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Internship Report 2009

Internship Report 2009

Table of Contents

PREFACE

2

ACKNOWLEDGMENT

3

BANKING SYSTEM TODAY

4

CHAPTER 1 THE ORGANIZATION

5

HISTORY AND BACKGROUND:

6

GENERAL PROFILE OF THE ALLIED BANK LIMITED:

10

PRODUCTS:

15

ORGANOGRAM OF ALLIED BANK:

36

BRANCH NETWORK:

39

CREDIT RATING:

40

VARIOUS BANK DEPARTMENTS:

43

APPRAISALS AND PROBLEMS AT ABL:

56

CHAPTER 2 ANALYSIS

57

SWOT ANALYSIS

58

FINANCIAL ANALYSIS:

61

FUTURE OUTLOOK:

64

CHAPTER 3 INTERNSHIP ACTIVITIES

65

WEEKLY ACTIVITIES:

66

MANAGEMENT STYLE

101

WORKING ENVIRONMENT:

101

CHAPTER 4 SUMMARY & RECOMMENDATIONS

102

OVERALL SUMMARY:

103

RECOMMENDATION FOR THE ORGANIZATION:

104

RECOMMENDATION FOR THE IBIT:

105

ANNEXURE:

106

Annexure:

Internship Report 2009

Internship Report 2009

PREFACE

The report is specially meant for the students of MBIT. It is concerned to a brief study of operations, functions, tasks 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’s why I decided to do my internship training in the bank.

In preparation of this report I have tried my best to provide all possible information about the operations, functions, tasks and the corporate information of Allied Bank of Pakistan in brief and comprehensive form.

Then internship report ends with some recommendation after identification of problems that I observed during the course of my internship training.

Internship Report 2009

Internship Report 2009

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 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 who are very cooperative guided me a lot and also I express my greatest gratitude to my kindhearted supervisor Mr. Asif Incharge of reporting fraud, forgery and dacoity, Miss Syeda Ana Mehdi Credit Analyst and the wing head Mr. Syed Mujtaba Gillani.

Internship Report 2009

Internship Report 2009

BANKING SYSTEM TODAY

The banking business

composed of three separate and distinctive principal functions these are:

is

as

we know

it today

The acquiring of funds to invest and advances

The investing of such funds and advances (loans) in bonds

The servicing of such funds, such as providing of checking, saving facilities and the collection of draft, notes and cheques

These functions while deferring in detail of operations follow the same principles established hundreds of year ago by money lenders and exchangers.

Internship Report 2009

Internship Report 2009

Chapter 1 the Organization

Internship Report 2009

Internship Report 2009

HISTORY AND BACKGROUND:

Allied Bank was the first Muslim bank that has been established in Pakistan in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs. 0.431 million

in its first eighteen months of business.

At the time, the Bank’s total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion. The Bank’s journey has been about dedication, commitment, professionalism and adapting to environmental changes, leading to its immense growth and stability.

changes, leading to its immense growth and stability. A view of Khawaja Bashir Bux's Residence that

A view of Khawaja Bashir Bux's Residence that was the first branch of

Australasia Bank came into existence. It is these factors that have made it a Bank the rest look up to.

these factors that have made it a Bank the rest look up to. THE PRE-INDIPENDENCE HISTORY

THE PRE-INDIPENDENCE 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 took 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.

Internship Report 2009

Internship Report 2009

AUSTRALASIA BANK (1947-1974):

A view of the building in Lahore that once housed the Australasia

Bank branch, Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947.

operational Muslim bank in Pakistan on August 14th, 1947. However, it was severely hit by the

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 (1974-1991):

In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank

after the amalgamation of four banks. 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- A New Beginning:

In November/December 1990, the government announced its commitments to the rapid privatization of the banking sector. Allied Bank’s management under the leadership of Mr. Khalid

Latif decided to react positively to the challenge. In September 1991, Allied Bank Limited entered

in the new era of its history a world’s 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.

Internship Report 2009

Internship Report 2009

ALLIED BANK (1991-2004):

As a result of privatization in September 1991, Allied Bank entered a new phase, and became the world’s first bank to be owned and managed by its employees. In 1993 the “First Allied Bank Modaraba” (FABM) was floated. After privatization, Allied Bank became one of the premier financial institutions of Pakistan.

Allied Bank’s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan’s financial sector and was recognized as one of the best amongst the major banks of the country.

In August 2004, as a result of capital reconstruction, the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches.

ALLIED BANK (2005 to date):

In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made; ABL was formally listed and the Bank’s share trading began on the following dates i.e. Islamabad Stock Exchange August 8, 2005, Lahore Stock Exchange August 10, 2005 and Karachi Stock Exchange August 17, 2005.

Today, all Allied Bank Limited shareholders can trade in the Bank’s shares at their will and 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.

Internship Report 2009

Internship Report 2009

IBRAHUM 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.

The consortium of Ibrahim Leasing Limited And Ibrahim Group, which has injected Rs. 14.2 billion into capital of Allied Bank of Pakistan for acquiring its 325 million additional shares, today assumed the control of the bank. The Governor, State Bank Of Pakistan, Dr. Ishrat Hussain handed over the relevant documents to Mr. Mohummad Naeem Mukhtar, Authorized Attorney of the consortium at a simple ceremony held at SBP, Karachi. Among those who present at the ceremony were Deputy Governor, Mr. Tawfiq A. Hussain and senior officials of the State Bank of Pakistan, representatives of the Allied Bank and the consortium. Speaking on the occasion, the State Bank Governor has termed the successful reconstruction of ABL as beneficial both for the organization as well as for banking industry. He expressed the hope that the transfer of the management of ABL to a strategic investor will turnaround the bank and usher in a new era of growth and stability in the banking sector. He stressed upon the new Board of the Bank to run it professionally, prudently and with the highest standards of corporate governance. It may be recalled that the auction of 325 million additional shares as a part of reconstruction of Allied Bank of Pakistan was held under the chairmanship of the deputy Governor, State Bank of Pakistan, Mr. Tawfiq A. Hussain at Islamabad on 23rd July, 2004. In the auction, the consortium of Ibrahim Leasing Limited And Ibrahim Group were the successful bidder as they offered the highest bid of Rs. 14.2 billion for acquiring these additional shares, which constitutes 75.35% of the revised capital of ABL. The Federal Government approved the scheme for reconstruction of ABL, under section 47 of the Banking Companies Ordinance 1962 on July 24, 2004.

After the approval of scheme by the Federal Government, the State Bank issued the Letter of Acceptance (LOA) to the consortium of Ibrahim Leasing Limited And Ibrahim Group on July 26, 2004 in terms of which the full payment of Rs. 14.2 billion was made on August 19, 2004. On receipt of full payment by the Allied Bank of Pakistan Limited and verification of the sources of funds by the State Bank of Pakistan, the control of the Bank was handed over to consortium of Ibrahim Leasing Limited And Ibrahim Group.

Internship Report 2009

Internship Report 2009

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.

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

Internship Report 2009

Internship Report 2009

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

environment

skills

and

experience

towards

creating

an

enabling

Core focus is to inculcate a culture of collaboration intended to deliver world class customer service

Internship Report 2009

Internship Report 2009

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

Chairman (CEO) President & (CEO) Director Director Director Director Director Director Director Director Director

Internship Report 2009

Internship Report 2009

EXECUTIVE COMMITTEE:

Mr. Khalid A. Sherwani

Mr. M. Naveed Masud

Mr. Akhter Ali Khan

Mr. Tahir Saeed Effendi

Mr. Mohammad Yaqoob

Mr. Masud A. Sidique

Mr. Anwar Zaki

Mr. Khalid Mehboob

Mr. Sayed Mujtaba Gillani

President & (CEO)

Senior Executive Vice President

Head Credit

Head I.T & Financial Officer

Head Islamic Banking & Planning Div

Head Human Resource

Head Treasury

Head Business Promotion

Head Special Vigilance Unit

Internship Report 2009

Internship Report 2009

THE MANAGEMENT:

“The brilliants whose passion is dedicated to discover newer ways to make the organization goals reality”

Mr. Asim Tufail

Mr. Fareed Vardag

Mr. Iqbal Zaidi

Mr. Mohammad Abbas Sheikh

Mr. Mohammad Aftab Manzoor

Mr. Muhammad Jawaid Iqbal

Mr. Muhammad Yaseen

Mr. Mujahid Ali

Mr. Shafique Ahmed Uqaili

Mr. Khawaja Mohammad Almas

Mr. Tahir Hassan Qureshi

Mr. Tariq Mehmood

Mr. Waheed ur Rehman

Mr. Zia Ijaz

(Group Chief, Consumer & Personal Banking)

(Chief Risk Officer)

(Group Chief, Compliance)

(Group Chief, Special Assets Management)

(Chief Executive Officer)

(Group Chief, Corporate & Investment Banking)

(Group Chief, Treasury)

(Group Chief, Information Technology)

(Group Chief, Human Resources)

(Head, Core Banking Projects)

(Chief Financial Officer)

(Group Chief, Operations)

(Company Secretary)

(Group Chief, Commercial & Retail Banking)

Internship Report 2009

Internship Report 2009

PRODUCTS:

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.

analytics, call centers and service quality departments. Phone Banking: Allied Bank is focused on delivering

Phone Banking:

Allied Bank is focused on delivering exceptional services to its customers that would strengthen the relationship and build Loyalty. To make banking experience quick, efficient, secure and easy, Allied Bank of Pakistan now offer its customers 24/7 Phone Banking Services.

Allied Phone Banking provides its customers immense comfort!

In addition, Allied customers can also avail a host of services through automated Allied Phone Banking (IVR/Self Service Banking) that lets them use their telephone keypad to inquire about their financial balance/transactions.

Allied Phone Banking Services:

Dial - 0800-22522 to get absolute Banking freedom

Branch Banking:

1. Inquiry

A/C balance

Statement details

Product information

2. Transactions

Cheque book request

TPIN issuance & re-issuance

ATM PIN issuance & re-issuance

PO/DD & Bank certificate

Funds transfer

Internship Report 2009

Internship Report 2009

Credit Cards:

1. Inquiry

Card balance

Statement details

Product information

Application status

1. Transactions

Card activation

Card lost/stolen

Card replacement

Credit Card bill payment

Insurances

Internet Banking:

Banking at your fingertips

∑ Insurances Internet Banking: Banking at your fingertips Allied Direct Internet Banking offers convenience to its

Allied Direct Internet Banking offers convenience to its customers to manage and control their banking and finances - when they want to, where they want to! So, just get clicking.

Allied Direct Internet Banking is;

Simple and Convenient

Secure and Faster

24X7 Account Access

Online Banking:

Secure and Faster ∑ 24X7 Account Access Online Banking: Allied Online Banking is a unique service

Allied Online Banking is a unique service being offering from Allied Bank. Through this service, account in Allied Bank is available to customers from any of abl branches countrywide.

No matter where customers are in the country and whichever branch their account is maintained at, customer can have their cheque cashed at any of abl 757 online branches located in 250 cities.

Internship Report 2009

Internship Report 2009

Customers can also use the service, from any branch, to deposit cash for instant credit into their account or any other account in Allied Bank. Similarly, the account-to-account Funds Transfer facility is also available for instant remittance.

Customers’ 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 abl branches countrywide. Corporate customers requiring fund collection or a disbursement facility can use it for cash management services.

facility can use it for cash management services. Allied ATM Networks: Allied Bank has a vast

Allied ATM Networks:

Allied Bank has a vast network of over 460 ATMs installed in over 130 cities, which continues to grow at a rapid pace.

in over 130 cities, which continues to grow at a rapid pace. 1 Link Network: Additionally,

1 Link Network:

Additionally, 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

Standard Chartered Bank Pakistan Limited

Al Baraka Islamic Bank

Bankislami Pakistan Limited

Meezan Bank Limited

Union Bank Limited

Allied Bank Limited

Crescent Commercial Bank Limited

National Bank of Pakistan

United Bank Limited

Askari Commercial Bank Limited

Dubai Islamic Bank Pakistan Limited

NIB Bank Limited

MyBank Limited

Atlas Bank Limited

Emirates Global Islamic Bank

PICIC Commercial Bank Limited

Limited Tameer Micro Finance Bank Limited

Bank AL Habib Limited

Faysal Bank Limited

Soneri Bank Limited

Habib Bank Limited

Bank Alfalah Limited

First Dawood Islamic Bank Limited

Internship Report 2009

Internship Report 2009

All ATMs connected with the"1- Link Switch" will show its Logo.

Bank:

Muslim Commercial Bank

Bank: Muslim Commercial Bank

City:

Select City

City: Select City  
 

Branch:

Select Branch

Branch: Select Branch  
 

Address:

M NET Network:

The Allied Cash+Shop Visa Debit Card can also be used at M Net ATMs, for cash withdrawal.

Card can also be used at M Net ATMs, for cash withdrawal. The "M Net Switch"

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

ORIX POS Network:

City:

KARACHI

City: KARACHI

Merchandiser:

 
Merchandiser:  

Address:

Internship Report 2009

Internship Report 2009

Internship Report 2009

Internship Report 2009 Institute of Business & Information Technology

Internship Report 2009

Internship Report 2009

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.

balancing, modernization, replacement and expansion schemes. Leasing is a popular mode of financing because of its

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.

Unclaimed Deposits:

If the account is dormant or not operated for 5 years then these are called unclaimed deposits and all unclaimed deposits are surrendered to the State Bank of Pakistan. In accordance with the Banking Companies Ordinance, 1962, Section 31, the Bank is liable to surrender to S.B.P, all unclaimed deposits and instruments which have not been operated/collected by the account holders/beneficiaries for last 10 years. All such customers/beneficiaries are requested to contact the concerned branch to re- activate their accounts/collect the instruments, failing which, the bank will be compelled to classify the same "UNCLAIMED" and surrender to SBP.

Deposit Accounts:

Allied Bank of Pakistan provides different nature of deposit accounts to its customers.

PLS Account

Current Account

Allied Basic Banking Account

Foreign Currency Deposit

Monthly Profit Plus

Rewarding Term Deposit

Behtar Munafa Account

Behtar Munafa Term Deposit

Allied Munafa Account

Allied Bachat Scheme

Allied e-Savers Accounts

Allied Business Account

Scheme ∑ Allied e-Savers Accounts ∑ Allied Business Account Institute of Business & Information Technology

Internship Report 2009

Internship Report 2009

PLS Account:

Allied Bank offers the PLS Savings Account facility to its customers with the following attractive features:

Attractive return of up to 5.00% per annum

Free Online Transactions, DD/TT/PO for depositors maintaining an average monthly balance of Rs. 2.500 (M) & above.

Free issuance of cheaque 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 cheaque book at the time of account opening

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.

Internship Report 2009

Internship Report 2009

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.

Monthly Profit Plus:

Saving has now become all the more appealing with our Monthly Profit plus Scheme,

which earns you monthly profits on investments. The scheme is designed for a period of 1 Year

Tenure

1 Year

Profit Rate

10.00% p.a.

Profit Payment

Rs.833 * per month

with

the

following

profit rates:

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:

Cheaquing Account for monthly profit credit

24 hour phone banking service

Free internet banking facility

SMS transaction alerts

Allied Cash + Shop Visa Debit Card

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.

Internship Report 2009

Internship Report 2009

Rate of Profit:

D

1

3

6

12

ep

Rs.

M

7.0

M

9.0

M

9.5

M

10.

os

25,

it

00

A

0

Salient Features:

on

0%

th

on

0%

th

s

0% on

th

s

50 on

th

%

s

& m

Ab ou

nt ov

e

Account Type: Term Deposit

Term Period: 1-12 months

Investment: Rs. 25,000 & above

Profit: Payable on maturity

Eligibility: Individuals & Institutions

Allied Advance Profit scheme:

In keeping with our objective to bring you new and innovative services and banking products, we now introduce Allied Advance Profit Scheme that gives the entire profit upfront.

Product Specifications:

Minimum Investment Required – Rs.25, 000

Investment Terms:

18 months

Auto roll-over (optional)

Profit Payment:

Profit of Rs.13, 500* 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

Additional Features & Benefits

Current account for regular banking needs

Allied Cash+Shop Visa Debit Card

Financing facility of upto 80% on investment

Free internet banking facility

24-hour phone banking service

Internship Report 2009

Internship Report 2009

Internship Report 2009

Internship Report 2009

Behtar Munafa Account:

If customer wants a chequing account that earns it attractive returns, paid on monthly

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

8.50%

Rs.100,000,001 to Rs.250,000,000

9.25%

Rs.250,000,001 to Rs.500,000,000

10.00%

Rs.500,000,001 & above

10.50%

basis, then this is the account for such customer.

Rate of Profit:

Salient Features:

Account Type: Chequing Account

Investment: Up to Rs.5,000,000 & above

Profit: Payable on monthly basis

Highest Profit: Up to 10.50% p.a

Eligibility: Individuals, and institutions

Behtar Munafe Term Deposit:

If customer wants to fix its money now to secure the future, this is the product for customer.

BEHTAR MUNAFA TERM DEPOSITS (3739):

1

3

6 Months

1 Year

Month

Months

Upto Rs. 5,000,000

6.00%

8.00%

8.50%

9.50%

Rs.5,000,001 to Rs.25,000,000

6.50%

8.50%

9.00%

10.00%

Rs.25,000,001 to

7.00%

9.00%

9.50%

10.50%

Rs.50,000,000

Rs. 50,000,001to Rs.

7.50%

9.50%

10.00%

10.75%

100,000,000

Rs.100,000,001& Above

8.00%

10.00%

10.50%

11.00%

Rate of Profit:

Internship Report 2009

Internship Report 2009

Rate of Profit:

Account Type: Fixed Term Deposit

Investment: Up to Rs.5,000,000 & above

Profit: Payable on maturity

Highest Profit: Up to 11% p.a.

Eligibility: Individuals, and institutions

Allied Munafa Account (AMA):

Salient Features:

The applicable profit rate will be based on the amount maintained in the account on an average monthly basis and the return will also be credited to the account on a monthly basis.

Individuals, Firms, Companies, Schools, Hospitals, Charitable Organizations, etc., are welcome to open their account in this scheme.

Allied Bachat Scheme:

Allied Bachat Scheme is a PLS Term Deposit Scheme based deposit scheme whereby customer 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

Eligibility: All individuals and institutions

Free Internet Banking facility

Allied e-Savers Accounts:

Saving has never been so flexible!

The Allied e-Savers Account is a unique savings plan where customer can earn returns as high as 7.5% with the convenience of 4 withdrawals a month!

Internship Report 2009

Internship Report 2009

Internship Report 2009

Internship Report 2009

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

Allied Business Account:

Allied Bank offers banking experience beyond expectations!

Allied Business Account is a non-profit current account with countless benefits and services. If customers are a businessman, trader or an individual, Allied Business Account is an ideal proposition for such customers.

Features & Benefits

Rs. 500,000/- and above

Online/Manual Remittances Outward Cheque Return Issuance of DD/TT/PO/OBC /Expression Collection

Free

Free

Free

Return Issuance of DD/TT/PO/OBC /Expression Collection Free Free Free Institute of Business & Information Technology

Internship Report 2009

Internship Report 2009

SME:

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 ABL 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. Under the Export Refinance Part I Scheme, both pre-shipment and post-shipment financing facility is available.

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.

Demand Finance Long Term Loans:

The demand finance long term loan is approved for a period of 3-5 years. The loan is specifically for fixed asset financing with maximum grace period of upto 12 months from first draw-down.

Inland LC (Sight/Usance):

This facility allows customers to purchase commodities within the country.

Internship Report 2009

Internship Report 2009

Letter of Guarantee (LG):

On behalf of the customers, the Bank issues a guarantee in favor 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.

Cash/ Liquid Financing:

The product is aimed at providing prompt financial services (fund based and non fund based) to SME sectors. The cash/liquid collateral financing program is aimed to be the cheapest source of funds available to the SME sector.

Vendor Financing:

The product is aimed at vendors of large corporate entities whereby the corporate entity has an agreement with the vendor to provide specific quantities of certain goods in a specific period of time. ABL whould finance such vendors in order to promote their production capabilities.

Agriculture Finance:

The Bank, under the Agricultural Financing Scheme, as decided by the State Bank Of Pakistan, extends short, medium and long term, farm and non-farm credits. The farm credits are extended for production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats, sheep, cattle), poultry and factories including social forestry and fisheries (inland and marine, excluding deep sea fishing). Details are as follows:

Farm Loans:

Production Loans:

1. Inputs like seeds, fertilizers, pesticides, weedicides, herbicides, labour charges, water

charges, vegetables, floriculture, etc.

2. Working capital finance to meet various farming expenses.

Development Loans

1. Improvement of agricultural land, orchards, etc.

2. Construction of Godowns

3. Tractors, Machinery & other equipments

4. Tube wells

5. Farm Transportation, etc

Internship Report 2009

Internship Report 2009

Non-Farm Loans

1. Livestock

2. Poultry

3. Fisheries

4. Forestry

Agriculture Revolving Credit Scheme

1. Loan Tenure: 3 Years (Clean up once a year)

2. One time documentation for 3 years

3. Loan limit will be based on the Indicative per Acre limit prescribed by SBP

Development Loans/Finances (Term Loans)

1. Loan Tenure: up to 5 years

2. Repayment: Monthly/Quarterly/Bi-Annual

3. Criteria Selection:

a) Should be a Pakistani & have a CNIC.

b) Preferably is an account holder with ABL.

c) Have a permanent residence and be a self-cultivator.

d) Not be a defaulter of any other Financial Institution/Clear ECIB.

e) Be reputable in the business

f) Have ‘Repayment Capacity’

g) Be able to produce proper securities

Amount of Finance

a) Value of agricultural land/Pass Book

b) 80% of PIU or 50% of last 3 years’ average Sale Price or Market Value

c) 50% of Residential/Commercial property in municipal limit.

d) 90% of DSCs/SSCs/TDR/SNDR

Insurance

Insurance facility is available for all Farm and Non Farm Loans except orchards. Insurance premium amount of subsistence holding farmers availing loans for following 5 major crops will be reimbursed by the Government of Pakistan.

Internship Report 2009

Internship Report 2009

1)

Wheat

2)

Rice / Paddy

3)

Cotton

4)

Sugar Cane

5)

Maize

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 cheaque, plus customers can even drop crossed cheaque 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.

S. #

Locker Size

Annual Locker Rent (Current)

Maximum Loss 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.

Internship Report 2009

Internship Report 2009

Allied Visa Credit Card:

In order to cater to growing financial needs of customers ABL is proud to introduce Allied Visa Credit Card with the Lowest Service Charge ever! So now customers can save money where it counts and spend lavishly at favorite places with greater flexibility, convenience and most important-Affordability!

With Allied Visa Credit Card customer 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, customer can also use your credit card at over 1 million ATMs internationally!

Allied Visa Gold Credit Card:

With Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold Card internationally with unmatched savings greater flexibility, convenience and security.

Features:

Buy Now, Pay Later:

With Allied Visa Gold Credit Card, free credit period allows customers to pay for purchases up to 50 days after the date of purchase.

Flexible Repayment:

When paying credit card bill, Allied Visa Gold Credit Card gives the option to either pay the entire amount according to the statement or a minimum of 5% of total outstanding balance.

Cash Advance Facility:

As an Allied Visa Gold Credit Card member, customers are entitled up to 75% of available credit limit in cash.

Allied Easy Installments (AEI):

The Allied Easy Installments (AEI) plan provides customers with the facility to pay outstanding card balance in equal and affordable monthly installments spread over 3, 6, 12, 18, 24, 30 or 36 months.

Internship Report 2009

Internship Report 2009

Supplementary Cards:

Want to share the benefits of Allied Visa Gold Credit Card with others? Now customer can! Treat up to two people with supplementary credit cards and pass on the many privileges of Allied Visa Gold Credit Card to the chosen friends and family members.

Balance Transfer Facility:

In case customers have outstanding balances on other cards, consolidate these onto the Allied Visa Gold Credit Card with the lowest BTF rate and save more on the outstanding payments than ever before.

Credit Protection Plus:

With Credit Protection Plus, Allied Visa Gold Credit Card provides payment cover against:

1. Death, due to accident or sickness

2. Permanent and Total Disability, due to sickness or accident

3. Temporary Total Disability, due to sickness or accident

4. Terminal Illness

Zero Loss Liability:

The Allied Visa Gold Credit Card’s Zero Loss Liability feature protects its customers from paying for any unauthorized transactions on their Card in the event that it is lost or stolen.

Free CIP Lounge Access:

As an Allied Visa Gold Credit Cardholder, its customers are eligible to avail the free lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of complimentary features. 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.

Visa Platinum Credit Card:

With Allied Visa Platinum Credit Card customer can enjoy exceptional benefits and a host of local and international benefits like never before!

Internship Report 2009

Internship Report 2009

Features:

With Allied Visa Platinum Credit Card, customers can enjoy these facilities:

Visa Platinum Golf

Visa Platinum Dining

Visa Experiential Travel

Priority Pass Airport Lounge Program

Platinum Life Platinum

Life is a unique platform that showcases exclusive programs and events specially designed for Visa Platinum Credit Cardholders. With Allied Visa Platinum Credit Card, customers are eligible to join this exclusive platform and avail many exciting services like Platinum Club,

Platinum Dining, Platinum Golf, Experiential Travel and much more.

Visa Platinum Club

As a member of the Visa Platinum Club, you are part of an internationally reputed rewards program that provides an unmatched quality of services and customized luxuries to all Allied

Visa Platinum Credit Cardholders.

Visa Platinum Websites

The Visa Platinum websites have been designed to ensure that Visa Platinum Cardholders around the Asia-Pacific region are up-to-date with the latest product offerings and benefits. The sites also include additional features like:

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.

Online applications such as Concierge Online.

A directory of toll-free numbers for reaching the VPCC from all key global destinations.

Allied Cash+Shop Visa Debit Card :

Features:

Get Cash:

Life is always on the move, now your bank account is too.

Internship Report 2009

Internship Report 2009

By using Allied Cash+Shop Visa Debit Card to withdraw cash directly from bank account from over 3,500 ATMs in Pakistan - including Allied Bank's largest network of ATMs - and over 1 million ATMs worldwide

Stay Alert

Now, be more secure and keep better track of spending. With Allied Cash+Shop Visa Debit

Card,customers can get SMS alerts when they make transactions on their Card.

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

Enjoy Traveling

Get Groceries

Have Fun

Fuel Up

Cash Management:

ABL’s cash management team offers a full range of transactional banking services, from collections to cross-border payments, from customized services to comprehensive industry expertise. Having the largest real-time online branch network in Pakistan, combined with a host of value-added services, ABL is uniquely positioned to meet the demanding requirements of global corporate, public sector enterprises and top-tier domestic companies.

With its collaborative approach to building and implementing solutions, ABL is committed to giving its customers the best service possible.

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.

Internship Report 2009

Internship Report 2009

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 honored across the entire ABL network of branches.

CIBG (Corporate Investment Banking Group)

CIBG (Corporate Investment Banking Group)

CIBG (Corporate Investment Banking Group)

Corporate Banking

Investment Banking

Financial Institution

- Project Finance

- Long Term Financing

- Short Term Financing

- Trade Finance

- Project Finance

- Syndication

- Advisory

- Cash Management

- Home Remittances

Internship Report 2009

Internship Report 2009

Organogram of Allied Bank:

Central Departmentalization

Credit Section Group Corporate Banking Group Credit Administration Foreign Trade Group Group Human Resource
Credit Section
Group
Corporate
Banking Group
Credit
Administration
Foreign Trade
Group
Group
Human Resource
Group
Accounts Group
Branches
Finance Group
Operations Group
Investment
&
Treasury Group
Information
Technology
Group
Internal Division
Group
Audit
&
Inspection Group
Administration
Group
Agricultural
Group
Special Asset
Management
Group

Internship Report 2009

Internship Report 2009

Organogram of SVU

Internship Report 2009

Internship Report 2009

Organogram of RMG

Hierarchy of Authorities of Allied Bank Limited

Internship Report 2009

Internship Report 2009

BRANCH NETWORK:

Allied Bank has 885 nationwide branches of which approximately 67% i.e. 573 are located in large metropolitan area, namely Karachi, Islamabad, Faisalabad, Lahore, Multan, Peshawar and Hyderabad. The network of 855 branches enables the bank to generate a substantial and stable deposit base, provide a wide range of banking products and other financial services and diversify lending risks geographically, as well as on the basis of credit and customer type.

Allied Bank divided into four Centers i.e. North, Central-I, Central- II and South. These Centers have the regions and the regions further have the sub branches of Allied Bank Limited. The detail is given there:

the sub branches of Allied Bank Limited. The detail is given there: Institute of Business &
the sub branches of Allied Bank Limited. The detail is given there: Institute of Business &

Internship Report 2009

Internship Report 2009

CREDIT RATING:

Allied Bank’s credit rating has been maintained to ‘AA’ for long term, by the Pakistan Credit Rating Agency (PACRA), the leading credit rating agency in the country and AA donates a very low expectation of credit risk, indicates very strong capacity for timely payment of financial commitments and not significantly vulnerable to foreseeable events.

and not significantly vulnerable to foreseeable events. The short term rating was also maintained at ‘A1+

The short term rating was also maintained at ‘A1+’, which is the uppermost possible rating under this category and represents highest capacity for timely repayment.

CORPORATE GOVERNANCE RATING:

Corporate Governance Rating (CGR) is meant to indicate the relative level to which an organization accepts and follows the codes and guidelines of corporate governance practices. In this context, JCR-VIS Credit Rating Company Limited had assigned a corporate governance rating of ‘CGR-8’ to your bank during the last year, which denotes ‘high level of corporate governance’ and is only two notches away from the highest level of CGR.

CGR is arrived at after evaluating key governance elements of the rated enterprise, which include regulatory compliance, ownership structure, composition and operations of the board of directors and executive management, self-regulation, financial transparency and relationship with stakeholders. Rating for the current year is under process.

Term Finance Certificate (TFC) - 1st issue:

In July 2008, JCR-VIS Credit Rating Company upgraded the rating assigned to Allied Bank’s TFC to ‘AA-’ from ‘A+’ earlier, with stable outlook.

Internship Report 2009

Internship Report 2009

The

Internship Report 2009 The and success. Deal of the Year Award 2008 by ‘The Banker’ –

and

success.

Deal of the Year Award 2008 by ‘The Banker’ – UK:

Allied Bank has been awarded the Deal of Year Award 2008 for Pakistan by The Banker magazine - United Kingdom. This was awarded in recognition of Balance Sheet Restructuring & Debt Re- profiling of Maple Leaf Cement Factory Limited for Rs.13 billion which was the largest ever financing extended to cement company in Pakistan. As the sole financial advisor lead arranger, Allied Bank was involved in a well-engineered structure and a timely execution that made the transaction a

Allied Bank has been declared BANK OF THE YEAR 2006:

Allied Bank has been declared BANK OF THE YEAR 2006 by UK renowned financial magazine The Banker published by Financial Times Business Limited. This is considered to be the most prestigious award in the world of finance. The award is given by the The Banker annually to one high performer Bank in each country based on key performance indicators. The Bank of the Year 2006 Award was presented to Mr. Khalid A. Sherwani, President of the Bank during a ceremony held at London, UK on November 30, 2006.

Corporate Finance House of the Year 2007:

It feels pleased to apprise that Allied Bank of Pakistan has been awarded ‘Corporate Finance House of the Year (Banks)’ for the second consecutive year. CFA Association of Pakistan, a member society of CFA Institute – USA, conferred the award on Allied Bank based on the highest value and number of corporate finance concluded during July 2006 –December 2007.

Corporate Report Award & Certificate:

During the year, Annual Report of Allied Bank of Pakistan for the year 2007 won the first prize for “the Best Corporate Report” for the financial sector category, awarded jointly by the Institute of the Chartered Accountants of Pakistan and Institute of Cost and Management Accountants of Pakistan. The Annual Report for the year 2007 was also awarded ‘Certificate of Merit’ by the South Asian Federation Accountants (SAFA), an apex body of the SAARC countries.

Internship Report 2009

Internship Report 2009

Top 1000 Banks of the World – Ranking:

Allied Bank of Pakistan has been ranked among the top 1000 banks of the world by UK’s ‘The Banker’, published by Financial Times London. The categories and ranking are as follows:

Rank Categories

Performance based

Profit on average capital (ROE) Return on assets (ROA) Real profit growth

Soundness based

Capital assets ratio

Size based

Rank

31 st

130 th

206 th

517th

Assets

846th

Overall world ranking

969th

Internship Report 2009

Internship Report 2009

VARIOUS BANK DEPARTMENTS:

Allied Bank of Pakistan distributed its functions into various groups these are as follows:

Audit & Inspection Group:

Vision:

To transform internal audit function of Allied Bank Limited in to an IT enabled risk based audit and management consultancy function providing value added services and management consultancy to the board and senior management.

Mission:

Our mission is to provide an independent, objective assurance and consulting services to management designed to add value and improve operations of the bank, dedicated to providing assistance to the management in effectively and efficiently accomplishing its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Terms of Reference:

One of the prime responsibilities is the satisfactory implementation of the internal control over financial reporting. The committee also determines appropriate measures to safeguard bank’s assets, ensures consistency of accounting policies, reviews financial statements and recommends appointment of and coordinates with external auditors.

The committee is also responsible to ascertain the internal control system including financial and operational controls, ensuring adequate and effective accounting and reporting structure, determining and monitoring compliance with the best practices of the corporate governance.

Implementation of the management testing plan, assessing the testing results and advising appropriate corrective action is also a major responsibility of Audit Committee.

Internship Report 2009

Internship Report 2009

Risk Management Group:

Goals:

The goals of RMG are to understand the risk profile of each business area, to propose risk policies, risk measurement methodologies, and risk limits in order to aggregate and control credit, market and operational risks across the Bank. In pursuance of these goals, RMG has taken up the challenge of building an effective Risk Architecture.

Terms of Reference:

The primary functions of Risk Management Committee (RMC) is the monitoring of management’s adherence to prudent and sound risk policies, assessing the ever changing risk profile and providing risk appetite to the business units.

It also ensures development of risk management principles to build stakeholders confidence, safeguard and enhance reputation. The committee approves risk limits for Credit, market and operational risks, Credit approval grid and proposals regarding rescheduling/write-offs and filling of recovery suits. Overseeing of certain management committees and groups is also undertaken by the RMC.

The Committee also monitors the initiatives and expenses pertaining to Basel II and up gradation of Risk Management Systems.

Structure of RMG:

Risk management functions have been segregated by business specialization i.e. Credit Risk, Operational Risk, Market Risk, Credit Administration, Risk Architecture and Risk Analytics.

Risk Analytics:

Risk Analytics is an integral part of the credit process. The objective of Risk Analytics is to limit portfolio concentrations, reduce volatility, achieve optimum earnings and create shareholder value. It also incorporates portfolio strategy and planning. The Risk Analytics is a relatively new concept in Pakistan, and the function at ABL has started managing portfolio risk through launch and usage of risk rating model, design and launch of a new Credit Application Package, that ensures a risk-based approach to credit presentations and allows pursuing systematic data gathering with a view to migrating to advanced approaches.

Internship Report 2009

Internship Report 2009

Credit Administration:

Credit Administration’s role is to minimize losses that could arise due to security and documentation deficiencies. The Credit Administration unit constantly monitors the security and documentation risks inherent in the exiting credit portfolio. This function operates through eight regional departments located all over the country. All these functions are operating in tandem to improve and maintain the health of the lending portfolio and keeping aggregate risk within the Bank’s overall risk taking capacity.

Credit Risk:

Credit Risk Management at ABL is divided in to two branches; 1. Corporate & Financial Institutions Risk 2. Commercial & Retail Risk

This function ensures that the risk exposures undertaken match the risk appetite of the Bank, and that proper credit approval procedure are adhered to. Identification and Monitoring of problematic exposures and to take proactive measures to minimize the financial loss to the bank is also a responsibility of this function.

Market Risk:

Market Risk is defined as any fluctuation in value of the portfolio resulting from changes in market price and market parameters, such as interest rates, exchange rates and share prices. The Bank intends to build an effective Market Risk Management unit to independently identify measure, monitor and control the potential losses that may arise from the Bank’s activities in financial market.

Operational Risk:

It includes risks that primarily arise from internal processes of the Bank. Operational Risk Management unit is developing an effective system for identification of critical risk areas, and developing processes/controls to mitigate these risks.

Internship Report 2009

Internship Report 2009

Commercial & Retail Banking Group:

All the regional heads of Allied Bank reports the Commercial and Retail Banking Groups, The hierarchy of the Allied Bank is as follows:

ONE GROUP CHIEF OF CRBG

of the Allied Bank is as follows: ONE GROUP CHIEF OF CRBG FOUR GROUP HEAD (Central-I,

FOUR GROUP HEAD (Central-I, Central-II, South and North)

FOUR GROUP HEAD (Central-I, Central-II, South and North) TWENTY REGIONAL HEAD BRANCH MANAGERS Institute of Business

TWENTY REGIONAL HEAD

Central-II, South and North) TWENTY REGIONAL HEAD BRANCH MANAGERS Institute of Business & Information

BRANCH MANAGERS

Internship Report 2009

Internship Report 2009

Operation Group:

Operations Group, apart from re-engineering the existing procedures to ensure safe and smooth conduct of Banks operational activities also focuses on supporting the field offices in pursuit of their business objectives and goals while maintaining adequate controls from a risk perspective.

Group also assisted in launching of a variety of value added services facilitating bank’s account holders/customers by offering them a wider product range and efficient delivery.

Operations Group is divided into the following five areas.

1. Alternative Delivery Channels provides innovative and value added I.T. based solutions to the Bank’s clients.

2. Branch Operations supports the field functionaries through procedural manuals, branches rationalization, fully automated inter branch & nostro accounts reconciliations. It also provides support Hajj & Zakat matters. During 2005, it has developed a number of new procedural manuals including ATM, Allied Online, Remittances, and Cash & Teller etc.

3. Treasury Operations supports Treasury front office in settlement of its trading/investment activities in Foreign Exchange, Money Market and Stock Market besides providing operational support in cash management to the branches and other business areas of the Bank.

4. Establishment caters to the Bank’s requirements for printed stationary, operating and fixed assets, insurance and security arrangements at the central office level.

5. Engineering is responsible for the purchase of new properties and construction/renovation of the existing/newly hired premises.

Information Technology Group:

The Allied Bank Ltd has a separate Group for Information Technology which looks after the entire bank’s automation. The bank’s major achievement in automation is that 100% branches are computerized and inter-connected and these branches offer the customers full range of online banking services. The bank also offers most of the currently sought after technology based products including Internet Banking. The IT Group is presently structured in three areas namely

1. Core Banking T24

2. Software Services

3. Office Automation / Technical Services

4. Operations

Internship Report 2009

Internship Report 2009

But with the launch of the Core Banking project driven from Head Office at Lahore, the IT Group will be re-structured very shortly.

A complete revamping of the IT Group is underway to cater to the expansion of activities within the IT Group and to create capacity for the Core Banking Project. Moreover, the IT Group will extend its support to the newly created Regional Offices as well. The new IT Organization is expected to grow both vertically and horizontally and a substantial number of new hiring will take place to fill the gaps within the new organization chart.

Human Capital Group:

The group defines the organizational structure and functional responsibilities of each group. It approves staff strength, key appointments, salary revisions, bonuses and any special allowances. It nominates the management personnel on the boards of other companies / subsidiaries. It also recommends amendments in Human Resources Policy to the Board. Besides monitoring performance of Human Resources Group, the committee also oversees certain H.R. related management committees.

Corporate & investment Banking Group:

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.

ABL – C&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.

C&IBG – Ranges of Services:

Investment Banking Group in Pakistan. C&IBG – Ranges of Services: Institute of Business & Information Technology

Internship Report 2009

Internship Report 2009

Finance Group:

Finance Group plays a central role in strategic decision making, transparent financial reporting and enhancing the economic value of the Bank. It also provides support to the business groups in performance analysis and launching new products and initiatives.

Finance Group has three major areas:

- Planning and MIS arm of the Finance Group translates financial and operational data into strategic information for an efficient and effective decision making.

- Financial and Regulatory Reporting arm of the Finance Group provides timely, relevant and reliable information to the shareholders, regulators and other stakeholders while following the statutory requirements and international best practices.

- Taxation wing of the Finance Group manages the Bank wide tax matters and endeavors to bring tax efficiency while complying with the tax laws.

Corporate Affair Group:

Corporate Affairs Group is responsible for compliance of all legal and statutory corporate requirements under Corporate and Banking laws and Regulations. Besides arranging Board of Directors and Shareholders’ meetings, it co-ordinates meetings of the Strategic Planning & Monitoring Committee of the Board,and Management Committee. The corporate group has two wings:

CORPORATE AFFAIRS WING:

1. To deal corporate matters with Security and Exchange Commission of Pakistan, Company Registration Office Lahore, Stock Exchanges and State Bank of Pakistan.

2. To arrange meetings of the Board of Directors and preparation of the Agenda for such meetings.

3. To assist Company Secretary in all Corporate and Board Affairs.

4. To assist Company Secretary in implementation of the decision of the Board.

5. To obtain approvals through circulation on emergent proposals from the Directors.

Internship Report 2009

Internship Report 2009

6. To obtain approvals through circulation on the cases from the Board of Directors, Strategic Planning & Monitoring Committee.

7. To maintain record of Board of Directors, S. P. & M. C. Other Committees along with former Executive Board.

8. To arrange meetings of the Management Committee and prepare agenda for such meetings.

9. To affix company seal on Powers of Attorney, Shares and other documents as & when required and keeping its record.

10. To keep liaison with Govt. nominee and non-employee Directors of the Bank.

11. To assist Group Chief in carrying out different assignments entrusted by the President.

12. To provide information to Credit Rating Agency and co-ordinate with them in the process of Entity Rating.

13. To co-ordinate with Share Wing and Finance Group for arranging AGM/Extra Ordinary General meetings.

14. To provide information’s to external Auditors and SBP Auditors.

SHARES WING:

Shares Wing a part of Corporate Affairs manages shareholders’ matters and co-ordinates with the Shares Registrar for the transfer and issue of Bank’s shares.

1. To supervise Government Compensation Bonds.

2. To make correspondence relating to ABL Shares with Employees / Legal Wing / Registrar / shareholders.

3. To make arrangements for floatation of shares & TFCs and payment of dividend on behalf of public limited companies.

Internship Report 2009

Internship Report 2009

SAM Group:

The Special Asset Management Group further grouped into three wings namely:

1. Legal Affairs Wing

2. Special Vigilance Wing

3. Corporate & Commercial Wing

LEGAL AFFAIRS:

The personnel engage with Legal Affairs is responsible for monitoring of all legal matters pertaining to the bank, covering functions of rendering opinions of applicable laws, to deal with special tasks and assignments , advice on legal issues relating to operational matters, legal compliances and to ensure remedial and litigation management.

This diligently provide counseling on all legal matters including suits filed, executions of decrees & criminal complaints etc;. It coordinates with the advocates on Bank’s panel; ascertain their enlistment and selection of appropriate lawyers in complicated legal cases which is one of its core responsibilities.

Through its law officers, following objectives are achieved.

FUNCTIONAL RESPONSIBILITIES

1. To render legal advices and guidance sought by the branches in matters of legal significance and involvement.

2. To provide assistance to the branches/offices in filing of suits, Execution application and in other Legal matters.

3. Follow-up of all the pending Suits, Decreed cases and Executions.

4. To impart legal opinion on documents viz. Succession Certificates, Bond of Indemnity, Staff & Executives H.B. Finance cases etc.

5. To prepare and submit all statements in respect of Suits Decreed and Executions filed by or against the Bank for submission to concerned quarters as per proforma A to I attached.

6. To attend all legal matters and provide assistance to the Group at Central Office, Karachi.

7. To process proposals for enlistment of Advocates on Bank’s panel, duly recommended by the Field Offices.

8. To maintain record pertaining to under Suit /Decreed/Execution Cases and submission of returns to SBP on fortnightly/monthly/half yearly/yearly basis

9. To scrutinize documents and to impart legal opinion on various property/charge, documents, agreement

10. Examination of Lease Agreement, Bank Guarantee and Bid Bonds.

Internship Report 2009

Internship Report 2009

CORPORATE & COMMERCIAL WING OF SAM:

In order to pursue the strategic goals, following five units are instrumental which perform various functions to achieve tactical and operational goals.

PROCESSING UNIT:

Each Area Manager of Processing Unit will attend the cases of NPL A/Cs of respective area in line with Bank’s approved strategy.

The Area Manager will process the proposals of settlements, rescheduling / restructuring, with or without financial relief in shape of waiver/write-off received through SAM Branches of respective area and put up the proposals with proper Analysis keeping in view the prudential regulations, financial aspects of defaulting borrowers and others facts about the proposal.

The Area Manager will handle the proposals in respect of incentives to the staff on account of Cash Recovery in terms of Bank’s Policy and put up the proposals with their Analysis.

The Area Manager examines the proposals received from SAM Branches for grant of permission of publications, approval for sale/disposal of mortgaged/pledged assets, deployment of security guards and formation of sale Committee where-ever required, and submits office notes for approval of valuation and legal and misc. expenses.

The Area Managers will closely monitor and make follow up with Field Offices /SAM Branches asking for implementation in respect of cases settled/approved by competent authority

The Area Manager will prepare the cases in respect willful defaulters to be submitted to SBP for issuance of 7 days notice to the borrowers/guarantors/mortgagors by the Governor, SBP, under NAB ordinance 199.

The Area Managers will co-ordinate with Risk Management Group with regard to implementation of BASLE II accord as per SBP directives.

The Area Manager has to make liaison with the Risk Management Group with regard to classification of accounts and to deal with the matters relating to placement/deletion of names of defaulters on Exit Control List (ECL), and correspondence thereon with SBP/Ministry of Interior, Islamabad.

Internship Report 2009

Internship Report 2009

DATA PROCESSING / MIS & SBP REPORTING UNIT:

The Area Manager of this Unit collects data from SAM Branches; consolidate the same for onward submission to SBP and Management for its review as part of Management Information system. The other functions of this Unit comprise of:-

1. Maintenance of data of the Classified NPL accounts.

2. Consolidation of fortnightly Performance of Recovery Position of all SAM Branches for perusal of line authority.

3. Preparation of periodical Recovery Position for submission to SBP through Finance Group.

4. Preparation of Information memorandum related to NPLs as desired by line authority.

NAB AFFAIRS UNIT:

The Area Manager of this Unit handles with all the matters relating to, NAB in connection with Non Performing Loans. The other functions of this unit are summarized as follows:-

Collection, consolidation and submission of information under section 19 of NAB Ordinance to NAB Islamabad, NAB Cell at SBP and NAB offices in Provincial Headquarters, and maintenance of record thereof.

WRITE-OFFS & PROVISIONS UNIT:

The Area Manager of this Unit maintains the provisions held against classified accounts in close co-ordination with RMG & Finance Group. The other functions of the unit are summarized as follows:-

1. To process the request of SAM Branches for issuance

approved write-off loans.

credit advice against the

2. Maintenance of proper record of all the written-off /waiver cases of the bank.

3. Providing record/files of write-off/waiver proposals approved at different levels, for external as well as internal auditor and coordinate with them and participate in meeting with regard to disagreed cases of write-off/waiver with BID, SBP.

4. Submission of periodical consolidated statements of write-off/waiver to SBP, Finance Group as well as to Risk Management Group.

5. Preparation of Information Memorandum for line authority in respect of written off/waiver cases for their review.

6. Provide necessary data to Finance Group in respect of borrowers where write – off implemented for publications in the annual reports.

Internship Report 2009

Internship Report 2009

BUDGET & ADMIN UNIT:

The Area Manager of this unit deals with operating expenses budget of 05 SAM Branches as well as SAM Group.

The Units further deals with HR related activities of employees posted in SAM Branches as well as in SAM Group.

Special Vigilance Wing:

Operational Risk is gaining importance in the banking industry in the wake of increasing complexity of operations and the risks involved therein. The incidents of internal and external frauds and forgeries are included in list of the operational risk events that have the potential to result in substantial losses. Keeping in view the size, sophistication, nature and complexity of operations of bank, Allied Bank of Pakistan opened a separate wing for it.

In view of the importance of frauds prevention/mitigation strategy in overall operational risk framework and to improve the mechanism for active supervisory response, the Allied bank has formulated the revised reporting requirement on frauds/forgeries/dacoities cases, which is submitted to State Bank of Pakistan on quarterly bases.

Creation of Special Vigilance Unit (SVU) at Strategic Asset Management Group

The competent authority has approved and created “Special Vigilance Unit (SVU)” previously known as “Control Unit” to monitor the Operational Loss cases of Frauds, Forgeries and Dacoities set up at Strategic Asset Management Group SAM Group, Central Office Karachi in January 01, 2008 in the light of decision of audit committee taken in its 43rd meeting held on October 10, 2007, to make pursuance of the cases of Frauds, Forgeries and Dacoities.

Transfer of Special Vigilance Unit (SVU) from Karachi to Lahore:

Audit committee again decided in its 46th meeting held on July 04, 2008 that the function of reporting of frauds, forgeries and dacoity presently being done by the Audit and Credit Risk Review Group (ACCRG) may be transferred to Strategic Asset Management Group SAMG effective from August 01, 2008, excepting the functions of investigations which will remain with Audit and Inspection Group (AIG). With the approval of competent authority, the Special Vigilance Unit (SVU) now located at Strategic Asset Management Group (SAMG), Lahore.

Internship Report 2009

Internship Report 2009

Scope of the unit, its TOR, Organogram, Staff requirements and Reporting structure was approved by the competent authorities.

Scope of the Unit:

1. The unit will monitor all the cases of ‘Frauds’ committed by the staff exclusively or in collusion with other where bank sustain operational losses.

2. To monitor all the cases of ‘Dacoities’ occurred at the branches/offices, carrying loss of cash and other valuable of banks.

3. To pursue with law enforcing agencies for expeditious disposal of the cases of Frauds/Docoities against the culprits.

4. To settle the claims with insurance co. in respect of operational losses on account of frauds and dacoities.

5. Frauds and Forgeries reporting to the management or State Bank of Pakistan.

Term of Reference:

On receipt of initial reports about the incidents of Frauds, Forgeries and Dacoities, “Special Vigilance Unit (SVU)” will undertake the following actions:

1. To liaison with Audit and Inspection Group (AIG) to ascertain the modus operandi/quantum of loss and tentative names of responsible persons.

2. To visit the branch/office where incident took place, for personal verification of the facts.

3. To make efforts for the catch hold of the culprits and to ensure that the losses are made good by recovering the cash/valuables from them.

4. In case of no instant recovery to keep lien on the assets held by the culprits and their associates and to execute the agreements etc.

5. To acquire the services of suitable lawyers and to coordinate for lodgment of FIR and taking other legal steps.

6. To obtain and provide details about incident/loss and arrange lodgment of proper claims with concerned insurance co. in case of Allied Bank Limited it is EFU.

7. To refer the cases of delinquent staff to Human Resource Group (HRG), recommending suitable actions in accordance with rules and regulations.

8. To liaison with agencies like Police/FIA/NAB for recovery of accounts, finalization of cases and submission of challans at concerned courts and pursue the cases.

9. Submission of Quarterly statement of Frauds/Forgeries/Dacoities on the prescribed format to the Operational Risk Unit, Banking Surveillance Department of State Bank of Pakistan within 15 days of close of quarter.

10. Maintenance of database of operational losses of frauds, forgeries and dacoities and its reporting to the Operational Risk- RMG.

Internship Report 2009

Internship Report 2009

11.

Appraisals and Problems at ABL:

Employees at ABL facing these problems i.e.:

Fewer Incentives:

In back offices as compared to the branches the incentives are very less given to the employees and this arises the dissatisfaction among them.

Work Burden:

In back offices the staff is very few as compared to the work load so the few employees bearing the more work burden and this create discomfort in them.

No Job Rotation:

Most of the employees stick to the one job for long periods and having no grip on all the operations.

Still Manual Work:

In the some offices and wings of ABL the employees still depend on manual work which causes slow performance.

Favoritism:

The most discouraging thing in ABL is that the promotions of employees are very late and mostly based on favoritism.

Internship Report 2009

Internship Report 2009

Chapter 2 Analysis

Internship Report 2009

Internship Report 2009

SWOT Analysis

Internship Report 2009

Internship Report 2009

Strengths:

1. Brand name: earned a reputation for extending quality services.

2. Allied Bank Limited was the first Muslim bank to be established in Pakistan.

3. Allied Bank Limited proudly extends its ovation over the nationwide or internationally by opening new and more branches to facilitate the customers and having more than 850 branches in Pakistan.

4. Allied Bank has become the first bank to participate in the Sustainability Finance Facility of the IFC’s Global Trade Finance Programme. IFC is a member of the World Bank Group.

5. The bank is passionate about high performance, innovation and delivering value to its customers.

6. With a vision to make ABL one of the most technologically advanced organization in the country with ability to provide real time services to its client the BOD embarked to implement state of the art Core Banking Solution TEMENOS at ABL, that is working in more than 500 locations worldwide.

7. ABL has opened the Management Development Center MDC that caters to the growing needs of ABL staff through computerized training workshops and seminars.

8. Training needs analysis to be conducted on annual bases to identify training gaps.

9. ABL has the large network of ATM throughout the nation.

10. ABL do the time to time monitoring over its different wings and groups to increase efficiency.

11. The Bank has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth.

12. Successfully launching new Product Lines.

13. With the objective of achieving decentralization and cutting down expenses, the decision making has been reduced from two to four tiers. 68 controlling offices, comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated into 16 regional offices.

14. A centralized Special Asset Management Division has been established for expeditious recovery and settlement of non-performing loans.

15. ABL offers the privilege of using thousands of ATMs of all banks without the extra charge of Rs 15 to its customers.

16. At ABL the customers who have more than one account can have the facility of the same account number only the suffix is changed for the easy remembrance.

17. For employees entertainment and relaxation, ABL gives the facility that the employees may get the 36 medical leaves and 1-month vacation in one year with their pay.

Internship Report 2009

Internship Report 2009

Weaknesses:

1. ABL did not introduce any Islamic product.

2. The controls of Heads are not effective.

3. In spite of the presence of technology many jobs are done manually.

4. ABL is not enhancing the new obligors.

5. Fewer incentives in back office as compared to the branches.

6. ABL credit group do not sanction the loan to the lawyers, politicians and the female having no blood relative.

7. In back offices the employees are less so it creates more work burden on the existing one.

Opportunities:

1. The policies of the new government to uplift the economy and pursue financial sector reforms are expected to yield positive results in the banking industry of the country. The ABL is well praised to avail promising opportunities.

2. As a result of different steps taken by the government regarding the betterment of the economy, small borrowers are attracted to get the financing and start business. So, the ABL has an opportunity to attract the customers by giving them more attracted schemes.

3. They have wide area network in all over the Pakistan, if ABL can made it possible the fast delivery of funds from abroad through online banking, it can cover the major market of Pakistan which still is capturing by “Hundi”.

Threats:

1. The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years.

2. Other treat which ABL faces is the policies of the Government; tax charged on the income of banking co. is much than the income of other companies.

3. Sudden rise and fall in the trade and industry conditions and stock exchange business of the country also adversely affect the growth of banking sector.

4. As the situation of Frontier Province of Pakistan is not sound and ratio of dacoity cases in branches is high so it is the big threat to the Bank.

5. The default ratio of customers who are availing the credit facilities from the ABL is very high due to the economic recession in Pakistan.

6. Also the threat of new entrants exists there.

Internship Report 2009

Internship Report 2009

Financial

Analysis:

Internship Report 2009

Internship Report 2009

Vertical & Horizontal Analysis:

2004

2005

2006

2007

9.5%

5.8%

26.2%

52.6%

2.4%

3.6%

100.0%

2008

7.0%

4.3%

22.5%

58.1%

3.0%

5.0%

100.0%

9.5%

13.1%

34.7%

34.6%

2.2%

5.9%

100.0%

8.0%

10.4%

37.0%

38.4%

1.6%

4.6%

100.0%

9.4%

3.0%

23.3%

57.7%

2.5%

4.1%

100.0%

9.8%

7.6%

18.6%

57.2%

2.6%

4.3%

100.0%

Vertical Analysis

December 31

Assets

Cash and balances with treasury and other banks Lending to financial institutions Investments - net Advances - net Operating Fixed assets Other assets Total assets - net of provisions

2003

Internship Report 2009

Internship Report 2009 Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinate loans Total

Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinate loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity

97.2%

2.3%

1.5%

2.4%

0.0%

103.4%

0.9%

7.3%

-5.5%

-4.1%

0.8%

-3.4%

81.6%

8.1%

1.6%

2.1%

0.0%

93.4%

2.8%

3.0%

-4.1%

6.1%

0.5%

6.6%

83.8%

5.0%

1.3%

2.3%

0.0%

92.4%

2.3%

2.4%

1.4%

6.7%

0.8%

7.6%

81.7%

7.3%

0.9%

2.0%

1.0%

93.0%

1.8%

1.9%

2.2%

6.4%

0.6%

7.0%

82.5%

7.2%

1.1%

2.3%

0.8%

93.8%

1.7%

1.6%

2.2%

5.8%

0.5%

Internship Report 2009

Internship Report 2009 81.1% 7.6% 0.8% 3.7% 0.7% 93.9% 1.8% 1.6% 2.3% 5.7% 0.4% 6.1% 283.4%

81.1%

7.6%

0.8%

3.7%

0.7%

93.9%

1.8%

1.6%

2.3%

5.7%

0.4%

6.1%

283.4%

608.0%

1040.5%

131.5%

427.3%

173.3%

562.5%

Horizontal Analysis

Assets Cash and balances with treasury and other banks Lending to financial institutions Investments - net Advances - net Operating Fixed assets Other assets Total assets - net of provisions Liabilities Customer deposits Inter bank borrowings Bills payable Other liabilities Sub-ordinated loans Total Liabilities Share capital Reserves Un - appropriated profit / (loss) Equity - Tier I Surplus on revaluation of assets Total Equity

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

110.0%

105.3%

140.7%

146.3%

98.3%

101.6%

131.8%

160.9%

37.6%

110.3%

273.5%

181.8%

113.6%

163.9%

220.8%

124.0%

115.3%

354.2%

248.3%

Internship Report 2009

Internship Report 2009 214.5% 271.4% 119.9% 206.1% 414.2% 290.8% 163.3% 272.4% 229.8%

214.5%

271.4%

119.9%

206.1%

414.2%

290.8%

163.3%

272.4%

229.8%

102.8%

202.9%

523.8%

428.9%

264.4%

312.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

110.7%

470.5%

143.0%

113.1%

119.1%

414.3%

2035.7%

-97.3%

194.0%

90.3%

258.0%

141.3%

363.8%

138.1%

157.7%

146.5%

422.2%

1020.6%

42.1%

265.2%

182.8%

366.1%

180.4%

690.9%

128.5%

180.6%

192.9%

422.2%

1099.4%

86.4%

333.3%

163.0%

445.0%

231.1%

260.4%

860.7%

1042.5%

197.1%

166.6%

258.6%

480.5%

247.1%

506.6%

1084.6%

107.4%

378.1%

164.3%

500.1%

Internship Report 2009

Internship Report 2009

2004

2007

2008

Financial Ratios:

Rs. in Millions

December 31 CASH FLOW STATEMENT - SUMMARY Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Cash & Cash equivalent at the Beginning of the Year Effect of Exchange Rate changes on Cash & Cash equivalent Cash & Cash equivalent at the End of the Year FINANCIAL RATIOS

Return on equity (ROE) Return on assets (ROA) Profit before tax ratio (Profit before tax / Gross Income) Gross spread ratio Return on capital employed (ROCE) Advances to deposits ratio (ADR) - Gross Advances to deposits ratio (ADR) - Net Income to expense ratio Cost to revenue ratio Growth in gross income Growth in net profit after tax Total assets to shareholders’ funds Intermediation cost ratio NPL ratio Net infection ratio Weighted average cost of debt Capital adequacy ratio (CAR)* SHARE INFORMATION Cash dividend per share Proposed bonus issue per share Dividend yield (based on cash dividend) Dividend payout ratio (Total payout) Earnings Per Share (EPS) ** Price earnings ratio *** (PE x) Market value per share - highest / lowest during the year Book value per share OTHER INFORMATION Non - performing loans (NPLs) Imports and Exports business Number of employees Number of branches

2003

Restated

2006

8,253

(8,512)

(12)

10,803

58

10,590

4,523

(17,183)

14,176

10,483

109

12,107

(5,893)

11,664

-

12,129

(21)

17,877

9,328

(4,241)

1,403

17,753

124

Institute of Business & Information Technology

(5,893) 11,664 - 12,129 (21) 17,877 9,328 (4,241) 1,403 17,753 124 Institute of Business & Information

Internship Report 2009

Internship Report 2009 24,368 46,350 (38,461) (1,904) 24,303 65 30,353 564 (3,544) (1,755) 29,842 511 25,618

24,368

46,350

(38,461)

(1,904)

24,303

65

30,353

564

(3,544)

(1,755)

29,842

511

25,618

%

%

%

%

%

%

%

Times

%

%

%

Times

%

%

%

%

%

-

0.34%

16%

77%

-

44%

36%

1.4

69.5%

14%

136%

(24.1)

3.8%

35.7%

20.93%

3.54%

-12.33%

8%

0.14%

8%

85%

8%

55%

47%

1.5

66.5%

4%

-50%

16.4

3.4%

22.0%

8.28%

2.45%

16.64%

28%

1.78%

49%

80%

28%

74%

69%

2.30

Internship Report 2009

Internship Report 2009 58% 1511% 14.9 3.0% 10.6% 3.64% 6.78% 12.17% 30% 1.98% 52% 61% 26%

58%

1511%

14.9

3.0%

10.6%

3.64%

6.78%

12.17%

30%

1.98%

52%

61%

26%

74%

70%

2.43

41.1%

31%

42%

15.5

2.9%

6.91%

1.96%

9.09%

12.80%

24%

1.42%

40%

52%

21%

68%

64%

2.43

41.1%

17%

-7%

17.4

2.6%

6.36%

0.74%

9.96%

10.26%

21%

1.21%

34%

46%

19%

75%

72%

2.16

46.2%

21%

2%

17.6

3.0%

6.16%

1.46%

11.50%

10.90%

Rs.

Rs.

%

%

Rs.

Times

Rs.

Rs.

-

-

-

-

Internship Report 2009

Internship Report 2009
 

-

-

(37.4)

 

-

-

-

-

0.43

 

-

-

23.3

 

2.50

 

-

2.9%

 

36%

4.78

12.6

86.5

32.4

 

2.50

2.00

2.7%

46%

6.80

9.5

93.5

39.4

3.00

2.50

2.00

1.00

2.3%

8.0%

66%

54%

6.31

6.43

17.2

4.9

130.2

31.3

36.9

34.6

Rs. in millions Rs. in millions

Nos.

Nos.

17,833

56,868

6,859

752

15,383

72,765

6,768

735

12,699

96,072

6,909

741

10,479

113,571

7,139

742

11,355

13,772

150,698

194,186