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  • 1

    INTERNSHIP REPORT

    Allied Bank Limited (ABL)

    ISLAMABAD, PAKISTAN

    Submitted By

    Syed Ahsan Ali Zaidi

    Mcxxxxxxxxx

    Session 2009 2011

    Submission Date 12th Jan 2012

    Virtual University Of Pakistan

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    Somivu

  • 2

    All vu39 members especially my cute little sweet fellows who

    told me that report is nothing but a sir dard :D .

    I did nothing as I did my efforts,

    &

    Special Thanks Goes To

    Mr. Lonely

    :p red alert

    The people who helped me out

    Hibba, Sohnie, Seph, ayisha, sweety cuteey, fizza pervaiz

    THANK YOU SO MUCH!

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    First of all, I want to express all my humble thanks to ALLAH who is very sensitive about each

    and every activity of all his men and without whose help, I am unable to accomplish any

    objective in my life. All respect to his Holy Prophet HAZART MUHAMMAD (Peace Be Upon

    Him) who brought the light of knowledge when the humanity was wandering in the desert of

    ignorance.

    Secondly, I am grateful to my prestigious institute that made his learning opportunity a part of

    our education, especially. Internship coordinator MR. Imran who not only guided me well but

    also helped me in finding such an excellent place for internship. I am also thankful to all other

    teachers as the knowledge imparted by them enables me to gain knowledge of the organization in

    best way.

    I would also thank to all the staff of Allied Bank, particularly Mr. Rana Riaz Ahmad who gives

    me an opportunity to work in the bank and gave me a chance to explore my knowledge.

    I submit my earnest thanks to my affectionate parents, who always remains at my back to

    support me, I can never give the return of their un tired struggle for me, but I can only prove

    myself as they expect from me. And I am also grateful to all other family members and all my

    friends for their moral boosting and spiritual support during my study and especially in this

    internship program. I went to pay gratitude to all persons, who had helped me in completing this

    support.

    Muhammad Chatta

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    MBA (Finance)

    EXECUTIVE SUMMARY

    This report is about my internship program with Allied Bank Limited. In this comprehensive

    report, I have discussed about every major aspect of the bank, which I observed and perceived

    during my internship program. In this report you will find the detail about the bank right from its

    incorporation to the current position. Along with it, the processes, policies and procedures of the

    bank are also discussed in detail.

    During my internship program, I mainly worked in General Banking & Finance. All the

    departments have been discussed in detail and all the policies and procedures have been

    described thoroughly.

    As the main purpose of internship is to learn by working in practical environment and to apply

    the knowledge acquired during the studies in a real world scenario in order to tackle the

    problems using the knowledge and skill learned during the academic process, In this report the

    detailed analysis of the organization has been done and all the financial, technical, managerial

    and strategic aspects have been evaluated to analyze the current position of the organization.

    Along with it, the background analysis, the prevailing competition analysis, the business process

    analysis, and the internal environment and external environment of the organization have been

    discussed and the recommendations for the improvement have been made wherever required.

    In the end the learning and experiences section consists of all the policies, processes, practices

    and procedures which I have undergone through and learned during my internship program. This

    report also contains my perceptions about the employees satisfaction, motivation level and the

    working environment of the organization.

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    Index Description Page

    1 OVERVIEW OF ORGANIZATION

    BREIF HISTORY OF ORGANIZAITON 9

    HIERACHY CHART OF THE ORGANIZATION 13

    BUSINESS VOLUME 14

    PRODUCT LINES 15

    COMPETITORS 16

    INTRODUCTION OF ALL THE DEPARTMENTS 17

    COMMENTS ON THE ORGANIZATIONAL STRUCTURE 33

    2 PLAN FOR THE INTERNSHIP 34

    3 TRAINING PROGRAM 35

    DETAIL DESCRIPTION OF TASKS ASSIGNED 36

    4 RATIO ANALYSIS 38

    Bank Ratios DFIs

    1) Net Profit Margin 2) Gross Spread Ratio 3) Non Interest Income to Total Income Ratio 4) Spread Ratio 5) Return on Assets (ROA) 6) Du Pont Return on Assets Ratio 7) Return on Total Equity (ROE) 8) Debt Ratio 9) Debt / Equity Ratio 10) Times Interest Earned Ratio 11) Advances / Deposits Ratio 12) Operating Cash Flow Ratio 13) Dividend per Share

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    14) Earning per Share 15) Price/Earning Ratio

    5 FUTURE PROSPECTUS 55

    6 CONCLUSION 56

    7 RECOMMENDATION FOR IMPROVEMENTS 57

    8 REFRENCES & SOURCES USED 58

    9 ANNEXES

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    OVERVIEW OF THE ORGANIZATION

    A. The Brief History Organization

    Allied Bank is the first Muslim bank, to have been established on the territory that became

    Pakistan.established in December 1942 as the Australasia Bank at Lahore with a paid-up share

    capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had

    attracted deposits, equivalent to Rs. 0.431 Million in its first eighteen months of business. Total

    assets then amounted to Rs. 0.572 million. Today Allied Bank's paid up Capital & Reserves

    amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170

    billion. The Allied Bank's story is one of dedication, commitment to professionalism, adaptation

    to changing environmental challenges resulting into all round growth and stability, envied and

    aspired by many.

    The Pre Independence History (1942 to 1947)

    In the early 1940s the Muslim community was beginning to realize the need for the active

    participation in the field of trade and industry. The Hindus had since the late 1880s established a

    commanding presence in these areas and industry, trade and commerce in the undivided Sub-

    continent was completely dominated by them. Banking, in particular, was an exclusive enclave

    of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally

    unsuited for this profession. It was particularly galling for Khawaja Bashir Bux to hear the gibe

    that Muslims could not be successful bankers. He decided to respond to the challenge and took

    lead in establishing this first Muslim bank on the soil of Punjab that was to become

    Australasia Bank (1947 to 1974)

    Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the

    14th, 1947. It had been 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,

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    Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in

    Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it

    network spread to Multan & Quetta. The Bank financed trade in cloth and food grains and thus

    played an important role in maintaining consumer supplies during riot affected early months of

    1948. 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.

    The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186

    branches in West Pakistan.

    Allied Bank (1991 to 2004)

    As a result of privatization in September 1991, Allied Bank entered in a new phase of its history,

    as the worlds first bank to be owned and managed by its employees. In 1993 the First Allied