Report on Internship with

PREFACE

The report is specially meant for the students of MBA. 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, Marketing function 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.

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. I am grateful to my honorable Teachers Mr. They directed me in a precise way in every nick and corner of my work. His direction and valuable remarks during the internship programmed eased many of my difficulties. Also I express my appreciation to all staff members of Allied Bank of Pakistan who are very cooperative guided me a lot.

TABLE OF CONTENTS
Chapter :1
1.1 History & Functions of Bank

1.2 Banking system in Pakistan 1.3 Types of Bank 1.4 Banking System Today 1.5 Introduction of Allied bank 1.6 Vision, Mission, Core Values 1.7 Objectives 1.8 Board of directors 1.9 Executive committee 1.10 The management 1.10.1 Branch management

Chapter :2
2.1 Departments of ABL 2.2 Product and Services of ABL 2.3 Branch Network 2.4 Credit Rating 2.5 Corporate Government Rating

Chapter :3

3.1 HR Department if ABL 3.1.1 Job Analysis 3.1.2 Recruitment & selection 3.1.3 Training & Retraining 4

3.1.4Compensation management 3.1.5 Career Management

Chapter :4

4.1 Financial Analysis 4.1.1Interpretation 4.1.2 Ratio

Chapter :5

5.1 SWOT Analysis 5.2 PEST Analysis 5.3 Learning as an Internee 5.4 Recommendations 5.5 Conclusion 5.6 Referance

HISTORY AND FUNCTION OF BANK

FUNCTION:
The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. The evolution of banking dates back to the earliest writing. And continues in the present where a bank is a financial institute that providing banking and other financial services. Currently the tern bank is generally understood as institute that holds a banking license.

GENERAL HISTORY OF BANK:

A simple form of banking was practiced by the ancient temples of Egypt, Babylonia and Greece, which loaned at high rates of interest the gold and silver deposited for safekeeping. Private banking existed by 600 B.C and was considerably developed by the Greeks, Romans and Byzantines. Medieval banking was dominated by the Jews and Levantines because of the strictures of the Christian Church against interest and because many other occupations were largely closed to Jews. The forerunners of modern banks were frequently chartered for a specific purpose, e.g., the Dank of Venice (11710) and the Bank of England (1694), in connection with loans to the government the Bank of Amsterdam (1609), to receive deposits of gold and silver. Banking developed rapidly throughout the 181'1 and 19th century, accompanying the expansion of industry and trade, with each nation evolving the distinctive forms peculiar to its economic and social life.

HISTORICAL BACK GROUND OF BANKING IN PAKISTAN:

Pakistan came into being as a state of Muslims in the content on 14th August 1947. Pakistan banks follow the British pattern of banking system. Before in dependence, there were 631 branches having 44 Pakistani areas including Bangladesh and 487 branches in the territories now comprise Pakistan. (Siddiqui, 1999, 144) 6

At the time, when Pakistani was producing food, grain and other agriculture raw material, there were no important e>|>ort oriented industries. However commercial banking facilities were providing fairly well her. But shortly after independence, the number of banks and their branches reduce as the Hindu bankers migrated India from Pakistan. In addition majority of Hindu's reducing in the territories now constituted Pakistan and they started transferring their assets to India by 13th June 1948, the number of branches of scheduled banks in Pakistan declined form 487 to 195 only then this country faced a great banking crises. There were 19th non-Indian foreign banks with the status of small branches, which were engaged in financing of export to Pakistani crops. There were only to Pakistani banks that are Habib Banks, which transferred its headed office form Bombay to Karachi, and the Australasia banks, which were in existence in the territory of Pakistan. There was panic of uncertain economic future with shock the confidence of the people. The Govt. therefore, promulgated the banking companies, ordinance, 1947 to safeguard the interest of the bother bankers and public. After opening of state bank of Pakistan on 1st July 1948, it took first step for the development of banking system. Many new commercial banks were established (lay-by-day and now network of bank branches covers a very large segment of national economy. (Siddiqui, 1999:144-145).

BANKING SYSTEM IN PAKISTAN:

Banking system of country to the working process followed by the banking institution, it is identified through the relationship between the central bank and other banks operating in the country. It is embodied the principles and protective relating to the banking transaction prevalent in it. The banking system of country is controlled and directed by a central bank, or federal bank. Under the central banking system the central bank regulates the supply and maintains the external value of money for the purpose, it has the monopoly of note issue and it is the custodian of foreign exchange resources of the country. It controls the credit structure so as it regulates the money supply and stable the internal value on money. It also controls and directs the activities of other banks operating in the country. The banking system plays an important role in the development of a country. A wellorganized banking system provides liquidity and mobility of the financial resource in the 7

country. Banking facilities trade activities inside the country and abroad through their functions.

TYPES OF BANKS 1. COMMERCIAL BANK:

The commercial bank received deposits from the general public, which are Repayable on demand upon written order of depositors.At their most distinctive feature the commercial bank maintains checking Account for (he constituents. The commercial bank are also distinguished for providing short-term finance To trade, commerce and industry to enable to these sectors to expound their Productive activities.

2. MERCHANT BANK:
Merchant banks are those, which have been mainly financing the domestic and international trade. Also business of accepting bills of exchange to finance the trade developed and gradually these business houses entered into other banking equities and become known as merchant banks.

3. SAVING BANK:
The purpose of these banks is to inculcate the habits of saving the people. The saving banks deposit not repayable upon only the written order of the depositors but the depositors or his agent has to appear personally at the saving bank to make withdrawal in for this he must present his pass book, certificate of deposit or some similar documents to prove his right to receive payments. Post office saving bank and saving accounts at national saving organizations is well known operational saving bank in Pakistan.

4. CONSUMER BANK:
These banks provide for purchasing consumption goods for the use of borrower's consumer's finance companies, sales finance companies and credit unions or some of the way well known form of consumer bank. 8

5. INVESTMENT BANK:
The investment banks assist business houses and government bodies to raise money through the sale of stocks and bonds for usually long-term purposes.

6. CENTRAL BANKS:
Central Banks occupy unique position in the banking structure of a country because they have been entrusted with the responsibility of controlling the money supply interest rate, and financial markets of the country for the purpose of economic development State Bank of Pakistan is well known example of central bank in Pakistan.

7. CO-OPERATIVE BANKS:
Co-Operative banks are integral part of co-operative of movement which aims at the promotion of thrift and mutual aid amongst agriculturists and other with common economic need so as to bring aboni bHter living, better business and better methods of production etc. (Law and Practice of Banking in Pakistan, Asrar Siddiqui P-7-9).

BANKING SYSTEM TODAY

The banking business as we know it today is composed of three separate and distinctive principal functions these are: 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.

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. 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.

THE PRE-INDIPENDENCE HISTORY (19421947):

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: 10

"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.

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.

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:

11

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.

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.

12

IBRAHUM GROUP ASSUMES CONTROL OFABL

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.

INTRODUCTION OF ALLIED BANK LIMITED

13

Allied Bank Limited is the first bank incorporated on the soil of Pakistan. It was incorporated in Lahore before independence in 1942 as Australasia Bank and was renamed as Allied Bank of Pakistan Limited in I ''7.| and Allied Bank Limited in 2005.In August 2004 as a result of capital reconstruction, the Bank's ownership was transferred to a consortium comprising of Ibrahim Leasing Limited and Ibrahim Group.Today the Bank stands on a solid foundation of over 60 years of it's existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The Bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches.

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

Vision
To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.

Mission

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

Core Values
Integrity Excellence in Service 14

High Performance Innovation and Growth

OBJECTIVES
Allied Bank has following objectives: Prime focus to earn profit by providing values to its customers To provide superior services to its customers To provide assistance in the development of the commerce and trade industry Focus on blending skills and experience towards creating an enabling environment

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

BOARD OF DIRECTORS
"The people who draw the picture of the organization on the broader canvas of strategy and planning, the pioneers of prosperity and world of wisdom that paves the path to long term success"

Mr. Mohammad Naeem Mukhtar 15

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

16

EXECUTIVE COMMITTEE

Mr. Khalid A. Sherwani

President & (CEO)

Mr. M. Naveed Masud

Senior Executive Vice President

Mr. Akhter Ali Khan

Head Credit

Mr. Tahir Saeed Effendi

Head I.T & Financial Officer

Mr. Mohammad Yaqoob

Head Islamic Banking & Planning Div

Mr. Masud A. Sidique

Head Human Resource

Mr. Anwar Zaki

Head Treasury

Mr. Khalid Mehboob

Head Business Promotion

Mr. Sayed Mujtaba Gillani

Head Special Vigilance Unit

THE MANAGEMENT
"The brilliants whose passion is dedicated to discover newer ways to make the organization goals reality" Mr. Asim Tufail (Group Chief, Consumer & Personal Banking)

Mr. Fareed Vardag

(Chief Risk Officer)

Mr. Iqbal Zaidi

(Group Chief, Compliance)

Mr. Mohammad Abbas Sheikh

(Group Chief, Special Assets Management)

Mr. Mohammad Aftab Manzoor

(Chief Executive Officer)

Mr. Muhammad Jawaid Iqbal

(Group Chief, Corporate & Investment Banking)

Mr. Muhammad Yaseen

(Group Chief, Treasury)

Mr. Mujahid Ali

(Group Chief, Information Technology)

Mr. Shafique Ahmed Uqaili

(Group Chief, Human Resources)

Mr. Khawaja Mohammad Almas

(Head, Core Banking Projects)

Mr. Tahir Hassan Qureshi

(Chief Financial Officer)

Mr. Tariq Mehmood

(Group Chief, Operations)

Mr. Waheed ur Rehman

(Company Secretary)

Mr. Zia Ijaz

(Group Chief, Commercial & Retail Banking)

Branch Management Gulgasht colony Multan

Mr.Fazeel Sabri. Ms.Najma Ali Haider Siddique Muhammad Imran

(Branch Manager) (Customer service Manager) (Remittances Incharge) (Teller/Cashier)

DEPARTMENTS OF ABL
Audit & Inspection Group: 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.

Risk Management Group: 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 dvanced approaches.

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 xposures 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.

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.

PRODUCTS AND SERVICES OF ABL

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.

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

Credit Cards: 1. Inquiry

Card balance Statement details Product information Application status

2. Transactions
Card activation Card lost/stolen Card replacement Credit Card bill payment Insurances

Internet banking:
Banking at your fingertips

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:

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.

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.

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.

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 Al Baraka Islamic Bank Meezan Bank Limited Allied Bank Limited National Bank of Pakistan Askari Commercial Bank Limited NIB Bank Limited Atlas Bank Limited PICIC Commercial Bank Limited Bank AL Habib Limited Soneri Bank Limited Bank Alfalah Limited

Standard Chartered Bank Bank islami Pakistan Limited Union Bank Limited Crescent Commercial Bank United Bank Limited Dubai Islamic Bank Pakistan MyBank Limited EmiratesGlobal Islamic Bank Tameer Micro Finance Bank Faysal Bank Limited Habib Bank Limited First Dawood Islamic Bank

M NET Network:

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

The "M Net Switch" has the following Bank members: JS Bank (American Express Bank) Bank of Khyber Bank of Punjab Citibank First Women Bank Limited Habib Metropolitan Bank

HSBC Bank Muslim Commercial Bank Saudi Pak Commercial Bank Prime Commercial Bank

Corporate Leasing:

Allied Bank started lease operations when it integrated with Ibrahim Leasing Limited. Facilities include leases for machinery, commercial vehicles and equipments. The Bank provides lease facilities to corporate and commercial clients in all industrial enterprises For balancing, modernization, replacement and expansion schemes. Leasing is a popular mode of financing because of its distinctive features like tax shield, preserve working capital, easy documentation and less processing time. Lease applications are processed at all Bank branches in Pakistan.

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): Upto Rs. 5,000,000 Rs.5,000,001 to Rs.25,000,000 Rs.25,000,001 to Rs.50,000,000 Rs. 50,000,001to Rs. 100,000,000 Rs.100,000,001& Above 8.00% 10.00% 10.50% 11.00% 7.50% 9.50% 10.00% 10.75% 1 Month 6.00% 6.50% 7.00% 3 Months 8.00% 8.50% 9.00% 8.50% 9.00% 9.50% 9.50% 10.00% 10.50% 6 Months 1 Year

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

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. 2.

Small Medium Rs.1,000,000/- 3. Rs.1,500,000/- 4. Rs.2,000,000/-

Rs.1,500/Rs.2,000/Large Extra Large

Rs.500,000/Rs.4,000/Rs.5,000/-

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.

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.

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. 3.Permanent and Total Disability, due to sickness or accident 4. Temporary Total Disability, due to sickness or accident 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 Allie d Visa Gold Cred it Card hold er, its custo mers are eligi ble to avail the free loun ge facili ty at Quai d-eAza m Inter natio nal Airp ort, Kara chi.

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.

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:

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. 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.

Socialization process in ABL

ABL implements the process of socialization, when a new employee comes. They get chance to be socialized with the environment of the company. For this purposes the employees visits all the departments of the bank and also takes a brief introduction of each department, this gives them a good overview of organization. HRM department is performing these duties with the coordination of the relevant department.

Training, Retraining & development

Training: Training is a job-oriented activity. It provides or improves specific skills for the current job. A manager may be trained in communication skill to improve reading, writing, listening and speaking. A technician may be placed in a factory to acquire job-relevant skills in a computerized machine. It makes a person fit for the present work through updating or upgrading of skills. While in Allied bank training period is for 6months.

Retraining: For the improvement of employees due to advancement of technology. Retraining is only possible when workforce possesses a sound general education and has already been trained of broad line skill. But in Allied bank they conduct seminars for this purpose.

Development:

Development is a concept-oriented preparation for human relation, problem solving in structured or unstructured situation. It provides conceptual skill to employees. There are two types of training approaches. Off-job training approaches On-job training approaches

Off-job training approaches There are further types of off-job training approaches. 1. Occupational Training schools There may be an individual who is aware of his insufficient skills, at hand, as compared with those required by the work place. Such a person may be provided desirable joboriented skill training by a school. The training school may be in public or private sector. The individual would opt for training programs in the respective skills. 2. Cooperative Education A cooperative education programs are a feasible vehicle of creating and sustaining liaison between the institution and the entrepreneur. College provides conceptual framework while the enterprise engages the strident with work experiences. 3. Vestibule training An employee may not be placed on actual workbench because of the pressure of work, efficiency of the already trained manpower and quality controls. A separate simulated workplace is identified to house the learners. It may be an in-service training school established by the organization. On job training approaches 1. Apprenticeship A group of potential employees is inducted to hob-specific training under the guidance of matured and skilled personnel. If it is provided first time to a trainee, it is initial training that includes induction training as well. If trainee has already initial training, then it is only the induction training provided through apprenticeship. The apprentice is paid subsistence money to manage boarding, lodging and daily needs.

2. Coaching A coaching is an instructor of skills. Coaching teaches skills on the basis of one-to-one personal contact between the trainee and the trainer. It is an equally useful training method for managers and non-managers in business, industry, education and government. Allied bank includes training after 6 month probation for final evaluation of candidate, candidate goes to Islamabad (national institute of business and finance) for one week training then he is employed. 3. Mentoring A mentor means an experienced and trusted adviser. Mentoring is an advanced form of coaching designed for potential managers, of various levels, in conceptual skills. In Allied bank for this purpose seminars are conducted.

4. Job Rotation An employee is shifted from one position to another, at lateral level from one job to a similar of differentiated and diversified work, preferably, in ones own discipline. The similarity of elements in the previous and new jobs helps the trainee in acquiring the new skills. In Allied bank this situation is already existing.

5. In-Basket Training The trainee is attached with a senior person. The trainer provides the trainee a basket containing official documents, i.e. memos, letters, reports, etc. The trainee studies these documents and learns about that level of management.

Compensation Management
To attract and retain the best talent, companies require compensation and benefits structures that are both enticing and consistent with market standards. It is an integral part of the management of the organization. Compensation Management contributes to the overall success of the organization in several ways. Employee compensation is also a way to contribute in success of the organization, it refers to all forms of pay or rewards going to employees and arising from their employment. It has two main components:

Direct financial payments; Wages, salaries, incentives, commissions, and bonuses etc

Indirect payments; Pay in the form of financial benefits such as insurance.

Components of compensation management: Salary Probation period Promotion criteria Rent or residence facility Medical care Transportation Pension Vacation criteria Transfer Career management Education of children Insurance Health and safety program Performance appraisal Flaws in practice

Salary: A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.

In Allied bank: Salary structure in KB is competitive as compare to other banks. BPS starts from 12000 for a new trainee or employee.

Probation period: It is a time to check the performance of an employee who is provisionally employed to fill a vacant newly created post. The services of a probationer may be terminated at any time by the competent authority with out notice or pay or he/ she may resign with out giving any notice or pay in lieu there of.

In Allied bank In Allied bank there is 6 months probation period used to check the performance of new employees whether it is upto the mark or not. If performance is not satisfactory then new employee will be dismissing from job and performance is above par then employee can gain permanent job with the bank.

Promotions: Promotions traditionally refer to advancements to positions of increased responsibility. Most working people look forward to promotions, which usually mean more pay, responsibility and often job satisfaction. For employers, promotions can provide opportunities to reward exceptional performance, and to fill open positions with tested and loyal employees.

Allied bank: Following is the main criteria for promotion of an employee in KB: 1. Education 2. Job knowledge 3. Experience 4. Performance If an employee is fulfilling all above requirements then he will be promoted after 6 months.

Rent or residence facility: Traditionally residential facilities are obtained by employees from their employers or organizations in which they work. If no residential facility is provided then employers paid the rent of such accommodation in which employees are living. Usually well reputed or public organizations give this facility to their employees.

In Allied bank: No rent or residential facility provided by KB to their valuable employees.

Medical care: Some time medical allowances are given to employees by their employers while on the other hand if allowances are not given then charges incurred on hospitalization are paid by organizations. So, in this way medical care facility is provided to personals.

In Allied bank: Employees of KB are enjoying medical care facility. Any employee of the Allied bank can claim to pay hospitalization charges of his family members. The claim is approved by R&D department, for approval purpose certain type of documentation is necessary which should be fulfill by employees. After this employees can enjoy this facility.

Transportation: Transportation means conveyance facility to workers of any organization. Some well reputed organizations give allowance to meet their transportation charges or in other way companies provide its own transportation to workers in order to enhance their efficiency and motivational level.

In Allied bank: There is no transportation facility provided to male employees only for females transportation is provided on local basis.

Pension: It is a plan that provides a fix sum when employees reach a predetermined retirement age or when they can no longer work due to disability. In recent time only government sector give pensions to their workers and not private sector.

In Allied bank: In KB there is no pension plan for employees but gratuity is given to workers. Vacation criteria: Every organization whether public or private has its own vacation plan which is abided by employees. There are many types of leaves given to workers like casual leaves, mandatory leaves, sick leaves, annual leaves etc.

In Allied bank: KB has its own vacation criteria including: 1. Entitlement of 30 leaves in 1 year per employee 2. Out of thirty 2 weeks are mandatory leaves 3. Remaining leaves can be enjoyed by employee at their will Above mentioned is revising policy but before this there were: 1. 12 casual leaves 2. 1 sick leave 3. 3 seasonal leaves etc. Transfer: Reassignments to similar positions in other parts of the firm are called transfers. Usually a transfer is a move from one job to another with no change in salary or grade .Every organization has its own policies or criteria for transfer of employees. In Allied bank: In Allied bank transfers depend upon following issues with reference to employer: 1. Business accidences like overstaffing or understaffing 2. Experience 3. No efficient performance of employee 4. No particular tenure system Employees seek transfer for: 1. Personal enrichment 2. More interesting job 3. Better working hours

Career management:

Career means the occupational position a person has had over many years while career management is a process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests more effectively.

In Allied bank: The series of activities that contribute to career of employees of KB include: 1. 2. 3. 4. Workshops Seminars On the job training Training by National Institute of Business and Finance

Education of children: Some big organizations give education facility for the children of employees. In order to achieve this task they can give allowances or cash or direct payment of fees. Some time workers welfare schools are established for the convenience of employees.

In Allied bank: In Allied bank there is no any facility is given to employees in terms of education of children.

Insurance: Almost all companies are providing insurance facility to their personals. Companies usually give this facility to their permanent workers or employees. Probationers are not come under this head.

In Allied bank: All employees of Allied bank are insured except from probationers or temporary employees. They insured by ALLICO insurance company upto 6 million or six lakh. If an employee will expired during duty hours then his family will receive full amount as said six million. If an employee will expire after duty hours then his successors will receive half or fifty percent of the full amount.

Health and safety program: Health and safety programs include medical care and establishment of safe environment for employees. In order to regulate these programs firms maintain their own policies to ensure employees that they are safe and company consider them as a valuable asset for their organization.

In Allied bank: The bank is providing proper health awareness by recommending different tests for employees from time to time without any cost and in order to regulate safety measures KB has insured its all assets including human resource staff, vehicles, furniture, equipments, cash etc.

Performance appraisal:
Virtually all companies have some formal or informal means of appraising their employees performance. Performance appraisal means evaluating an employees current and/or past performance relative to his or her performance standards set by organization for that particular job. Performance appraisals are a regular review of employee performance within organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions-salary (merit) increases, promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

In Allied bank: Employee level: In KB following parameters are used to evaluate performance of an individual employee as well as performance of management level: 1. Job knowledge 2. Communication 3. Interpersonal relationship 4. Adoptability of new things 5. Motivation 6. Customer focus 7. Initiative to work 8. Team work 9. Productivity 10. Time management 11. Work habbits 12. accomplishment of assigned task Management level: 1. 2. 3. 4. 5. 6. Flaws in practice In every organization there may be possibility of flaws in regulation of policies or poor policies regarding human resources. similarly there are also some flaws n KB bank regarding HR policies. Leadership Planning and organizing Problem solving and decision making Development of subordinates Consensus building to take new task Creativity

In Allied bank: In Allied bank following are draw backs: Centralization: The most important draw back of HR policies OF KB is centralization, which means that all employees are selected by centralized corporate office Islamabad so there should be decentralization because branch wise selection can reduce many problems. No regular appraisal system:

There should be proper and regular appraisal system in order to enhance employees efficiency and capabilities and productivity. In KB there is two time appraisal in one year so there is need to make regular appraisal system.

Hiring of outsource staff: Hiring of most outsource staff can create problem for such employees because they feel insecurity, due to deprivation of incentives their level of motivation goes down which finally leads to high turnover and job rotation

FINANCIAL ANALYSIS OF ABL 2010

Vertical Analysis of ABL:
Balance sheet Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances net Operating fixed assets Other assets - net Total assets Liabilities & Equity Total equity Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Total Liabilities 38.6% 30.2% -47.8% 12.9% 0.0% 11.1% 6.6% 100% 100% 100% 100% 100% 100% 100% 14.9% -59.1% 27.8% 6.6% 23.4% -5.5% 7.5% 100% 100% 100% 100% 100% 100% 100% 2010 2009

Horizontal Analysis Of ABL:

Balance sheet Assets Cash and balances with treasury banks 14.9% 100% 2010 2009

Balances with other banks Lendings to financial institutions Investments - net Advances net Operating fixed assets Other assets - net Total assets Liabilities & Equity Total equity Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Total Liabilities

-59.1% 27.8% 6.6% 23.4% -5.5% 7.5%

100% 100% 100% 100% 100% 100%

38.6% 30.2% -47.8% 12.9% 0.0% 11.1% 6.6%

100% 100% 100% 100% 100% 100% 100%

Horizontal Analysis of ABL:

Profit & Loss Account Mark-up / return / interest earned Mark-up / return / interest expensed Fee, commission, brokerage & exchange income Capital gain & dividend income Other income Provisions Operating expense

2010 9% 0% -16% 2% 598% -2% 19%

2009 100% 100% 100% 100% 100% 100% 100%

Taxation Total expense Profit after taxation

21% 6% 16%

100% 100% 100%

Vertical Analysis of ABL:

Profit & Loss Account TOTAL Mark-up / return / interest earned Mark-up / return / interest expensed Fee, commission, brokerage & exchange income Capital gain & dividend income Other income Provisions Operating expense Taxation Total expense Profit after taxation 2010 100% 89% -44% 6% 5% 0% -9% -23% -8% -84% 16% 2009 100% 88% -48% 7% 5% 0% -9% -21% -7% -85% 15%

INTERPRETATION

The interpretation of Vertical and Horizontal analysis Vertical analysis is used in comparing the financial statements of the firms they differ in size. The Horizontal financial statement analysis is done by restating amount of each item or groups of items as a percentage are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year statement. When we compare the ABL position with the previous year percentage of net assets are increasing. ABL position in current year better than pervious year because it gain profit as compared to the previous years .

Profitability Ratio:
Gross profit;
Year Ratio 2010 50.2% 2009 45.5%

Profit Before Tax Ratio:

Year Ratio 2010 43.7% 2009 42.7%

Return on assets
Year Ratio 2010 1.89% 2009 1.81%

Return on equity
Year Ratio 2010 28.8% 2009 30.5%

Market Value Ratios

Earning per Share :
Year 2010 2009

Ratio

10.52

9.11

Price to earning ratio:

Year Ratio 2010 6.7 2009 5.9

Cash Dividend per Share

Year Ratio 2010 4.00 2009 4.00

Net assets per Share:

Year Ratio 2010 46.0 2009 42.1

SWOT ANALYSIS

STRENGTHS
Allied Bank Limited has certain strengths which are different from the other Banks. ABL is the first Muslim Bank of the world, which is owned and managed by its own employs. This is the biggest strength of the Bank. A feeling of ownership is present in every employ, which not only helps in increasing the productivity of employs but also creates sincerity with the Bank in them. Another strength is the high motivation of employees to their work because they know that what so ever they do, it will be in their own benefit. They know that the profit, which they will earn, will be distributed among all the employees. So they work with high motivation and concentration. Salaries are very reasonable, so the employees are not financially disturbed and they devote their selves fully to their work. They have wide area network in all over the Pakistan, so that they cover a lot of portion of cash transactions and make customer satisfied. The Bank has very strict rules and regulations about the customers complaints. customers are treated as very special persons in the Bank. The

WEAKNESSES
No entertainment facilities are available in the Bank when customer goes to the Bank and wait for a longer time. These facilities can be the newspaper, magazines, etc. Advertisement of ABL is not such goods as of other banks. Out look of the ABL branches is not attractive to the people.

OPPORTUNITIES
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 very well praised to avail promising opportunities.

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

THREATS
First threat is that of political influence. Three boards of directors are of government. So that they can influence on the decisions of the ABL. The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years. If this downfall remains for more few years then it may be the great hindrance in achieving the Banks objectives. The privatization of other banks is also a threat for the Bank. Due to the privatization of the different bank e.g. MCB, the competition has increased a lot. Furthermore many private banks have come in the sector due to which it is becoming more difficult day by day to attract the customers.

PEST ANALYSIS
Political
Pakistan despite all international and public perceptions, today is a functioning democracy and gradually there is a change in complexion and composition of legislatures with more educated people and women (27% of National Assembly and 17% of Senate) entering into politics Similarly it helps in designing best strategies to implement that could support the revival of bank industry. Like in there of nationalization banks had to suffer as other industries thats why that impact is still found in the performance of this industry.

Economical
Although banking sector development is important at the early stage of economic growth, general liberalization presuming a homogeneous bank role may not necessarily promote growth. The estimated cost structure indicates that state-owned commercial banks are large enough, while development financial institutions and private banks can expect to obtain cost-saving advantages by expanding their operations. Since scope economies are significant, portfolio diversification generally increases bank profits. In addition, privatized banks are the most efficient, followed by foreign and private banks. Public banks are the least efficient.

Social
Banks always helped people in improvement of living condition of poor people invarious forms like giving loans to poor for starting business or directly providing them the instruments that could enhance their living conditions. Similarly Allied Bank always tried to provide the needy people loans on soft terms and also helped to eradicate unemployment by providing job opportunities Recent high growth trends coupled with enhanced spending on social and

poverty programs that rose from 3.8% of GDP in 2001/2002 to 5.05% by

2005/2006 has together begun to pay some dividends as evident from the

reversal in poverty incidence trends and social indicators.

Technology
The Banking sector in Pakistan has experienced a rapid transformation. Just about a decade back this sector was limited to the i (read nationalized)and co-operative banks. Then came the multinational banks, but these were confined to serving an elite few. One could regard the past as the 'medieval ages in the banking industry, wherein every branch of the same bank acted as an independent information silo and multi-channel banking (ATMs, Net banking,Tele-banking, etc) was almost non-existent. Today banks have to look much beyond just providing a multi-channel service platform for its customers. Therere other pressing issues that banks need to address in order to chalk-out roadmap for the future. Here are the top three concerns in the mind of every banks CEO. The customer is interested in how he/she can benefit from the bank and its products. That's why it becomes necessary for a bank to differentiate its products from the others. Some of the ways in which differentiation can be introduced are through specialization, new products, and increasing the added value

LEARNING AS AN INTERNEE
Duties and accomplishment:
My duties at the bank were of different types. I was rotated in different departments in different weeks, so that I could get the exposure of different tasks in a bank. But my duties were always supervised by the employees of ABL so that I do not make any major mistake, as I was an internee and didnt go through the training of three months, as all the employees of ABL get before joining the bank. But still I had to deal with all the matters of the bank under their supervision. My duties are mentioned as follows.

ACCOUNT OPENING:
During my first two weeks in the bank I did work in account opening department. During my training in that department I was taught that how to open the account of the customers in the bank. That whenever a customer comes how he should be explained about the types of accounts and the benefits provided in each account. My supervisor used to tell me that how to fill the form of account opening, and which documents are required for opening the account, the informations and all. But I didnt have the opportunity to enter the accounts opened on daily bases in the software system because its a very sensitive issue and I was not so much trained thats why I used to only fill the forms and do stamping on them.

CLEARING DEPARTMENT I also spent two weeks in clearing department. I learned to fill the deposit slips of current and
saving account in this department.

I also learned to fill the cheques in this department, as most of the

customers do not know that how to fill the cheques and deposit slips( mostly the labor class and others who do baking by giving just thumb impressions). I also learned to do clearing of inward and outward cheques.

I learned to make OBCs I learned to make Demand drafts AND I also learned to enter the daily inward and outward proceedings in the record

ONLINE TRANSFER OF MONEY:

In this department I learned to make transfer slips and see the online transfer of

money from one branch of ABL to another, I spent one week in this department. I couldnt get a chance to transfer money myself online because this is a very sensitive issue. Thats why I was assigned the duty of filling the online slips of the customers, to tell them about this facility and solve any of their quires. As online transfer facility is the point on which ABL really has comparative advantage thats why a lot many people used to come for online transfer of money every day and as its a new service and people used to have many queries and I had to solve them ,thats why it kept me very busy all the week.

ATMS, CHEQUE BOOKS AND LOCKERS:

I also spent two weeks in this department. I learned to send ATM request,cheques book and lockers request of the customers. And I also learned to issue them the ATM card, cheques books and to operate lockers. Whenever any customer used to come to collect his or her ATM, cheques book then I used totake his sign on the record register, do stamping, write date of issuance, match

T: his sign with sign card and then provide him his card and cheques book. It was also my duty to explain him the working procedure, so that if any customer had any query in his mind he could ask me the details. It was also my duty to issue lockers, that if any customer used to come to take any locker , it was my duty to let him operate his locker and note the operating time of his locker, I also used to tell them about the rents and security of the lockers.

DIVERSE DUTIES:
Apart from the duties mentioned above, in the last week of my internship, I had to perform some other duties as well. Calling was one of those duties. Its manual checking of the record produced by the computer pertaining encashment, transfer and collection of cheques and other instruments like deposit slips and online slips. I also had to do arrange the cheques in the evening. One of my duties was also to do phone calls to customers to remind them about their ATM cards and cheque books. I also had to do customer care service, means if any customer had any query about any procedure or if he wanted information regarding any account then I had to explain him all the procedure.

RECOMMENDATION FOR THE ORGANIZATION

While doing my internship training of 6 weeks in Allied Bank of Pakistan, I have analyzed some problem in the Bank. Keeping in views those problems followings are my recommendations:

1. The bank has a lot of financing schemes but there are little advertisements of these schemes so ABL should more advertise its schemes. 2. Most of the bank employees are stick to one seat only, which result that they become master of one particular job and lose their grip on other banking operations. So all employees should have regular job rotation. 3. Some of the talented employees should be sent to other countries for their advance trainings. 4. In back offices the employees are still depend on manual work which causes slow performance. It should convert their system to an automated one. 5. ABL should promote the paperless banking. 6. In some groups or wings, approach towards employees is still bureaucratic, late promotion, favoritism in appraisals and lack of sufficient incentives are some problems arising dissatisfaction so the employees should be promoted on fair policies to increase more satisfaction among them. 7. ABL should introduce the Islamic products because it has the potential market. 8. H.R.Department personnel should corporate to externals, as it is also a source for good will. 9. selection procedure duration should be short. 10. Need to close the gap between employees and management.

CONCLUSIONS
In despite of all things and discussions, Allied bank has a strong H.R.Department. Allied bank H.R.Department has strong management and enough resources (e.g. well trained staff and financial). The environment of Allied bank is very informal and more friendly. They proved to be not only the bank but more than a bank. It has been a really good experience.

REFERENCES

Job advertisements of Allied bank Allied banks annual reports 2010-2009 Gulgasht branch of Allied bank www.google.com.pk official web site of Allied bank www.abl.com.pk others.