Come Join Us at VUSTUDENTS - INTERNSHIP REPORT Allied Bank Limited (ABL) ISLAMABAD, PAKISTAN Submitted By Syed Ahsan Ali Zaidi Mcxxxxxxxxx Session 2009 –

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Virtual University of Pakistan </p><p>Come and Join Us at</p><p>www.vustudents.netsomimalikvu</p></li><li><p>1 </p><p>INTERNSHIP REPORT </p><p>Allied Bank Limited (ABL) </p><p>ISLAMABAD, PAKISTAN </p><p>Submitted By </p><p>Syed Ahsan Ali Zaidi </p><p>Mcxxxxxxxxx </p><p>Session 2009 2011 </p><p>Submission Date 12th Jan 2012 </p><p>Virtual University Of Pakistan </p><p>Come and Join Us at</p><p>Somivu</p></li><li><p>2 </p><p>All vu39 members especially my cute little sweet fellows who </p><p>told me that report is nothing but a sir dard :D . </p><p>I did nothing as I did my efforts, </p><p>&amp; </p><p>Special Thanks Goes To </p><p>Mr. Lonely </p><p>:p red alert </p><p>The people who helped me out </p><p>Hibba, Sohnie, Seph, ayisha, sweety cuteey, fizza pervaiz </p><p>THANK YOU SO MUCH!</p><p>Come and Join Us at</p></li><li><p>3 </p><p>First of all, I want to express all my humble thanks to ALLAH who is very sensitive about each </p><p>and every activity of all his men and without whose help, I am unable to accomplish any </p><p>objective in my life. All respect to his Holy Prophet HAZART MUHAMMAD (Peace Be Upon </p><p>Him) who brought the light of knowledge when the humanity was wandering in the desert of </p><p>ignorance. </p><p>Secondly, I am grateful to my prestigious institute that made his learning opportunity a part of </p><p>our education, especially. Internship coordinator MR. Imran who not only guided me well but </p><p>also helped me in finding such an excellent place for internship. I am also thankful to all other </p><p>teachers as the knowledge imparted by them enables me to gain knowledge of the organization in </p><p>best way. </p><p>I would also thank to all the staff of Allied Bank, particularly Mr. Rana Riaz Ahmad who gives </p><p>me an opportunity to work in the bank and gave me a chance to explore my knowledge. </p><p>I submit my earnest thanks to my affectionate parents, who always remains at my back to </p><p>support me, I can never give the return of their un tired struggle for me, but I can only prove </p><p>myself as they expect from me. And I am also grateful to all other family members and all my </p><p>friends for their moral boosting and spiritual support during my study and especially in this </p><p>internship program. I went to pay gratitude to all persons, who had helped me in completing this </p><p>support. </p><p>Muhammad Chatta </p><p>Come and Join Us at</p></li><li><p>4 </p><p> MBA (Finance) </p><p>EXECUTIVE SUMMARY </p><p>This report is about my internship program with Allied Bank Limited. In this comprehensive </p><p>report, I have discussed about every major aspect of the bank, which I observed and perceived </p><p>during my internship program. In this report you will find the detail about the bank right from its </p><p>incorporation to the current position. Along with it, the processes, policies and procedures of the </p><p>bank are also discussed in detail. </p><p>During my internship program, I mainly worked in General Banking &amp; Finance. All the </p><p>departments have been discussed in detail and all the policies and procedures have been </p><p>described thoroughly. </p><p>As the main purpose of internship is to learn by working in practical environment and to apply </p><p>the knowledge acquired during the studies in a real world scenario in order to tackle the </p><p>problems using the knowledge and skill learned during the academic process, In this report the </p><p>detailed analysis of the organization has been done and all the financial, technical, managerial </p><p>and strategic aspects have been evaluated to analyze the current position of the organization. </p><p>Along with it, the background analysis, the prevailing competition analysis, the business process </p><p>analysis, and the internal environment and external environment of the organization have been </p><p>discussed and the recommendations for the improvement have been made wherever required. </p><p>In the end the learning and experiences section consists of all the policies, processes, practices </p><p>and procedures which I have undergone through and learned during my internship program. This </p><p>report also contains my perceptions about the employees satisfaction, motivation level and the </p><p>working environment of the organization. </p><p>Come and Join Us at</p></li><li><p>5 </p><p>Index Description Page </p><p>1 OVERVIEW OF ORGANIZATION </p><p> BREIF HISTORY OF ORGANIZAITON 9 </p><p> HIERACHY CHART OF THE ORGANIZATION 13 </p><p> BUSINESS VOLUME 14 </p><p> PRODUCT LINES 15 </p><p> COMPETITORS 16 </p><p> INTRODUCTION OF ALL THE DEPARTMENTS 17 </p><p> COMMENTS ON THE ORGANIZATIONAL STRUCTURE 33 </p><p>2 PLAN FOR THE INTERNSHIP 34 </p><p>3 TRAINING PROGRAM 35 </p><p> DETAIL DESCRIPTION OF TASKS ASSIGNED 36 </p><p>4 RATIO ANALYSIS 38 </p><p>Bank Ratios DFIs </p><p>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 </p><p>Come and Join Us at</p></li><li><p>6 </p><p>14) Earning per Share 15) Price/Earning Ratio </p><p>5 FUTURE PROSPECTUS 55 </p><p>6 CONCLUSION 56 </p><p>7 RECOMMENDATION FOR IMPROVEMENTS 57 </p><p>8 REFRENCES &amp; SOURCES USED 58 </p><p>9 ANNEXES </p><p>Come and Join Us at</p></li><li><p>7 </p><p>OVERVIEW OF THE ORGANIZATION </p><p>A. The Brief History Organization </p><p>Allied Bank is the first Muslim bank, to have been established on the territory that became </p><p>Pakistan.established in December 1942 as the Australasia Bank at Lahore with a paid-up share </p><p>capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had </p><p>attracted deposits, equivalent to Rs. 0.431 Million in its first eighteen months of business. Total </p><p>assets then amounted to Rs. 0.572 million. Today Allied Bank's paid up Capital &amp; Reserves </p><p>amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 </p><p>billion. The Allied Bank's story is one of dedication, commitment to professionalism, adaptation </p><p>to changing environmental challenges resulting into all round growth and stability, envied and </p><p>aspired by many. </p><p>The Pre Independence History (1942 to 1947) </p><p>In the early 1940s the Muslim community was beginning to realize the need for the active </p><p>participation in the field of trade and industry. The Hindus had since the late 1880s established a </p><p>commanding presence in these areas and industry, trade and commerce in the undivided Sub-</p><p>continent was completely dominated by them. Banking, in particular, was an exclusive enclave </p><p>of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally </p><p>unsuited for this profession. It was particularly galling for Khawaja Bashir Bux to hear the gibe </p><p>that Muslims could not be successful bankers. He decided to respond to the challenge and took </p><p>lead in establishing this first Muslim bank on the soil of Punjab that was to become </p><p>Australasia Bank (1947 to 1974) </p><p>Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the </p><p>14th, 1947. It had been severely hit by the riots in East Punjab. The bank was identified with the </p><p>Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, </p><p>Come and Join Us at</p></li><li><p>8 </p><p>Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in </p><p>Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it </p><p>network spread to Multan &amp; Quetta. The Bank financed trade in cloth and food grains and thus </p><p>played an important role in maintaining consumer supplies during riot affected early months of </p><p>1948. Despite the difficult conditions prevailing and the substantial set back in the Banks </p><p>business in India, Australasia Bank made a profit of Rs 50,000 during 1947-48. By the end of </p><p>1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of East Pakistan. </p><p>The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186 </p><p>branches in West Pakistan. </p><p>Allied Bank (1991 to 2004) </p><p>As a result of privatization in September 1991, Allied Bank entered in a new phase of its history, </p><p>as the worlds first bank to be owned and managed by its employees. In 1993 the First Allied </p><p>Bank Modaraba (FABM) was floated. </p><p>Allied Bank (2005 to date) </p><p>In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and </p><p>into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares </p><p>held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of </p><p>Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced </p><p>w.e.f. the following dates. </p><p>Come and Join Us at</p></li><li><p>9 </p><p>V i s i o n </p><p>To become a dynamic and efficient bank providing integrated solutions in order to be the first </p><p>choice bank for the customers </p><p>M i s s i o n </p><p> To provide value added services to our customers </p><p> To provide high tech innovative solutions to meet customers requirements </p><p> To create sustainable value through growth, efficiency and diversity for all stakeholders </p><p> To provide a challenging work environment and reward dedicated team members </p><p> according to their abilities and performance </p><p> To play a proactive role in contributing towards the society </p><p>Come and Join Us at</p><p>Somivu</p></li><li><p>10 </p><p>B o a r d o f D i r e c t o r s </p><p>C o m p a n y I n f o r m a t i o n </p><p>Board of Directors </p><p> Mohammad Naeem Mukhtar Non-Executive Director Chairman </p><p> Sheikh Mukhtar Ahmad Non-Executive Director </p><p> Mohammad Waseem Mukhtar Non-Executive Director </p><p> Abdul Aziz Khan Non-Executive Director </p><p> Farrakh Qayyum Non-Executive Director Government Nominee </p><p> Nazrat Bashir Non-Executive Director Government Nominee </p><p> Tasneem M. Noorani Independent Director </p><p> Mubashir A. Akhtar Independent Director </p><p> Pervaiz Iqbal Butt Independent Director </p><p> Sheikh Jalees Ahmed Executive Director </p><p> Mohammad Aftab Manzoor Executive Director Chief Executive Officer </p><p>Come and Join Us at</p></li><li><p>11 </p><p>B. Organizational Hierarchy Chart </p><p> The management hierarchy represents the different positions and designations in the hierarchy of </p><p>the ABL. However, this is not the reporting hierarchy but merely represents the positions and </p><p>grades on the basis of seniority and grades. </p><p>Come and Join Us at</p></li><li><p>12 </p><p>C. Business Volume The business volume of bank comprises on deposits and advances of any bank so ABL Business </p><p>Volume Figures are as under for the year 2008 to 2010: </p><p>During 2010, the Group successfully embarked upon its strategy of increasing the proportion of </p><p>low cost deposits. Deposits grew by 13% to reach Rs. 371 billion as at December 31, 2010 over </p><p>the previous year with share of CASA improving on average volume basis from 53% during </p><p>2009 to 55% in 2010, thereby managing. The cost of funds in contributing to improved </p><p>profitability. </p><p>Come and Join Us at</p></li><li><p>13 </p><p>D. Product Lines </p><p>ABL facilitates its customers by providing different types of services of deposits, advances, </p><p>foreign exchange and other general services. Here is the list of services provided by bank: </p><p> Current Account </p><p> Allied Business Account </p><p> PLS Saving Deposits </p><p> Allied Basic Banking Account </p><p> Foreign Currency Deposits </p><p> PLS Term Deposit Account </p><p> Allied Munafa Account </p><p> Behtar Munafa account (BMA) </p><p> Behtar Munafa Term Deposit (BMTD) </p><p> Mahana Aamdani Package </p><p> Allied Bachat Scheme (ABS) </p><p> Allied e-Savers Accounts (ESA) </p><p> Home remittances </p><p> Remittance </p><p> Hajj services </p><p> Utility bills </p><p> Lockers </p><p> Agriculture finance </p><p> Import Export business/Trade finance </p><p> Allied bank rupee traveller cheques </p><p> Seasonal finance </p><p> Running finance </p><p> Cash finance </p><p> Demand finance </p><p> Corporate leasing </p><p> All time banking </p><p> On line banking </p><p> Internet banking </p><p> Visa credit card </p><p> ATM Net Work </p><p> Helpline </p><p>Come and Join Us at</p></li><li><p>14 </p><p>E. Competitors </p><p>The following are the competitors of Allied Bank Limited which stands in cause of competing </p><p>with its diametrically opposed products </p><p> National Bank Of Pakistan </p><p> Bank Al Falah </p><p> United Bank Limited </p><p> Muslim commercial bank </p><p> Citibank </p><p> Habib Bank Limited </p><p> Faysal Bank </p><p> Prime Commercial Bank </p><p> Abn Amro Bank </p><p> Saudi Pak Commercial Bank </p><p> Indus Bank </p><p> Soneri Bank </p><p> The Bank Of Khyber </p><p> Metropolian Bank </p><p> Standard Chartered Bank </p><p> Askari Bank </p><p>Come and Join Us at</p></li><li><p>15 </p><p>F. Brief Introduction Of All Departments </p><p>1. General Banking Department </p><p>The general banking department performs functions of account opening, deposits of cheque, </p><p>demand draft, telegraphic transfer, clearing, collection of utility bills etc. it consists of following </p><p>departments to perform its functions. </p><p> Cash department </p><p> Accounts department </p><p> Remittance department </p><p> Clearing department </p><p>2. Cash Department </p><p>It provides its users with following facilities: </p><p>a) Accept deposits: </p><p>When a customer wants to deposit any amount in its account it goes to the relevant </p><p>officer who accept deposit and give a receipt to the customer. The cashier in cashier </p><p>long book enters the amount deposited by the customer on its credit side. </p><p>b) Collection of utility bills: </p><p> The branch also provides the facility of utility bills collection of electricity, </p><p>gas and telephones. The branches collect utility Bills during banking hours. Bills can </p><p>be paid through cash or cheques. </p><p>3. Accounts department </p><p>One of the important functions of bank is to accept deposits from general public. Following are </p><p>the types of accounts provided by the bank: </p><p>1. Current accounts. </p><p>2. Pls saving accounts. </p><p>Come and Join Us at</p></li><li><p>16 </p><p>3. Pls term deposit. </p><p>4. Special notice deposit. </p><p>The classification is based on the duration and purpose for which the deposits are kept at the </p><p>bank. Following are the features of these accounts. </p><p>4. Remittance Department </p><p> One of the major functions of bank is remittance. This department provides this facility through </p><p>following instruments. </p><p>1. Demand draft </p><p>2. Telegraphic Transfer </p><p>3. Payment order </p><p>4. Deposit at call </p><p>5. Clearing Department: </p><p>When the branch receives chequ...</p></li></ul>