13 The bank undertakes to repay deposits on demand upto certain limit.

On such deposits to declare the following PLS profit rates for the period Types of Deposit PLS Saving Deposits 8.00% per annum PLS TDRs 1 Month 8.40% 2 Month 8.80% 3 Month 9.20% 6 Month 10.40% 1 Year 10.80% 2 Years 11.80% 3 Years 12.70% 4 Years 13.70% 5 Years 15.00% PLS SNTD 7 Days 6.00% 30 Days 6.80% (c) Fixed Deposits:

These deposits are repayable only after the expiry of the period for which they are repayable only after the expiry of the period for which they are deposited. The bank allows high rate of interests on them depending on the time period of loan. The shorter the time period of loan, the less will be the interest rate and vice versa.

FINANCING;

The other important function of the ABL is to provide finances to the individuals and business houses against securities at a certain fixed rate of interest. ABL tried to attract the idle funds of the public and lend them at higher rate of interest then what they pay to their customers following four types of financing takes place at ABL: 14 i. Demand Finances:

Demand Finances are those finances, which are given on demand. It is a single transaction. It can be long, medium and short term. Markup is also charged. Here the amount can be withdrawn once at the time of disbursement. ii. Running Finances: It is always a short-term loan i.e., one-year. It can be withdrawn at any time and deposited at any time. It is basically for running day today business operations. iii. Cash Finances: Cash finances are for a limited period of time i.e., one year. It is advanced to people to complete the working process. iv. Fixed Asset Financing: Fixed asset finances are long term finances. These are provided to projects for purchase of machinery and cost of purchase. DISCOUNTING BILLS OF EXCHANGE:

The bank utilizes their surplus funds in another important way. They discount the bills of exchange at their market worth, i.e., the pay to the holders of the bill an amount equal to their face value after deducting interest at the current market rate for the period the bill has to mature. The bills of exchange are a very liquid asset for a bank to hold. These bills are usually drawn for three months and are used for financing internal as well as external trade. In addition to the above main function, ABL performs a number of other services for their clients. These services are as follows: Agency Services to Customers: Following are the agency services to ABL. 15 i. Collection of Cheques ABL acts as an agent to its customers in the collection and payment of cheques, bills and promissory notes. Bank charges 60% commission on collection of cheques. ii. Collection of Dividends:

The bank provides a very useful service in the collection of dividends or interest earned on stocks and shares held by his customers. The customer is simply to inform the issuer of the securities that the interest on the securities is to be credited to his account in the bank. Bank charges 30% on this collection. iii. Purchase and Sale of Securities: ABL is authorized by the customer, purchase or sale securities on his behalf

ds another benefits to his portfolio. Banks charges are as follows: 15% upto RS. 10000 10% on amount exceeding RS. 10000 iv. Execution of Standing Instructions:

The customer may order in writing to his bank to make payments of regularly securing nature to an individual or firm by debiting to his account. The payments will be stopped on written instruction of the customers only. ABL charges RS. 20 per transaction. v. Transfer of Funds:

ABL also transfer funds of the customers from one bank to another bank. If the transfer is at one station, they dont charge any commission and even if they charge, they charge on reduce rate. vi. Acts as an Agent: ABL also acts as an agent, correspondent or representative of his customers at home and abroad. GENERAL UTILITY SERVICES:

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In the context of exchange control regulations, commercial remittance is outward remittances in foreign exchange from Pakistan arising from business needs and obligations to invisible items and therefore excludes remittance for imports. d) Private Remittance: Private remittance is outward remittances in foreign exchange arising from the personal needs and obligations of residents. 3) Collection and Exchange Department: This department deals with the collection and exchange of all foreign cheques and bill etc. ) Foreign Currency Account Department: Designated branches of ABL may without prior approval of State Bank of Pakistan, open with them foreign currency account of: Pakistan National residing abroad and Pakistan Nationals having dual nationality.

5)

Bills Department: Bills department is mainly concerned with collection of bills and lodging of bills. There are two main types of bills. a) Clean Bill b) Documentary Bill a) Clean Bill: When an outstation cheque is deposited with the bank that is known as clean bill. b) Documentary Bill:

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`Where the bill is supported by documentary proof i.e., R.R. or truck receipt. 6) CD Department:

The basic purpose of CD department includes following functions such as maintaining records of saving account holders, current account holder, their signatures, their scrutiny etc.

26 CHAPTER-3
HUMAN RESOURCE MANAGEMENT

Management of people at work is very important in every organization, because organizational goals and objectives are achieved by co-ordination of people working in that organization.

Human resources office of ABL is an important office of the entire administrative setup. This office manages whole administrative matters relating to personnel right from recruitment to selection, pay, promotion, etc. to retirement matters.The ABL doesnt have its human resources department in every branch, rather all its personnel activities, no matter how trivial they are controlled by human resources department at Head Office, Karachi. CLASSIFICATION OF ABL: The categories of services in ABL are classified as under: Category A Chief Executive

President Executive Vice President (EVP)

Senior Vice President (SVP) Vice President (VP) Assistant Vice President (AVP)

Category B Officer Range 6 Officer Range 5