This report is dedicated to my

Parents
&
Teachers
For their love, affection and guidance
ACKNOWLEGDEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me skills
and abilities to complete this report successfully.

I pay all of my praises to the Great Prophet of Islam, Hazrat Muhammad (P.B.U.H) with
whose name my heart is enlightened and I feel the surging waves of real mirth, deep
down my soul.

I am also thankful to the management staff of Allied Bank Khayban-e-Jinnah, Lahore for
being cooperative during my internship and providing me information of report and I
would specially thank Mr. Muhammad Umar Asaf Jah (Operation manager, Allied
Bank Khayban-e-Jinnah, Lahore) for his support and involvement in helping me
prepare this report and completing my internship.

I would like to extend my gratitude to my internship advisor, Ms. Ayesha Aziz for her
advices, appreciations, and valuable suggestions in my work, which made it possible to
complete my Report.
TABLE OF CONTENTS
SUMMARY
This report gives a complete view about my internship of six weeks. The report contains

a brief introduction to Allied bank limited with its mission vision and values. ABL is a

broad based bank, providing his services for all type of customers, have a large network

of branches in & outside of the city. All branches are computerized and connecting

through each other through Internet. Looking at its business processes it has three

basic departments and which is further divided into sub departments. Allied bank chain

of command of branches starts from chief manager and further it goes to operation

manger who deals with all the department officers. I have worked in operation

department of Allied bank Khayban-e-Jinnah Lahore branch so the report gives a good

information about operation department like accounts department, clearing department,

locker department, billing department etc. This report gives information on all operations

or activities held in these departments of Allied bank. SWOT analysis of ALLIED BANK

shows that it has large number of strengths and some of weaknesses and threats. The

bank should give attention to this drawback. But bank has lot of opportunities to improve

its quality of services, and do efficient banking. Bank should give proper attention to

overcome its threats. In last i have well understanding with all the information given in

this report.
INTRODUCTION
TO
ORGANIZATION
OVERVIEW

Before giving the history of Allied bank it’s important to know that from where the word
Bank as originated. Basically the name bank has derived from three words i.e. BANCO,
BANCU, BANQUE and BACK. Bancu is an Italian word which means desk/ bench
used by Florentine bankers, who used to make their transactions above a desk covered
by a green tablecloth. The word BANCU is originated from Ancient Roman Empire
where moneylenders would set up their stalls in the middle of enclosed courtyards
called macella on a long bench called a bancu, from which the words banco and bank
are derived. According to French experts, it has been derived from the French word
‘Banque’. Whereas Germans say that the word Bank has been derived from the
German word ‘Back’, which means ‘Joint stock fund’. The given figure gives a picture
of origin of word bank.

Banco-Bancus Banque Back

Bench Joint Stock Fund

Bank
(English)

When talk about banking in Pakistan at the time of independence in 1947 the banks
services were very badly affected and by June 30, 1948, the number of offices of
scheduled banks came down to only 81 in the territories comprising Pakistan; but by
December 31, 1973 there were following 14 scheduled Pakistani commercial banks with
3323 offices all over the Pakistan and 74 offices in foreign countries.
  National Bank of Pakistan
 Habib Bank Limited.
 Habib bank (Overseas) Limited.
 United Bank Limited.
 Muslim Commercial Bank Limited.
 Commerce bank limited.
 Standard bank Limited.
 Australasia bank limited.
 Bank of Bahawalpur Limited.
 Premier bank limited
 Pak bank limited.
 Sarhad Bank limited
 Lahore commercial banks limited.
 Punjab Provincial Cooperative bank limited.

The facts show that commercial banking has made tremendous progress and achieved
a phenomenal growth since independence and that the commercial banks have duly
played a vital role as a mobilizer of people's saving to constitute the most important
source of financing in country economy. However it was felt that these banks failed to
ensure that the resources so mobilized by them flow in those sectors of economy where
they would produce the goods and services needed badly by a very large number of
people in Pakistan.

GENERAL DEFINITIONS

Generally the term BANK is defined as:

“Banks are institution that enjoys the public money doing nothing for the public”.
According the banking ordinance 1962 sec (6):
"Banks mean the acceptance of deposit for the purpose the lending or the investment of
deposit of money from the public repayable on demand or otherwise withdraw able by
cheques, drafts, orders, and otherwise".

So the BANKER is defined as:

“A person who carries on the business of banking and extend services to the general
public related to banking operations”.

When we talk about the bank, customer is always there, so a CUSTOMER is

defined as:
“Any person who has an account with the bank or whose money is accepted by the
bank or who takes loan from the bank is called a customer of the bank”.

COMMERCIAL BANK is:

“Commercial Banks are the corporations authorized by law to receive deposits and pay
such funds to others on order discount and negotiate promissory notes, drafts, bills of
exchange, and other evidences of debt; to lend money on real or personal security; to
make collectives; and conduct such other moneyed transactions as are not inconsistent
with its charter or the law under which it operates”.

HISTORY OF ALLIED BANK

Allied Bank is the first Muslim bank, to have been established on the territory that
became Pakistan. Established in December 1942 as the Australasia Bank at Lahore
with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja
Bashir Bux, the Bank had attracted deposits, equivalent to Rs. 0.431 million, in its first
18 months of business. Total assets then amounted to Rs. 0.572 million. Today Allied
Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs.
143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of
dedication, commitment to professionalism, adaptation to changing environmental
challenges resulting into all round growth and stability, envied and aspired by many.

VISION

To become a dynamic and efficient bank providing integrated solutions in order to be

the first choice bank for the customer.

MISSION

 To providing value added services to our customer

 To provide high teach innovative solutions to meet customer’s requirements
 To provide a challenging work environment and reward dedicated team members
according to their abilities and performance
 To create sustainable value through growth, efficiency and diversity for all
stakeholders
 To play a provide role in contributing towards the society

VALUES

 Integrity
 Excellence in service
 High performance
 Innovation and growth
ORGANIZATIONAL
CHARTS
 CHAIN OF COMMAND (Top to Bottom)

Central office

Head Quarters

North Zone South Zone

Central 1 Zone Central 2 Zone

REGIONAL
OFFICES

Branches

Sub-Branches
CHAIN OF MANAGEMENT (IN BRANCH)

Chief
manager

Operation
manager

Advance Clearing CD Billing Cashier

Officer Officer Officer Officer
CONTROL OF BRANCH

In branch there is two main authorities whose check all the activities in the branch.
These personalities are chief manager and operation manager of the branch.

CHIEF MANAGER

 He makes the policies of the bank

 He found the new business for the bank
 He taking the steps for the growth the old business
 He must keep check & balance in the bank
 He regularly check the bank affairs
 He meet with different personalities and attract them from bank saving benefits
 He check the overall performance of the bank staff

OPERATION MANAGER

 He is responsible for all day too day activities

 He helps to Chief Manager for different activities
 He is supervised of all other sub-departments
 He control the matters that are related with staff
 He solve the staff problem
 He make the surety of staff for theirs jobs
 He provide the customer services
 He is responsible for check & balance of his branch

CENTRALIZATION
In ABL decentralized system is used. The top management delegated theirs authority to
Group’s Head of different Departments. Then they further delegated their authority.
In branch the Chief Manager has authority to run all functions of the branch, then he
delegate his authority to CSM to check the bank matters

DECISION MAKING

Chief Manager makes all the policies of the branch and important decisions with the
help of operation manager.
The operation manager makes decision about day-to-day activities.

TECHNOLOGY

In ABL software called Linux is used. All the electronic activities is performed through
this software. It is vary fast way of communication
Its result is very accurate. All the Online, draft payment, and other activities are
performed through this software.
BUSINESS PROCESS
ANALYSIS
There are three basic departments of ABL and which is further divided into sub
departments. Basic departments are:

 Operation department
 Credit department
 Foreign trade department

For the figure check Annexure ( ) Page ()

OPERATION DEPARTMENT

Operation department is further sub-divided in to:

 Accounts department
 Clearing department
 Foreign exchange department
 Billing department
 Locker department

For the diagram check Annexure () Page ()

ACCOUNTS DEPARTMENT

ACCOUNT OPENING

1. All accounts opened in ABL are required proper introduction from the account
opener
2. It should be thoroughly verified that customer profile has been completed as
required.
3. The account openers must sign account opening forms in the presence of customer
service manager or chief manager.
4. If there is some mistake in filling account opening form than its necessary to take the
sign of account opener because it is to confirm that the information was not changed
in his absence.
The CSM will perform due procedure and ensure to Know Your Customer principles will
be responsible for customer interviewing.
1. Individual accounts in case the CNIC does not contain a photograph, the bank
should obtain other documents like Driving License.
2. In case of salary account, attested copy of his service card is required.
3. Full particulars of occupation should be mentioned.
4. If a blind person is properly introduced, then this account should be opened with
a photograph affixed on the account opening form as well as the specimen
signature card.
5. In case of illiterate person, attested passport size photograph of the new account
holder besides taking the right and left thumb impression on the specimen
signature card.

DORMENT (IN-OPERATIVE) ACCOUNTS

The accounts inoperative for 1 year are called dormant accounts. When the CSM
checks it’s necessary to send a letter to remind the account holder.

UNCLAIMED ACCOUNTS
1. Those current and PLS Saving accounts which remain inoperative for 10
years from the last date of operation are classified as unclaimed account
2. In case of term or time deposits, its date of in operation are counted from the
Dates of their expiry of tern
CHEQUEBOOK ISSUANCE
1. To facilitates customers to withdrawal cash from their account cheque books are
provided to account holders.
 2. The cheques are the most important, convenient and well-established medium of
modern banking used for withdrawals of funds.
POLICY
Cheque books against new account shall be issued against requisition form after
account opening is approved by the officer.

STOP PAYMENT
The given information covers the stopping payment, and returning the specific cheques,
un-paid.
POLICY
 Stop payment instructions shall be received in writing, however instruction on
telephone are also entertained provisionally which must be confirmed by letter.
 Charges shall be recovered for each stop payment instruction as per bank’s
latest schedule of charges.
 Stop payment instructions shall remain in the system for bank cheques until the
cheque in question are presented and returned or the account is closed.

ACCOUNT CLOSING

Accounts are generally closed for the under noted reasons: -

 At the request of Account Holders.
 Account running with zero or nominal balances
 Accounts reflecting balance below minimum balance requirement are reviewed
periodically and the customers are advised to deposit more funds in their
accounted, falling with their accounts can be considered for closure.
 Account holders shall be promptly intimated for closure of their account and
requested to return un-used cheque books.
 Un-utilized cheque books surrender by the account holder shall be destroyed and
recorded in the system.
DEMAND DRAFT PAK RUPEES (PAYMENT FOR OUT OF THE CITY)
 A draft is one of the most popular banking instruments in the trade to settle
business deals and transferring funds from one place to another place.
 The bank has taken radical steps for a speedy issuance of draft through
automation and introduction of a more simplified procedure with is described
below.

DRAFT PAYMENT

 Drafts drawn in PAK rupees crossed and restricted for credit to payees A/Cs are
generally received through “CLEARING” or on special collection bank.
 Quite a number of drafts not bearing restrictive endorsements and crossing are
presented at ABL counter for encashment. Proper identification is needed for
such draft

PAYMENT ORDER (PAYMENT FOR WITHIN THE CITY)

 Pay order is bank instrument issued by a bank in PAK rupees at the request of
the customer to transact payment to named payees through banking channel.
 Generally payment against such cheques (pay orders) is restricted to “Payees
account” and as such is required to be enrooted through a Bank Account locally.

CLEARING DEPARTMENT

CLEARING

Clearing is a process whereby bankers settle their mutual accounts for claim arising on
account of various instrument presented by one bank drown on the other.
Where the SBP has its offices; the clearing has controlled and managed by the SBP. At
other places, this function is performed by the NBP. The assembly of representatives of
the member banks is the CLEARING HOUSE.
 Clearing house in every city has its own timing for exchange of cheques and for return
of unpaid cheques.in cities where NIFT is functional the cheques deposited drown on
ABL branches/ other banks of the area are delivered to NIFT for clearance.

CATAGORIES OF CHEQUES/ INSTRUMENT

In every branch a number of cheques are received from customer for clearance and
credit to their account.

The cheques received may belong to any of the following categories:

 Drawn on the same bank.
 Drawn on some other branch of the bank in the city.
 Drawn on some branch of other bank of the same city.
 Drawn of some outstation branch of the same bank.
 Drawn on some outstation branch of other bank.
Cheques drown on the same branch are handed over to the deposit/ CD department.
The endorsement may be:
i. Payee’s account will credit on realization.
ii. The officer will receive clearing cheques ‘will also receive other cheques means
for cash transfer’ transfer delivery and collection

 CASH TRANSFER CHEQUES: are those, which are, drowning on the same
branch, which they are received.
 TRANSFER DELIVERY CHEQUES: are those, which are, drowning on other
branches of the bank in the same city.
 COLLECTION CHEQUES: are those proceeds of which are collected from
outstation banks

ACCEPTANCE OF CHEQUES
 Cheques is crossed but not specially crossed to any other bank
 Cheques is not damage or torn
 Cheques is not post dated or stale.
 Amount in word & figures is the same.
 Nothing on cheques indicates that the account holder is not entitled to
receive the amount
 Cheques is drown on branch of a bank functioning with in the city
INWARD CLEARING
The inward clearing instruments are received by the branches along with a jotting sheet
and the following steps are taken by the branches:
a. Fresh jotting is taken by the branch, of all cheques are received inward clearing
and the total is got tallied with the total of jotting sheet provided by the NIFT in
the inward clearing register.
b. The clearing in authorized officer checks special crossing; clearing stamp and
endorsement on each instrument.
c. For the cheques honored the following transactions are passed.
Dr. Concerned account
Cr PAK account
SPECIAL CLEARING (SAME DAY CLEARING)
a. Same day clearing includes the cheques received by authorized branches of
member banks with in the 4 KM radius area of NIFT office.
b. The cheques of 500000/- & and above received by the branches in early hours.
c. The charges for the same day clearing are received by the collecting branches
from the customer where as they are no charge for local clearing

CLEARING TRANSFER THROUGH NIFT

OUTWARD CLEARING
 Clearing through NIFT has change the performance of clearing function all
together. The system does not differentiate between Clearing & Transfer delivery
cheques this necessitating the use of “CLERAING STAMP” for transfer delivery
instruments as well.
FORIEGEN CURRENCY ACCOUNTS
ABL deals with these foreign currencies:
 DOLLER
 EURO
 POUND
SAVING AND TERM DEPOSIT ACCOUNTS (FOREIGN CURRENCY)
BANKS authorized to deal in foreign currencies are allowed to open foreign currency
accounts freely for:-
1. Pakistani nationals, resident in or outside Pakistan including those with dual
nationality.
2. Joint names of resident & non-resident.
3. Resident companies, investment banks / companies resident in Pakistan with
foreign share holding diplomatic mission and all international organization etc.
4. Polices and procedure pertaining to opening of Foreign Currency Accounts has
been outlined below.

POLICY
1. All receipt of foreign currency for credit to the foreign currency accounts and
payments out of such accounts is required to be reported to Treasury. COK on a
daily basis and to State Bank of Pakistan on monthly basis.
2. All non resident accounts fro “Classification Of Deposit” purpose should be
identifiable as “Non-Resident accounts”
3. In view of excessive shipment and insurance cost, the banks may charge
handling commission against deposit of foreign currency.
4. Minimum balance for opening of saving account/ issuing of term deposit shall be
advised by the central office Karachi.

PROCEDURE
1. Customer sign on foreign currency account opening form, specimen signature cards
in the presence of CSM.
1. The customer due diligence is completed to determine the true identity of the
customer.
 2. Opening of account is approved by CSM
3. A “10” digit account is created in the system, detail such as account title, address
and type of account.
4. Pay in slip for depositing cash filled up and check for correctness all information

CASH & LOCKERS DEPARTMENT

 Cash Department deals with the Cash Receipts, Cash Payments and Utility Bills
(Telephones Bills, Soi Gas, & Electricity Bills).

LOCKERS
Lockers/ services are extended at several branches, to facilitate customers to protect
their valuables form ever increasing threats to security.
SAFETY STANDARDS PERTAINING TO LOCKER’ VAULT
1. Lockers are placed in the standard strong vault fitted with the grill door and heavy
door. Combinations separate from main cash vault.
2. Armed Security Guards are deployed in the branch day and night.
3. Lockers rooms are secured from all sides and constructed as per specification of
the bank for lockers.
4. Branch having Lockers display sign board “lockers available” in the branch lobby.

LOCKERS KEYS
1. Keys of un-rented locker and spare locks, if any, is entered in the register and
stored in the cabinet placed in the lockers vault under dual control these keys
are taken when lockers are required to be rented.
2. Access to locker’s room is allowed to the lessees only prohibited to the staff
not connected with the lockers.
3. Stock of the keys pertaining to un-rented is physically verified quarterly and
balance on the monthly.

OPENING/ CLOSING OF LOCKERS VAULT

  Opening and closing of lockers vault is supervised by two designed officers who
ensure that vault is opened in time in the morning and closed immediately after
the banking hours
 Before closing the vault at the day end custodian ensures that: -
- No one is left in the vault and that every thing is in order.
- All electric appliances and equipment are switched off.
LOCKERS CAN BE RENTED TO ACCOUNT HOLDERS
1. Individual who must be adult and legal age
2. Joint enters with clear operations (single, jointly, either or survivor),
3. Companies. Corporation, Association, and Societies.
LOCKERS SHELL NOT TO BE RENTED TO:
 MINOR
 NON ACCOUNT HOLDER
 BLIND
 INSANE

CREDIT DEPARTMENT
I haven’t worked in credit department but giving brief introduction to it. ABL financing
department is very strong and involved in many types of financing, but there are two
most important, Cash & Running financing.
ABL makes many type of Loaning for their customer. This Loaning is against Pledge,
(Property or Security).Flexibility on interest rate is depend on the size of the
Loan.ABL makes 50% loan on 100% security.
Some silent features of these Loans are: -

A. CASH FINANCING
 This is a seasonal financing.
 Have large amount
 This loan is makes against pledge (stock). The consumer cannot sale his
stock without the permission of the bank.
 B. RUNNING FINANCING
 This is regular financing.
 Have large amount
 This loan is depend on the condition of the business
C. AGRICULTURE FINANCING
 This is a regular loan
 Heavy amount
 It is makes against the Pass Book of the land
 The customer cannot sale his land without the permission of the bank
D. CONSUNER FINANCING
 Interest rate is high on consumer financing
 There are many type of loans under consumer financing
I) Home loans II) Education loans III) Car loans

FOREIGN TARDE DEPARTMENT

TRADE FINANCE –IMPORT

The import dealing is restricted to branches holding a Foreign Exchange License from
State Bank of Pakistan to deal In Import & Exports.
Import in Pakistan is regulated by “Foreign Trade Policy” announced by Ministry Of
Commerce, Government of Pakistan.

LETTERS OF CREDIT
All export except those specifically exempted in the import policy, are subject to
compulsory Letters Of Credit/ registration of contracts with the banks.
A letter of credit is defined as negotiable instrument issued by a bank at a request of the
customer, undertaking to repay the negotiating bank, subject to compliance of all terms
and conditions specified therein.
Payment under LC is made either on presentation of a draft drawn at sight
accompanied by document as specified in the credit. Or by acceptance of a “bill of
exchange” for payment of maturity of the issuance period (30, 90, 120 days)
SWOT ANALYSIS
AND
COMPETITIVE
STRATEGIES
SWOT ANALYSIS

SWOT analysis comprises Strengths, Weaknesses, Opportunities and threats. The

SWOT Analysis of Allied Bank Limited is as follows;

STRENGTHS

 High motivation of employees to their work is strength. The sense of

belongingness is always present in the employees that they have to struggle for
their own survival.

 Salaries of the employees at ABL are now very reasonable. The newly hired
graduates are paid very smart salaries that enhance their capabilities.

 The rates of interest on financing schemes at Allied Bank Limited are very low as
compared to other PRIVATE Banks that helps a lot in attracting customers
towards ABL.

 ABL is broad based baking for all type of customers

 ABL network of branches is very large with 743 Branches

 ABL Saving Schemes are very attractive

 Branches are located on well placed

 All branches with online system

 ATM service is out standing and free of charges

 Counter service is very good

 All transactions time period is very short

 Customer dealing is very well on every level

 Allied bank starts more and more schemes for their customers.
  It has arrangements with large number of Correspondent Banks/Exchange
Companies.

 Entertainment facilities are available in the Bank when customer goes to the
Bank and wait for a longer time. These facilities are newspaper, magazines, etc.

 Audit department is very good of ABL.

 Auditing is done twice time monthly. There is also surprise audit after 4 months
or 3 months.

WEAKNESSES

 Customers have to wait for a long time in rows; even no proper sitting arrangement
is given to the customers.

 The advertisement facility is not so good to attract the proper clientage and to
reflect the true image of the bank. It creates more ambiguity among the customers
about the policies and the facility rendered by the bank.

 Turnover of staff is high

 The IT is not good of ABL. Systems get hanged and customers has to wait.

 ONLINE SYTEM is not as good as mostly branches are link down whenever
transaction is needed.

 Uncertainty of jobs is high (job rotation)

 New staff is completely un-skilled

 Selection of un-trained staff

 There is no balance in job hours

 Advances rate of Allied Bank is also very low with respect to its competitors..

 Top management sometime show very harsh behavior with employee, it makes
Dissatisfaction in job.
 The staff is less in this branch so in the absence of any staff is really difficult to
handle the work load.

 ATM SERVICE is not so good as lots of complaints from customers regarding

general error or ATM CARD stuck in or some other problem.

OPPORTUNITIES

 Bank can provide attractive saving schemes; he can attract more customers for
saving their money into the bank
 ABL online system is available in every branch; by improving it more the bank
capture more market shared
 ABL has a large number of branches, if management provides highly qualified
staff, and quality of service; they get a leading position in banking sector
 An ABL ATM service is free from charges, through to this service he can take a
dominant step in his success but it also needs some improvement.
 ABL classified Loans are very short. So he can make more loans for increasing
their revenue
 By applying a good technology in every branch, he can give more customer
satisfaction

THREATS

 In banking sectors competitions is increasing day by day due to entrance of new

banks with highly qualified staff and good technology, this situation can make a
problem for ABL growth
 ABL has important accounts of many industrial companies, but due to these some
bad policies he can lose their accounts
 ABL deal with Foreign Currencies is less to other banks. Due to this activity he can
lose their market share
  The schemes of Other banks are more attractive from ABL, they offer higher rate
of interest
 ABL has not a sufficing trained staff, this deficiency can create a threat for ABL
growth
 There is a need of proper marketing because certain schemes face failure due
ignoring marketing of the product
 Due to low entry barriers, there are more competitors, also the global competition
has increased
 Financial environment is changing day by day, new technologies are introduced
by foreign banks that provide customers by efficient and quick services.
 ATM service is affecting customers satisfaction they should consider it as an
important issue
 The IT system needs to be improved.

COMPETITIVE STRATEGIES

It’s not so easy for banks now days in this global competition to survive and make a
good place in the market. They need high-quality strategies to deal with it and keep up
the competition.
ABL Bank had embarked upon a two-pronged strategy of adopting a rationalization
program to bring down costs, introduce innovative products and offer good services to
customers.
Measures, which have already been implemented, are set out below:

 With the objective of achieving decentralization and cutting down expenses, the
decision-making has been reduced from four to two tiers. 68 controlling offices,
comprising of 4 provincial, 18 circle and 46 zonal offices have been consolidated
into 16 regional offices.
  With a view to improving efficiency and right sizing the ABL network, 66 branches
have been closed or merged.
.
 Treasury operations have been re-organized on a modern technology platform.

 Expensive deposits have been reduced, improving the interest margin.

The Bank now plans to focus on further strategic objectives, as set out below:

1. Diversify products & services:

Anticipating customer needs, ABL is increasing its focus on new products and services
through leveraging its extensive branch network. The Bank is introducing various types
of financing structures tailored to the capital investment requirements of its corporate
clients as well as small & medium sized enterprises.
2. Focus on consumer banking:

Making use of its computerized network of branches, the Bank plans to enhance its
market share and profitability via focusing on consumer banking products and
services as well as integrating e-banking into its delivery channels.

Online facility

Now the bank gives you the absolute convenience of instant access to a host of banking
facilities and personalized services 24 hours a day, 7 days a week, 365 days a year.

Simplify the way you bank and experience a higher level of convenience.

Online features

By Allied bank Online you can;

1 Check your account balances

 2 Transfer funds between your own accounts and to a third party account
3 You can use your card for loan account payments
4 Check transaction history of your accounts
5 Get your account statement through fax
6 Receive information on various Allied bank products and services
7 Find out status of your card or loan application
8 Request balance or reference certificate
9 Get currency exchange rates
10 Issue stop payment instructions
11 Report loss of your cheque book
12 Request change in address and telephone numbers
3. Increase employee productivity though training & new techniques

The Bank seeks to increase employee productivity through a combination of training

and implementation of modern human resource techniques. Frequent in-house and
external training programs are expected to help the Bank in maintaining and developing
an efficient work force.

Toll free number

The toll free number connects to Allied bank by dialing from anywhere within Pakistan.
Call costs nothing to the customer and they can easily contact the staff of allied bank.

By offering all of the above ABL makes its way through the tough competition of the
day. This helps the bank to keep pace with growing needs of its customers and
anticipate their future needs and manage them accordingly in time thus to make sure
that the quality is not compromised and the customers get what they want.
WHAT I LEARNED AT ABL
LEARNED AS AN INTERNEE

Although the operations of a single bank are very wide but the branch in a specific
location do not provide all those services and functions as per the requirement of the area
or the customers residing in that area. As an internee, I worked in the following fields of
departments;

 General Banking especially in Account Opening

 ATM card applications/issuance of ATM cards to customers
 Cheque book issuance
 Clearing
 CDR/PO/DD
The detail of what I learnt and observed at the mentioned branch is given in the
following:

ACCOUNT OPENING PROCEDURE

The person who desires to open an account with allied Bank Limited has to submit the
application for account opening on a prescribed form along with the initial deposit. The
accounts document requirement should be fulfilled properly. If for any reason the
account is opened with incomplete documents or information, or if the bank requires any
further information at any time, the bank may contact the account holder and get the
required information. Only one account in a particular type can be opened in the same
name.
The detailed procedure of the opening of account with Allied Bank Limited is given in
the following;
 First of all, the customer gives an application on a prescribed format to open an
account with the bank.(in business account)

 The responsible person on account opening seat will enquire that customer that
why he wants to open that particular account, and where he resides, if he lives far
from the area of the bank, the person might be suspicious.

 The question must arise in the mind of the banker that why he chooses our branch
instead of opening an account at the nearest branch to his area.

 After that an account opening form is given to the person to fill it completely.
Account opening form should be duly signed. The specimen of signature card is
given to customer and that must be filled carefully.

 Copy of CNIC or Passport, Original must be seen by the Account Opening Officer
and copy attested by him.

 The certificate from the employer of the customer must be obtained to confirm that
he works over there.

 The person opening the account must mention the amount depositing at the time of
opening of account.

 The customer must also have to fill the KYC (know your customer form).

 After completion of the above procedure, the account opening officer checks all the
form carefully and send it to customer services manager and chief manager and
give an account number.

 After that, a letter of thanks is sent to the customer as well as to the introducer. It is
also a way to confirm the customer ’s address.

 When all the procedure is completed, the customer is given a chequebook to

operate the account on normal basis.
 All this procedure of opening of account to issuance of cheque book takes up to 5
to 6 days at ABL.

 The major information that the customer has to fill in is given in the following.

 Branch Code
 Date of Opening of Account
 Nature of Account (For Example, Current, PLS, Foreign Currency, Joint
Account etc.)
 Passport size photograph of the person duly attested.
 Name of the person or Firm
 Initial Deposit
 Purpose of Opening of Account
 Addresses of Next to kin
 Clear signature of the person.

ISSUANCE OF CHEQUE BOOK

The procedure of issuance of cheque book to the new customer or to the existing
customer is given in the following:

a). NEW ACCOUNT HOLDER

 The issuance of cheque book to the new customer is issued after the account is
opened.
 Cheque book is received from COK after 5 or 6 days of account opening.
 The cheque book register is maintained where the serial number of issued
cheque-books is recorded.
 The book of normally 25 leaves is issued to the profit and loss account holder
and of 100 leaves is issued to the current account holder.
 The book contains the account number and the title of account.
  The officer stamps the account number on each and every leaf of the book and
counts the number of leaves as well.
 After that, the title of account is written in the front page of book and in the
specific leaf in the cheque-book, which is used to take another cheque-book.
That specific leave is usually in the middle of the cheque-book.
 The officer takes the signature of the receiver of cheque-book on the issuance
register and also mentions whether it is issued to holder or bearer.
 Acknowledgment is signed by the customer.

b). EXISTING ACCOUNT HOLDER

 The existing account holder comes to the bank with that particular leaf which is
present in all the cheque-books; the existing account holder fills that leaf carefully
and gives it to the officer issuing the cheque books.
 The leaf contains the following information:
• Title of Account / Name of the account holder
• Account number
• Date
• Signature of account holder
• Serial number of the cheque-book of which is a leaf of.
 Then all the procedure of issuance of the cheque-book is the same as that of the
new account holder.
 But only one thing will be different, that is the confirmation of the signature of the
account holder so as to confirm that the cheque-book is going to be issued to the
real account holder.

DEPOSIT / WITHDRAWAL OF CASH

 The deposit and withdrawl of cash to and from the bank account has the following
procedure to be followed by the account holder;

a). DEPOSIT OF CASH

 The deposit of cash to the account of the same person or to the account of
another person in the same branch of the bank is done through the deposit slip,
which is easily available at the counter of the bank.
 The depositor fills the deposit slip; it contains the tile of account, account number,
amount to be deposited, amount in figures and amount in words, signature of the
depositor etc.

 The depositor then takes this slip to the cash counter and the cashier receives it
and pastes the received bank stamp over the both leaves of deposit slip.
 One leaf is returned back to the depositor and the other leaf with amount to be
deposited is taken over by the cashier.

b). WITHDRAWAL OF CASH

 The procedure of withdrawal of cash is also very simple, but the concerned
officer and the cashier must be very careful while giving cash to the person
bearing the cheque.
 The cheque is used for the withdrawal of cash usually. The person must fill in the
cheque carefully. Signature and the amount of the cash to be withdrawn must be
written carefully.
 The cheque also holds two options, holder or bearer. The cheque then presented
to the cashier for withdrawal.
 The Cashier will send that person to the officer for the confirmation of the
signature and the verification that whether his account contains the amount he is
asking to withdraw.
  After verification, the cheque is taken from the customer and amount in the form
of cash is handed over to the person bearing the cheque.
 For 100% verification, (if the person bearing the cheque is suspicious) the
account holder is contacted through telephone and then confirmation is taken
prior to the withdrawal.

APPLICATION / ISSUANCE OF ATM

The account holder of Allied Bank Limited is given the facility to take the facility of
ATM free of charge. But it is always at the discretion of the account holder to avail
the ATM facility or not. If he wants to avail the ATM facility, he has to check the
option in the account opening form about the issuance of the ATM card. In other
case, the procedure is as follows;

In case, the person has unchecked the option of ATM issuance at the time of
account opening, he follows the following procedure.
An application is filled to the customer services manager for the issuance of
ATM card, there must also be mentioned the title of account and the account
number.
The person is given a prescribed format for the issuance of ATM, the person
fills it, it usually contains the name of person, mother’s name, phone numbers,
mobile numbers, CNIC number, account number, type of account and signature
of the person etc.
The application will be processed in about 15-20 days and the application is
sent to the head office.
The head office issues the ATM cards to all the persons who have applied for
it. Within 15-20 days, the ATM cards are sent to the branch offices.
The persons, whose ATM cards are received, are contacted so that they
come and receive their ATMs.
An ATM issuance register is maintained in which the name of the ATM holder,
his account number, ATM card number is written. So when the customer gets the
 ATM from the branch, the signatures are taken on the ATM register for
confirmation.

CANCELLATION OF ATM CARD

If a customer wants o cancel his ATM card, the procedure is as follows:

The ATM card holder comes to the manager and gives an application for the
cancellation of ATM whether it is already is use or not.
The card is handed over to the manager, the manager punches the card and
make a hole or cut it and to make it useless and attach it with the application.
The application is then forwarded to the head office, where the ATM is
cancelled from the database.

This is all procedures of application, issuance and cancellation of ATM cards by the
account holders of the Allied Bank Limited. ABL is providing the facility of using ATM
free of charge.

MISCELLANEOUS

The term miscellaneous includes the issuance of deposit at call, online slips,
different type of debit credit entries(VOUCHERS) ,and intercity and Pay orders,
demand drafts (outward bills for collection) etc. I was exposed to the practical
training of that particular area but I observed it and I would like to mention a brief of
them in the following.

CLEARING

“It is a process by which the counter-claims of bankers are set off and balances are
settled or cleared through the entries in the books of bank.”

 It is process through which one may receive the amount of a cheque

presented the bank while the cheque is drawn on any other bank.
 This system is operating within a specific city transfers.

 In Pakistan State Bank of Pakistan acts as clearing house.

 Clearing house of SBP has shifted a lot of its work to a private institution
named as “National Institutional Facilitation Technologies” (NIFT).

 NIFT collects all the cheques, demand drafts, pay orders, traveler
cheques from all the branches of all the banks within a city through its
carriers and send them to the branches on which these are drawn for
clearing.

 A summary is prepared having the number of instruments and total

amount of cheques sent to a specific branch and similar summary is sent
to SBP where accounts are settled accordingly.

 The officer at the clearing counter inspects the cheque before accepting
them for collection through clearing house.

 Inspecting the cheque is

o That the cheque is not crossed

o The cheque is drawn on local bank

o The cheque is not mutilated or torn

o There in no unauthorized alteration in the cheque

o The amount in words and figures is same

o All alterations and addition or cancellation must bear drawer’s full

signatures

 Scrutiny of pay in slip and counterfoils is;

 o Depositor is a customer of bank

o The title and no of account is mentioned

PAY ORDERS ,CDR AND DEMAND DRAFTS

Allied bank has manual way of making all these. While making P.O, CDR or DD things
should be kept in mind:
 No cutting on leaf and if any mistake get it signed by officer.
 Get signed by 2 officers
 Put tap on name of favoring and amount
 Write “PKR not over ………”above or at end with specific red color pen
 Two vouchers and made one is credit and other is debit
• Pay order, CDR account is credit
• Payees a/c credited
 Stamps of payees a/c is necessary
 Demand draft is different it only includes the application of DD and than
DD is issued.

PROBLEMS ENCOUNTERED

The major problem was the hectic routine of the bank. I realized that practical life was
far different from books. The real problem I faced in the bank was the difference
between what I had learnt from the books and what was being practiced. Practical
application of the theories learnt during academic sessions was a great challenge,
which I overcame by the cooperation of the staff.

HOW EXPERIENCE AFFECTS MY CAREER

While doing my internship I have been through many experiences which I think has
greatly improved my skills. During internship when I have to handle few annoying
customers it taught me how to deal with it. Time management was improved and how to
handle your mistakes and have learned a lot from it. These things can help me in my
career a head. My internship was my first experience to the professional world and this
was a kind of training for me that how to survive in professional world and how to tackle
everything.
Internship helps me in learning new things and taught me there is always a space for
learning and we should learn at each stage a new thing which will be helpful further.
I have been talking to new customers and this finished my hesitation to talk to some
new person so it really improved my communication and interaction skills. So this will be
very useful for me further in my professional life.
 SUGGESTIONS/
RECOMMENDATIONS
SUGGESTIONS/RECOMMENDATIONS

 Management must provide a good trained staff in all branches

 Management should make the policies that helped in reducing the turnover of the
staff
 Management must provide the training programs to the employees for improving
their skills
 Management must take step in reducing the uncertainty in jobs
 Bank should improve his IT Department
 ATM facility should be provided in all cities
 If the bank will reduced his Online commission, he can get more deposit
 Bank can provide attractive saving schemes; for attracting more customers
 ABL online system is very strong; by improving it more the bank capture more
market shared
 ABL ATM services is free from charges, through to this service he can take a
dominant step in his success
 ABL should see the ATM machine and its working.
 By applying a good technology in every branch, he can give more customer
satisfaction
 ABL must provide better service for their big account holders
 Every person should be well known about his responsibility
 Managers make surety of implementation of rules & regulations in his branch
 Management makes the decision for improving in all the departments
 Making attention on Foreign Currency Department
 Management makes he policies that helped in reducing the turnover of the staff
 Management must provide the training programs to the employees for improving
their skills
 When any one comes to operate the locker the things should be checked through
metal detector before he/she puts in the locker.
 ABL should work on the advertisement of its schemes.
 Online transaction through branches needs to be improved so they should work
on the IT department.
 There should be more staff in this branch as its covering more market but to
handle customers staff is less.
 The security guards should check each and every person who enters in the bank
even if they know that person.
 The bank is still depending on manual work to a great deal which causes slow
performance and increases the chances of mistakes.