8th edit wajahat final report

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COMSATS Institute of Information Technology,

Sahiwal

High Street Road

Sahiwal

Submitted To:

Ms. Naima Khurshid

Lecturer

Department Of Management Sciences

Submitted By:

Wajahat Hussain

CIIT/SP09-MBA-096/SWL

Submitted on: September 22, 2010

COMSATS Institute of Information Technology

COMSATS ROAD, OFF G.T ROAD SAHIWAL


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Table of contents

EXECUTIVE SUMMARY .................................................................................... 1

CHAPTER 1 ........................................................................................ 2

BACKGROUND OF THE ORGANIZATION ............................................................ 2

1.1.1 FIRSTSTAGE 1942 TO 1973 .................................................... 2

1.1.2 SECONDSTAGE 1974 TO 1991 .................................................. 2

1.1.3 THIRDSTAGE 1991 TO 2004 .................................................... 2

1.1.4 FORTHSTAGE 2005 TO PRESENT................................................. 3

1.2 VISION STATEMENT .................................................................................. 3

TOBECOMEADYNAMICANDEFFICIENTBANKPROVIDINGINTEGRATEDSOLUTIONSINORDER

TOBETHEFIRSTCHOICEFORTHECUSTOMERS. ............................................. 3

1.3 MISSION STATEMENT ............................................................................... 3

1.4 CORE VALUES .......................................................................................... 3

CHAPTER 2 ................................................................................... 4

BUSINESS OPERATION ......................................................................... 4

2.1 ORGANIZATIONAL STRUCTURE......................................................... 5

2.1.1 ABL MANAGEMENT................................................................ 5

2.1.2 STRUCTUREOF ABL ............................................................... 5

2.2 BRANCH NETWORK.................................................................... 6

2.3 BRANCH HISTORY...................................................................... 6

2.4 SWOT ANALYSIS .................................................................... 92.4.1 Strengths ...........................................................................................................9

2.4.2 Weaknesses .....................................................................................................10

2.4.3 Opportunities ...................................................................................................10

2.4.4 Threats ............................................................................................................11

MARKETING STRATEGY.................................................................... 13

2.5.1 MARKETING MIX ................................................................. 13Product ....................................................................................................................14

Price .........................................................................................................................14

Place ........................................................................................................................15

Promotion .................................................................................................................16COMPETITIVE STRATEGY................................................................... 17

2.6.1 ONLINE BRANCHES .............................................................................. 17

2.6.2 T 24 (FULL VERSION) ........................................................................... 17

2.6.3 ATM TERMINALS .................................................................................. 18

BUSINESS PROCESS ANALYSIS............................................................ 19

ACCOUNTS OPENING....................................................................... 20

TYPESOFACCOUNTS....................................................................... 21

CLEARING .............................................................................. 22PAYORDERSAND DEMAND DRAFT....................................................... 24


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PAYMENT ORDER (PO) .................................................................. 25

DEMAND DRAFT (DD) ................................................................................... 25

ONLINE BANKING.......................................................................... 25

ADVANCES................................................................................. 26

NON FUND BASE LOANS................................................................. 27

SUPERVISIONOF CSM (CUSTOMERSERVICE MANAGER) ................................. 27

CHAPTER 3 ................................................................................. 27

LEARNINGASA STUDENT INTERN......................................................... 27

3.1 DUTIES............................................................................... 28

3.2 ACCOMPLISHMENTS .................................................................. 30

3.3 NEW KNOWLEDGE ACQUIRE ........................................................ 30

3.4 RECOMMENDATIONS.................................................................. 30

3.5 HOW

EXPERIENCE

IMPACTS

ON

CAREER

............................................. 31.................................................................... 31

APPENDIX .................................................................................................... 32


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Executive Summary

Internship is a gateway to learn something before entering into practical life and it is

necessary for me because it is a degree requirement of MBA program as well. Allied

Bank was one of the first banks established itself in Pakistan. I joined ABL High

Street Sahiwal for my internship because at present ABL is growing very rapidly and

its aim is to provide a host of new and innovative products and services to its

customers. I believe that this report will provide very important information regarding

my work in various departments (Accounts opening, remittances and credit

department) of Allied Bank. I tried to elaborate all the functions that are performed by

each department of Allied Bank Ltd. In the profile of the bank, I have provided the

possible available information of the Allied Bank Ltd. Firstly the brief history of Allied

Bank Limited accompanied with business operations, management hierarchy and

the facilities offered by the bank to its customers. This internship report is only based

on my personal perception or observation which I gained during my eight weeks

internship. The report also contains information on how ABL crafted and

implemented its marketing strategy. I worked with the Remittance Department where

the general banking operations are performed. In this department all the operations

are performed except advances, foreign exchange etc. the major duties of this

department are to make DD, PO, Online etc. The advances plays very important role

for the banks earning as it is based on different types of loans which the bank is

offering to its customers. The main working in this department is to collect the

information from the client, to be used by bank at different stages. More over the

SWOT analysis is covered in this report to show the position of the bank in the

market.

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Chapter 1

Background of the Organization

1.1 Overview

ABL is the first Muslim bank which has been established in Pakistan. It was

established 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 Buksh

the Bank attracted deposits equivalent to Rs. 0.431 million in its first two years of

business. The total assets were amounted to Rs. 0.572 million. At presents ABLs

paid up capital and reserves amount is to Rs. 10.5 billion deposits exceed Rs. 143

billion and total assets were equal to Rs. 170 billion.

1.1.1 First stage 1942 to 1973

In the beginning of 1940 the Muslims of the subcontinent realized that they should

take active participation in the field of industry, commerce and trade. The initial

equity of Australasia Bank amounted to Rs 0.12 million

At the end of 1970 Allied bank had 101 branches. Unfortunately it lost 51 branches in

the separation of East Pakistan.

1.1.2 Second stage 1974 to 1991

The year 1974 was very successful year for the bank because profit had exceeded

Rs. 10 million Deposits rise 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. A total of 116 new branches were opened during 1974.

1.1.3 Third stage 1991 to 2004

ABL entered into a new phase as a result of privatization in September 1991 and

became the worlds first bank to be owned and managed by its employees. ABL had

a huge capital and reserves as its assets. The Bank enjoyed a lucky position in

Pakistans financial sector and was recognized as one of the best amongst the major

banks of the country.

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1.1.4 Forth stage 2005 to Present

Now the bank has the largest network of online branches in Pakistan and offers

various technology based products and services to its customers through its network

of more than 784 branches. The last year profit of ABL turned out to be 7 hundredmillion; it was higher as compare to others banks. 1

1.2 Vision Statement

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

the first choice for the customers.2

1.3 Mission Statement

o To provide value added services to the customers

o To provide high tech innovative solutions to meet customers requirements

o To provide a challenging work environment and reward dedicated team

members according to their abilities and performance.

o To play a proactive role in the society.3

1.4 Core Valueso Integrity

o Excellence in Service

o High Performance

o Innovation and Growth

ABL has this firm belief that human resource is the biggest assets of anyorganization. Proper training can increase the employee ability. Audit report of any

employee is also considerable in this assessment.

11 history [Online] // Allied bank. - june 20, 2010. -

http://www.abl.com/thebank/history.asp.

2 vision [Online] // Allied bank. - june 25, 2010. -

http://www.abl.com/thebank/default.asp.

3

mission statement [Online] // Allied bank. - june 25, 2010. -http://www.abl.com/thebank/default.asp.

3


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Now a days job satisfaction is a major issue in every organization.ABL Management

takes special steps to increase the job satisfaction of its employees. Management of

ABL also gives much importance to its employees and makes work environment

comfortable for its employees. 4

Chapter 2

Business Operation

4

core value [Online] // Allied bank. - june 25, 2010. -http://www.abl.com/thebank/default.asp.

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2.1 Organizational Structure

It is a proper arrangement of jobs within an organization. When higher authority

develops or changes the structure they are engaged in organizational design.

2.1.1 ABL Management

Globally speaking; banks are managed by BOD who are responsible to the govt,

creditors, owners. and the obligations of the bank for the betterment and the

happiness of their institution. All the directors of ABL or some of them are chosen by

the government. A few or all directions working at ABL are recruited by government.

In the management of ABL there are many committees involved; which perform

different functions like BOD, Audit Committee, Auditors, Management, HumanCapital Committee and many others are involved.

2.1.2 Structure of ABL

The employees of ABL are operating its operation efficiently and effectively. Every

employee should know little bit about his work. And these things which an employee

should know that are as under

o What they should do after receiving the work from anyone?

o How they are supposed to handle the operation and how employee can do it

better ?

o When they are supposed to perform it

o To whom it will be given after finishing the work

Allied bank has its Head Office in Karachi to perform its working efficiently which iscontrolled by the President of the Bank. ABL has different regional offices in the

major areas of Pakistan which comes under the Head Office. And the head of this

Region is known as Regional Chief Head. Every province has its own regional office

and zonal offices.

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2.2 Branch Network

There is a wide branch network of ABL in the country; now ABL has 784 branches

and till 2011 they want to increase their branches up to more than 800. The old

branches are reconstructed into new ones.

2.3 Branch History

The Allied bank limited, High Street Sahiwal branch was established in 1948. It was

the first branch of ABL in this city. For sixty two years the name of the bank was

Australasia Bank. In the very beginning the bank, it offered a small product line and

with the passage of time the product line increased. The first ATM terminal was

installed in this branch of Sahiwal. Foreign exchange department is situated only in

this branch in Sahiwal region.5

5 branch history [Interview] / interv. Hussain ajmal. - sahiwal : [s.n.], 08 25, 20106


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Chairman

Board of Directors

Group Chief

Regional Chief

Zonal Chief

BranchManager

Customer Services

Manager

MG Officers

(Branch)

ABL Hierarchy 6

Figure 2.1

Branch Hierarchy7

6 management [Book] / auth. robbins s,p. - [s.l.] : pearson education, 2007. - 9 : p.

266.

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Figure 2.2

7 management [Book] / auth. robbins s,p. - [s.l.] : pearson education, 2007. - 9 : p.

266

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2.4 SWOT Analysis

In SWOT analysis I will discuss the Strengths, Weakness, Opportunities and Threats

of the organization and also the branch where I did my internship. The SWOT

analysis is as under

2.4.1 Strengths

1. Excellent Customer Services

Employees at ABL one of the best in term of competency, relevant experience

professionalism are especially I observed in High street branch that they know their

clients and customers discuss their problems. The customer services officers give

suggestion in very friendly environment. It is more important to retain existingcustomers rather than acquiring new one.

2. Strong Financial Position

The financials position of ABL is improves every year I discussed it in strengths

because last year when all the banks were in loss at that time ABL was only whose

profit was 7 million.8

3. Fully Online Branch Network

In Pakistan all the branches of ABL are facilitating their clients online facility. There

is no bank whose all branches are performing this job. Other banks branches who

are working in rural area mostly are not online branches.

4. Latest Banking Software (T24)

ABL has introduced the full version of new software that is known T24 which perform

all the banking operations and High Street Branch also uses this software. Some

other banks are using T24 but they are not using the full version of T24. This

strength provides less paper work facility to ABL.

8 last year profit [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26, 2010.9


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2.4.2 Weaknesses

1. Inequal Distribution of Work

I observed during my internship that some employees are over with burdened work

at ABL. So my opinion work should circulate according to their position. Every one

should perform their duties with honesty and full with devotion. My on site supervisor

left the office after eight in the evening but other staff left five in the evening. This is

an unequal distribution of work.

2. No Work Specialization

During my internship at ABL High Street Sahiwal branch; I also visited some of its

other branches in sahiwal. During such visits I observed that the employees working

in certain capacity do not possess the specialized skill in that area, For instance; one

of the co-workers Ms. Sidra working in the capacity of incharge advances used to

book after the online transactions department , as well in the absence of its incharge.

3. Absence of proper seating facilities for Customers

In the bank branch; there is lake of proper seating facilities for customers. As

consequence customers have to stand in long time wait for their tern. This leaves a

very bad impression on the customers mind. As it is said customer is good in

marketing. Therefore clients should be the first priority no matter what the situation

is.

2.4.3 Opportunities

1. Capitalize on IT for Future Growth

Each and every opportunity of this century can easily avail through information

technology. Therefore Allied Bank can also emphasize more on IT especially the E

Banking. Bank can design a universal account like other foreign banks, to enhance

online facilities. Government is taking very bold steps to promote IT in Pakistan. ABL

also has an opportunity to enhance growth adapting itself more flexibility towards IT.

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2. Extension of Accounts Network

Allied Bank growing business requires an extensive accounts network. There are

great opportunities for Allied Bank for the expansion of its business. Recently ABL

start a new product rising star for below the 18 years.

3. Target middle and low class

Low and middle class income group has little access to the banks, so I think these

classes should be the target and can be the opportunity for the Allied Bank Ltd. 9

4. Launch Innovative Products and Services

ABL has a very large network of branches Pakistan. If management launchesinnovative products and modern instruments in these areas then this bank can

become the biggest and most efficient bank of Pakistan.

2.4.4 Threats

1. Competitors

ABL is facing a strong competition by its major competitors; Askari commercial bank

and Habib Bank. Business of these banks is also growing with very high speed.

2. Instable Political Situation

ABL has been performing very outstanding in unstable political and economic

situation, but this uncertainty of law and order or bad policies of the govt is a

continuous threat for every bank. The laws are changing every day and also

instability of the government is increasing.The political influence affects the

performance of bank very badly. Most of the loans become bed debts due to politicalpressure.

3. Increased numbers of Banks

9

target new market [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26,2010.

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Increase in number of banks is a threat for ABL. Numbers of private banks

(commercial & private) are opening their business and provide the same facilities.

They are continuously increasing their products and marketing aggressively so it is a

threat for UBL that may cause its customers to shift to competitors.

Conclusion

SWOT analysis of the bank is showing that its strengths overcome its weaknesses

and its opportunities are more as compared to its threats. It is a positive sign for any

organization which provide services to customers.

Recommendations

In my observation the main problem for ABL is its middle management which is not

active in solving the problems of their employees and does not take initiatives for the

solutions to meet the complaints of the clients. But it is anticipated that the newly

hired employees have ability to change the current environment.

12


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Marketing Strategy

Marketing plays very important role in the successful operation of any business.

Today every business depends on effective marketing. The main thing is to attractthe customer and a marketer can attract the customers through different types of

promotion.

Allied Bank is targeting the customers according to the nature of its products. Each

and every person is the target of the bank because bank provides services according

to your status. Allied Business Account is targeting the upper class or corporate level

persons and Saving Account is targeting the middle class peoples.

According to my opinion ABL has very bad positioning in customers mind. The bank

is offering good products as compared to other banks but not providing better

services to customers. Because their infrastructure is bad they are using T24 full

version banking software but they have no trained employees.

Branding is related with products and services. ABL developed its name step by step

very efficiently because banks have 100 percent online branches and 350 ATM

terminals in all over the Pakistan. Any other banks can not claim these qualities.10

2.5.1 Marketing Mix

1. Product

2. price

3. Place

4. promotion

10 Marketing strategy [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26,

2010.

13


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Product

The following is the list of product line of Allied bank

o Internet banking

o Online banking

o ATM network

o Deposit accounts

o Agriculture

o Corporate Leasing

Corporate banking

o Project finance

o Long term financing

o Short term finance

o Trade finance

Price

Allied Bank limited uses the penetrating pricing strategy for its products. Because

Allied Bank deducts the 50 rupee for those who have the deposited below 10,000.

While other banks charge 100 rupees. And their limit is 25,000. And their initial

deposit is also lowest in the banking sector (500). Allied bank opens account with the

initial deposit of 500. By offering low charges the allied bank attracts the new

customers.

14


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Place

The Allied Bank limited has the strategy to cover the maximum area for its

customers; so thats why they have a strategy to cover the business area as well as

residential area. ABL is using penetration strategy, In sahiwal bank has eightbranches.

Figure 2.3 11

11 place [Online] // Allied bank. - september 18, 2010. -

http://upload.wikimedia.org/wikipedia/en/1/1e/Allied_Bank_Branches_in_Pakistan.JPG.

15
http://upload.wikimedia.org/wikipedia/en/1/1e/Allied_Bank_Branches_in_Pakistan.JPG


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Promotion

Push strategy

Allied bank uses the push strategy for the sale of its credit cards because the bank

give incentives and commission to the sales agent for the sale of their card.

Pull strategy

Allied bank also use pull strategy for the promotion because the use the

advertisement in print and electronic media as well for their promotion.

Public Relation

ABL is using Public Relation to create a good brand name among all its stakeholders

in market. PR is very necessary and useful tool for bank and as well as for the

employees in banking sector, because every employee has to bring 10 to 15

accounts where it is working. If employee has good PR then he will not face much

problem in bringing number of accounts.

The success of ABL depends on PR. Public also trust on it and like to built relations

with ABL because the bank provides a platform of good social interaction with the

various stakeholders such as govt, media, customers, competitors etc.12

12 Marketing Mix [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26, 2010.16


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Competitive Strategy

No bank can run its operations without using the latest technology and provide the

highest level of satisfaction to its customers. Today it is the time of competition andeveryone is trying to compete with others so one can survive in the market. Today

profit earning is not only the objective of any organization but also they have to

provide extra facilities to their customers to retain their market share. As we know

that competitors always a threat for an organization so Allied bank has many

competitors in the sector.

Now we will discuss the competitive edges of ABL which it has over competitors and

providing a better facility to its customers.

2.6.1 Online Branches

ABL has the wide network of 784 real time online branches which are facilitating their

customers the transfer amount from one branch to other branch and from one city to

other city. No bank has 784 real time online branches. With the introducing of new

branch ABL provides the online facility there is no branch of ABL in Pakistan which is

not providing the facility of online. This is a big edge over its competitors and this

creates a trust and goodwill. Any other bank can not claim this facility because in

village area branches are not fully online.

2.6.2 T 24 (Full version)

T 24 is banking software, with the help of this software the paper work will minimize.

The work will be centralized means employee will free from bank early most of the

work will be automated. Within a one year all the branches of ABL will start this

software. Now days some branches of ABL is using T 24. Some banks are using T

24 like Standard Chartered but it is not using the full version of this. But ABL is first

bank which is introducing the full version of T24.

This is the biggest edge that ABL has over its competitors.

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2.6.3 ATM Terminals

No bank has 350 ATM terminals all over Pakistan except Allied Bank of Pakistan

limited. They are facilitating their customer in every city of Pakistan. Today people

are using ATM cards and they carry less cash, with ATM everyone can withdraw

amount from every where ATM terminals are available. Habib bank has above 1400

branches in all over the country but only have 325 ATM terminals in the country.

Standard chartered bank has above 200 ATM terminals in all over the Pakistan. 13

13

ATM location [Online] // Standrad chartared bank. - 2010. - 8 24, 2010. -http://www.standardchartered.com/pk/personal/ways-to-bank/en/atm-locations.html.

18


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Business Process Analysis

After working in ABL I did the following business process analysis. Major operations

of the bank are given is following diagrammatic presentation.

Figure 2.4

19

Supervision

of All work

1. Account Opening

2. Clearing

3. Demand Draft and

pay order

4. Online banking

5. Advances


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Accounts Opening

Figure 2.5

20

Customer Comes to

Account Opening Dept

Issue Account opening form

Filled form under the

supervision of employee

Record in bank system

Issue bank account to

customer after the verification

of all authorities

Customer

request for

opening bank

account

Customer

Provide all

requirements

Original NIC card and

CNIC

CNIC next of

kin

Business proof

In case of job provide

job certificate

Signature of person

Initial deposit


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In the past when a person comes in bank for opening an account then there was no

difficulty for a banker and customer for opening an account but now days it is

becoming difficult for bankers and also for a customers. On parallel grounds; it is

good for security purpose bank demands lot of things from their customer. But it is

the requirement of SBP that any one who wants to open account will provide these

things which we the bank demand. If customer does not provide the required data

then the account cannot be opened in the bank.

Types of accounts

Some accounts that used in a bank normally.

o Current Account

o Saving Account

o Term Deposit Account

o Foreign Currency Account

o Business Account

o Staff Account 14

14 Account opening [Interview] / interv. Asif Muhammad. - sahiwal : [s.n.], june 17,2010

21


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CLEARING

Figure 2.6

It is the transfer of funds from one branch of bank to the other branch of the same

bank or the other bank on which the instrument is drawn, without involving cash

through State banks clearing house. The procedure of clearing is facilitated by NIFT

(NATIONAL INSTITUTION OF FACILITATION TECHNOLOGIES). The clearing

procedure requires 2 days for completion.

Clearing Has Two Types

o Outward clearing

o Inward clearing

22

Bank employee verified date

validity

Customer slip

Issues recede

Endorsement

NIFT


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Figure 2.7

I. Outward Clearing

It means the cheques which the bank received from our customers of other localbanks. The ABL facilitate its account holder to collect money from other banks

and these cheques are also sent through NIFT.

The same procedure is like inward clearing. In inward clearing we check stamps

and in outward clearing we stamp on the instruments of Cross Clearing and

Endorsement or Payee's Account. This is favorable for the bank.

II. Inward Clearing

It means the bank customers cheque, DD, PO, and any other type of instruments

which it received from other local banks (Sahiwal Region) is called Inward Clearing.

These cheques are sent by local banks through NIFT (National Institute of

Facilitation Technology). NIFT works as middle man on behalf of other banks. The

bank which receives cheques sees the Crossing and Clearing Stamps of sender

bank on the front side of the instrument and the stamp "Payees Account will be

credited on Realization" or Disbursement stamp on the back side of the instrument

should be stamped.

Inward clearing is unfavorable for the bank because it means to transfer money to

another branch or bank. Debit the customer account and Credit the NIFT.15

15 clearing [Interview] / interv. Ejaz najma. - sahiwal : [s.n.], july 12, 2010.

23

Inward

clearing

Outward

clearing

Clearing


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Pay Orders and Demand Draft

Figure 2.8

24

Dept. fills thefunds transfer

application

PO or DD is

prepared by the

employee

PO or DD is signed

by the authorized

employee

PO or DD is given to

customer

Requests for preparing PO or DD

Customer provides

cash or cheque

Charges are

taken from

customer

Customer Comes to

Remittance Dept.

Demand

draft

With in the

city

Pay

order

Use out of

city

Enter in

DD

register

Voucher of

charges

Enter in

PO

register

Voucher of

charges


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Payment Order (PO)

The other name of pay order is bank cheque.When some wants to pay another party

or person within a city then payment order is used. PO is used for security purpose

and it is drawn on the same bank which made PO. The account holder of bank tomakes PO of transfer not cash and walk in customer on cash because cash charges

are more.

Demand Draft (DD)

DD is also used to make payment by a person to another person in another city. DD

is made on the same lines as PO although the application form of DD is different. DD

is always drawn on another city and any branch of ABL.16

Online Banking

Figure 2.9

16 PO,DD [Interview] / interv. Ejaz najma. - sahiwal : [s.n.], june 23, 2010.25

OnlineBanking

Remount

Account

Title

Applicant

name

Applicant

Address

RemountAccount NO.

Original ID card

And copy

Remount

Branch


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Now there is time of Online not Courier etc. because Online takes seconds not hours

thats why customers preferring this. ABL Online Banking is a unique service being

offered from Allied Bank.

ABL cheque drawn from a remote branch for credit into a beneficiary account of a

specified amount can also be presented by a third person at any branch. Corporate

customers requiring fund collections can use it for cash management services.17

Advances

Figure 2.10

Purpose of Credit

17 online [Interview] / interv. Hussain tahir. - sahiwal : [s.n.], july 27, 2010.26

Advances

Long TermLoans

Short TermLoans

Lease Facility for

Car

For

Machinery

Cash

Finance

Running

finance


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All earnings of a bank are depended on CREDITS because

o A bank receives (borrows) deposits. It pays cost on these deposits.

o

On the other hand bank lends the deposits to borrowers and charges intereston the lending. This function is performed by CREDITS in any bank.

Advances

Different banks provide loan facility to general public, companies etc. but ABL

provides two types of loans that are as under:

o Non Fund Base Loans

o Fund Base Loans

Non Fund Base Loans

In non fund based loans cash is not directly involved but bank gives guarantee on

the behalf of customer. Bank works as a third party and known as Guarantor. Bank

provides a security to customer when he needs and someone requires from the

customer.

Fund Base Loans

In this type of loans cash is directly involved. Bank provides loans in shape of cash.

Bank gives credit or limit facility to customers that needed it. 18

Supervision of CSM (customer service Manager)

Without the supervision of CSM ever work of bank is incomplete in branch.There is a

proper system to check and balance the employees performance. It is the duty ofCustomer service manager to check the employees duties that they performed well

that every employees given desire result.19

Chapter 3

Learning as a Student Intern

18 Advanceses [Interview] / interv. Ghazali Sidra. - sahiwal : [s.n.], july 27, 2010.19 supervisio [Interview] / interv. khan Usman anjum. - sahiwal : [s.n.], 8 22, 2010

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Internship is a way of learning and it is also the degree requirement of MBA program.

So every student has to do this with full devotion and discipline. I decided to do

internship in ABL High Street Sahiwal because it is a renowned bank in Pakistan. I

learnt a lot there with the guidance from my professional seniors and colleagues.

The basic purpose of doing internship at ABL was is that due to its operations and its

financial strength. It stands as one of the leading bank of the country.

3.1 Duties

I worked with the Remittance Department where the general banking

operations are performed. I worked for two weeks in remittance

department. In this department all the operations are performed except

advances, foreign exchange etc. the major duties of this department are to

make DD, PO, etc.

o Filled Inward Clearing Slip (Debit and Credit Vouchers)

o Filled Current Account Deposit Slip

o Filled Profit & Loss Sharing Saving Account Deposit Slip

o Filled Demand Draft Form

o Filled Pay Order Slip

o Filled vouchers of Pay Order (Transfer Vouchers Yellow Color)

o Filled voucher of Pay Order (For Cash Purpose Light Green Color)

o Filled Advices for fund transfer of Govt. to different Schools

I joined bills department. In this department the major working is to collect the

cheques from their customers and customers cheque for collection and payment

purposes.

3.1.1 Clearing Department

o Outward Bills for Collection (OBC)

o Inward Bills for Collection (IBC)

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o Inward Clearing

o Outward Clearing

o

Filled the form Know Your Customer (KYC) for online purposes

Advances plays very important role for the banks earning. I learnt different

types of loans which bank is offering to the customers. The main working in

this department is to collect the information of the client, and the information

which bank needs is written above in Advances Department. But the advance

which bank provides is as under.

3.1.2 Fund Base Loans

o Long Term Loans

o Lease facility for car

o For Machinery

o For Fixed Assets

o Short Term Loans

o Running Finance (R/F)

o Cash Finance (C/F)

Securities for fund base loans

o Mortgage

o Hypothecation of Stock

3.1.3 Non Fund Base Loans

Securities for fund base loans

o Mortgage

o Hypothecation of Stock

o Pledge

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3.2 Accomplishments

The manager assigned me the task dealing with those cheque books which remains

with the bank for last 90 days. I made the phone calls to the customers to take their

cheque books and I wrote the letters to those customers who did not collect their

cheque books from last 90 days. I really completed my target because of this effort

most of the people came and took their cheque books from the bank.

3.3 New Knowledge Acquire

In ABL I learnt so many things and all the knowledge was new for me which I

acquired. The main thing which I learnt was customer dealing, and how its problems

can be handled. In bank all the importance is given to customer and customerservices officer should never say "No" to customer.

Besides this I understood the operations of the bank one has to know practical

application of all the operation. The biggest advantage of practical working is that I

gained lot of confidence because in banks there is restriction of cutting and everyone

works carefully and the staff trusts on me and gave me some confidential documents

for filling. It really boosts up my morale and confidence.

3.4 Recommendations

In every organization there are some problems which employees or internees have

to endure. During my internship following are some observations and suggestions.

o When bank grants loans to customers then it does not check the customers

information properly. Bank must carefully analyze the past six months

transaction history of the borrower. This will help in judging the dealing behavior

and financial status of the client. In most cases this thing is not properly done

and it is the major reason of default of many clients.

o The Bank should have the moving cameras in their branches for security

purposes.

o The Bank should try to give more loans to the small borrowers as the past history

shows that most of the loans given to the corporate borrowers have converted

into bad debts.

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o The Bank has a lot of financing schemes but there is very little advertisement of

these schemes. So Bank should increase its advertisement.

o When any one comes to operate the lockers then the things which he keeps in

locker should be checked through metal detector for security purposes.

o In High Street of ABL hundreds customers come for getting facility but for the

sitting of customers there are few chairs and customers have to wait for sit.

3.5 How Experience Impacts on Career

As it is said with learning comes experience. Therefore I can very well put forward

here that my internship was an eye-openers to me towards the practical side of my

degree. Through my internship experience; I have gained tremendous confidence in

handling clients and day to day work pressure. Since my aim is very much consistent

with my internship; therefore my learning would help me in my professional life

experience after the completion of my degree. ABL will help me find a suitable; yet

lucrative job opportunity in the banking sector. Along with this; I have become more

mature in my learning and have learned the value of time.

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Appendix

Debit Voucher

Credit Voucher

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Slips

8th edit wajahat final report

Documents