividend Per Share

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2004 2005 2006 2007 2008 2009
Interpretation:
Dividend per share is an important factor under consideration for investors. A company
with payout history is likely to get more investors than the one with no or low dividend
payout. ABL has been paying its shareholders a dividend of minimum Rs. 2.5 per share
and in year 2008 it was Rs. 4. It shows the financial stability of the ABL.
SWOT Analysis
Strengths:
ABL has certain strengths which makes it distinct from other banks.
 First Muslim bank of the world owned and managed by its own employees. The sense
of ownership increases the productivity of the organization and helps to build a sound
foundation.
 High motivation level of employees not only strengthen the operations of the
business but also the corporate level strategies and decision making works for the best
interest of the shareholders and thus for the ABL itself.
 The salaries are reasonable enough to compete in the financial market. The employees
are dedicated to their work as they know they are being paid off.
 ABL has the largest branch network all across the Pakistan. As it is the oldest bank of
Pakistan it covers the areas where other Banks are unable to start their operations.
 ABL has large clientage due to its wide spread branch network and it has most of the
cash and transaction going around.
 Standard Operating Procedures helps all the branches to coordinate with central office
in Karachi. All key areas are now centralized and over looked by central office.
 Online connectivity of all the Branches and ATM network also give ABL advantage
over other banks.
Weaknesses:
During my work there I’ve found these weaknesses in the ABL structure.
 ABL hasn’t put much attention on the interior and facilities of the customer. There are
few proper seating arrangements. With today’s fast going life it’s really difficult for a
customer to stand in a queue.
 While a customer is waiting for his turn, he has nothing to do there. A proper seating
arrangement with news papers and magazines would definitely increase the
efficiency.
 ABL hasn’t focused on advertisement as such, they are using traditional methods and
it’s really hard to retain the existing customers without proper advertisement
campaigns about new products and services.
 Low level staff is neglected by top management and they are discouraged in bonuses
and allowances.
Opportunities:
ABL can avail these opportunities to make most out of it.

 After current economical situation government has made new policies regarding
financial sector. ABL with all its strengths can make most out of it and play its
character in the rehabilitation of the economy.
 The flood effected population needs financial support and small loans to those people
will not only help ABL to increase their business but also avail a good chance of
developing goodwill.
 ABL can approach government for the disbursement of funds to flood affected areas
with help of it’s widely spread branch network.
Threats:
The following threats are present in the market for ABL.
 Political influence is always a major threat to any organization. The BOD needs to
make policies best in the interest of shareholders and bank itself by complying with
government regulations.
 The current economical situation of the country has posses a threat to financial sector
on the whole. The borrowing capacity of the people is decreasing and inflation has
declined the rupee value. People are mostly interested in gold and real estate rather
investing in financial assets.
 New International Bank with state of the art technologies and better infrastructure are
certainly a threat for ABL in near future. If ABL don’t pay much attention to its
competitors and improve and enhance its infrastructure to meet with current demands
they certainly will lack.
Suggestions
After analyzing the ABL’s SWOT factors, I have some suggestions for the bank.

 ABL needs to pay more attention on its branch outlook and interior design. A well
structured air conditioned environment is a must now a day for banking sector.
 Customers are the key figure in any business; ABL needs to facilitate the customers
by allocating seating areas and waiting areas for the customers.
 The security is although enough but it needs to be enhanced and equipped with latest
technology.
 ABL should introduce new products and services meeting the present day demand.
 ABL charge much for the services like Online Transaction, Demand Draft, Pay Order,
R.T.C etc... They should cut down the cost for non-customer individuals to attract
them being their customer.
 ABL should encourage its low level employees and they must be provided with
benefits and bonuses as they are the ones doing most the work there.
 The online system of ABL is based on the Linux which needs specialized individuals
to handle in case of any problem. There must be enough technicians to resolve the
issues at once so branch work is not affected.
 ABL is still using traditional postage system to even communicate with city branches.
The use of emails and electronic media should be encouraged.
 Regional Manager should have authority to appoint internees and issue those letters,
sending postage to Karachi and waiting for the response is a time taking activity.
Conclusion
Here I have got a chance to conclude what I have learnt during my

internship and while preparing this report. It was a nice experience
working in a real environment and I was quite excited for it. I have

tried to learn what ever I could, including Opening an account and
preparing D.D’s, R.T.C’s and even preparing vouchers. I did
prepare notices for dormant accounts and also get to know about
stock reports and credit documents.
Overall it was a nice experience and ABL as an organization is

certainly at a higher position in banking sector. Their financial
highlight shows us its growth and future prospects. With all the
strengths ABL own there are certain threats as well which ABL
should address to avoid any downfall and keep its position.
Office grade employees in ABL are well paid and satisfied with their
jobs but one thing I felt was discrimination on the basis of degree.
Work experience is an important factor in any organization and
promotions, bonuses and increments are work based. But in ABL I
found a bit of discrimination with low grade employees and ones
who don’t possess a relevant degree are neglected irrespective of the
plenty of work experience.
During preparation of this report, I have worked hard to study in

detail the financial statements of the organization and conduct
common size analysis and ratio analysis to determine the ABL’s
financial position.
Annexure
Internship Letter from Bank

Current Account Deposit Slip
PLS Account Deposit Slip
Allied Xpress Schedule

References
New Sadiq Bazar Branch (0334)
www.abl.com
Wikipedia
investopedia

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Department of Management Sciences

The purpose of writing this report is to explain and evaluate my

When I had to choose the organization for my internship, my

This report will address my practical work experience in the branch

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 2

“Praise be to Allah, Lord of the Worlds, The Beneficent, the Merciful.”

All acclamations are to Allah, the most Merciful and

After that I submit my earnest thank to my affectionate parents, who

Also I express my appreciation to all staff members of Allied Bank

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 3

I dedicate this report to my parents, teachers

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 4

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 5

What is Banking Company?.......................................................................................10

A Brief History of Banking in Pakistan:....................................................................10

Banking Organizations in Pakistan............................................................................11

Importance of Banking Sector...................................................................................12

Various Phases of Banking in Pakistan......................................................................13

First Phase (1947-74).................................................................................................13

Second Phase (1974--79):..........................................................................................14

Third Phase (1979-91):..............................................................................................16

Fourth Phase (1991-2000):.........................................................................................17

Pre-Independence History (1942 – 1947):.................................................................19

Australasia Bank (1947-1974):..................................................................................20

Allied Bank (1974 to 1991):......................................................................................20

Allied Bank (1991 to 2004):......................................................................................20

Allied Bank (2005 to date):........................................................................................21

Allied Bank and Ibrahim Group:................................................................................22

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 6

Values & Objectives......................................................................................................26

Allied Business Account............................................................................................45

Allied Rising Star.......................................................................................................46

Allied Basic Banking Account...................................................................................47

Allied e-Savers Account............................................................................................48

Foreign Currency Deposits........................................................................................48

Rewarding Term Deposit...........................................................................................49

Monthly Profit Plus....................................................................................................49

Allied Advance Profit scheme...................................................................................50

Rewarding Profit Account..........................................................................................50

Behtar Munafa Account.............................................................................................51

Behtar Munafa Term Deposit.....................................................................................52

Allied Bachat Scheme................................................................................................52

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 7

Financial Highlights in Graphs..................................................................................71

Profit and Loss Account.................................................................................................74

Balance Sheet – Vertical Analysis.................................................................................76

Balance Sheet – Horizontal Analysis.............................................................................77

P&L Account – Vertical Analysis..................................................................................79

P&L Account – Horizontal Analysis.............................................................................80

Return on Capital Employed.......................................................................................845

Loan to Deposit Ratio.................................................................................................856

Cost to Revenue Ratio...................................................................................................86

Gross Profit Margin.......................................................................................................87

Weighted Average Cost of Debt...................................................................................88

Capital Adequacy Ratio................................................................................................90

Earning per Share..........................................................................................................91

Dividend per Share........................................................................................................92

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 8

SWOT analysis is close overview of the Bank’s Strengths, Weaknesses, Opportunities

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 9

Introduction of Banking Sector

The Islamia Univresity of Bahawalpur – Rahim yar Khan Campus 10

What is Banking Company?