Internship Report

Allied Bank Limited

Internship Report On

In the Name of

Internship Report

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 Limited. 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 are 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

Most Merciful and Compassionate the Most Gracious and

operations, functions, tasksBeneficent and the corporate information of Allied

whose help and guidance I always

Solicit at every step, at every moment.

Bank Limited 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.

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ACKNOWLEDGEMENT

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 praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully. I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report. I am thankful to my teacher Mr, He help me a lot to complete this report and MBA. I am grateful to all my staff members so Allied Bank Limited Gulgasht Colony (0318) Branch Multan. I found every one very co-operative and helpful for providing me the Theoretical as well as practical knowledge about the function and operation of the bank. I express my greatest gratitude to my kindhearted Supervisor Mr. Fazail Sabri (Branch Manager), and Miss. Najma (CSM) who are the Persons who made me able to write this report, His enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. They helped me a lot each time I went up to them.

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DEDICATION

I dedicate my efforts to my parents who pray for me every minute, my brothers who guide me at every step of my life, my classmates and my group fellows who stand by me whenever I need them and to all those who help and encourage me whenever I find hurdles in my life.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY_________________________________________________6 INTRODUCTION 7 PURPOSE OF STUDY 08 HISTORY AND BACKGROUND 10 GENERAL PROFILE OF THE ORGANIZATION 15 VISION 15 MISSOIN 15 VALUES 15 MAIN OBJECTIVE 16 BOARD OF DIRECTORS 17 EXECUTIVE COMMITTE 18 SERVICES/PRODUCTS OF ALLIED BANK LTD 23 DEPARTMENT INFORMATION 30 CURRENT SAVING DEPARTMENT 30 ACCOUNT DEPARTMENT 30 ADVANCES DEPARTMENT 31 APPRAISALS AND PROBLEMS AT ABL 33 CONCERN DEPARTMENT, DUTIES & LEARNING 34 FINANCIAL ANALYSIS 42 PROFIT & LOSS 42 BALANCE SHEET 43 HORIZENTAL & VERTICAL ANALYSIS 44 RATIO ANALYSIS 50 SWOT ANALYSIS 57 STRENGTHS 57 WEAKNESSES 58 OPPORTUNITIES 59 THREATS 59 PEST ANALYSIS 61 RECOMMENDATIONS 63 CONCULSION 64 REFERENCE 65

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EXECUTIVE SUMMARY
This document provided details of my achievements in term of practical implementation and understanding of working environment in banks. ALLIED BANK is almost the leading commercial banks in the country and has always played pioneering role in introducing innovative. Technology based banking services. Allied bank limited was the first bank to be established in Pakistan. It started out in Lahore by the name Australasia bank before independence in 1942, was renamed Allied Bank of Pakistan Ltd 1974 and then Allied Bank Ltd in 2005. My Internship at Allied Bank Limited Gulgasht Colony Branch started from 16th July 2010 to 17th August 2010. During my stay at the bank I learnt a lot as the practical knowledge of the banking sector is concerned. I was rotated in different departments including clearing, online transfer, and customers services foreign exchange and advances departments. I learnt the basics of operations performed in each department. I undertook some assignments that helped me apply the learnt techniques. I faced some problems during this course, but I got full attention from the concerned persons and they always encouraged me for asking any kind of question that rose during the course of my work.

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I have been sending the reports of my progress on weekly basis to my internship advisor. On the last day, the manager gave his comments and evaluation of my work on the prescribed form provided by the institute and also certificate of internship.

INTRODUCTION
The study is about the general operations and management of Allied Bank Limited Gulgasht Colony Branch Multan., Every student of MBA has to under go an internship program of EIGHT weeks in any organization to get exposure to the real time business environment and to know what sort of changes Information Technology brings in management activities. The real purpose of this internship program is to provide an opportunity to the students to see the practical applications of their background professional studies. The repot is a reflection on my experience when I was internee in ABL, Since its inception in 1942, ABL has maintained a steady growth over the sixty years span of its operations. After its nationalization in 1974, it was denationalized in 1991 and the employees became the owners of ABL, through the unique concept of ESOP.

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PURPOSE OF THE STUDY:

Purpose of the study was two pronged.

General Purpose
To get acquaintance to the banking operations. To know what sort of changes IT brings in managerial activities. To see the application of our Professional studies especially.

Specific Purpose
A partial fulfillment as a requirement for the completion of degree.
To objectively observe the operations of Allied Bank Ltd in general and the operations of

ABL, Gulgasht Colony Branch Multan in specific.

To make recommendations or implementation plans for the improvement of the

operations of ABL, Gulgasht Colony Branch Multan in the light of our professional studies.

Nature of the Study

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The study is critical in nature. It was conducted to investigate critically into the operations of Allied Bank Ltd and it also explains that how ABL provides facility of online banking to its customers. The annual reports or the consolidation data of the Bank has not been focused in specific because it does not reflect on the operational performance of branches. However, they have been referred to as when and where required.

Scope of the Study

The study covers two areas with its variables, which affects the operations of the branch directly, or indirectly. These two areas of variables are:

Branch specific variable. Bank specific variable. The branch specific variables are the variables under the control of the branch management and directly affect its operations e.g. Layout of the branch. Customers relations. Departments in the branch ATM Online banking. The bank specific variables are those variables, which are not in control of the branch management e.g.
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History of ABL Services provided by ABL Role of ABL

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 Banks 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 Banks 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 (1942-1947):

In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially
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dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession. It was particularly upsetting for Khawaja Bashir Bux to hear that:

Muslims could not be successful bankers.

He decided to step-up to that challenge and took the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab, which was to become Pakistan in December 1942. The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million by the end of the first year of operation, and by the end of 30th June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.

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 Banks 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):

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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 Governments 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.

ESOP Revolution
(Employee stock ownership plan) Under the philosophy of ESOP ownership of an enterprise is transferred to its employees who are in an advantageous position in running the enterprise. The added advantage of ESOP that it strengthens the workers stake in the free enterprise system, in job securities, better profitability & unique corporate culture symbolizing family feelings & professional fraternity. September 10,1991 is the historical date as on this date the bank became the countrys 1 st bank to be reconstituted as an institution jointly owned by its employees through the unique concept of Employees Stock Ownership plan [ESOP] developed by the Allied Management Group headed by Mr. Khalid Latif enabled the bank staff to react creatively to the privatization challenge. More that 7500 staff members acquired a share in the bank. The articulation of the ESOP is a landmark in the financial history of Pakistan-indeed of the entire world .It is a practical step ensuring an increase in workers participation and in productivity a means for enhancing an equitable redistribution of financial assets & an effective strategy for achieving the cherished goal of national self-reliance.

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ALLIED BANK (1991-2004):

In November/December 1990, the government announced its commitments to the rapid privatization of the banking sector. Allied Banks 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 worlds first bank to be owned and managed by its employees. The 850 executives and 7200 staff members spread over 800 branches throughout the Pakistan established in high degree of cooperation and family feelings. As a result of privatization in September 1991, Allied Bank entered a new phase, and became the worlds 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 Banks 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 Pakistans financial sector and was recognized as one of the best amongst the major banks of the country. In August 2004, as a result of capital reconstruction, the Banks ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

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 Banks 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.

2007:
Mohammad Aftab Manzoor has taken charge as CEO and President of the Bank on August 13 2007. He is an ex-president of MCB Bank Ltd.

2010:
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Mr. Khalid A. Sherwani has taken charge as CEO and President of the Bank on July 30 2010.

Today:
Today, with its existence of over 63 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 779 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.

GENERAL PROFILE OF THE ORGANIZATION

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

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

MISSION:
To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements
To create sustainable value through growth, efficiency and diversity for all

stakeholders To provide a challenging work environment, and reward dedicated team members To play a proactive role in contributing towards the society

VALUES:
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Integrity Excellence in Service High Performance Innovation and Growth ABL has emerged as one of the foremost-privatized financial institutions in Pakistan endeavoring to gear up its operations to meet the demands of the future.

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 worldclass

customer service

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BOARD OF DIRECTORS

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

Mr. Mohammad Naeem Mukhtar Mr. Mohammad Aftab Manzoor Mr. Khalid A. Sherwani Mr. Pervaiz Iqbal Butt Mr. Mohammad Waseem Mr. Farrakh Qayyum Mr. Sheikh Mukhtar Ahmed

Chairman (CEO) President & (CEO) Director Mukhtar Director Director Director
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Mr. Abdul Aziz Khan Mr. Tasneem M. Noorani Mr. Sheikh Jalees Ahmed Mrs. Nazrat Bashir Mr. Mubashir A. Akhtar

Director Director Director Director Director

EXECUTIVE COMMITTEE

Mr. Khalid A. Sherwani Mr. M. Naveed Masud Mr. Akhter Ali Khan Mr. Tahir Saeed Effendi Mr. Mohammad Yaqoob Mr. Masud A. Sidique Mr. Anwar Zaki Head Mr. Khalid Mehboob Mr. Sayed Mujtaba Gillani

President & (CEO) Senior Executive Vice President Head Credit Head I.T & Financial Officer Head Islamic Banking & Planning Head Human Resource Treasury Head Business Promotion Head Special Vigilance Unit

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THE MANAGEMENT
The brilliants whose passion is dedicated to discover newer ways to make the organization goals reality

Mr. Asim Tufail Mr. Fareed Vardag Mr. Iqbal Zaidi Mr. Mohammad Abbas Sheikh Mr. Mohammad Aftab Manzoor Mr. Muhammad Jawaid Iqbal Mr. Muhammad Yaseen Mr. Mujahid Ali

(Group Chief, Consumer & Personal Banking) (Chief Risk Officer) (Group Chief, Compliance) (Group Chief, Special Assets Management) (Chief Executive Officer) (Group Chief, Corporate &Investment Banking) (Group Chief, Treasury) (Group Chief, Information Technology)
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Mr. Shafique Ahmed Uqaili Mr. Khawaja Mohammad Almas Mr. Tahir Hassan Qureshi Mr. Tariq Mehmood Mr. Waheed ur Rehman Mr. Zia Ijaz

(Group Chief, Human Resources) (Head, Core Banking Projects) (Chief Financial Officer) (Group Chief, Operations) (Company Secretary) (Group Chief, Commercial & Retail Banking

MANAGEMENT HIERARCHY
The management hierarchy represents the different positions and designations in the hierarchy of the ABL. However, this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority and grades.

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FUNCTIONAL HIERARCHY
The functional hierarchy represents the reporting order in the hierarchy of ABL.The hierarchy has president and directors at top management level and officers Grade I, II and Grade III at the lower level management of ABL. The middle level management consists of regional general Manager and Regional Controller of Operations. These positions are not fixed. Any person in the hierarchy above the branch manager can be appointed as RGM and controller operations.
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CHAIRMAN

CHIEF EXECUTIVE OFFICER (CEO)/PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT (SEVP)

SENIOR VICE PRESIDENT (SVP)

EXECUTIVE VICE PRESIDENT (EVP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICERS GROUP (OG1, OG2, OG3)

SUPPORTING STAFF

STAFF ORDER OF GULGASHT BRANCH

The staff order of the Gulgasht Colony Branch is as follows:

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SERVICES/PRODUCTS OF ALLIED BANK Ltd All-Time Banking

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Allied Bank has introduced the Allied Cash last year also referred to as ATM card. The customer will now have the convenience of withdrawing cash from any of ABLs ATMs (Auto Taller Machine) conveniently located in major cities at any time of the day or night even on closed days/holidays. Other services include customer being able to inquire about the balance of his/her account or printing an abbreviated (mini) statement showing the most recent eight transactions up to the previous working day. In order to obtain Allied Cash+ Card, the customers simply have to fill out prescribed Application form available at selected Allied Bank Branches in Karachi and Lahore. The dully filled form should be handed over the Manager of the Branch where the customer is maintaining his account. Non-account holders would first have to open an account with Allied Bank to have access to this facility. The Customer can feel absolutely safe his Allied Cash + Card because it can only be used with the Personal identification Number (PIN), which is given to him by the bank. Graphical representations have been employed, where appropriate, for ease of understanding.

Allied Umrah Aasan

This unique scheme facilities those persons, who cannot afford to incur the lump sum expenses for Umrah. It allows the intending pilgrims (Aazmeen) to make payment of Umrah charges in monthly installments. Its salient features are:

It is free of interest and markup.

Using this scheme family, relatives and household servants can be sent for Umrah.

Around 2500 Aazmeen are to be sent for Umrah every month. Lucky winners of the draw are duly informed by their respective branches.
Total package for Aazmeen from Karachi is being Rs. 45,000. Aazmeen from Lahore and

Islamabad will have to pay an extra Rs. 3,000/- for Airline fare.
Umrah packages are of 10 days duration. The charges include Airline return ticket. Fee Visa, family accommodation and traveling within Saudi Arabia (Jeddah to Makka,

Makkah to Madina and Median to Jeddah).

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Application for whole Family/Group can be filed through a single Application Form. All

applicants of a family/group are sent for Umrah even if only one member of that family/group is declared successful in the draw.
Due to any reason if Umrah Applicant needs to withdraw his/her application, he/she will

given a refund of all money deposited through installments till that time.
At the time of submitting the application Aazmeen has to deposit Rs. 2,000 per person as

first installment. Rest of the money is to be deposited through monthly installments of Rs. 2,000/- person on every 5th day of the month.
If an Applicant wins in the draw he/she is required to pay the balance amount through

monthly installments on returning from Umrah.

Aazmeen have to submit a copy of their NI Cards and Passports with the application. Applicants have to deposit the monthly installment using deposit slips still 5th of every

month. Defaulters will not be included in the draw.

Allied Tahafuz Deposit Scheme

Brings the customer unparalleled life insurance covers along with attractive monthly profit. Minimum Deposit amount Rs. 50,000/- or multiples thereof. Insurance cover up to - Rs. 5,000,000/. As Competitive rate profit. The features of this scheme are:
Prospective client who will maintain a return free deposit for at least 3 months shall

eligible to avail interest free/mark-up free finance. Payment of profit on monthly basis, automatic renewal on face value. Life insurance up to 5 times of the customers deposit amount with no extra cost. Premium shall be paid by the bank. Full payment of claim in case of Death Permanent total Disability. Eligibility Age 18 to 64 years. No medical examination for:

Allied Karzas Scheme (No Interest/Markup)

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Allied Bank moves a step forwards by introducing interest free banking through Allied Karzas Scheme. The aim of this scheme is to provide an opportunity to the depositors to take advantage of a real Riba Free economic environment and avail. Prospective client will maintain a return free deposit for at least 3 months shall be eligible to avail interest free/mark-up free finance. Deposit amount Rs. 100,000/- and multiples thereof. Minimum deposit period, 3 months with automatic rollover facility. Premature encashment allowed, without any penalty/charge. Minimum deposit period for eligibility of finance, 3 months. Maximum period of finance, 6 months. Maximum period to avail finance, 12 months from the maturity of deposit. Every month (30 days) completed by the deposit shall be taken into account for calculation of entitlement of finance. Finance proposal processing fee Rs. 100/- (non-refundable) plus documentation cost on actual basis. In case of default/delay in repayment @ 0.055% per day (20.075% p.a._ to be placed in charity A/C. Formula for calculation of entitlement of finance. Same amount of finance for half the period of deposit or Same period of finance for half the amount of deposit.

Seasonal Finance
Running Finance is a short-term loan allowed by the bank for a period of one

year. The running finance account can be operated and daily sale proceeds can be deposited into the account. The markup is recovered on the products of daily outstanding balance. The running finance is suitable for meeting day-to-day financial needs of the business.
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Cash Finance is allowed against pledge of goods. The delivery of goods is made

against payment.
Demand Finance is disbursed in lump sum or in accordance with the agreed

disbursements schedule and it is repayable as per the agreed installments, which could be monthly, quarterly, biannual or annual.

Data Sources
Both primary and secondary have been used in the compilation of this report. The methodology used is as under: During the compilation of this report, I relied mainly on the primary data. The tools used for the collection of primary data are interviews and observation. To get primary data I also performed some practical work. The secondary data was mainly used for as a background material and for purpose of references. The major sources of secondary data were the annual report 2008; other printed material of the Bank and internet played a vital role as a source of secondary data.

Research Approaches
Keeping in view my limitations during and the nature of the study, two research approaches were adopted. These research approaches are: Survey. Observation as. Participant observation and Non-participant observation.

Sampling Plan
Details of the sampling plan used during this report are given below.

Sampling Unit
The sampling unit constitutes of the following.
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Manager of ABL Gulgasht Colony Branch. Staff of ABL Gulgasht Colony Branch.

Customers. Personnel from Regional operations department.

Sampling Procedures
The sampling procedure used was non-probability judgmental and convenience procedure.

Contact Method
Personal contact method was used as a contact method, which included: Structured interviews with managers and personnel from operations department. Unstructured interviews with staff members. Structured interviews with stuff related to ATM

DEPARTMENT INFORMATION CURRENT SAVING DEPARTMENT:

In ABL Gulgasht Colony Branchcurrent saving department mainly deals with cheques, vouchers and advices. First of all a cheque holder have to present his/her cheque to the person responsible for issuing the tokens. Then cheque is passed on to the computer operator to entry it in computer. Afterward it will go for signature verification after which it will be given to cashier for payment.

ACCOUNT DEPARTMENT: Deposits the Life Blood of a Bank

Bank borrowing funds from outside parties is more important because the entire banking system is based on it. Receiving of deposits is a basic function of all commercial banks. Commercial
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banks do not receive these deposited for safekeeping purpose only. When the bank receives the amount of deposited as a depositor, it become the owner of it. The bank may therefore use these deposits, as it deems appropriate. But there is an implicit agreement that the amount owned by the bank will be paid back to the depositors on demand or after a specified period of time. The borrowed capital of the bank is than the bank own capital. Banks borrowing is mostly in the form of deposits. These deposits are lend-out to different parties. Larger the difference between the rate at which these deposits are borrowed and the rate at which they lend-out the greater will be the profit margin of the bank. Larger the funds lend-out the greater will be the return earned on them and greater the amount of return on these deposits earned greater will be the profit for the bank. It is because of this interrelated relationship. Deposits are referred to as the life blood small for any banking sector.

APPRAISALS AND PROBLEMS AT ABL

Employees at ABL facing these problems i.e.:

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

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

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

STILL MANUAL WORK

In the some offices and wings of ABL the employees still depend on manual work which causes slow performance.
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FAVORITISM
The most discouraging thing in ABL is that the promotions of employees are very late and mostly based on favoritism.

CONCERN DEPARTMENT, DUTIES & LEARNING

My duties at the bank during my internship were of the diversified nature. I was rotated in the different departments of the bank. I was also assigned with some responsibilities of the minor level. They gave me some assignments as well to give me the true exposure of practical work environment. So my duties can be categorized department wise as under:

CLEARING DEPARTMENT:
In this department I spent about 3-4 days. I observed the procedure carried down here. Based on my observation and briefing from the staff I was asked to prepare advices for collection of demand draft amount, Outward Bill for Collection (OBC), fill in the deposit slips presented by the customers, enter the proceedings in concerned registers.

ONLINE FACILITY PROVIDER DEPARTMENT:

Online banking is a wide spreading concept in banking sector. This department mainly performs the basic operation of fund transfer and other functions facilitating the transfer and enquiries. I observed the basics of the department. I didnt have the opportunity to seek the details because the online department is a sensitive area and also electronic based.

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I prepared online transfer slips foe the customers. I also informed the customers of their account balance, account status and about other queries available online.

CUSTOMER CARE DEPARTMENT:

This department serves as the front representative of the bank. Multiple tasks are executed in this department. I was asked to observe different complaints received by the bank by its customers. I maintained the sundry account register, suspense account register. I put the applications received for the ATM cards in the register. I also had to maintain the register maintained to record the receipt of new account opening forms along with the register kept for recording those ATM cards, which have been delivered

FOREIGN EXCHANGE DEPARTMENT:

This is the department with a very vast scope and a variety of dimensions. There, I had to maintain the record of some Letters of Credit (LCs). I was liable for making drafts of outgoing SWIFT messages. I also made the entries of incoming SWIFT messages in the register. I was asked to enter the particulars of I-form (Import form) and E-form (Export form) in their respective registers.

ADVANCES AND CREDIT DEPARTMENT:

In this department I was given some files to study, which were about the applications of credit to be approved. The person in charge of there briefed me about the term and conditions on which the bank accepts or rejects an application foe the credit. In this department, like the online department, I didnt have an opportunity to practically handle the work due to the sensitive nature of the work.

DIVERSE DUTIES:
Apart from the duties mentioned above, I had to perform some other duties as well. The prominent amongst them is called Calling in the banking jargon. Its manual checking of the
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record produced by the computer pertaining encashment, transfer and collection of cheques and other instruments like deposit slips and online slips. I had to work with the person responsible of keeping the record of DD payable. I was assigned with the duty of keeping the record of DD payable of a given period.

PAK ACCOUNT:
All the inter-bank adjustments will be affected through head office account called Pak account. It will be essential for the branch to advise pak account of each transaction so that they may also pass the necessary entries in their books. The NIFT will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered to or received from the branches. The amount of the advice will agree with the total be office. amount appearing in the schedule of cheque delivered/received. The head office will similarly send advice to the branches of the returns, if any. Copies of all advices will sent to the head office.

INTER-BRANCH CLEARING AND COLLECTION:

Transfer and delivery of cheques. The same clearing cheque procedure will be adopted in the transfer deliveries except in case when the facility of SBP is not availed. In case of cheques drawn on one branch and collected by an other branch for the credit of its constituents, the branch delivering the cheques will send a consolidated debit advice. If any cheque is returned unpaid, aBranch receives the cheques and other negotiable instrument drawn on other branches of the same bank. Main branch of ABL handles the credit advice will be sent to the branch returning the cheque.

COLLECTION CHEQUES OR OBC:

The collection cheques/OBCs are the cheques, which we have cleared for our customers when some of our customers receive the cheque that is of some other city. These types of cheques are known as collection cheques or the other name we gave them is OBC.

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PROCEDURE OF COLLECTION:
On the cheque there is written that the person to whom it may concern can cash it from the certain branch of the bank in favour of which its drawn. The customer presents the cheque to his branch, which send a document called OBC to the bank that has to make the payment. The clearing department of the receiving bank follows a prescribed procedure and credits the amount to sending bank through a central account maintained by each bank with SBP. ABL sends the cheque to its own branch if available for collection from the payers bank otherwise the OBC is directly sent to other bank.

MAINTAINING REGISTER for OBCs:

We have a register in which we have the serial no for OBCs with other details like amount, date, sending and receiving branches codes. Every OBC is entered in tha register on daily basis. If OBC is not cleared due to what ever fault, we take it back as a return but after that we call the concerned person and we also write name of the person.

ACCOUNT OPENING:
I learnt how to open a new account. The person willing to open an account has complete the account opening forms, which has several particulars pertaining to personal information of the person. The bank makes sure that all the information provided by the person is authentic. Along with the information given by the person himself, bank requires introduction of an already existing account holder of the same bank but preferably of the same branch. The bank also requires account no. and copy of the introducers NIC.

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Bank also requires a copy of the NIC from account opening person. He will also have to provide two samples of his specimen signatures for any withdrawal of amount. In case of illiterate person, he will provide the bank with his left thumb impression along with two photographs. In case of a Pardah Observing lady, the bank prefers not to open an account but if so, it will require her to provide impressions of her both thumbs. After all this formality, the bank after a few days sends a letter of thanks to the address of the person disclosed in the AOF. When the letter is received, the person may come to bank and collect his cheque book The bank also informs its head office about the new accounts and also charges nominal amount at first time.

MATTER OF ZAKAT:
The deductions of Zakaat from the account of Muslims are made on the 1 st Ramadan according to the Islamic rate. But the people who do not want the bank to deduct Zakaat and want to disburse it at their own, they have to provide an affidavit on a prescribed format provided by the bank.

ONLINE TRANSFER:
The department providing online facility to the customers, I liked the most. I learnt different procedures regarding this department. I learnt the process of online transfer. The whole this process need is filling of a slip, and cheque or cash. In the slip the name of remote branch and account number of the remote person must be entered. If the person is not an account holder of the bank then he has to attach his NIC copy with the slip for his identification. The person availing this facility submits the cash on the cash counter and then gives the slip to the host person at the department, who then enters the data in the computer. In this way the money is transferred to an account through PAK account, which is the central account of the bank and all the inter branch transactions has to go through this process.

LEARNINGS IN FOREIGNEXCHANGE & ADVANCES DEPTT:

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As an internee I learnt many things some of which I have described above. The remaining few include the processes involved in the foreign exchange and advances department. Now a day, both of these departments are considered to be the backbone of any bank. Foreign exchange department brings foreign reserves. Mostly import and export business takes place through foreign exchange department. Advances/Credit department is equally important. This department gives the bank a real business. The bank gives money to the borrowers on interest and earns a lot in this way. The bank lends money against some guarantee or pledges some property for this purpose. So that in case the customer cannot pay back money, the bank can meet over come its expenditures.

HOW EXPERIENCE IMPACTS MY CAREER:

My internship experience has given me a realistic preview of practical life. Now I feel that I am better prepared to enter the world of professional work. I have come to know and been appreciated by a number of professionals who are lending their services to the banking sector for more than a decade. I feel honored that I have worked with such experienced professionals. I must admit that such interaction in this respectable professional community will help me in seeking out good job opportunities in the near future.Each task I performed was a different experience in itself. By the end of it, I must say I realize my potentials, I have realized that practical life is not so easy after all, it takes alot of hard work and devotion, and not to forget time And I now know that if I want I can make things possible, and I also know how good itn feels to having accomplished something and being appreciated for it. I definitely have learnt things, which will impact my career and my character.The overall experience of my internship was very good; I have learnt the sense of responsibility in its literal meaning. I am now capable of dealing with different sort of customers, and how to be patient while doing so. Besides this I also gained knowledge about banking which I previously lacked and many more products being offered by the bank. So in a nutshell, this internship gave me the experience, which would no doubt boost my confidence to work in future.

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PROFIT AND LOSS ACCOUNT

for the year ended December 31, 2010 US $ in000
2010 2009 221979 37546 12505 3331 ------168590

Markup/interest income
Provision against non-performing loans and advances net Provision for diminution in the value of investments net Provision against lending to financial institutions Bad debts written directly Net markup/interest income

263497 35903 15057 (3277) -------215814

Non markup/interest income

Free commission and brokerage Income Dividend income Income from dealing in foreign Currency Gain/los sale of securities Unrealized loss on revaluation Of investments Classified as held for trading/-Net Other income Total non-markup/ interest income 29090 13058 4887 16541 -------(279) 2933 66230 282044 131271 3866 ------832 (1030) 2974 137913 -------144131 48591 4367 32146 16322 9045 12880 --------(94) 427 70726 239316 111863 (670) -------800 (301) 2552 114244 -------125072 42099 -------35

Non markup interest expense

Admin exp Provision against other assets net Provision against off b/s Other charges Obligation Net Worker Welfare fund Total non-markup interest exp Extra ordinary/unusual items

Profit before tax

Taxation current Prior Year

Internship Report

Deferred

Profit after tax

Unappropriated profit brought forward Transfer from surplus /- Net Of Tax

(4873) 48085 96046 142444 421 238911 0.120

(1573) 40526 84546 101336 384 186266 0.110

Profit available for Appropriation

EPS (Basic and Diluted)

BALANCE SHEET
as at December 31, 2010 US $ in 000 2010 ASSETS
Cash and balances with treasury banks Balance with other banks Lending to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets 313807 15210 333837 1125210 2817421 147751 --------213138 4966364 37540 472671 3903951 65253 --------131283 4610720 280785 24890 187875 981066 2528110 132173 12218 206189 4352906 37540 472671 3903921 65252 40 131374 4087530

2009

LIABILITIES
Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Deferred tax liabilities Other liabilities

NET ASSETS
Share capital Reserves Unappropriated profit / (loss) Surplus on revaluation of assets

355644
84400

265376
76727

2010
78142 144803 307345 48299

2009
68906 101336 246969 18407

355644

265376

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PROFIT AND LOSS ACCOUNT

for the year ended December 31, 2010 US $ in000
2010 Markup/interest income
263497 Provision against non-performing 35903 loans and advances net Loan for diminution in the value 37546 of investments net Provision against lending to -3277 financial institutions 3331 Bad debts written directly -------Net markup/interest income 215814 29090 13058 4887 16541 ---------279 2933 66230 239316 131271 3866 (301) 832 -1030 2552 137913 --------

HORIZONTAL
2010 2009
118.7% 100% 95.6% 100% 120.4% 59.2% -98.3% ----------------128% 100% 100% 100% --------100% 100%

VERTICAL
2010
100% 13.6% 5.7.% 5.64% -9.1% 1.5% --------

2009
221979 37546 12505 21143 3331 ----------------168590 32146 16322 9045 12880 ---------94 427 70726 178519 111863 (670) 2265 800 -301 2552 114244 --------

2009
100% 16.9% 5.6% 13.4% 10.3% ---------------

81.90% 75.94% 11.0% 4.95% 1.85% 6.27% 14.4% 7.53% 4.07% 5.80%

Non markup/interest income

Free commission and brokerage Income Dividend income Income from dealing in foreign Currency Gain/los sale of securities Unrealized loss on revaluation Of investments Classified as held for Tranining Other income Total non-markup/ interest income 90.4.% 100% 80.0% 100% 54.0% 100% 128.4% 100% --------- 100% 296-8% 100% 686.8% 100% 93.6% 100% 134.1% 100% 117.3% --------13.3% 104.0% 342.1% 116.5% 120% -------100% 100% 100% 100% 100% 100% 100% --------

-------- --------0.10% -0.04% 1.11% 0.19% 25.1% 31.86% 107.0% 107.8% 49.8% 1.46% 0.14% 0.31% -0.39% 1.19% 52.3% -------50.3% -0.30% 1.44% 0.36% -37.6% 1.15% 51.4% --------

Non markup interest expense

Admin exp Provision against other assets net Provision against off b/s Other charges Obligation Net Worker Welfare fund Total non-markup interest exp Extra ordinary/unusual items

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Profit before tax Taxation current Deferred

Profit after tax

Unappropriated profit b/f Transfer from surplus

144131 48591 -4873 48085 96046 14244 421 238911

125072 42099 -1573 40526 84546 101336 384 186266

115.2% 100% 115.4% 100% -309.7% 100% 118.6% 100% 113.6% 100% 140.56%100% 109.6% 100% 128.2% 100%

54.6% 18.44% -1.84% 18.24% 36.45% 54.05% 0.16%

56.3% 33.6% -0.70% 18.25% 38.0% 45.6% 0.37%

Profit available for Appropriation

90.6% 83.9%

Horizontal Analysis of Profit and Loss Account DESCRIPTION: Income:

The income of the ABL shows that increasing trend as compare with 2009, in 2010 which shows the 18% increase. Due to decrease provisions, the profitability of the bank increases a lot. There is 0.4% decrease in provision against loan and advances, 20% increase in provision for diminution in value of investment. In non mark-up / interest income, there is dual response mean in some heads there is little bit increase trend and in some heads there is decrease trend. The major increase is in gain on sale of securities that is 618.4% as compare with previous year.

Expense:
The expenses of the bank are increasing as operations of the bank increases. The expenses have been increasing with an increasing rate last year. The expenses increased 120% in 2010 as compared to 100% increase in 2009.the major increase in Worker Welfare fund that is 16.5% more then the last year.

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Vertical Analysis of Profit and Loss Account DESCRIPTION:

The vertical analysis of income side of income statement demonstrate that major factor of the total income is interest earned which contributes more than 108% in 2009 and 107% in 2010, whereas fee, commission and brokerage income makes major part of total non-mark up interest income and its proportion to total non-mark up interest/income is decrease from last year, here we observe that total non mark up income is decreased in 2010, which is good sign for the bank as bank is earning more from its primary functions.

Non- mark up interest expensed is the major component of total expense in 2009, and in non mark up expense admin expenses contribute 50%. The interest expensed in the major part because the deposits of the banks shows increase and as bank has to pay on interest bearing liabilities.

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BALANCE SHEET
as at December 31, 2010 US $ in 000 2010 ASSETS
Cash and balances with treasury banks Balance with other banks Lending to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets 313807 15200 333837 1125210 2817421 147751 --------213138 280785 24890 187875 981066 2528110 132173 12218 206189 112% 61.1% 177.7% 114.7% 111.4% 111.8% ---------103.4% 100% 100% 100% 100% 100% 100% 100% 100% 6.32% 0.31% 6.7% 22.7% 56.7% 3% -------4.3% 6.5% 0.6% 4.3% 22.5% 58.1% 3.04% 0.3% 4.7%

HORIZONTAL 2010 2009

VERTICAL 2010 2009

2009

4966364

4352906
35048 329744 3531216 29653 ---------161869 4087530

114.1% 100%
107% 100% 143.4% 100% 110.6% 100% 220.1% 100% ---------- ---------81.1% 100% 112.8% 100%

100% 100%
0.8% 9.5% 78.6% 1.31% 0.004% 2.6% 92.8% 0.81% 7.6% 81.1% 0.7% -------3.7% 94%

LIABILITIES
Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Deferred tax liabilities Other liabilities 37540 472671 3903951 65253 22 131283 4610720

NET ASSETS
Share capital Reserves Unappropriated profit / (loss) Surplus on revaluation of assets

355644
84400 78142 144803

265376
76727 68906 101336

134%
110% 113.4% 142.9% 262.4%

100%
100% 100% 100% 100%

7.2%
1.7% 1.6% 3%

6.1%
1.8% 1.6|% 2.33%

307345
48299

246969
18407

124.5% 100% 134% 100%

6.2%
1%

5.7%
0.42%

355644

265376

7.2%

6.1%

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Internship Report

Horizontal Analysis of Balance Sheet DESCRIPTION: Assets:

The assets of the ABL have been growing very fast since its inception. This growth is the result of the massive expansion policy the management has been following ever since the inception of ABL. One of the important ingredients of any commercial banks growth is increase in most of current assets that is a good sign as it increases their liquidity. Let us first have a look at the liquid assets of ABL. In earning asset, the lending to financial institutions is decreasing whereas the other investments and advances continuously. However the investments have increased in 2010. Increase in the fix assets might be due to branch expansion.

Liabilities:
As regards the liability section of the balance sheet chief liability of commercial bank is its deposits it generates from its customer. The ratio of increase in deposits in 2010 is 10.6%, it is concluded that the deposits are increasing but at decreasing rate. The other encouraging ratio we observe in liability section is borrowing from financial institution which shows increase in 2010 by 43.4% from previous year and but which proves financial strength and its credit worthiness in the money market.

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Equity:
Banks Share Capital as well as reserve is increased in 2010 as compare to 2009. But there is increase in inappropriate profits by 42.9% from previous year that shows a good sign for investor as well as for the organizations repute.

Vertical Analysis of Balance Sheet DESCRIPTION: Assets:

After analyzing the Balance Sheet, we can see that there is little bit change in cash balance and balances with other banks; cash balance is 6.32% in 2010 and 6.5% in 2009 and balances with other banks is 0.31% in 2010 and 0.6% in 2009.which shows not a stability in organizations management. Lending to Financial Institutions is continuously increasing from 4.3% in 2009 to 6.4% in 2010.Investment is also increased by 0.2% from previous year. There is an increase in percentage of lending to financial institutions and in investments is a good sign. There is a decrease in advances by 1.3% from previous year.

Liabilities:
On liability side, borrowings from financial institutions are also increased that is very negative sign as far as banks financial health is concerned. Borrowings are increased 7.6% in 2009 to 9.5%% in 2010. More over there is a decreased in deposits from year 2009 to 2010. Deposits are decreased from 81.1% in 2009 to 78.6% in 2010.

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RATIO ANALYSIS DEBT TO EQUITY RATIO:

= Total Debt / Equity Year 2010 2009 Total Debt/Equity 4610720 / 355644 4087530 / 265376 Debt to Equity Ratio = 12.96 = 15.40

Debt to Equity Ratio 16 15 14 13 12 11 2010 Year 2009 Debt to Equity Ratio

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Debt to equity of this firm is decreased in current year because the ratio of this bank is less to the previous year.In simple words, this bank is working well in current year as compare to the previous year.

EQUITY CAPITAL TO TOTAL ASSET:

= Average Total Equity / Average Total Assets Year 2010 2009 Avg T.E/Avg T.A 355644 / 4966364 265376 / 4352906 Equity Capital to T.A = 7.16% = 6.09%

Equity Capital to T.A 7.50% 7.00% 6.50% 6.00% 5.50% 2010 Year 2009 Equity Capital to T.A

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This ratio provides the owner a cushion against the risk of using Debt and leverages. The higher ratio the more cushion is there and vice versa. Here we can see that the ratio has increased as compared to the last year which shows a lot of improvement in the shares that are floating in the market. There is another name of this ratio it is also called fund to total asset ratio.

RETURN ON TOTAL ASSETS:

= Net Profit After Taxes / Total Assets Year 2010 2009 NPAT / T.A 84546 / 4966364 49342 / 4352906 Return on T.A = 1.7% = 1.13%

Return on Total Assets 2.00% 1.50% 1.00% 0.50% 0.00% 2010 Years 2009 Return on T.A

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Through that ratio we measure the ability of bank to utilize its assets to create profits by comparing profits with its assets that generating profits. In 2010 this ratios is 1.7% as compare to 2009 ratio is 1.3%. The reason is behind is that ABL income is exceedingly Increased in 2010 as compare to previous year.

RETURN ON EQUITY:
= Net Profit After Taxes / Shareholders Equity Year 2010 2009 NPAT / S.E 84546 / 355644 49342 / 265376 ROE = 23.77% = 18.6%

Return on Equity 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2010 Years 2009 Return on Equity

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Return on Equity is informs us about the return for shareholders. That ratio shows increase Return on Equity. Increase in shareholders could effect on this ratio because the reason is that income is increased. The 2010 ratio is 23.77% as compare to 2009 value of 18.6%.

NET PROFIT MARGIN:

= Net Profit After Taxes / Interest Income Year 2010 2009 NPAT / I. Income 84546 / 221979 49342 / 157853 NP Margin = 38.1% = 31.3%

Net Profit Margin 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2010 Years 2009 Net Profit Margin

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The Net Profit Margin is a measure of the banks profitability of interest income after taking account of all expenses and income taxes. It tells us a banks net profit per dollar of interest income. The net profit margin in 2009 is 31.3% and in 2010 this ratio is increased, that is 38.1% because net profit after taxes and interest income is increased in current year as compare to previous year.

DEPOSITS TIMES CAPITAL:

= Average Deposits / Average Shareholders Equity Year 2010 2009 Avg Deposits / Avg S.E 3903951 / 355644 3531216 / 265376
Deposit Times Capital 14 12 10 8 6 4 2 0 2010 years 2009

Deposits Times Capital = 10.97t = 13.31t

Deposit Times Capital

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The ratio of deposits times capital concerns both depositors and shareholders. To some extent, it is a type of debt/equity ratio, indicating a banks debt position. As I define above, more capital implies a greater margin of safety, while a larger deposit base gives a prospect of higher return to shareholders, since more money is available for investment purpose. The overall this ratio is very good in last two years. But this ratio is decrease in 2010 than 2009 from 10.97t to 13.31t respectively.

LOANS TO DEPOSITS:
= Average Total Loans / Average Deposits Year 2010 2009 Avg T.L / Avg Deposits 2817421 / 3903951 2528110 / 3531216 Loans To Deposits = 72.2% = 71.6%

Loan to Deposit 72.40% 72.20% 72.00% 71.80% 71.60% 71.40% 71.20% 2010 years 2009 Loan to Deposit

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Average total loans to average deposits are a type of asset to liability ratio. As we know, loans make up a large portion of the banks assets, and its principal obligations are the deposits that can be withdraw on request. This ratio is increased from 71.6% in 2009 to 72.2% in 2010, but its a negative sign from debt point of view because its indicating the increase in risk.

SWOT ANALYSIS
SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. This is a careful evaluation of an organizations strengths to avail an opportunity by overcoming its weaknesses and phasing out all he threats to its survival in order to grow and survive.

STRENGTHS
This branch is provided with 4 telephone connections, which makes communication

easier with different branches.

The branch is linked through a online network of 779 BRANCHES, thus enabling them

to serve customer in better way.

This branch is provided with latest computer which increases the speed of computer

work.
The branch is situated in Gulgasht main market. This location provides a competitive

edge to the Branch.

The branch is situated in commercial area were business activities perform greater as

compare to residential area. Thus it increases the number of customers.

The Branch has the most experienced and the least experienced staff, which is a good

combination of experienced heads and exuberance of youth.

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The control of manager is an effective. The organizational culture is cooperative. Allied Bank Limited was the first Muslim bank to be established in Pakistan.
The bank is passionate about high performance, innovation and delivering value to its

customers.

WEAKNESSES
The Branch has a good staff combination on the basis of experience, but their training capabilities are not up to the requirements of the fast changing banking environment. The customers Long-term contacts are not maintained with customers.
The technical training of the staff is negligible e.g. in case of the absence of computer

there is no alternate trained personal who can record the daily transactions.
The

organization is very much mechanistic and provides no flexibility to

encourage creativity.
The lower staff is non cooperative as compared the lower staff of other branches.

The discretionary powers of manger are very low to offer more incentives and value added services to its customers.
There is a lack of commitment and professionalism on part of the employees. The staff is

always in a hurry to leave the bank as soon as possible. They were also observed to starting their operations comparatively late. The level of technology management in the branch is very low. The technology available is not maintained well mainly because of the lack of technically trained staff. For instance the scanner, in spite of its availability has not been used for scanning the specimen signature cares.
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The layout of the branch is such that it is hindering the flow of work on one hand and the documents are lying exposed which can be easily taken away by any person entering the branch. Delays were observed because the prescribed procedures are not followed.
Though ABL, Gulgasht Colony Branch in the area it lack specialized counters or

facilities such as: Investment advisory counters; Leasing or leasing arrangements; Credit services.

No efforts are made to recover the outstanding debts. There is no facility for receiving and satisfying complaints and inviting suggestions. Foreign currency accounts are not entertained. The main reason for these negative responses that the staff is not trained in dealing foreign currency accounts. In back offices the employees are less so it creates more work burden on the existing one. ABL is not enhancing the new obligors.

OPPORTUNITIES
A considerable portion of the labor force of the area is serving overseas. Their families can be encouraged to use ABL as channel for remittances. The Internet facility in the area provides an opportunity to ABL to get Online. The Bank has the basic infrastructure, which can facilitate the online process.
The location of the ABL, Gulgasht Colony Branch itself provides an opportunity to ABL

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

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

THREATS
The biggest threat to the operational success of the branch is the better competitors

services. Many private sector banks are offering higher rates of return to customers than Allied Bank Limited.
Cannibalization of profits is yet another threat to the success of Bank Gulgasht Colony

Branch. The branch of Allied Bank are located very close to the Bank Islami & Meezan Bank Gulgasht Colony Branch. All these branches are taking away each others customers.
One of the biggest to the ABL, Gulgasht Colony Branch is the increasing rate of

dissatisfies customers. Most of these customers were observed to be dissatisfied with the delays in their servicing.
The greatest threats to the performance of ABL, Gulgasht Colony Branch are the

decreasing morale of employees. They feel that they are not provided with bonuses. They are not given proper attention to have a say in the annual meetings. The proxy forms are signed on their behalf without letting them know. High-pressure interest groups are developing which poses a constant threat to Allied Bank. The biggest threat in the banking sector is the continuous downfall of the country economy since the last few years. Other treat which ABL faces is the policies of the Government; tax charged on the income of banking co. is much than the income of other companies. Also the threat of new entrants exists there.

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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 the era 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.
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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 in various 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 coupled with enhanced spending on social and 005/2006 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 Sarkari (read nationalized) and cooperative banks. Then came the multi-national 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. There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future. Here are the top three concerns in the mind of every bank's 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

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the ways in which differentiation can be introduced are through specialization, new products, and increasing the added value.

RECOMMENDATIONS
The physical facilities or the layout are the most fundamental features in an organization, which the customers observe in forming an opinion, perception or idea about the organization. The physical facilities in the branch are not up to the mark.
The lighting system must be improved and all the out of use lights must be replaced.

Newspaper should be provided to the customers to avoid the pain of waiting long. A cash counting machine can help reduce the time spent in counting cash. Deposits are the main source of funds for commercial banks. Therefore, the priority of every bank is to increase the number and amount of deposits. The key to successful business does not lie in simply attracting new customers. The real success is to maintain in the old customers and attract new customers at the same time because retaining a customer is more difficult than attracting new customers.
Every depositor should be given equal importance and there should be no differentiation

between customers so that every customer feels himself as much important as the other customer.
The attitude of the staff should be friendly to all the customers. The customers should be

taken to the concerned person or guided friendly if the concerned person is not available. The attitude of thats not my job should not exist anymore.

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The Bank should provide information to all the present and potential customers relating to the new products, services, some services fee structure and other matters, which are likely to affect the customers. It should be made sure that all the customers have access to this information. Conveying information is of no use, unless, there is some feedback from the customers. Complaint and suggestion box should be maintained at the door of the Bank where the customers can point out drawbacks in the customers services and put forward their suggestions on his improvement of the services quality of the Bank.

CONCLUSION
The critical analysis ABL in the previous section is the representation of its past, mirror of its present, and an insight into its future. The past data of ABL Gulgasht Colony Branch enabled me to study the organization in a historical perspective and understand the nuisances in the banking operations. Study of he present of ABL helped me evaluate the organization in comparison to its future and competitors This organization is well managed with organized structure and efficient employees. Due to its growth in online branch system, it has bright future in Financial Organizations.

REFERENCE

Annual Report of ABL 2010 www.abl.com.pk

Mr.Fazail Sabri (Branch Manager)

Miss Najma (CSM) Mr.Amjad (Clearing Department)

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