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Internship Report On

Allied Bank of Pakistan

Peoples Colony Branch, Gujranwala.

Internship report submitted to the Management Studies Department, Govt. College University, Lahore to full fill the requirements of MBA Degree

By

TAYYAB YAQOOB QAZI

MBA (2009-2011)

MANAGEMENT STUDIES DEPARTMENT GOVT. COLLEGE UNIVERSITY LAHORE

Internship Report on ABL 2010

TABLE OF CONTENTS
PREFACE_______________________________________________ 3 ACKNOWLEDGMENT_________________________________ BANKING SYSTEM TODAY 4

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THE ORGANIZATION____________________________________6 HISTORY AND BACKGROUND____________________________6 ALLIED BANK (A NEW BEGINNING_______________________7 GENERAL PROFILE OF ABL VISION MISSION CORE VALUES OBJECTIVES PRODUCTS MY INTERNSHIP ACTIVITIES WORKED DEPARTMENTS MANAGEMENT STYLE AND WORKING ENVIRONMENT OVER ALL SUMMARY 7 7 8 8 8 9 9 10 12 12

Internship Report on ABL 2010

PREFACE

The report is specially meant for the students of MBA. It is concerned to a brief study of Branch operations, functions and services of Allied Bank of Pakistan. Banking play very important role in the commerce and economic development of a country. Now-a-days banks are using different modern technologies, which influence the managerial activities, that is why I decided to do my internship training in the bank. In preparation of this report I tried my best to provide all possible information about the Branch operations, functions and tasks of Allied Bank of Pakistan in brief and comprehensive form.

Internship Report on ABL 2010

Acknowledgment

To Him belongs the dimension of the Heavens and the Earth, it is He who gives life and death and He has power over all things.
(Al-Quran)

All praises are to Allah, the most Merciful and kind, who empowered and enabled me to accomplish this task successfully.

After that I submit my earnest thank to my affectionate parents and family members, 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 enabled me to gain knowledge and learning exposure of the organization in the best way.

I also express my appreciation to all staff members of Peoples Colony Gujranwala Branch of Allied Bank of Pakistan, who were much cooperative to me. I express my best gratitude to my kindhearted Supervisor/Branch Manager Mr. Sheikh M. Naveed as well.

Internship Report on ABL 2010

BANKING SYSTEM TODAY

The banking business today as we know it is composed of three separate and typical principal functions these are: 1. The acquiring of funds to invest and advances 2. The investing of such funds and advances (loans) in bonds 3. The servicing of such funds, such as providing of checking, saving facilities and the collection of draft, notes and cheques
These functions in detail of operations follow the same principles established hundreds of year ago by money lenders and exchangers.

Internship Report on ABL 2010

THE ORGANIZATION HISTORY AND BACKGROUND:

Allied Bank was the first Muslim bank that was established in Pakistan in December 1942 as the Australasia Bank in Lahore under the Chairmanship of Khawaja Bashir Bux. The Banks journey is about dedication, commitment, professionalism and adapting to environmental changes, leading to its growth and stability.

THE PRE-INDIPENDENCE HISTORY (1942-1947):

In the early 1940s, the Muslim community realized 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 wrongly believed that Muslims are 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 took the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab in December 1942.

AUSTRALASIA BANK:
The Bank financed trade in cloth, food grains and played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank after the amalgamation of four banks. Internship Report on ABL 2010 6

ALLIED BANK- A New Beginning:

In September 1991, Allied Bank Limited entered in the new era of its history a worlds first bank to be owned and managed by its employees. The 850 executives and 7200 staff members spread over 800 branches throughout the Pakistan established in high degree of cooperation and family feelings.

ALLIED BANK:
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 enjoyed an popular position in Pakistans 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 Banks ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

IBRAHIM GROUP ASSUMES CONTROL OF ABL:

Ibrahim Group, through its different companies and sponsors owns more than 75% of Allied Bank. The Group apart from interest in financial sector is engaged in manufacturing of yarn and polyester staple fiber, trading and power generation.

General Profile of the Allied Bank Limited:

Allied Bank Limited operates by the following Vision, Mission & Values:

VISION:
To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers.

Internship Report on ABL 2010

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

CORE VALUES:
The core values of Allied Bank are these:

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

Internship Report on ABL 2010

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

PRODUCTS:
Phone Banking Credit Cards Internet Banking Online Banking ATM Networks M Net Networks PLS Accounts Current Accounts Foreign Currency Deposit Agriculture Finance Insurance Lockers

MY INTERNSHIP ACTIVITIES
I worked at Allied Bank Limited, Peoples Colony Branch, Gujranwala as an internee. The bank Manager told me about the rules and regulations and a brief history of the bank. Later on, he told me the basics of some operations of the departments in the bank. Though, I was supposed to serve in all possible departments, yet I served the Accounts department the most.

Internship Report on ABL 2010

10 Account Opening Department: First and the main department where I worked was the account opening department, where the accounts of the new customers are opened. Whenever a customer comes to open his account, he has to fill a relationship contract with the bank. As part of my internship I had to fill these forms and then use the appropriate bank stamps to complete these forms. The basic requirement for opening a new account is as follows; The basic requirements to open an account for individuals/self employed are as follows: CNIC Source of income (salary slip etc) NTN certificate (optional) Company letterhead or authorization (as required) Partnership Deed Partners CNIC Company Letterhead NTN certificate (optional) Memorandum of Association Article of Association Directors CNIC Company Letterhead

The basic requirement to open an account for a partnership

The basic requirement to open an account for companies:

Clearing Department: The word clearing has been derived from the word clear and is defined as: A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way.

Internship Report on ABL 2010

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11 Clearing House It is a place where representatives of all banks sit together and interchange their claims against each other with the help of controlling staff of NIFT. It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse. Instrument to be presented Cheques Demand Drafts Pay Orders

Types of clearing There are four types of clearing:1. Inward Clearing 2. Outward Clearing 3. Intercity Clearing 4. Same Day Clearing Miscellaneous Activities: During my internship stay at bank I performed many other activities as well. I made photocopies for the officers, filled the demand drafts to help the banking officers. Some times I received phone calls from the customers as well against there complaints and guided them with the procedure. I helped the customers coming to the bank by filling their cheques and guiding how to get resolved their problems. Time and often some customers were illiterate they were not even know how to cash the cheque, I guided such customers as well. During my overall stay at bank I worked near about in all departments of the bank and helped the officers and gained a lot of practical knowledge about banking operations.

Management Style and Working Environment:

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12 In Allied Bank of Pakistan, the Managers are promoting the Open Door Banking. They used to interact with their subordinates and workers on time to time basis this is the main reason the managers at ABL know the problems which their employees are facing and this timely interaction has created a healthy environment among the staff and their managers and this monitoring increase the efficiency at ABL. In ABL the managers have control over the staff members and employees and also have check over the tasks of employees which they perform even on daily basis. Some most experienced managers are hesitant to adopt the learning and open door banking. Allied Bank boasts work culture, which displays respect for all employees and different ways of thinking. However, all employees are encouraged to grow as individuals and collaborate in teams. Increments, bonuses and promotions are based solely on individual skills, qualities, abilities and attitude. It is ABLs aim to provide numerous opportunities for all those employees who show aptitude and the will to keep learning. Training programs, both local and foreign, are also considered important for employee growth.

Overall Summary:
At present there is no such organization in the world that is free from problems and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge. The management of ABL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. ABL is continuing its efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced. During my internship I have learned many new things in spite of the knowledge gained at university and also came to conclusion that education alone is not enough, practical training in every field is vital to become a successful manager. The bank has great image due to the trust but it needs to use it effectively to increase market share. Also the flaws in branch operations such as misallocation of resources should be rectified. As the business and economic conditions remain uncertain, ABL continues to develop the new products like it has been doing in past.

Internship Report on ABL 2010

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